According to the International Air Transport Association, the global air cargo traffic is peaking. It has climbed up to 22.4 % in July 2010 but it is estimated that it is going to slow down by the end of this year.

The Geneva-based airline industry announced in its last month’s report that there was 26.6% year-on-year increase of the air shipments due to the recovery of the market in July last year. The month-to month progress in demand was at peak in July after the seasonal factors were adjusted.

According to the IATA, the cargo traffic has risen to 4% in July after early 2008 but it is obvious that the recovery came at a slow pace. The second half of 2009 saw the cargo demand was recoiling at a rate of 28% but got considerably slow in the first seven months of 2010. The re-stocking by the businesses was the cause behind the unexpected increase in freights in the late 2009 and early 2010. But after the re-stocking session gets over, the freighting demand will depend upon the consumer outlay and costs of the business capital.

The corporate profits are acting as a catalyst in the increase of the capacity cost which could lead to drive a stout growth in the cargo traffic in spite of the feeble confidence of the North American and European consumers that is a negative factor. According to the IATA, there is a feeble growth for the European freighting by 12.1% from 2009, 25.3 % increase for the Asia/Pacific airlines and 27.1 % year-to-year growth for the carriers in North America.