The International Air Transport Association (IATA) has released data for global air freight markets showing a 3.2 per cent expansion in freight tonne kilometres (FTKs) in January 2015 compared to the same month last year.
The director general and chief executive of the association, Mr. Tony Tyler said in a statement that the growth is slower than the average of 4.5 per cent recorded for 2014.
He said there was much regional variation in the January performance with Asia-Pacific, African and Middle Eastern airlines expanding strongly, while airlines in Europe and North and Latin America all reported demand contractions.
Although it is too early to be certain of a trend towards weaker air freight, he said there are at least two emerging factors which could negatively impact demand for air cargo in the coming months.
These are business confidence which he said had been declining since mid-2014 and export orders tailed-off towards the end of the year as well as a reversal of the positive trade-to-domestic production ratio which boosted cargo volumes last year
“January was a disappointing start to the year for air cargo. And it is difficult to be too optimistic about the rest of the year given the economic headwinds in Europe and growing concerns over the Chinese economy.
Add to that the continuing trends of on-shoring production and trade protectionism and 2015 is shaping up to be another tough year for air cargo,” he said.
Regional analysis showed that Asia-Pacific carriers grew their FTKs 6.9 per cent compared to January 2014, supported by an improvement in regional import activity.
European airlines saw volumes fall 1.2 per cent compared to a year ago. He attributed the decline to Eurozone which he said “is facing deflationary economic headwinds and the weakness of the Russian economy is also impacting demand.”
North American carriers experienced a 1.0% fall in FTKs. This decrease, according to Tyler is most likely due to the strong result that occurred in January 2014.
Middle Eastern carriers expanded FTKs 9.2 per cent with the hub strategies of the leading airlines in the region proving successful as network and capacity expansions help satisfy demand on international routes and serve inward trade to Middle Eastern economies.
Latin American airlines suffered a 6.4 per cent fall in FTKs compared to January 2014 as the region continues to be affected by the weakness in the key economies of Brazil and Argentina.
African airlines grew cargo volumes 5.2 per cent. He said while major economies such as Nigeria and South Africa are under-performing, regional trade activity is holding up.
Meanwhile, Tyler announced that the World Cargo Symposium will gather leaders from across the cargo value chain in Shanghai, China, from 10-12 March.
“The global air cargo industry continues to face challenges. While vulnerability to the economic cycles is beyond the control of any business sector, it is clear that the air cargo industry needs to do a better job of improving its value proposition. Shippers rightly demand modern processes.
Taking e-air waybill penetration above 22 per cent in 2014 was a strong signal that the e-cargo revolution is finally taking shape. This year’s World Cargo Symposium is an opportunity for the entire industry to sharpen further its focus on innovation, efficiency and high-quality service,” said Tyler.