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Tue, Jan 12, 2016

IATA: Decline In Air Freight Volumes May Have Bottomed Out

Month-By-Month Volume Down, But A Slight Uptick Seen In Overall Data

The International Air Transport Association (IATA) released data for global air freight markets showing air cargo volumes (measured in Freight (metric) Ton Kilometers) were down 1.2% in November 2015, compared to November 2014. Total cargo volumes, however, expanded compared to October 2015, and were higher than the low point in August. This indicates that the decline in cargo demand may be bottoming out. 

The negative year-on-year comparisons occurred across all regions with the exception of the Middle East. Of the major markets that together comprise more than 80% of total trade, Europe was down 2.0%, North America by 3.2%, and Asia-Pacific by 1.5%. The comparative weakness in these regions was driven largely because the performance in November 2014 was very strong. Latin American and African markets also fell, by 6.4% and 6.0% respectively. The Middle East region posted 5.4% growth.

“The freight performance in November was a mixed bag. Although the headline growth rate fell again, and the global economic outlook remains fragile, it appears that parts of Asia-Pacific are growing again and globally, export orders are looking better. In fact, the downward trend in FTK volumes appears to be bottoming out. But there is a great deal of uncertainty. The current volatility of stock markets shows how much the health of the global economy – upon which air cargo depends - remains on a knife-edge,” said Tony Tyler, IATA’s Director General and CEO.

(Source: IATA news release)

FMI: www.iata.org

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