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Sat 14 Jan 2017 01:10 AM

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MidEast carriers see 7.8% cargo demand rise in November

IATA says seasonally-adjusted growth has slowed between the Middle East and Asia, and the Middle East and Europe

MidEast carriers see 7.8% cargo demand rise in November
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Middle Eastern carriers enjoyed a boost in demand from the strong peak season with freight volumes increasing by 7.8 percent in November, according to the International Air Transport Association (IATA).

Seasonally-adjusted growth has slowed, however, mainly due to weak freight volumes between the Middle East and Asia, and the Middle East and Europe, IATA said in a statement.

It added that freight volumes grew by just 4 percent on these routes in the January-October 2016 period, compared with 8-11 percent over the same period in 2015.

Capacity in the region increased by 5.1 percent in November, IATA said.

Globally, IATA said that demand, measured in freight tonne kilometres (FTKs), rose 6.8 percent in November compared to the year-earlier period.

This was a slight slowdown from the 8.4 percent annual growth recorded in October - which was a 20-month high - but was still more than 2.5 times the average annual monthly growth rate of 2.6 percent over the past decade.

Growth in freight capacity, measured in available freight tonne kilometres (AFTKs), slowed to 4.4 percent in November.

IATA said the uptick in freight growth coincides with an increase in the shipment of silicon materials typically used in high-value consumer electronics shipped by air, and an apparent turnaround in new export orders. A modal shift to air cargo following the collapse of the Hanjin Shipping Company in August may have also contributed. 

"Air cargo enjoyed a strong peak season in November. And there are encouraging signs that this growth will to continue into 2017, particularly with the shipment of high-value consumer electronics and their component parts," said Alexandre de Juniac, IATA’s director general and CEO.

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