Airfreight growth hits air pocket

Growth in international airfreight slowed in August, according to the International Air Transport Association (Iata). It says there was a year-on-year increase of 19.6% for cargo in August, compared to July’s growth of 23%. Air cargo traffic is now 3% above the pre-recession volumes of early 2008. “The slow-down of demand in August is consistent with our forecast for a tougher end to 2010 as government stimulus monies run out without having generated significant improvements in employment. The bounce from re-stocking is over. We do not yet see the strong consumer confidence needed to sustain the expansion with spending,” said Giovanni Bisignani, Iata director general and CEO. Freight capacity is “matching demand trends which are stabilising. Since December 2009, the freight volume expansion of 9.2% has been matched by capacity expansion. After a rapid improvement throughout 2009, freight load factors have levelled off at 51.0%,” says Iata. During the first quarter of 2010 air freight grew at an annualised rate of 25%. The first two months of the third quarter recorded annualised growth of 12%. With the restocking phase of the inventory cycle now complete, growth rates are shifting back towards trend growth in world trade of around 6%.