With US-China trade dispute a major contributing factor, the demand in the global air freight market has consistently declined for past eight months. According to the International Air Transport Association (IATA) data for June, demand measured in freight tonne kilometers (FTKs), decreased by 4.8% in June 2019 as against the corresponding month last year.
“Signs of a modest recovery in recent months appear to have been premature, with the June contraction broad-based across all regions with the exception of Africa. Capacity growth remains subdued and the cargo load factor continues to fall,” the agency maintained in a press release.
According to agency data, Asia-Pacific airlines saw sharpest decline in demand by 5.4% in June 2019, compared to the same period in 2018. “Global trade continues to suffer as trade tensions—particularly between the US and China—deepen. As a result, air cargo markets continue to contract. Nobody wins a trade war. Borders that are open to trade spread sustained prosperity. That’s what our political leaders must focus on,” said Alexandre de Juniac, IATA’s Director General and CEO.