Freight continues to suffer headwinds

The International Air Transport Association (IATA) released data for global air freight markets showing air cargo volumes (measured in freight tonne kilometers or FTKs) suffered a 5.6% fall in February compared to February 2015. This is heavily skewed due to the impact of the US port strikes in early 2015 (which caused a spike in air freight) and Lunar New Year falling in February this year. Comparing January and February 2016 performance to January and February 2014 reveals 6.3% volume in growth—equal to a 3.1% annualized growth trend. “The air freight business remains a difficult one. February’s performance continues a weak trend. And there are few factors on the horizon that would see this change substantially. In the absence of an imminent resurgence of demand, the importance of improving the value proposition with modernized processes—the e-freight vision—remains a top priority,” said Tony Tyler, IATA’s Director General and CEO.