Demand for air freight falls as confidence declines

Demand for air cargo globally has fallen as companies switch to cheaper, slower transport options, says the International Air Transport Association (Iata).

Cargo demand fell 4.7 per cent last month compared with October last year, having fallen 2.7 per cent and 2.4 per cent in the previous two months.

Iata chief executive Tony Tyler said air freight was among the first sectors to suffer when businesses confidence declined.

The confidence of purchasing managers in the manufacturing sector had fallen to the lowest level since 2009, Iata said.

The loss of confidence appeared to have caused shippers to switch some transport needs to slower and cheaper sea options to the detriment of air freight, it said.

Ken Chiu, Cathay Pacific country manager for New Zealand and the Pacific Islands, said the bulk of cargo from New Zealand to Cathay Pacific's hub in Hong Kong, and also freighted on to other destinations in Asia and Europe, was perishable goods.

"At this time of year New Zealand exporters are busy sending fruit such as cherries, flowers, meat and seafood to various Northern Hemisphere destinations to cater for the festive season," Chiu said. Inbound cargo loads were also steady, with supplies arriving for importers in time for Christmas and gifts ordered by a rising number of online shoppers.

But going into the New Year "we continue to remain cautious".

In contrast to the fall in air freight, Iata said global passenger traffic last month was up 3.6 per cent on 2010, with international air travel up by 4.6 per cent and domestic up 2 per cent.