English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

IATA: "another tough year for air cargo"

PRESS RELEASE

March 03, 2015: The International Air Transport Association (IATA) released data for global air freight markets showing a 3.2 percent expansion in freight tonne kilometers (FTKs) in January 2015 compared to the same month last year. The growth is slower than the average of 4.5 percent recorded for 2014.

There was much regional variation in the January performance. Asia-Pacific, African and Middle Eastern airlines expanded strongly, but airlines in Europe and North and Latin America all reported demand contractions. Although it is too early to be certain of a trend towards weaker air freight, there are at least two emerging factors which could negatively impact demand for air cargo in the coming months:

  • Business confidence has been declining since mid-2014 and export orders tailed-off towards the end of the year
  • A reversal of the positive trade-to-domestic production ratio which boosted cargo volumes last year

"January was a disappointing start to the year for air cargo. And it is difficult to be too optimistic about the rest of the year given the economic headwinds in Europe and growing concerns over the Chinese economy. Add to that the continuing trends of on-shoring production and trade protectionism and 2015 is shaping up to be another tough year for air cargo," said Tony Tyler, IATA's Director General and CEO.

Regional analysis in detail

Asia-Pacific carriers grew their FTKs 6.9% compared to January 2014, supported by an improvement in regional import activity. Japan's expansion is helping regional volumes, but there could be concerns over the Chinese economy, which saw export orders contracting at the fastest pace in three years. Capacity rose 5.4%.

European airlines saw volumes fall 1.2% compared to a year ago. The Eurozone is facing deflationary economic headwinds and the weakness of the Russian economy is also impacting demand. Weak home demand is not being offset by North Atlantic and Asian growth opportunities. Capacity grew 3.6%, further weakening the load factor.

North American carriers experienced a 1.0% fall in FTKs. This decrease, however, is most likely due to the strong result that occurred in January 2014. Underlying trends for North American volumes are positive. Trade is growing and the month-to-month comparison of FTKs shows expansion in January compared to December. Capacity fell 2.8%, continuing the recent trend of improving load factor.

Middle Eastern carriers expanded FTKs 9.2%. The hub strategies of the leading airlines in the region are proving successful as network and capacity expansions help satisfy demand on international routes and serve inward trade to Middle Eastern economies. Capacity jumped 18.1%.

Latin American airlines suffered a 6.4% fall in FTKs compared to January 2014. The region continues to be affected by the weakness in the key economies of Brazil and Argentina. Although other Latin American markets have increased regional trade in recent months, this has not yet translated into increased air freight demand. Capacity fell 2.0%.

African airlines grew cargo volumes 5.2%. While major economies such as Nigeria and South Africa are under-performing, regional trade activity is holding up. Capacity rose just 2.4%, strengthening the load factor.

