Prepare for a rough ride in the last quarter, was the warning from the International Air Transport Association (IATA) as it released data for global air freight markets in July that as expected revealed a fall in air cargo demand amid turmoil in the world economy.
AirBridgeCargo, which has so far outperformed its European rivals this year, has begun operations connecting Moscow to Singapore's Changi Airport.
No one expected good news to come out of July’s air freight business and each new set of data serves to further confirm the dismal state of the world’s air cargo industry.
China Southern Airlines reported a stunning first half with cargo volume rising 10 percent overall and belly hold freight growing 27.6 percent compared to the first half of last year.
Strong passenger demand among airlines is working against air cargo as it drives up capacity that cargo divisions are unable to fill in a weak air freight environment and creates strong downward pressure on rates.
Weak Asian demand pulled down cargo traffic at Amsterdam Airport Schiphol in the first six months of the year, another sign of how China’s slowing economy is curbing shipments of high-value products such as electronics and auto parts.
The International Air Transport Association director general and CEO Tony Tyler will retire in June next year after serving five years in the position.
Air cargo demand among Asian carriers weakened in July as demand for exports fell along with global trade, according to the latest data from the Association of Asia Pacific Airlines (AAPA).
Air China Cargo turned around its financial fortunes in the first half of the year with a 23.5 percent increase in freight carried on the airline’s network taking the mainland’s flag carrier to a $17 million net profit.
Nippon Express Co., Japan’s largest international freight forwarder, is investing heavily in Southeast Asia, particularly Vietnam, to position itself favorably ahead of the inauguration of the ASEAN Economic Community at the end of the year.