KUALA LUMPUR, Aug 7 (NNN-BERNAMA) — Global trade tensions have affected global air freight demand, with volume decreasing 4.8 per cent in June 2019 compared with the same period in 2018 — marking the eighth consecutive month of year-on-year decline in freight volumes.
International Air Transport Association (IATA) director general and chief executive officer, Alexandre de Juniac said global trade continued to suffer as trade tensions, particularly between the United States (US) and China, deepened.
“As a result, air cargo markets continue to contract. Nobody wins a trade war. Borders that are open to trade spread sustained prosperity. That’s what our political leaders must focus on,” he said.
IATA said signs of a modest recovery in recent months appeared to have been premature, with the June contraction broad-based across all regions except Africa.
“Capacity growth remains subdued and the cargo load factor continues to fall. Globally, trade growth is languishing, and business uncertainty is compounded by the latest tariff increases in the US-China trade dispute,” it said.
For Asia-Pacific airlines, the demand for air freight contracted by 5.4 per cent in June 2019, compared to the same period in 2018.
The association noted that although an important factor, the US-China trade war was not solely responsible for the fall.
It added that Asia-Pacific airlines’ freight tonne kilometer for the within-Asia market have decreased more than 10 per cent over the past year, while air freight capacity increased by 1.8 per cent over the same period.
— NNN-BERNAMA