freight-analysis-jan-2015.pdf

More News

Written on 24/07/2017, 15:30
customs-app-a-hit-at-brusselsBRUSSELS: July 23, 2017. A new Customs Export app is proving popular among the BRUcargo forwarding community at Brussels Airport following a launch at the...
Written on 21/07/2017, 21:30
u-s-trucking-volumes-continue-to-growARLINGTON, VA: July 19, 2017. The American Trucking Associations' latest forecast says U.S. freight volumes will grow 2.8 percent in 2017 and then average...
Written on 21/07/2017, 17:15
turkish-cargo-supports-perishables-exportersISTANBUL: July 21, 2017. Phuket has become Turkish Airlines 300th destination with the launch of a four times weekly passenger service plus A330 freighter...
Written on 21/07/2017, 15:14
united-cargo-increases-revenueCHICAGO: July 18, 2017. United Airlines has reported a 39.1 percent increase in net profit to US$818 million for the second quarter 2017 on a 6.4 percent...
Written on 19/07/2017, 21:52
dhl-vietnam-delivery-goes-electricHO CHI MINH City, Vietnam: July 17, 2017. DHL eCommerce has launched a nationwide domestic delivery operation including the use of electric motorbikes for...
Written on 18/07/2017, 20:18
bahri-and-bollore-build-a-businessRIYADH: July 18, 2017. The National Shipping Company of Saudi Arabia (Bahri) is setting up a joint venture with Group Bolloré to provide end-to-end...
Written on 18/07/2017, 16:22
seatrade-and-cma-cgm-to-launch-reefer-serviceMARSEILLE/ANTWERP: July 17, 2017. CMA CGM and ocean reefer specialist Seatrade are to begin a vessel-sharing agreement for perishables in October...
Written on 17/07/2017, 13:12
freightweek-news-update-week-29LONDON: July 21, 2017 - In response to demand on its North Sea route from Rotterdam (Europoort) to Harwich (UK), Stena Line is replacing its current RORO...
Written on 14/07/2017, 19:37
successful-first-test-for-hyperloop-oneNEW YORK, July 12, 2017 Hyperloop One has completed the first test of its vacuum transport system with a vehicle coasting for 5.3 seconds using magnetic...
Written on 13/07/2017, 20:12
istanbul-new-airport-signs-250-million-cargo-contractsISTANBUL: July 12, 2017. İstanbul New Airport has signed 25-year leases valued at €250 million with six cargo operators. MNG, PTT, Çelebi Ground...
Written on 11/07/2017, 21:40
turkish-airlines-continues-support-for-new-albania-airlineISTANBUL: JULY 10, 2017. M. İlker Ayci, chairman of Turkish Airlines, said the expected downsizing of Italian airline services to Albania creates a "high...
Written on 11/07/2017, 20:22
freightweek-news-update-week-28AMSTERDAM: July 14, 2017. SkyTeam, the global airline alliance, has appointed Nico Van der Linden as vice president Cargo from July 01, 2017. Read...
Written on 11/07/2017, 19:53
expanding-pharma-future-for-amerijetFORT LAUDERDALE, FL: July 11, 2017. Amerijet International has announced it is the first U.S. all-cargo airline to earn IATA's CEIV- Pharma...
Written on 10/07/2017, 22:46
rembrandt-returns-from-russiaAMSTERDAM: July 10, 2017. KLM Cargo is to deliver 63 Dutch Masters, including six Rembrandts, from the State Hermitage Museum in St Petersburg to the...
Written on 10/07/2017, 22:01
delta-creates-certified-pharma-networkATLANTA: July 10, 2017. Delta Cargo has become the first U.S. major carrier to be awarded IATA's Center of Excellence for Independent Validators (CEIV)...
Written on 09/07/2017, 22:24
cosco-shipping-buys-orient-overseasSHANGHAI/HONG KONG: July 09, 2017. COSCO Shipping Holdings and the Shanghai International Port Group (SIPG) are to acquire Orient Overseas International...
Written on 06/07/2017, 22:21
swiss-link-germany-to-belgium-and-hollandFRENKENDORF, Switzerland: July 06, 2017. Container handling and logistics company Swissterminal has begun a new Swisstrain box service to the Port of...
Written on 06/07/2017, 21:21
tnt-makes-progress-in-petya-recoveryMEMPHIS: July 06, 2017. FedEx reports most services from its TNT subsidiary are now available with all depots, hubs and facilities open, operational and...
Written on 05/07/2017, 22:35
luxembourg-says-it-with-flowers-hola-quitoQUITO, Ecuador: July 05, 2017. Cargolux Airlines has added Quito to a four-times a week roundtrip B747 freighter service that links Luxembourg, Curitiba...
Written on 05/07/2017, 21:14
cma-cgm-cuts-debt-with-sale-of-los-angeles-terminalMARSEILLE: July 03, 2017. CMA CGM is selling a 90 percent stake in its Global Gateway South (GGS) terminal at the Port of Los Angeles to EQT...

- powered by Quickchilli.com -