- 5 July 2019
- Transport / Logistics Services
The International Air Transport Association (IATA) reports a fall in air freight demand by 3.4% in May, even as capacity grew by 1.3%.
Air freight capacity has now outgrown demand growth for the 13th consecutive month.
The fall is believed to be down to weak global trade volumes as well as US / China trade tensions.
“The impact of the US-China trade war on air freight volumes in May was clear. Year-on-year demand fell by 3.4 per cent. It’s evidence of the economic damage that is done when barriers to trade are erected,” said Alexandre de Juniac, IATA’s director general and chief executive.
“Renewed efforts to ease the trade tensions coming on the side-lines of the G20 meeting are welcome. But even if those efforts are successful in the short-term, restoring business confidence and growing trade will take time. And we can expect the tough business environment for air cargo to continue.”