Air cargo demand in worst run of declines since 2008: IATA

Air freight volumes fell for the 10th consecutive month during August, in what has become the worst run of demand contractions since 2008, according to the latest data from IATA. Global demand measured in freight tonne kilometres (FTKs) was down some 3.9% year-on-year in August, IATA states in its 9 October report, citing the China-US trade spat and weak economic indicators. Global trade volumes were down 1%, it adds. But cargo capacity measured in available freight tonne kilometres (AFTKs) was up 2%, marking the 16th consecutive month where that measure has outpaced demand growth. "The impact of the US-China trade war on air freight volumes was the clearest yet in August," states IATA director general Alexandre de Juniac. "Not since outpaced demand growth.the global financial crisis in 2008 has demand fallen for 10 consecutive months." FTKs stopped rising year-on-year in November 2018 for the first time since March 2016. Demand growth has been in negative territory since then, marking a stark change in fortunes for the sector. In the year so far, August's FTK decline of 3.9% is steeper than the 3.2% drop seen in July, although it is behind the near-5% falls seen February, April and June. IATA notes that trade in emerging economies has been "underperforming that of advanced nations throughout most of 2019", citing "higher sensitivity of the emerging economies to trade tensions, rising political instability and sharp currency depreciation in some of the key emerging markets". Amid the "intensifying" China-US trade war, the global Purchasing Managers Index (PMI) remains in "contraction territory", IATA continues, adding that a fall in orders was reported across "all major trading nations" for the second month in a row.<br/>