Airfreight volumes in July recorded the slowest pace of growth since May 2016, according to the latest statistics released by the International Air Transport Association (Iata).
Demand measured in freight tonne kilometres (FTKs) rose 2.1% compared to the same period the year before. This is well below the five-year average growth rate of 5.1%.
Capacity grew by 3.8% year-on-year - the fourth time in five months that capacity growth has outstripped demand.
"We still expect 4% growth over the course of the year, however the downside risk has increased. The tariff war and increasingly volatile trade talks between the world’s two largest trading nations – China and the US - are rippling across the global economy putting a drag on both business and investor sentiment. Trade wars only produce losers," said Alexandre de Juniac, Iata’s director general and CEO.
All regions reported year-on-year demand growth in July, except Africa which saw freight demand contract by 8.3% in July 2018, compared to the same month last year.
This was the fourth time in five months that demand has contracted. Capacity decreased by 0.7%.
