Air cargo/global logistics: IATA reports “ash crisis” caused decline in cargo sector

The International Air Transport Association said international scheduled cargo traffic saw the pace of its recovery slow to 25.2 percent growth.

By ·

The International Air Transport Association (IATA) announced international scheduled air traffic results for April 2010, noting that international scheduled cargo traffic saw the pace of its recovery slow to 25.2 percent growth.
“The ash crisis knocked back the global recovery - impacting carriers in all regions,” said Giovanni Bisignani, IATA’s director general and CEO.
Although less dramatically hurt than passenger traffic, the global cargo sector took a significant hit.
The global purchasing managers’ index rose to its second highest level ever in April, indicating that the fundamentals of the air freight business were not affected by the crisis. We are, however, nearing the end of the inventory cycle and would expect freight growth to slow down over the rest of the year.
The scale of the ash crisis saw global load factors drop to 76.9 percent from the 78.0 percent recorded in March. Freight load factors also dipped to 55.3 percent from the 57.1 percent recorded in the previous month. While March traffic was within 1 percent of pre-crisis levels for both passenger and cargo, this slipped to 7 percent for passenger and 3 percent for cargo in April.
Looking ahead, Bisignani challenged Europe to reform its air traffic management.
“The ash crisis was an embarrassing wake-up call for European governments. We need leadership to deliver the Single European Sky, fair passenger rights legislation and continent-wide coordination,” said Bisignani.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Air Freight · All Topics
Latest Whitepaper
The View from the New “Single Window”
The single window, officially known as the "International Trade Data System," operates via the Customs and Border Protection (CBP) agency's Automated Commercial Environment (ACE) platform, and serves as a single point of contact for all trade filings.
Download Today!
From the March 2017 Issue
WMS vendors are stepping up to the plate and developing functionalities and solutions that meet the complex needs of today’s companies. Our top analysts take a peek into these developments and discuss the DC of the future and the software that will support it.
5 Supply Chain Trends Happening Now
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Trucking Regulations & Infrastructure Update
In this session our panel brings shippers up to date on the state of transportation regulations. Discussion will revolve around regulatory reform, aspects of the federal highway bill and what the transportation landscape looks like in the early days of the Trump administration.
Register Today!
EDITORS' PICKS
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...

2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...