Middle Eastern carriers saw air freight demand growth slow for the third consecutive month to 1.2 per cent year-on-year in September, marking the slowest pace since July 2009, said a new report from Iata.

Middle Eastern carriers saw air freight demand growth slow for the third consecutive month to 1.2 per cent year-on-year in September, marking the slowest pace since July 2009, said a new report from the International Air Transport Association (Iata).

Capacity increased by 6.2 per cent. Seasonally-adjusted freight growth, which had been trending upwards until the past year or so year, has now halted, the report said.

This turnaround in performance is partly due to weaker conditions in the Middle East-to-Asia and Middle East-to-North America markets.

African carriers saw freight demand increase by 12.7 per cent in September 2016 compared to the same month last year – the fastest rate in nearly two years. Capacity surged year-on-year by 34 per cent on the back of long-haul expansion in particular by Ethiopian Airlines and North African carriers.

Globally, air freight markets in September 2016 showing that demand, measured in freight tonne kilometres (FTKs), rose 6.1 per cent year-on-year. This was the fastest pace of growth since the disruption caused by the US West Coast seaports strike in February 2015.

Freight capacity, measured in available freight tonne kilometres (AFTKs), increased 4.7 per cent over the same period. Load factors remained historically low, keeping yields under pressure.

September’s positive performance coincided with an apparent turnaround in new export orders in recent months. Some unique factors also may have contributed, such as the rush replacement of Samsung Galaxy Note 7 devices during the month, as well as the early impacts of the collapse of the Hanjinmarine shipping line at the end of August.

“Demand for air cargo strengthened in September. Although with growth in world trade virtually at a standstill, the air cargo sector still faces some major hurdles,” said Alexandre de Juniac, Iata’s director general and CEO.

 “We did have some encouraging news. The conclusion of the EU-Canada Free Trade Agreement is good news for the economies involved and for air cargo. Growth is the way to overcome the world’s current economic challenges. The EU-Canada agreement is a welcome respite from the current protectionist rhetoric and positive results should soon be evident. Governments everywhere should take note and move in the same direction,” he added. – TradeArabia News Service