Freight demand picked up again in October with freight tonne kilometres increasing by 3.1 per cent, the International Air Transport Association (IATA) says.

The pace was up from a 29-month low of 2.5 per cent in September, though freighter capacity in available freight tonne kilometres rose by 5.4 per cent, the eighth month in a row it outstripped demand.

Growing international e-commerce and an upturn in the global investment cycle supported growth.

Demand was negatively impacted by a contraction in export order books in all major export nations, longer supplier delivery times in Asia and Europe, and weakened consumer confidence compared to very high levels at the beginning of 2018.

IATA director general and chief executive officer, Alexandre de Juniac says: “Cargo is a tough business, but we can be cautiously optimistic as we approach the end of 2018. Slow but steady growth continues despite trade tensions. The growth of e-commerce is more than making up for sluggishness in more traditional markets.

“And yields are strengthening in the traditionally busy fourth quarter. We must be conscious of the economic headwinds, but the industry looks set to bring the year to a close on a positive note.”