Logistics News | Continuous Drop in Air Freight Demand

Author Name: Tiffany Lee – Marketing Analyst at FreightAmigo｜23/6/2022

Pandemic has significantly hampered the air freight industries of many countries. Flights were cancelled in order to support the pandemic prevention measures of different countries and regions. The Russia-Ukraine war has significantly reduced Europe’s capability for air freight because the majority of Russian and Ukrainian airlines mostly transport cargo. Demand for air freight in general is falling as a result of the epidemic’s effects, ongoing conflict between Russia and Ukraine and inflation. Some experts predict that the world economy will slow down, which will reduce demand for imported goods and affect air freight.

According to the International Air Transport Association (IATA), the demand for air freight decreased 11.2% in April, the most since August 2020. The conflict between Russia and Ukraine has had an impact on Europe, as the market demand has decreased by 24.6% and air freight volume has decreased by 14.4% in April compared to last year. The Asia-Pacific area experienced the largest reduction in air freight volume in April of all the regions, falling 15.8% as a result of China’s dynamic zero-Covid strategy.

According to figures issued by the Japan Aircargo Forwarders Association (JAFA), air freight exports from Japan decreased by 9% in May compared to last year, indicating the fifth consecutive month of decline. However, some analysts predict that as China relaxes export limits, air freight demand will increase rapidly. However, no one can predict how long this upward cycle would last.

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