IATA reports continued double digit demand growth for freight
The International Air Transport Association (IATA) released data for global air freight markets showing continued double digit demand growth for freight.
October 6, 2017
North American carriers posted an increase in freight volumes of 11.7% in August 2017, and a capacity increase of 3.7%. Seasonally-adjusted international freight volumes remain strong. The strength of the US dollar has boosted the inbound freight market over the past few years. Data from the US Census Bureau shows a 12.7% increase in air imports to the US in the first seven months of 2017, compared to a slower rise in export orders of 5.8%. Despite the US dollar remaining strong by historical standards, its slight decline since the start of the year is expected to start to help rebalance trade flows.
European airlines posted an 11.8% increase in freight demand in August 2017 and a capacity increase of 5.1%. Double-digit growth in international demand has now been recorded in 10 of the past 12 months. Concerns that the recent strengthening of the euro may have affected the regions’ exporters have not materialized. In fact German manufacturers’ export orders are growing at their fastest pace since early-2010.
Middle Eastern carriers’ year-on-year freight volumes increased 14.1% in August 2017 and capacity increased 2.8%. The strong pick-up in demand largely reflects favorable comparisons to a short-lived weak patch in demand in 2016 rather than an acceleration in the current demand trend. Seasonally-adjusted international freight volumes have maintained their solid upward trend. However, amid strong competition from other region’s carriers particularly on the Asia-Europe route, the Middle East carriers are not seeing as strong a pickup in the seasonally-adjusted traffic trend as other region’s carriers.