The International Air Transport Association (IATA) released data for global air freight markets showing a strong increase in air cargo in July. Compared to July 2013, freight tonne kilometers (FTKs) rose 5.8%. This is an acceleration in growth from June when cargo demand grew at less than half that rate (2.4%).
The strong growth mirrors positive developments in some key regional economies. After a slowdown at the start of the year, global business confidence and trade are showing signs of improvement again, especially in Asia-Pacific. Global air cargo volumes have now surpassed their previous July peak, in 2010, and look set to continue to increase. European air freight, however, grew just 1.8%. This reflects the effects of the Russia-Ukraine crisis (including the impact of mounting economic sanctions), which is adding to economic weakness in the Eurozone.
«Overall, July saw growth accelerate. That"™s good news and it reflects the continued strengthening of business confidence at a global level. But the air cargo industry is moving at two speeds with a sharp divide in regional performance. European carriers reported anemic growth of just 1.8% while all other regions reported solid gains of 5% or more on the previous year. In particular, the 7.1% growth reported by airlines in Asia-Pacific is encouraging as it demonstrates a recovery in trade and a positive response to China"™s economic stimulus measures,» said Tony Tyler, IATA"™s Director General and CEO.
Regional Analysis in Detail
"¢ Asia-Pacific airlines showed their strongest rise in air cargo volumes since the start of 2013, increasing 7.1% compared to a year ago. The fortunes of the region"™s carriers are tied to the strength of major economies such as China, Japan and South Korea, which are expanding again after a slowdown at the start of the year. Capacity grew 4.0%.
"¢ European carriers saw little improvement in cargo demand, expanding FTKs just 1.8% compared to a year ago. The weakness of major economies such as France and Italy, along with the effect of EU sanctions on Russia, has dampened demand. Capacity expanded 4.4%.
"¢ North American airlines grew their FTKs by 5.2%. After weakness in the first quarter, trade volumes have rebounded and business growth trends look positive for the months ahead. Capacity fell 1.3%.
"¢ Middle Eastern freight markets expanded 9.4%. This strong performance came despite the impact of Ramadan. Airlines in the region are capturing growth opportunities by opening routes to fast-developing economies such as Mexico and Uganda. Capacity rose 7.8%.
"¢ Latin American carriers grew FTKs by 7.6% year-on-year. This encouraging performance could be the start of a pick-up in activity following months of weakness, particularly in Brazil. Capacity contracted 0.6%.
"¢ African carrier"™ FTKs grew 11.3%. However, African freight volumes remain highly volatile, and given the slowdown in South Africa this year, it is too early to say that prolonged growth acceleration is underway. Capacity grew 4.5%.
