Air freight in slow start to 2015, business confidence declining says IATA

GENEVA – At least two emerging factors could negatively impact demand for air cargo in the coming month, according to the International Air Transport Association (IATA), which has released data for global air freight markets showing 3.2% expansion in freight tonne kilometres (FTKs) in January 2015 compared to the same month last year. The growth is slower than the average of 4.5% recorded for 2014.

IATA said there was much regional variation in the January performance. Asia-Pacific, African and Middle Eastern airlines expanded strongly, but airlines in Europe and North and Latin America all reported demand contractions.
 Although it is too early to be certain of a trend towards weaker air freight, IATA says business confidence has been declining since mid-2014 and export orders tailed-off towards the end of the year. There has also been a  reversal of the positive trade-to-domestic production ratio which boosted cargo volumes last year
"January was a disappointing start to the year for air cargo. And it is difficult to be too optimistic about the rest of the year given the economic headwinds in Europe and growing concerns over the Chinese economy,” said Tony Tyler, IATA’s Director General and CEO.
“Add to that the continuing trends of on-shoring production and trade protectionism and 2015 is shaping up to be another tough year for air cargo."   www.iata.org (ATI).