Air cargo demand down 16.5% in June

The International Air Transport Association (IATA) announced global demand for air cargo in June was 16.5% lower than the same period last year.

This is a moderate improvement, albeit from extremely weak levels, over May, which was 17.4% below 2008 levels. There has been some improvement in world trade and, after adjusting for seasonal fluctuations, freight volumes rose 6% from the low point recorded in December 2008. However, the utilization of air freight capacity on international routes remained very weak (47.3%) in June due to unbalanced trade flows with Asia and some market share loss to ocean transport.

June marked the 13th consecutive month of contracting demand for international air cargo. Despite reaching a bottom in December, improvement has been slowed by high inventory levels and soft demand. At the current pace, it will likely take several years before demand returns to early 2008 levels.

Asia-Pacific airlines reported a 15.8% drop in June. While still extremely weak, this is an improvement compared to the 18.1% fall in May. This reflects improved economic conditions in a number of emerging Asian economies, such as China.

The economic recovery in Europe and North America is being held back as consumers choose to repay debt rather than increase spending.

European carriers saw the weakest demand for freight in June at -20.3%. This was a softening in demand from the -19.2% experienced in May.

North American carriers reported an 18.6% fall in June demand. This is relatively unchanged from the 18.8% fall in May.

Middle Eastern carriers reported a -4.2% decline in freight demand resulting in a 40.2% load factor.

African carriers saw demand decline by 20.2% while Latin American carriers saw demand fall by 14.2%. Freight load factors in these regions were the lowest at 26.6% and 31.6% respectively.<Korea Shipping Gazette>