Demand for cargo carriers up 3.6% globally

[SINGAPORE] The global cargo market showed some signs of life in August, with demand growing 3.6 per cent year-on-year, after a largely flat performance this year.

At 5.3 per cent, however, capacity growth outpaced that of demand (in freight tonne kilometres), resulting in a freight load factor (FLF) of 42.8 per cent.

According to the International Air Transport Association (Iata), improving business confidence has put air freight demand on an upward trend since April as the European and American economies picked up. In contrast, the market has expanded a mere 0.7 per cent in the eight-month period spanning January to August. Month-on-month, air freight volumes were up 0.8 per cent in August from July.