Global air cargo demand grew by 3.8% year-on-year in 2016, according to data released by the International Air Transport Association.

According to IATA, 2016’s growth rate was nearly double that of 2.0% over the last five years.

Available freight capacity increased by 5.3% compared to 2015, and the load factor fell by 0.6 percentage points to 43.0%.

All regions expect Latin America recorded positive freight growth in 2016, with European carriers accounting for almost half of the total annual increase in demand and posting the highest FTK growth rate for the first time ever.

The year started off weakly but rebounded in the second half, which the association attributed to an increase in shipments of silicon materials, a turnaround in new export orders and the earlier Lunar New Year.

“In terms of demand, 2016 was a good year for air cargo,” said Alexandre de Juniac, director general and CEO of IATA. “That was boosted by solid year-end performance. Looking ahead, strong export orders are good news. But there are headwinds. The most significant is stagnant world trade which also faces the risk of protectionist measures. Governments must not forget that trade is a powerful tool for growth and prosperity.”

He added that the air cargo industry must improve its competitiveness.

“We know that the way forward is defined by digital processes which will drive efficiency and improve customer satisfaction,” said de Juniac. “We must use the momentum of renewed demand growth to drive the important innovations of the e-cargo vision.”