This continues the slowdown in air cargo growth that began earlier in 2018. Growth for the first half of 2018 stands at 4.7%, less than half the growth rate in 2017. Freight capacity, measured in available freight tonne kilometres (AFTKs), rose by 4.1% in June 2018. Capacity growth has now outstripped demand growth every month since March. There are three main factors driving the slowdown:
“Air cargo continues to be a difficult business with downside risks mounting. We still expect about 4% growth over the course of the year. But the deterioration in world trade is a real concern. While air cargo is somewhat insulated from the current round of rising tariff barriers, an escalation of trade tension resulting in a ‘reshoring’ of production and consolidation of global supply chains would change the outlook significantly for the worse. Trade wars never produce winners. Governments must remember that prosperity comes from boosting their trade, not barricading economies,” said Alexandre de Juniac, IATA’s director general and CEO.