Airfreight stabilises – but at ‘shockingly’ low level

The International Air Transport Association has registered some positive reaction to the March data for scheduled international traffic – and it comes from the freight sector. “Cargo demand has stabilised this month although at the shockingly low level of -21.4%,” said CEO and director-general Giovanni Bisignani. For the fourth consecutive month international cargo demand is hovering in the -21% to -24% region as a result of the sharp drop in world trade. “It’s not the end of the recession, but we may have found the floor,” said Bisignani. Air cargo demand has moved sideways in the -21% to -24% range since its plunge from -7.9% to -23.2% between October last year and January 2009. Iata explains that the severity of the air freight slump is at least partly driven by manufacturers seeking to correct large inventory overhangs that emerged in late 2008. The stabilisation of the inventory to sales ratio has in turn stabilised air freight demand. Recovery, however, depends on purchasing that can deplete the inventory overhang. Inventory levels remain high and final demand is weak. Passenger demand, on the other hand, fell to 11.1% below March 2008 levels as airlines cut international passenger capacity by 4.4% resulting in an average load factor of 72.1%.