KUALA LUMPUR (Jan 9): Global air freight markets showed that demand, measured in freight tonne kilometers (FTKs), decreased by 1.1% in November 2019, compared to the same period in 2018, according to the International Air Transport Association (IATA).

In a statement Jan 8, IATA said this marked the thirteenth consecutive month of year-on-year declines in freight volumes.

IATA said despite the decline in demand, November’s performance was the best in eight months, with the slowest year-on-year rate of contraction recorded since March 2019.

It said in part, November’s outcome reflects the growing importance of large e-commerce events such as Singles Day in Asia and Black Friday.

IATA said while international e-commerce continues to grow, overall air cargo demand continues to face headwinds from the effects of the trade war between the US and China, the deterioration in world trade, and a broad-based slowing in global economic growth.

IATA director general and CEO Alexandre de Juniac said demand for air cargo in November was down 1.1% compared to the previous year.

“That’s better than the 3.5% decline posted in October. But it is a big disappointment considering that the fourth quarter is usually air cargo’s peak season.

“Looking forward, signs of a thawing in US-China trade tensions are good news. But trading conditions at present remain very challenging,” he said.

Meanwhile, IATA said freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 2.9% year-on-year in November 2019.

It said capacity growth has now outstripped demand growth for 19 consecutive months.