The International Air Transport Association says global air freight increased by 11.4 per cent in July compared to the same period a year ago.
IATA, in its latest data released on Tuesday stated this was the fourth time in five months that double-digit annual growth was recorded, adding that July’s year-on-year increase in demand was nearly four times higher than the 10-year average growth rate of 3.1 per cent.
The association said that freight capacity, measured in available freight tonne kilometres, grew by 3.7 per cent year-on-year in July 2017 while demand growth continued to significantly outstrip capacity growth, which it described as positive for airline yields and the industry’s financial performance.
The IATA’s report added, “The robust growth in air cargo demand is consistent with an uptick in global trade, rising export orders and upbeat business confidence indicators. There are, however, signs that demand growth for air freight may be nearing a peak.
“Seasonally-adjusted air freight volumes were flat in June and fell in July; and the global inventory-to-sales ratio has stabilised. Air cargo often sees a boost in demand at the beginning of an economic upturn as companies look to restock inventories quickly. This tapers as inventories are adjusted to new demand levels.”
The IATA’s Director-General and Chief Executive Officer, Alexandre de Juniac, said July was a strong month for air cargo with double-digit growth and that for the third consecutive month, demand for air freight grew at a faster pace than demand for air travel.
“While the outlook for the rest of the year remains positive, there are signs that the cyclical growth period may be nearing a peak,” he said,
According to the association, all regions posted robust freight growth in July 2017 while African carriers posted the largest year-on-year increase in demand of all regions in July 2017 with freight volumes growing 33.7 per cent, recording the second fastest monthly rise in seven years.
The regions capacity increased by 4.5 per cent over the same period while demand, according to the report, was being boosted by very strong growth on the trade lanes to and from Asia which increased 80 per cent year-on-year in June and by 65 per cent in the first half of the year.
Asia Pacific airlines’ freight volumes grew by 11 per cent in July 2017 compared to the same period a year earlier and capacity increased by 6.3 per cent while North American carriers posted an increase in freight volumes of 11.9 per cent in July 2017, and a capacity increase of 1.1 per cent.
European airlines, on the other hand, posted a 12.1 per cent increase in freight demand in July 2017 and a capacity increase of 5.5 per cent.
The Middle Eastern carriers’ year-on-year freight volumes increased 9.3 per cent in July 2017 and capacity decreased 0.4 per cent while Latin America airline’s experienced a growth in demand of 5.8 per cent in July 2017, compared to the same period in 2016 and capacity increased by 4.7 per cent over the same period.