Growth in demand for global air freight, measured in freight tonne kilometers, slowed to its weakest rate since January in October, the International Air Transport Association, IATA, said on Friday, adding that several indicators showed that the growth peak was over.
Industry-wide freight tonne kilometers growth remains well above its five and ten-year average rates in October, a traditionally strong period for demand.
“Tightening supply conditions in the fourth quarter should see the air cargo industry deliver its strongest operational and financial performance since the post-global financial crisis rebound in 2010,” Alexandre de Juniac, IATA Director General, said.
However, the inventory-to-sales ratio in the U.S. indicates that the period when companies look to restock inventories quickly has ended, and the upward trend in seasonally-adjusted freight volumes has moderated, IATA said.
Air freight demand grew by 5.9 percent in October, down from 9.2 percent in September, with all regions but Africa seeing a deceleration in year-on-year FTK growth.
Available capacity rose 3.7 percent in the month, and load factors increased by 1.0 percentage point to 46.9 percent.
IATA said it expected freight volumes to growth next year, albeit at a slower pace than in 2017, Reuters reports.