Air freight market recovery strengthening
The International Air Transport Association (IATA) released January performance data showing a strong rise in air freight growth compared to a year ago.
April 1, 2014
The International Air Transport Association (IATA) released January performance data showing a strong rise in air freight growth compared to a year ago. Global freight tonne kilometres (FTKs) rose 4.5 per cent in January compared to January 2013. This is a significant acceleration on the 2.2 per cent year-on-year growth rate recorded in December and is well above the 1.4 per cent full-year growth reported for 2013 as compared to 2012.
Growth was solid across all regions, with Middle Eastern carriers growing the fastest (10.7 per cent). European airlines continued to benefit from Europe’s recovery from recession, posting six per cent growth. Carriers based in the Asia-Pacific region, which account for nearly 40 per cent of the global air freight market, reported 3.8 per cent growth. This represents a major improvement over the one per cent contraction in 2013.
The forecast for cargo demand has been revised upwards form 2.1 to four per cent and yield decline revised from 2.1 to 1.5 per cent. Trading conditions remain challenging, but positive macroeconomic trends are providing a muchneeded boost to cargo, but the industry is growing more slowly than normal at this stage of the economic cycle, IATA said. The ‘on-shoring’ of production supply chains continues to impact the cargo business driven by protectionist measures and relative changes in production costs, it added.