Saturday, May 18, 2024
IATA: Demand falling despite pause in tariff hikes

IATA: Demand falling despite pause in tariff hikes

Global air cargo demand is continuing to fall despite the pause in tariff hikes, the International Air Transport Association (IATA) reports.

Freight tonne kilometres were down 4.5% in September, the 11th consecutive month of year-on-year declines, marking the longest period since the global financial crisis in 2008.

Capacity measured in available freight tonne kilometres rose by 2.1%, the 17th consecutive month it has outstripped demand growth.

Air cargo continues to suffer from intensifying trade wars between the USA and China, and South Korea and Japan.

The deterioration in global trade and weakness in some of the key economic drivers were other reasons for the decline.

Global export orders continue to fall, with the Purchasing Managers Index tracking new manufacturing export orders points to falling orders since September 2018.

Alexandre de Juniac, director general and CEO of IATA says: “The US-China trade war continues to take its toll on the air cargo industry. October’s pause on tariff hikes between Washington and Beijing is good news. But trillions of dollars of trade has already been affected, which helped fuel September’s 4.5% year-on-year fall in demand. And we can expect the tough business environment for air cargo to continue.”

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