IATA: Cargo volumes up 0.5% in October

October airfreight volumes rose 0.5 percent compared to October 2014, but were down 0.4 percent from September, according to data from the International Air Transport Association.    Airfreight volumes grew 0.5 percent year-over-year in October, but the slight increase was due to a weak airfreight market in October 2014, according to the International Air Transport Association (IATA).
   October volumes, which contracted 0.4 percent from September, were down 1.1 percent from their peak at the end of 2014. The decline from September was largely due to the performance of European carriers, whose recent positive growth trend reversed during the month of Ocober, IATA said.
   Asia-Pacific airfreight carriers increased volumes 0.3 percent year-over-year in October. Trade growth in China and other primary export economies, such as South Korea and Taipei, Taiwan remained disappointing, said IATA, but on a bright note, Chinese export orders rose in October, which could result in higher airfreight demand in the next two to three months.
   Meanwhile, European airfreight carriers saw October volumes rise 0.2 percent compared to October 2014. Although airlines in this region experienced weaker performance than in recent months, improvements in Eurozone manufacturing and export orders are likely to spur airfreight demand, according to IATA.
   Volumes carried by North American airlines dropped 2.4 percent year-over-year in October. Airfreight carriers in this region have experienced a significant decrease in volumes since the big boost they received from a modal shift away from ocean freight due to massive seaport congestion at the beginning of the year.
   Middle Eastern airfreight carriers increased volumes 8.3 percent compared to October 2014. Airlines in this region saw even stronger growth in the first half of the year, particularly in February and May when volumes were up 17.6 percent and 18.1 percent year-over-year, respectively.
   “Saudi Arabia and the UAE, among others in the region, have seen slowdowns in non-oil sectors, but growth rates remain robust enough to sustain solid demand for air cargo,” IATA said.
   Volumes transported by Latin American carriers dropped 8.1 percent year-over-year in October, as economic and political conditions in Brazil caused volatile regional trade activity.
   African airfreight carriers transported 1.1 percent less freight in October compared to the same period last year. However, IATA data indicates, Africa is the second fastest growing air cargo market year-to-date.
   “The outlook for air freight and world trade remains very fragile with continued weakness in key regions like Asia Pacific,” IATA said in a statement. “That said, indicators in the Eurozone are looking better and globally, exports orders have improved. This suggests that improvements in some regions could prevent further declines in air cargo demand in the months ahead.”
   The Asia-Pacific makes up 38.3 percent of the total freight traffic market share, based on freight ton kilometers, followed by Europe at 22.8 percent, North America at 20.4 percent, the Middle East at 14.1 percent, Latin America at 2.9 percent and Africa at 1.5 percent.