The international air cargo market is stagnating, with traffic shrinking 0.4 percent in July from a year ago and capacity far outstripping demand, said the International Air Transport Association.
The decline was the third in a row and the cargo load factor slipped 1.8 percent to the pre-recession level of 45 percent as capacity expanded 3.6 percent year-over-year in July, IATA said in its latest monthly report.
“With business and consumer confidence now tanking, sluggishness in international trade and high fuel prices, the expectation is for a weaker end to the year. We are already seeing this in the shrinking air freight markets,” said IATA Director General and CEO Tony Tyler.
Asia/Pacific, which accounts for more than 40 percent of the global cargo market, was the weakest region, with July traffic down 3.6 percent from July 2010 even as capacity expanded 0.5 percent. The load factor remained well above the industry average, despite declining to 58.1 percent from 60.2 percent.
By the Numbers: Asia-Pacific' Airlines Frieght Traffic
“While the region suffers from a major imbalance with strong outward flows of manufactured goods and weak inbound traffic, the scale of their home carrier operations allows for better capacity utilization,” IATA said.
The Middle East and Latin America recorded the strongest performance with year-over-year gains of 8.4 percent and 8.2 percent, respectively. North America traffic was up 2 percent, while European volume was down 0.5 percent.
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