Boost to air freight from re-stocking cycle has run its course

Lack of inventory re-stocking and a softening of global trade has seen air freight grow at its slowest pace in 22 months, according to the latest figures from IATA. Freight tonne km grew 1.7% in March, year-on-year, and five percentage points below February. Capacity, meanwhile, outpaced demand for the first time in 20 months.

“It’s normal that growth slows at the end of a restocking cycle,” said Alexandre de Juniac, IATA’s director general. “That clearly has happened. Looking ahead we remain optimistic that air cargo demand will grow 4-5% this year. But there are obviously some headwinds. Oil prices have risen strongly, and economic growth is patchy. The biggest damage could be political. The implementation of protectionist measures would be an own-goal for all involved—especially the US and China.”

You can see the full March report here.