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November 1, 2017
Global air freight demand up 9.2% in September
According to data from the International Air Transport Association (IATA), global air cargo volumes rose 9.2% in September compared to the year-earlier period. Although it was the slowest pace of growth seen in five month, it was still significantly higher than the five-year average growth rate of 4.4%.
IATA says it appears that the industry has passed a cyclical growth peak. The upward trend in seasonally-adjusted freight volumes has eased in the third quarter and the inventory-to-sales ratio in the U.S. is now trending sideways. This indicates that the period when companies look to restock inventories quickly-which often gives air cargo a boost-has ended.
Airlines in all regions reported an increase in year-on-year demand in September. North American carriers saw an increase in freight volumes of 7.4% and European airlines posted a 10.3% increase. Asia-Pacific airlines saw freight volumes increase by 9.3% and Middle Eastern carriers' year-on-year freight volumes increased 8.9%. Latin American airlines experienced a growth in demand of 7.6% and African carriers posted the largest year-on-year increase in demand of all regions with freight volumes rising 17.7%.
"Demand for air cargo grew by 9.2% in September. While that's slower than in previous months, it remains stronger than anything we have seen in recent memory. But there are signs that this demand spurt may have peaked. So it becomes even more important to reinforce the industry's competitiveness by accelerating the modernization of its many antiquated processes," said Alexandre de Juniac, IATA's Director General and CEO.
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