Subscribe to our free, weekly email newsletter!

Air cargo may be finally staging a comeback

The International Air Transport Association announced international traffic results for October showing a 14.4 percent for year-on-year increase for international freight.
By Patrick Burnson, Executive Editor
November 29, 2010

A slight surge in air cargo demand has some industry analysts predicting a prolonged rebound.

The International Air Transport Association (IATA) announced international traffic results for October showing a 14.4 percent for year-on-year increase for international freight.

“As we approach the end of 2010, growth is returning to a more normal pattern,” said Giovanni Bisignani, IATA’s Director General and CEO. “Where we go from here is dependant on developments in the global economy.”

Charles Clowdis, managing director of transportation for IHS Global Insight, agrees that the freight sector may have reached a “turning point.”

“Following a promising ‘Black Friday,’ it appears U.S. consumers are ready to spend again,” he said. “That trend will be expressed in future cargo levels, but don’t expect a big increase. We are still not back to where we were five years ago.”

IATA, too, noted that The US is spending more to boost its economy.

“Asia outside of Japan is barrelling forward with high-speed growth. And Europe is tightening its belt as its currency crisis continues. The picture going forward is anything but clear, but for the time being, the recovery seems to be strengthening,” said Bisignani.

Freight appears to finally be staging a comeback. Since May, freight volumes have declined by 5 percent. October saw an end to the decline in freight with a slight uptick.
“But a single month does not make a trend. And it remains to be seen if this is the stabilization in freight volumes or the start of an upward trend,” said Bisignani.

Improvements in demand are being met by “a cautious approach” to capacity expansion, said IATA. Over the first 10 months of the year, cargo capacity expansion of 9.2 percent was well below the demand increase of 24 percent.

Meanwhile, North American airlines posted a 12.4 percent demand increase over October 2009. October represented the fastest growth rate for the year. With a capacity increase of 11.9 percent, the load factor for North American airlines was pushed to 82.5 percent, the highest among all regions. Compared to pre-recession levels of early 2008, the region’s airlines are carrying 2 percent more traffic.

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 .(JavaScript must be enabled to view this email address).

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!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.

Article Topics

News · Air Cargo · Freight · Transportation · IATA · All topics


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA