IATA: March sets new record for air freight as cargo builds up ahead of tariffs

Air freight demand returned to growth in March as businesses rushed to move cargo ahead of US tariffs.

Data from the International Air Transport Association (IATA) shows that demand – measured in cargo tonne-kilometres (CTK) – rose 4.4% year-on-year. Meanwhile, capacity increased 4.3% and the cargo load factor remained unchanged at 47.5%.

IATA said that air cargo demand in March hit its highest level on record for the same month, reversing a 0.1% decline in February.

Willie Walsh, IATA’s director general, said the increase was likely related to businesses building up inventory ahead of the Trump administration’s new tariffs.

“March cargo volumes were strong. It is possible that this is partly a front-loading of demand as some businesses tried to beat the well-telegraphed 2 April tariff announcement by the Trump Administration,” Walsh said.

“The uncertainty over how much of the 2 April proposals will be implemented may eventually weigh on trade. In the meantime, the lower fuel costs, which are also a result of the same uncertainty, are a short-term positive factor for air cargo.”

“And, within the temporary pause on implementation, we hope that political leaders will be able to shift trade tensions to reliable agreements that can restore confidence in global supply chains.”

IATA’s assessment appears to be supported by recent economic reports. The US trade balance increased by more than 9% in March to $162 billion.

Analysts attributed this to US businesses rushing to import goods to avoid tariffs.

On trade indicators, IATA said global industrial output rose 3.2% year-on-year and global trade volumes rose 2.9%.
US inflation was 2.4%, down 0.4 percentage points from February. Consumer inflation in the EU was 2.5%, while Japan’s rate fell 0.1% to 3.6%.

“China remains in deflation but this eased to -0.1%,” IATA said.

By region, Asia-Pacific airlines recorded a 9.6% increase in cargo traffic in March, the strongest growth of any region.

North American carriers followed closely behind with a 9.5% increase. European carriers grew by 4.5%, while the Middle East fell by 3.2%.

In Latin America, cargo traffic increased by 5.8%, while Africa fell sharply by 13.4%.

“The Europe-North America route was the busiest trade lane in March. The largest trade lane by market share, Asia-North America, also grew strongly, possibly encouraged by front-loading shipments ahead of potential increased tariffs,” IATA said. “Europe-Middle East and Africa-Asia were the only trade lanes to decline in March.”

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Source: Phaata.com (According to Aircargo News)

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