IATA: Airfreight volumes flying high in January

Global air cargo demand soared 8 percent for the month, but recently announced U.S. import tariffs on steel and aluminum could bring volumes back down to earth, according to the International Air Transport Association (IATA).    Global airfreight volumes rose 8 percent in January 2018 compared with the same month the previous year, according to the latest data from the International Air Transport Association (IATA).
   Demand growth continued to outpace capacity, which increased 4.2 percent year-over-year for the month.
   IATA attributed the continued positive momentum in air cargo primarily to “buoyant” global manufacturing demand, but warned that recently announced U.S. import tariffs on steel and aluminum could bring growth rates back down to earth.
   “With 8 percent growth in January, it’s been a solid start to 2018 for air cargo,” IATA’s IATA CEO and Director General Alexandre de Juniac said in a statement. “That follows an exceptional year in which demand grew by 9 percent. We expect demand for air cargo to taper to a more normal 4.5 percent growth rate for 2018.
   Airfreight volumes carried by Asia Pacific airlines grew 7.7 percent year-over-year in January, driven in large part by increased demand for Chinese and Japanese exports in Europe, while capacity ticked up 2.2 percent.
   European airlines saw freight volumes and capacity rise 10.5 percent and 5.3 percent, respectively, for the month.
   North American carrier shipments increased 7.5 percent in January, while capacity climbed 4.2 percent.
   “The strength of the U.S. economy and the U.S. dollar have improved the inbound freight market in recent years,” IATA said of the North American market. “However, this may be offset by the weakening in the dollar, although the recently-agreed U.S. tax reform bill may help to support freight volumes in the period ahead. Seasonally-adjusted volumes are broadly trending sideways.”
   Cargo volumes carried by Middle Eastern airlines rose 4.4 percent year-over-year in January, while Latin American airfreight carriers saw an 8 percent boost in monthly volumes and African airlines saw volumes shoot up 12.9 percent from the same month a year ago. Middle Eastern and Latin American airfreight carriers boosted capacity 6.3 percent and 5.4 percent, respectively, according to IATA.