ACI: Airfreight volumes remain ‘sluggish’ in first half 2016

Airfreight markets in the first six months of 2016 were “substantially weaker” than passenger markets, posting marginal 0.5 percent year-over-year growth, according to data from Airports Council International.    Global airfreight volumes in the first half of 2016 were “substantially weaker” than passenger traffic, posting marginal 0.5 percent year-over-year growth, according to data from Airports Council International (ACI).
   ACI attributed the weak growth in airfreight primarily to subdued growth in emerging markets and developing economies, projected by the International Monetary Fund (IMF) to grow 4.1 percent in GDP, and a modest recovery in advanced economies, expected to grow 1.8 percent in GDP, according to the IMF.
   The 0.5 percent growth rate in global cargo volumes comprised a 0.3 percent year-over-year increase in international freight and a 1 percent bump in domestic freight on an annualized basis.
   “The lackluster performance of global industrial activity and trade due to China’s economic transition, the weak growth of the Japanese economy and the weaker than expected growth of the United States, combined with recessions in Brazil and Russia, have all had a negative impact on air freight markets,” said ACI.
   Three regions experienced negative year-over-year growth in the first six months of 2016: North America, Latin America-Caribbean and Africa, down 2.1 percent, 0.9 percent and 0.1 percent, respectively.
   The Asia-Pacific and Europe regions reported airfreight traffic growth of 1 percent and 2.3 percent, respectively, while the Middle East grew 4.5 percent compared with first half 2015.
   Global passenger traffic, which grew 4.5 percent, was weighed down by “fragile and uncertain economic conditions, political instability and passenger sensitivity to the wave of terrorist attacks,” said ACI.