KUALA LUMPUR: Demand for global air freight markets, measured in freight tonne kilometres (FTKs), rose 3.1 per cent in October when compared with the same period last year, emerging from a 29-month low of 2.5 per cent in September.
The International Air Transport Association (IATA) said freight capacity, measured in available freight tonne kilometres (AFTKs), rose 5.4 per cent, year-on-year, in October.
“This is the eighth month in a row that capacity growth outstripped demand and driven by growing international e-commerce and an upturn in the global investment cycle,” IATA said in a statement.
However, it added that demand continued to be negatively impacted by a contraction in export order books of all major exporting nations in October, longer supplier delivery times in Asia and Europe, as well as, weakened consumer confidence.
IATA director general and chief executive officer Alexandre de Juniac said the global airlines association was cautiously optimistic of the industry’s prospects.
“Slow, but steady growth continues despite trade tensions, the growth of e-commerce is more than making up for the sluggishness in more traditional markets and yields are strengthening in the traditionally busy fourth quarter.
“We must be conscious of the economic headwinds, but the industry looks set to bring the year to a close on a positive note,” he added.
On the Asia Pacific region, he said demand for air freight grew by 1.9 per cent, year-on-year.
IATA said the region recorded flat growth when compared with the previous month due to weaker manufacturing conditions for exporters.
Longer supplier delivery times particularly in China and Korea also impacted demand.
“Asia Pacific is the largest freight-flying region, carrying more than one-third of the total, however the risks from rising trade tensions are disproportionately high,” he said. –Bernama
