Demand for global air freight likely to rise by 4.5 pc in 2015

Demand for global air freight grew 4.2 per cent in November last year as compared to same period in 2013 and is expected to rise by 4.5 per cent this year, driven by growth in cross-border trade, International Air Transport Association (IATA) said.

The most significant growth was recorded by carriers in the Asia-Pacific and Middle East regions at 5.9 per cent and 12.9 per cent respectively. Carriers in these regions captured the vast majority of the global increase (93 per cent).

"More goods are being traded internationally and that is fuelling the growth in air freight. It was clear in November that most of that growth is being captured by carriers in the dynamic and relatively business-friendly Asia-Pacific and Middle East regions," said Tony Tyler, IATA's Director General and CEO.

Demand as measured in freight tonne kilometres (FTK) grew by 3.3 per cent over the previous November.

"This year we expect air freight markets to expand by 4.5 per cent, outpacing projected growth in world trade (4 per cent). But that optimism is tempered by the many macro-economic and political risks that continue to impact trade flows," he said.

"The air cargo industry enters 2015 by solid growth trend. To turn the growth into sustained stronger profitability, the air cargo industry faces the challenge of investing in more efficient and higher quality processes and facilities that will give it the winning edge over its competitors," he said.

World Cargo Symposium would be organised in Shanghai from 10-12 March, whose main agenda will be enhancing air freight's competitiveness. The theme for which would be 'Improving the Customer Experience'.

Source : http://www.business-standard.com/article/pti-stories/demand-for-global-air-freight-likely-to-rise-by-4-5-pc-in-2015-115010900499_1.html

Continue

Air Cargo World - IATA shows robust growth in August air cargo FTKs

Global air freight markets showed continued robust growth in air cargo volumes in August, according to the latest data from The International Air Transport Association (IATA). Measured by freight-tonne-kilometers (FTKs), volumes rose 5.1% in August 2014, compared to August 2013, while capacity grew at a slower pace of 3.4% from the previous year. This is the second consecutive strong month for cargo volumes, following the 6.1% year-on-year rise recorded in July.
“The outlook for air cargo is clearly getting better. However, there are some limiting factors on the extent of potential gains. Demand for air cargo is growing more slowly than global economic activity,” said Tony Tyler, IATA’s director general and CEO. “Businesses are reported to have more confidence in the future, but the list of political and economic risks continues to moderate how that confidence translates into actual activity.”
Carriers in all regions reported an expansion in volumes. African airlines led the pack with the strongest growth of air cargo demand – 9.2% year-on-year – with capacity growth of 4.2%. Although this is the second consecutive month of strong growth, the volatility of African data, coupled with the slowdown in key African economies such as South Africa, IATA said it is too soon to understand the extent to which this represents a real and sustainable acceleration.
Middle Eastern carriers enjoyed cargo growth of 7.8%, although the pace was a little below the year-to-date average of 9.6%. The Middle East continues to expand strongly on its growing links to developing markets, as well as diversifying into important commodities such as perishables. Capacity was up 6.0%.
Asia Pacific carriers grew 6.3% and capacity expanded by 4.4%, continuing the acceleration of recent months. Emerging Asia trade volumes have expanded volumes solidly in June and July. A notable rise in Chinese export orders bodes well for future demand growth, IATA said.
North American carriers increased air freight volumes by a solid 5.5% compared to a year ago. A rebound in business activity following the weakness in the first quarter and positive underlying economic growth trends should support stronger growth in the coming months, IATA said. Capacity, however, fell slightly, by 0.4%.
European airlines grew by just 1.4%, while capacity expanded by 4.8%. Economic activity within the Eurozone continues to deteriorate, IATA noted, although the latest data does show a moderate pick-up in imports and exports. EU sanctions as a result of the Russia-Ukraine crisis also continue to affect demand, the group added.
Latin American airlines saw air cargo grow by a sluggish 1.1%, compared to August 2013, while capacity rose sharply to 7.6%. The weakness in Latin American freight volumes reflects declines in regional trade activity and the anemic performance of the Brazilian economy, IATA concluded.

Source : http://www.wcainterglobal.com/eng/news.asp?id=951

Continue