The International Air Transport Association (IATA) says African carriers saw freight demand contract by 2.1% in September 2018, compared to the same month last year, adding that this was the sixth time in seven months that demand contracted.
IATA states: “Capacity increased by 6.2% year-on-year. After a peak in demand at the end of 2017, seasonally-adjusted international freight volumes have stopped declining and recovered sharply in recent months. However, they remain 6% lower than the November 2017 peak. Demand conditions on all key markets to/ from Africa remain weak.”
IATA just-released data for global air freight markets shows that demand, measured in freight tonne kilometers (FTKs), rose 2.0% in September 2018, compared to the same period the year before. This pace of growth was relatively unchanged from the previous month but was less than half the five-year average growth rate of 5.1%.
“Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 3.2% year-on-year in September 2018. This was the seventh month in a row that capacity growth outstripped demand. Yields, however, appear to be holding up,” the association states.
Mr. Alexandre de Juniac, IATA’s Director General and CEO. Says: “Demand for air cargo grew 2% in September—well below the five year average of 5.1%. Weakening order books and longer delivery times are undercutting the need for air freight in many traditional markets. But there is also some positive news. For example, strong consumer confidence goes hand-in-hand with expanding international e-commerce trade to give air cargo a boost.”
Mr. de Juniac adds that the bigger message for the sector is the need to modernize processes. “There is some progress with the electronic air waybill becoming the default document on enabled trade lanes from 2019. But there is much more that must be done with governments and the supply chain to bring air cargo processes into the modern era,” he says.