Global trade moving sideways, says IATA, as air freight struggles

GENEVA - International Air Transport Association (IATA) global air freight data shows that demand measured in freight tonne kilometres (FTKs) slowed in May to 0.9% year-on-year. Yields remained pressured as freight capacity measured in available freight tonne kilometres (AFTKs) increased by 4.9% year-on-year. 

Freight demand decreased or flat-lined in May across all regions with the exception of Europe and the Middle East, which recorded growth in air cargo volumes of 4.5% and 3.2%, respectively, compared to May last year.
Broad weakness in world trade volumes, which have largely tracked sideways since the end of 2014, accounts for about 80% of air freight’s sluggish performance. According to IATA..
"Global trade has basically moved sideways since the end of 2014 taking air cargo with it. Hopes for a stronger 2016 are fading as economic and political uncertainty increases. Air cargo is vital to the global economy. But the business environment is extremely difficult and there are few signs of any immediate relief," said Tony Tyler, IATA’s Director General and CEO. 
Asia-Pacific airlines reported a 0.7% decrease in demand for air cargo in May compared to last year. Capacity expanded 3.7%. Airlines in Asia-Pacific continue to face headwinds from weak trade in the region and globally, IATA says. www.iata.org (ATI).