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Global Freight Volumes Show Steep Decline

Reports from a number of sources paint a stark picture of steeply declining freight volumes around the globe.

By John McCloud | Updated on March 18, 2009

The freight and logistics industry appears to be in for a very difficult year, with the end result likely to be rising vacancies in warehouse and distribution centers throughout the world. Reports from a number of sources paint a stark picture of steeply declining freight volumes around the globe, with only a few bright spots standing out.

To begin with, the global slump in air cargo demand has continued into 2009, according to the most recent report from the International Air Transport Association (IATA) in Zurich, Switzerland. Following what the organization labeled an “alarming collapse” in December, it reports year-over-year demand experienced a further 23.2% drop in January. Asia Pacific carriers, which represent more than 40% of the market, led the decline with a 28.1% year-over-year drop. European carriers followed with a 23% decline, while North American carriers recorded a 19.3% drop.

The Association of Asia Pacific Airlines (AAPA) in Kuala Lumpur, Malaysia reports a slightly smaller drop for its region at 23.6%, but AAPA director Andrew Herdman nonetheless calls the operating environment extremely challenging. “The collapse in world trade is having a severe impact on air freight demand, forcing airlines to temporarily ground a number of dedicated freighter aircraft,” he says, noting that Asian-Pacific airlines have grounded planes accounting for more than 50% of the world’s total air freight capacity.

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