Global air cargo surges to new July high

Global air cargo surges to new July high

Cathay Pacific Cargo aircraft

Global air cargo traffic surged 5.8 percent in July from a year ago and likely will continue to increase in the coming months, driven by accelerating economic growth in key Asian markets, according to the International Air Transport Association.

The increase, which is more than double the 2.4 percent year-on-year growth in June, pushed global volume above the previous July peak in 2010, the airline body said.

Air freight growth year-to-date through JulyThe Middle Eastern freight market is up nearly 10 percent so far this year.

“Overall, July saw growth accelerate. That’s good news and it reflects the continued strengthening of business confidence at a global level,” said Tony Tyler, IATA Director General.

All regions posted growth above 5 percent in July, except Europe, where traffic was up just 1.8 percent, as the weak French and Italian economies and EU sanctions on Russia reduced demand.

Asia-Pacific airlines boosted their cargo traffic at the fastest pace since the beginning of 2013, with traffic increasing 7.1 percent in July as China, Japan and South Korea rebounded from the economic slowdown at the start of the year.

North American carriers’ freight volume grew 5.2 percent as the market recovered from a weak first quarter, and the outlook looks positive for the months ahead, according to IATA. Capacity declined by 1.3 percent.

The Middle Eastern freight market expanded 9.4 percent in July as the region’s carriers opened new routes to fast-growing developing economies like Mexico and Uganda.

Latin American traffic grew 7.6 percent year-on-year, signaling the start of a pickup in economic activity following months of weakness, particularly in Brazil.

The African market grew 11.3 percent but volumes remain highly volatile due to the economic slowdown in South Africa and “it is too early to say that prolonged growth acceleration is underway.”

Contact Bruce Barnard at brucebarnard47@hotmail.com.