International air cargo traffic fell dramatically in November last year continuing the overalldownward trend caused by the global financial crisis and slowing economy worldwide, according to
the latest figures from the International Air Transport Association (IATA).Total air freight dropped heavily by 13.5% in November compared to 7.9% in October draggingyear-to-date air freight volume to 2.2% below the same period in 2007.
Giovanni Bisignani, IATA’s Director General and CEO, commented: “The 13.5% drop ininternational cargo is shocking. As air cargo handles 35% of the value of goods tradedinternationally, it clearly shows the rapid fall in global trade and the broadening impact of theeconomic slowdown. By comparison, this is the largest drop since 2001, in the aftermath ofSeptember 11.”
Asia-Pacific carriers, that represent 44.6% of global freight, experienced the largestslowdown compared to other regions with freight traffic falling by 16.9%. As freight accounts for alarger percentage of revenues for the Asia-Pacific carriers, their fourth quarter profits will bein addition negatively impacted by the downturn in the global air freight market, IATA furtherreported.
Other regions also saw air freight declining at double-digit rates with a 15.7% decline inLatin America. The US and European carriers slumped by 14.4% and 11% respectively. Freight trafficin the Middle East, which was the only growing market with an increase of 1% in October, now alsoturned negative falling by 1.6% in November.
The International Air Transport Association added that plummeting business confidence and thecontinuous turmoil in financial markets were indicators for the worsening trend to continue inDecember.
“With no end in sight for the worsening global economy, the 2008 gloom will carry over intothe new year. Relief in the oil price has been outstripped by the falls in demand and capacity cutsare not keeping pace. The industry is back in intensive care. Improving efficiency everywhere willbe theme for 2009,” said Bisignani.
