Australia’s airfreight sector grew 3.2% over 5 years

Revenue for operators in the airfreight services industry in Australia has grown at a CAGR of 3.2 per cent over the past five years, and the sector is now estimated to be to be worth US$3.3 billion, according to research firm IBISWorld. It says the industry has continued to recover from poor conditions, following the financial crisis, which rocked the global aviation industry and suppressed demand for freight services.


Australia’s airfreight sector grew 3.2% over 5 years


Revenue for operators in the airfreight services industry in Australia has grown at a CAGR of 3.2 per cent over the past five years, and the sector is now estimated to be to be worth US$3.3 billion, according to research firm IBISWorld. It says the industry has continued to recover from poor conditions, following the financial crisis, which rocked the global aviation industry and suppressed demand for freight services. In 2014-15, industry revenue is expected to grow by 2.8 per cent, aided by strong inbound freight volumes.

According to IBISWorld industry analyst Ryan Lin, the majority of industry activity relates to international freight and mail services. Over the past five years, the industry’s performance has strengthened due to increased global trade volumes, supported by successive global and bilateral trade agreements. In addition, advances in communications technology have expanded the scope of international trade in goods and services. Both trends have led to shifts in demand for industry services.

Consumers in Australia are also increasingly taking to the Internet to purchase a large range of goods, many of which require airfreight services for delivery. While inbound freight services have performed the strongest due to favourable conditions for importers, outbound freight exports have stagnated, as “the high Australian dollar limited the ability of Australian exporters to compete in overseas markets,” says Lin.