Global air freight market loses altitude in July

Weak trade has limited growth opportunities for airfreight carriers, but trade is expected to improve in the second half of the year, according to the International Air Transport Association.    Air freight volumes fell 0.6 percent in July compared to July 2014, further signaling that growth from earlier this year is slowing, according to the International Air Transport Association.
   The weakness in air cargo is consistent with declines in trade activity, mostly in emerging markets, and an inward turn to domestic sources by Chinese consumers, said IATA. The decline spread across all regions except Africa and the Middle East, with the most pronounced decrease in the Americas, where international freight ton kilometers were down more than 5 percent. North American carriers have experienced a significant drop in volumes since getting a boost early in the year from shippers switching from ocean transport to avoid congestion issues at U.S. West Coast ports.
   During the first seven months of 2015, air freight volumes are up 2.9 percent year-over-year.
   On a seasonally adjusted basis for international freight only, freight ton kilometers have remained flat since the end of 2014 and the market was 2 percent smaller in July compared to December, IATA said.
   Middle East growth of 10.8 percent in July was lower than expected because of difficult yearly comparisons owing to the timing of the Muslim holy month of Ramadan, which took place mostly in July in 2014 but started in June this year. Ramadan tends to boost demand for air freight, including gifts and foodstuffs, IATA said.
   IATA said it expects trade to improve in the second half of the year, but noted that air carriers will need a significant pick up to meet annual growth projections.