IATA: Outlook for air cargo stabilises
Latest data by IATA shows that global air cargo accelerated in May with 4.7 per cent growth compared to a year ago.
July 3, 2014
The International Air Transport Association (IATA) latest global air freight markets showing air cargo growth accelerated in May, with 4.7 per cent growth compared to a year ago. This is up from the 3.8 per cent 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 per cent year-on-year growth, whereas the corresponding growth rate for North American carriers stood at 2.4 per cent. 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 stabilising. 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.