Airfreight cargo volumes are down year on year as trade figures slow with capacity outstripping demand across the globe, the International Air Transport Association (Iata) has reported.
According to Iata’s head of global cargo, Glyn Hughes, airfreight growth in the second quarter dipped to 2.7%, half the figure recorded for freight ton kilometres the previous year. In comparison, capacity was sitting at 4.1% for the same period this year, “the fourth consecutive month that growth in capacity overshadowed growth in demand.”
Hughes said that decreased demand was going to force air freighters to remain resilient and resourceful.
“The key is to look at high demand trade lanes and the availability of flexibly deployed capacity.” He added that even as demand was expected to increase towards to the end of the year, air cargo companies should take heed and consider the benefits of using capacity wherever possible.
One area where Iata expects an increase in demand, and where airfreight could benefit from flexible usage, is cross-border commerce. Hughes said burgeoning business in this field was reliant on air cargo, boding well for the industry in general but particularly for the likes of pharmaceuticals and perishables.
Rwanda, for example, has shown that if technological capacity is applied in novel ways, such as its use of drones to deliver blood units to remote areas, it could initiate similar exercises with immediate neighbours like Uganda. He warned though that the imposition of tariffs between key economies could impact on airfreight.
“The initial measures introduced are not immediately impacting on traditional air cargo commodities as they are targeting washing machines, solar panels, steel, aluminium and some general products.”
However, if the US proceeds with imposing Section 232 steel and aluminium tariffs against countries like South Africa, it could ripple outwards and affect airfreight.
Consequently, Iata continues to urge global governments to support the global economy through open trade, free from current trends toward restricted relations, Hughes said.
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Airfreight growth in the second quarter dipped to 2.7%. – Glyn Hughes
