IATA report: Global demand for airfreight continues to fall

The global demand for airfreight continued to fall for the eighth consecutive month in February, according to the figures released by the International Air Transport Association (IATA). According to IATA, the growth in February was 2.4 per cent compared to three per cent the previous month and a much higher percentage before that.

Industry experts attribute the declining trend to high fuel cost, which is forcing shippers to opt for a cheaper mode of transportation. They also say that increased competition has dampened growth, particularly on short-haul routes.

The redeployment of high-capacity international routes is believed to be yet another reason.

According to IATA, the highest demand for freight in February was recorded in West Asia, with a growth factor of more than 15 per cent, driven by oil-led prosperity. The report also said that Latin America recorded a fall in demand by more than 20 per cent, Europe by 0.6 per cent, Africa by two per cent and North America by 0.5 per cent. Asia, touted as a high-growth region, posted a weak increase of 4.4 per cent.

Meanwhile, British Airways World Cargo has announced an increase in fuel surcharge from April 26 as the fuel index has been above the level 10 threshold for the second consecutive week.