Asian cargo demand falls 7.7% in July on back of trade wars

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Worsening trade conditions and shaky business confidence are providing considerable drag on air cargo with Asia-Pacific carriers registering a 7.7 per cent fall in July demand, as measured in freight tonne kilometres (FTK).

“Mounting trade tensions, alongside deteriorating business confidence levels contributed to further declines in orders for goods,” says the Association of Asia Pacific Airlines (AAPA).

The markedly lower demand, coupled with almost flat expansion in offered freight capacity, by 0.4 per cent, led to a 5.2 percentage point decline in the average international freight load factor, to 58.9 per cent for the month.

Commenting on the results, Andrew Herdman, AAPA director general says: “Global trade conditions deteriorated further, as higher tariffs disrupted global supply chains, and Asian airlines saw international air cargo demand fall by 6.2 per cent during the first seven months of the year.

“The weakness in air cargo markets is likely to extend into the coming months, unless we see some meaningful progress in trade negotiations.”

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