Global air cargo begins to stabilize

April 30, 2009 by Splatty  
Filed under Air Cargo

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IATA has released their March data for international traffic and from a cargo perspective, it appears that freight demand is beginning to stabilize. According to the report, freight demand for the past four months is hovering between -21% to -24% compared to the same time period in 2008.

“The only glimmer of hope is that cargo demand has stabilised this month although at the shockingly low level of -21.4%,” said Bisignani. For the fourth consecutive month international cargo demand is hovering in the -21% to -24% region as a result of the sharp drop in world trade. “It’s not the end of the recession, but we may have found the floor,” said Bisignani.

IATA contributed at least a portion of the cargo slump to companies with excess inventory.

The severity of air freight slump is at least partly driven by manufacturers seeking to correct large inventory overhangs that emerged in late 2008. The stabilisation of the inventory to sales ratio has in turn stabilised air freight demand. Recovery, however, depends on purchasing that can deplete the inventory overhang. Inventory levels remain high and final demand is weak.

Access the complete numbers for March here.

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