The International Air Transport Association (IATA) released data for global air freight markets in July 2016 showing robust growth in demand.
Measured in freight tonne kilometers (FTKs), demand increased 5.0% in July 2016, compared to July 2015. This was the fastest pace in almost 18 months. Freight capacity measured in available freight tonne kilometers (AFTKs) increased by 5.2% year-on-year, outstripping demand and keeping yields under pressure.
Despite the subdued global trade backdrop, carriers in the world’s four biggest air cargo markets – Asia-Pacific, Europe, North America and the Middle East – reported an increase in freight demand. The strongest growth occurred in Europe and the Middle East, with July demand up by 7.2% and 6.7% respectively, compared to the same period last year.
“July was a positive month for air freight—which is an all too rare occurrence. Despite that, we must recognize that we face some strong headwinds on fundamental aspects of the business. Global trade growth is sluggish and business confidence is weak. And the political rhetoric on both sides of the Atlantic is not encouraging for further trade liberalization,” said Alexandre de Juniac, IATA’s Director General and CEO.