Trade tariffs are blamed for ongoing drop in APAC air cargo traffic in May
ASIA Pacific air cargo demand in May contracted by 6
ASIA Pacific air cargo demand in May contracted by 6.5 per cent, as measured in freight tonne kilometres (FTK), due to trade tariffs 'as export activity continued to slow in the face of challenging business conditions', according to the Association of Asia Pacific Airlines (PA).
'The wider imposition of trade tariffs dampened demand and affected global supply chains, leading to declines in new export orders,' London's Air Cargo News cited the PA as saying.
'Combined with a marginal 0.3 per cent increase in offered freight capacity, the average international freight load factor fell by 4.3 percentage points to 59.0 per cent for the month.'
PA director general Andrew Herdman said: 'Air cargo demand is weak as a result of the slowdown in the manufacturing sector and deteriorating business confidence, undermined by the ongoing trade disputes.
'Overall, during the first five months of the year, Asian airlines carried an aggregate total of 155 million international passengers, 4.8 per cent more than the same period last year. In marked contrast, in the same period Asian airlines saw a 6.2 per cent contraction in air cargo demand.'
Mr Herdman added: 'Airlines are grappling with the effects of weaker air cargo demand, volatile oil prices and renewed downward pressure on passenger yields.'