Hong Kong’s, Cathay Pacific and Dragonair cargo volumes fell year-on-year with 3% in November, for the first time in nearly two years, to 160.120 tons as the global air cargo slump is set to continue into 2016 with a slowing Chinese economy.

The cargo and mail load factor fell 1.4% points to 67%. Capacity, measured in available cargo/mail ton kilometers, dropped 1.2% while cargo and mail revenue ton kilometers flown fell 3.2%.

It is the first time since January 2014 for the company – that derives around a quarter of its revenue from cargo – to report a year-on-year drop in monthly cargo traffic. In the year to the end of November, tonnage rose by 4.6% against a capacity increase of 5.7%.

Cathay cargo chief Mark Sutch stated “We entered the traditional peak period for air freight in November, but overall demand fell short of our original expectations. We saw a decline in the tonnage carried compared to the same month last year, while yield fell short of expected peak-season levels due to an excess of capacity in the market”

“On the positive side, we saw good demand on transpacific routes, which remains our key area of strength, and also into and out of India. And our cargo terminal in Hong Kong recorded its highest monthly throughput since commencing operations,” said Mr Sutch.