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

Air cargo "stabilizing" says IATA

PRESS RELEASE

July 02, 2014: The International Air Transport Association (IATA) released data for global air freight markets showing air cargo growth accelerated in May, with 4.7% growth compared to a year ago. This is up from the 3.8% year-on-year growth recorded in April. Cargo volumes, measured by Freight Tonne Kilometers (FTKs) were up across all regions, but with significant differences in performance.

The Middle East carriers reported 9.3% year-on-year growth, whereas the corresponding growth rate for North American carriers stood at 2.4%. The acceleration of growth reflects improved economic conditions. There are indications that world trade and business confidence to be improving after weakness in the first quarter. In particular, Chinese manufacturing activity rebounded in May, with a corresponding rise in export order growth.

"After several months of wavering conditions in the demand environment, the outlook for global air cargo appears to be stabilizing. That's good news but the sector still faces an uphill battle to restore competitiveness and increase its share of trade growth. This will not be achieved with a business-as-usual mindset. The competitors to air cargo are innovating aggressively, cutting end-to-end shipping times and improving efficiency. There is tremendous potential in the e-cargo agenda to help shorten average shipping times by 48 hours from the current average of 6.5 days. Airlines have a pivotal role through expanding the use of e-Air Waybills. But success will need a united approach across the value chain," said Tony Tyler, IATA's Director General and CEO.

Regional analysis in depth

  • Asia-Pacific carriers recorded a strong increase of 5.3% year-on-year. Regional trade volumes have picked-up again, and there are signs that the slowdown in the Chinese economy is easing. Capacity grew a little faster than demand, at 6.0%, but the region still has the highest freight load factor (55.5%).
  • North American carriers grew by a modest 2.4% in May, down on the April year-on-year growth rate of 3.5%. This reflects the general slowdown in the US economy in the first quarter. However, the latest data supports a return to trade and business growth. Capacity was down 0.2%.
  • European airlines expanded 3.4% in May. The month-on-month rise was solid at 0.6% (compared to 0.3% growth recorded in April), pointing to a consistent improvement in economic activity. If GDP accelerates in the second quarter, that should support continued growth in air freight volumes in the coming months. Capacity increased 4.0%.
  • Middle East carriers continue to see the highest rate of growth, expanding 9.3% in May compared to a year ago. Stronger expansion in developed markets is combining with rising links to emerging economies to fuel growth. Capacity grew 10.6%.
  • Latin American airlines recorded an increase of 4.9% year-on-year, responding to a pick up in trade growth. This may be a spike in business activity associated with the FIFA World Cup. Capacity climbed 4.5%, slightly slower than demand.
  • African carriers' demand increased by 7.2% in May, considerably ahead of the average growth of 2.9% for 2014. Weaker growth in the major African economies in the first months of the year appears to be ending, which will hopefully fuel stronger performance in the months ahead. Capacity rose 7.2%, exactly in line with demand.

