August worldwide air cargo shrinks for the 10th month, in longest losing streak since 2008, as trade war crimps shipments
- The world’s air freight, measured in freight-tonne kilometres, fell 3.9 per cent in August from a year ago, according to data by the International Air Transport Association (IATA)
- Hong Kong’s airport, the world’s busiest air cargo hub, handled 5.1 million tonnes of cargo last year
Global air freight dwindled for the 10th straight month in August, marking the longest declining streak in more than a decade, as the year-long tit-for-tat tariffs between the world’s two biggest economies crimped shipments.
The world’s air freight, measured in freight-tonne kilometres, fell 3.9 per cent in August from a year ago, according to data by the International Air Transport Association (IATA). Asia-Pacific airlines, which account for the lion’s share of worldwide air cargo, or 35.4 per cent, saw their traffic falling by 5 per cent, the biggest decline after the 6.7 per cent decrease in the Middle East, the data showed.
“This is deeply concerning,” said IATA’s Director General Alexandre de Juniac. “Not since the Global Financial Crisis in 2008 has demand fallen for 10 consecutive months … and with no signs of a detente on trade, we can expect the tough business environment for air cargo to continue.”
Air cargo consists of high value products and components. E-commerce companies are heavily dependent on the air cargo industry, which has also been upgrading cold storage capabilities in anticipating of rising business from the pharmaceutical industry.