The latest cargo traffic results released by the Association of Asia Pacific Airlines (AAPA) continued a pattern of gradual decline in traffic growth among its member carriers since April. The organization reported a 3.4 percent year-on-year growth rate in freight tonne kilometers (FTKs) handled for the month of June.
The number marks a 1.5 percent drop from May’s results, in which AAPA reported a 4.9 percent growth rate, while a month prior, April’s FTK figure came in at 5.8 percent growth, y-o-y.
The AAPA cited “underlying trade conditions” as a potential cause for the deflation in growth, referencing current trade tensions between the United States and China that industry leaders are widely anticipating will dampen trans-Pacific trade.
In May, we speculated that the grounding of most of Nippon Cargo Airlines’ (NCA) 747F fleet, which has continued for longer than initially anticipated, combined with a worldwide shortage of maindeck capacity, could be another contributing factor.
“Within the same period, international air cargo demand registered an encouraging 5 percent increase, bolstered by further expansion in the manufacturing sectors,” AAPA director general Andrew Herdman said. “Although, growth in new export orders has slowed in recent months.”
It will be interesting to witness how Asia-Pacific traffic is affected once given enough time for the full effects of the Trump-era tariffs to be realized. Despite concern over the potential adverse effects from trade tariffs, Herdman said, “Global economic prospects remain positive,” citing continued “domestic demand [for airfreight] across regions.”Like This Post