IATA: air freight markets in modest slowdown
Traffic levels slightly below those of January and 1.1 per cent lower than what was recorded in March.
May 29, 2014
According to the latest data released by International Air Transport Association (IATA) global air freight markets in April showing demand (measured in Freight Tonne Kilometers or FTKs) was 3.2 per cent above previous year levels. Demand has not, however, grown in recent months. Traffic levels in April were slightly below those of January and 1.1 per cent lower than what was recorded in March.
Latest data show that prior improvements in the demand environment are experiencing some reversal. Largely as a result of further slowdown in the emerging markets, mostly China, indicators of business confidence slipped further in April.
“Trading conditions for air freight are difficult. Overall, business activity and trade have shifted down a gear after a strong end to 2013. And this is taking its toll on growth in the air cargo sector. Developed economies are still maintaining post-recession momentum and the expectation is for a stronger finish to the year,” said Tony Tyler, IATA’s Director General and CEO.
The air cargo sector is committed to improving its attractiveness to shippers through efficiency. The goal is to reduce shipping times by 48 hours before 2020. A centerpiece of this effort is the e-freight initiative which seeks to modernize the air cargo sector with paperless business processes. “Air cargo’s sales proposition is speed, and cumbersome processes are holding us back. In March we reached a significant milestone. For the first time, the e-Air Waybill (e-AWB) was used for over 200,000 shipments. That’s good news but we still have a long way to go,” said Tyler.