More News

Written on 21/11/2017, 15:20
freightweek-news-update-week-47ZEEBRUGGE, Belgium: November 21, 2017. P&O Ferries says its new box route between the UK ports of Hull and Zeebrugge, Belgium has seen 14,804 lifts...
Written on 18/11/2017, 22:25
crowley-supports-puerto-rico-power-restorationSAN JUAN, PR: November 17, 2017. Puerto Rico's Electric Power Authority director Ricardo Ramos resigned today as the government acknowledged that only...
Written on 18/11/2017, 16:13
emirates-skycargo-signs-ecommerce-mouDUBAI: 18 November, 2017. Emirates SkyCargo has signed an MoU with Dubai CommerCity (DCC) – a free zone dedicated to eCommerce in the MENA...
Written on 17/11/2017, 23:08
qantas-plans-mustard-power-for-trans-pacificSYDNEY: November 18, 2017. Qantas is to operate the world's first bio-fuel B787-9 flight between Melbourne and Los Angeles next year based on Brassica...
Written on 17/11/2017, 20:43
yusen-buys-tibbett-logistics-in-romaniaWOODFORD GREEN, UK: November 17, 2017. The Keswick Enterprises Group is selling its Romanian Tibbett Logistics subsidiary to Amsterdam-based Yusen...
Written on 17/11/2017, 19:33
walmart-and-j-b-hunt-to-test-teslaLOWELL, AR: November 17, 2017. U.S. logistics company J.B. Hunt Transport Services has made multiple reservations at US$5,000 each for new Tesla 'Semi'...
Written on 14/11/2017, 17:49
port-record-prompts-savannah-rail-expansionSAVANNAH, GA: November 13, 2017. The Georgia Ports Authority (GPA) has approved a further US$42.27 million for its US$128 million Mason Mega Rail...
Written on 13/11/2017, 22:01
freightweek-news-update-week-46ASHBY-DE-LA-ZOUCH, UK: November 16, 2017. CEVA Logistics has added to its investment in pharmaceutical logistics with the opening of a fully refurbished...
Written on 13/11/2017, 20:56
amerijet-adds-to-sales-network-and-b767-fleetMIAMI: November 13, 2017. Amerijet International is due to take delivery of another B767-300 from Cargo Aircraft Management, a subsidiary of the...
Written on 10/11/2017, 21:36
turkish-cargo-q3-revenue-jumps-40-percentISTANBUL: November 09, 2017. Turkish Airlines has reported Q3 revenue of US$3.6 billion, an operating profit of US$1.07 billion and a net profit of...
Written on 10/11/2017, 18:00
ironhorse-joins-fedex-on-mexico-borderSANTA TERESA, NM: November 08, 2017. Ironhorse Resources, parent company of five shortlline U.S. railroads including the Santa Teresa Southern Railroad...
Written on 09/11/2017, 22:02
four-logistics-hubs-for-heathrow-s-third-runwayLONDON HEATHROW: November 08, 2017. In anticipation of government approval to build its third runway, Heathrow has published a list of 65 so-called...
Written on 09/11/2017, 01:25
fedex-signs-atr-freighter-orderTOULOUSE, November 08, 2017. FedEx Express has signed a contract with ATR to purchase 30 ATR 72-600F freighters plus 20 options. The price was not...
Written on 08/11/2017, 20:04
astral-aviation-working-for-africa-s-progressABIDJAN/NAIROBI: November 08, 2017. The Green Climate Fund (GCF), set up as a result of the UN Paris Agreement, has partnered with the African Development...
Written on 07/11/2017, 22:53
maersk-maneuvers-for-logistics-management-futureCOPENHAGEN: November 07, 2017. A.P. Møller – Mærsk has reported a 14 percent rise in Q3 revenue to US$8 billion; EBITDA earnings of US$978 million; and...
Written on 07/11/2017, 21:34
lng-to-power-cma-cgm-orderMARSEILLE: November 07, 2017. CMA CGM says its order for nine 22,000 TEU containerships with the first due for delivery in 2020 will be powered by...
Written on 07/11/2017, 20:22
ups-joins-blockchain-allianceATLANTA: November 07, 2017. UPS has joined the Blockchain in Trucking Alliance (BiTA), a forum for the development of blockchain technology standards and...
Written on 06/11/2017, 20:46
freightweek-news-update-week-45DUBAI: November 12, 2017. Emirates has ordered 40 B787-10 aircraft valued at US$15.1 billion (AED 55.4 billion) for delivery beginning in 2022. Read...
Written on 03/11/2017, 22:27
turkish-cargo-benefits-from-envirotainer-accreditationSAN FRANCISCO, November 01, 2017. The Bio Supply Management Alliance (BSMA), a community of supply chain professionals in the biotech, biopharma, and...
Written on 03/11/2017, 21:16
etihad-to-cancel-dallas-serviceABU DHABI: November 02, 2017. Following American Airlines' decision to end code share agreements with Qatar Airways and Etihad Airways next year, Etihad...

- powered by Quickchilli.com -