The Middle East and Africa to Oppose the Falling Trend of Freight Service Volumes

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From recent news, it is clear that a great decline is seen in volumes of air freight services across the world. There is a great decline recorded in air freight volumes in the month of July, according to a news report. Surprising all the freight services across the world, The Middle East and Africa opposed this falling trend by recording considerable growth in volumes. From a recent report of International Air Transport Association (IATA), 0.6 percent decline is seen in overall air freight volumes of different freight services around the world, measured in terms of freight tonne kilometers (FTK). This analysis is done comparing with the previous year records taken for the same time period. Analysts say slower economic growth acts as one reason for volume decline of freight service globally. It is revealed from a recent news report that the Middle East carriers have reported strong growth this year due to 10.8 percent hike seen in demand and 18.3 percent rise seen in freight capacity. At the same instance, African Airlines recorded considerable growth with 3.6 percent demand, in addition to 11.4 percent hike in capacity. Whereas Latin America, the strongest regional market enabling great trade performance also recorded remarkable growth in air freight service, ignoring the impact of lower performance of South African and Nigerian economies.
A noticeable decline was seen in both North and South America in which international freight tonne kilometer volumes have declined more than 5 percent in the month of July compared to 2014 records. Whereas Asia-Pacific carrier services have fallen by 1.9 percent in terms of FTKs, recorded in the month of July compared to same period last year. While capacity has increased by 5.3 percent. Tony Tyler was director general and chief executive of IATA said that recent disturbance caused in the stock market clearly depicts the fears of investors relied on global economy strength. A noticeable decline was seen in the performance of freight services recorded in the month of July acts as a symptom for speed reduction in economic growth. IATA is warning all the cargo services in prior about the upcoming rough ride which is causing mainly due to some reasons. China’s stumbling domestic markets, weakness carried by newly emerging markets and the sharp decline in global trade are some reasons enlisted aiding towards the rough ride of freight services in the upcoming future.
According to the recent freight report, Asia-Pacific FTKs declined by 1.9 percent in the month of July compared with previous year records. At the same time, capacity has expanded to 5.3 percent. Due to the downfall of Chinese manufacturing, Asia-Pacific got impacted leading to a great decline in import and export operations. For the same period, North American airlines faced a decline of 3.7 percent compared to previous year along with a slight increase in capacity by 5.4 percent. In addition, Latin American Airlines faced 5.1 percent decline in demand along with 3.9 percent growth in capacity compared to previous year records. Although Brazil and Argentina are expected to gain solid growth in the first half of 2015, it did not continue towards the stronger demand of air freight service. Similarly, European carriers faced 1.5 percent decline in demand with 3.9 percent rose in capacity. It is a tough time for both Eastern and Central regions of Europe as nearly 10 percent decline is seen in the trade by the end of first quarter this year, reported by IATA.

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