DEMAND for global air freight, measured in freight tonne kilometres (FTKs), decreased by 3.3% in 2019 compared to 2018, according to the International Air Transport Association (IATA).
Capacity, however, rose by 2.1% year-on-year (yoy).
For the month of December, cargo volumes contracted 2.7% yoy while capacity rose 2.8% yoy.
“This was the first year of declining freight volumes since 2012, and the weakest performance since the global financial crisis in 2009 when air freight markets contracted by 9.7%.
“Air cargo’s performance in 2019 was dampened by weak growth in global trade,” IATA said in a statement today (Feb 6).
It also attributed the sector’s performance to slowing gross domestic product growth in manufacturing-intensive economies, softer business and consumer confidence, as well as falling export orders.
“There are signs that confidence and orders could pick up in 2020, but it is too early to say what long-term effects will be seen from the impact of restrictions associated with combating the coronavirus outbreak,” it said.
IATA’s director-general and chief executive officer Alexandre de Juniac said trade tensions were at the root of the worst year for air cargo since the 2009 global financial crisis.
“While these are easing, there is little relief in that good news as we are in unknown territory with respect to the eventual impact of the coronavirus on the global economy.
“With all the restrictions being put in place, it would certainly be a drag on economic growth and 2020 will be another challenging year for the air cargo business,” he added. – Feb 6, 2020, Bernama
