African air freight demand decreases | Fin24
 
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African air freight demand decreases

Jan 08 2019 17:02

African airlines saw freight demand decrease by 7.8% in November 2018, compared to the same month in 2017, according to data released by the International Air Transport Association (Iata) on Tuesday.

According to Iata, this was the eighth time in nine months that demand contracted. Capacity shrank 7.4% year-on-year.

"Demand conditions on all key markets to and from Africa remain weak. Seasonally-adjusted international freight volumes are 7% lower than their peak in mid-2017, nonetheless, they are still 28% higher than their most recent trough in late-2015," Iata said in a statement.  

Iata's data for global air freight markets show that demand was flat (0%) in November 2018, compared to the same period the year before. This was the slowest rate of growth recorded since March 2016, following 31 consecutive months of year-on-year increases.

Freight capacity rose by 4.3% year-on-year in November 2018. This was the ninth month in a row that capacity growth outstripped demand.

While international e-commerce continues to grow, overall demand faced significant headwinds, said Iata. These factors include signs of weakness in global economic activity; a contraction in export order books in all major exporting nations (with the exception of the US); shorter supplier delivery times in Asia and Europe; and weakened consumer confidence compared to very high levels at the beginning of 2018.

"Normally the fourth quarter is a peak season for air cargo. So, essentially flat growth in November is a big disappointment. While our outlook is for 3.7% demand growth in 2019, downside risks are mounting. Trade tensions are cause for great concern," commented Alexandre de Juniac, Iata's director general and CEO.

"We need governments to focus on enabling growth through trade, not barricading their borders through punitive tariffs."

iata  |  africa  |  airlines  |  aviation
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