November air freight demand shows strong peak season

Jan 11, 2017: Data released by International Air Transport Association (IATA) for global air freight markets shows demand, measured in freight tonne kilometers (FTKs), rose 6.8 per cent in November 2016 compared to the year-earlier period.

This was a slight slowdown from the 8.4 per cent annual growth recorded in October 2016 - which was a 20-month high - but was still more than 2.5 times the average annual monthly growth rate of 2.6 per cent over the past decade. Growth in freight capacity, measured in available freight tonne kilometers (AFTKs), slowed to 4.4 per cent November.

The uptick in freight growth comes at a time when there is an increase in the shipment of silicon materials typically used in high-value consumer electronics shipped by air, and an apparent turnaround in new export orders.

Also the collapse of the Hanjin Shipping Company in August may have contributed to a modal shift to air cargo.

"Air cargo enjoyed a strong peak season in November. And there are encouraging signs that this growth will continue into 2017, particularly with the shipment of high-value consumer electronics and their component parts. But, the trend in world trade is still stagnant. So it remains critically important for the air cargo industry to continue to improve its value offering by implementing modern customer-centric processes," said Alexandre de Juniac, CEO, IATA.

Airlines in all regions except Latin America reported an increase in year-on-year demand in November.