Subscribe to our free, weekly email newsletter!

Air cargo stats suggest sustained recovery

Compared to June 2009, international scheduled freight traffic showed a 26.5 percent improvement.
By Patrick Burnson, Executive Editor
July 28, 2010

The International Air Transport Association (IATA) announced international scheduled traffic statistics for June, showing continued strong demand growth as the industry recovers from the impact of the global financial crisis. Compared to June 2009, international scheduled freight traffic showed a 26.5 percent improvement.

Capacity increased only slightly above demand improvements during the month, keeping load factors in line with historical highs of 53.8 percent for freight.

“The industry continues to recover faster than expected, but with sharp regional differences. Europe is recovering at half the speed of Asia,” said Giovanni Bisignani, IATA’s Director General and CEO.
Outside of Europe, all regions reported double-digit growth in air cargo.

“The question is how long can the industry maintain the double-digit momentum. Business confidence remains high and there is no indication that the recovery will stall any time soon. But, with government stimulus packages tailing off and restocking largely completed, we do expect some slowing over the months ahead,” said Bisignani.

International freight demand grew 26.5 percent in June 2010, down from the 34.0 percent recorded in May 2010. May was exceptionally high as some interrupted traffic from April’s ash crisis shifted to May. Volumes remain 6 percent above the pre-recession peak in early 2008.

Freight demand continues to follow economic recovery and trade patterns with airlines in Asia-Pacific (+29.8 percent), Middle East (+39.6 percent), Latin America (+44.9 percent) and Africa (+54.0 percent) growing the fastest. Carriers in North America (+24.2 percent) occupy the middle ground. Europe (15.3 percent) is growing at half the rate of the fastest growing regions based on
slower economic growth.

This trend is particularly evident in Europe which is the only region still 5-6 percent below the pre-recession peak. The low value of the Euro will be a
help to the region’s exporters and eventually drive up freight volumes.

“We remain cautiously optimistic. A clear indication of the growing confidence is the over 400 aircraft orders announced at the Farnborough Air Show. This is good news that will bring environmental benefits through improved fuel efficiency. But it will also make the challenge of matching capacity to demand much more difficult,” 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 .(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

Coming off of 2014, which in many ways is viewed as a banner year for freight, it appears that some tailwinds have firmly kicked in, as 2015 enters its official homestretch, according to Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics (SOL) Report at last week’s CSCMP Annual Conference in San Diego. The SOL report is sponsored by Penske Logistics.

The average price per gallon for diesel gasoline increased 1.6 cents to $2.492 per gallon, according to data issued by the Department of Energy’s Energy Information Administration (EIA) this week.

The planned $4.8 billion acquisition of Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator, by FedEx may be showing signs of coming closer to fruition, with TNT’s shareholders formally giving their blessing on the proposed deal.

Con-way Freight, the less-than-truckload (LTL) subsidiary of transportation and logistics service provider Con-way, recently announced it plans to implement a general rate increase for non-contractual freight, effective October 19.

The index ISM uses to measure non-manufacturing growth—known as the NMI—came in at 56.9 in September (a level of 50 or higher indicates growth), a 2.1 percent decrease from August’s 59.0, and 3.4 percent off from July’s 60.3, which is its highest reading since January 2008.


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