Aircraft and transport. IATA: freight growth continues modestly in May
After a weak start to 2018
The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 4.2% in May 2018, compared to the same period the year before. This was slightly down from the 5.2% (revised from 4.1%) growth in annual demand recorded in April 2018.
Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 6.2% year-on-year in May 2018. This was the fourth month in a row that capacity growth outstripped demand growth.
After a weak start to 2018, demand for global air freight has now resumed a modest trend upwards. However, the rapid growth seen in 2017 is now over, with demand growing at a significantly slower pace in 2018. In IATA’s mid-year industry outlook, 2018 freight growth was revised downwards to 4.0% (from the previously forecasted 4.5% in December 2017).
There are three indications that growth will continue at a slower pace:
- The re-stocking cycle which required quick delivery to meet customer needs is over
- The new export orders component of the global manufacturing Purchasing Managers’ Index (PMI) is at a 21- month low
- Global trade appears to be softening as trade tensions increase
All regions except Africa reported an increase in growth in May 2018.
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