Asia-Pacific carriers witnessed air cargo volumes contract by more than 12% in February, posting the biggest regional drop for the month, according to the International Air Transport Association (IATA).
Overall, global airfreight volumes declined 5.6% in February compared to the same month last year, but this was “heavily skewed due to the impact of the U.S. port strikes and Lunar New Year falling in February this year,” said the association.
Asia-Pacific carriers, which carry almost 39% of all airfreight, registered the steepest decline with volumes in freight tonne kilometers (FTKs) contracting by 12.4% year-over-year in February. This, said IATA, reflects the region’s carriers having benefited the most from the 2015 U.S. port strike
Moreover, the region’s weak trading backdrop was exaggerated by the closure of many factories in Asia for the Lunar New Year Celebration. In February Chinese export values fell 25%.
Director-general and CEO Tony Tyler said the airfreight business remains a difficult one.
“February’s performance continues a weak trend. And there are few factors on the horizon that would see this change substantially. In the absence of an imminent resurgence of demand, the importance of improving the value proposition with modernized processes –e-freight vision—remains a top priority,” he said.
On performance by region, Middle Eastern carriers were able to continue their consistent growth trend, expanding 3.7% in February. Over the past six months the major carriers in the region have cut their rate of route expansion, which may account for the relative slowdown in freight volume growth.
Latin American carriers also saw volume grow, rising by 2.7% in February. Markets in the region remain under pressure and Brazil is in its worst recession in 25 years. Volumes on the North-South American routes, however, are holding up.
On the losing end, North American airlines saw FTKs fall 4% in February compared to February 2015. Looking ahead, the prospects for cargo growth will depend on the balance between a stronger domestic economy supporting import growth and a strong U.S. dollar dampening exports.
European airlines’ demand fell by 2.4% in February. Business surveys of the region, particularly in Germany, do not give an upbeat assessment of prospects in the region, said IATA.
African airlines’ FTKs declined by 1.7% in February compared to February 2015. The largest economies in the region, Nigeria and South Africa, have suffered from the commodity slump over the past 18 months.
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