Africa the exception as global air freight market in prolonged decline

August 7, 2019 in Business, Transport by Editor

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The global air freight market continued to face downward pressured for the eighth month running with demand for June down 4.8pc over the comparable period for 2018.

IATA says “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.”

Despite its modest share of the global market, Africa was the only region to report growth in June 2019, posting a 3.8pcincrease in demand over the same period last year, making it the strongest performer for the fourth consecutive month. Capacity in the region expanded 16.6pc while Africa-Asia performance remained strong at 1pc year-on-year.

IATA is blaming the sluggish results on the strained global trade environment, primarily the US-China trade dispute.

“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.