European Airfreight Demand Weakens up only 1.5% in March

12.05.2008 (10:15)

European airlines are experiencing a sharp slowdown in airfreight volumes, rising by just 1.5 per cent in March compared with 7.2 per cent in the previous month, according to the latest figures released by the Association of European Airlines.

Experts say the reason behind the contraction is rising jet fuel prices, which are reducing demand for international air freight, a mode of transportation that is typically more expensive than ocean liner shipping, reports Hong Kong Shipping Gazette.

Europe's air trade growth in March with Asia was flat compared with the same month a year ago, while transatlantic traffic was up 3 per cent due to an increase in demand for cheaper US exports as the greenback loses ground to other major world currencies.

A report by AirCargo World Washington pointed to the case of Swiss freight forwarder Panalpina. The company recently posted a 4 per cent increase in air cargo volume in the first quarter versus 14 per cent growth for ocean freight.
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