Global air cargo traffic fell 4.7 per cent in October compared to the prior year period, as confidence in manufacturing industries declined and companies switched to slower modes of transport, the International Air Transport Association (IATA) said on Monday (November 28).
Cargo traffic, which generated sales of US$66bn last year, has fallen every month since May. And declining consumer spending has prevented the usual seasonal peak in airborne goods' deliveries in the run-up to Christmas.
'Cargo is the story of the month,' said IATA director general and CEO Tony Tyler. 'Since mid-year the market has shrunk by almost 5 per cent and this is far greater than the 1 per cent fall in world trade. Airfreight is among the first sectors to suffer when businesses confidence declines.'
Airlines has responded to weaker demand by cutting freighter fleets, the IATA said. But this has not stopped a steady and substantial five percentage point fall in freight load factors compared to their early 2010 peak, due to capacity entering the market via wide-bodied passenger aircraft.
Asia-Pacific carriers account for around 40 per cent of global freight markets, and while they are most exposed to the volatility of freight volumes, they are still benefiting from the dominance of trade flows to Asia, the IATA said in a statement.
'The economic prospects for 2012 are uncertain, but the track record of aviation's ability to act as a catalyst for economic activity is rock solid,' said Mr Tyler. 'Now is the time for governments to use aviation strategically in their efforts to put economies back on track.'
