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

image
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

Earlier today, the United States Senate signed off on a six-year surface transportation authorization, according to various media reports. The bill, entitled the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act, passed by a 65-34 margin and comes at a time, when the most recent extension for surface transportation funding expires tomorrow, July 31.

Demand for the $500 million in available funding for the United States Department of Transportation’s TIGER (Transportation Investment Generating Economic Recovery) competitive grant program was easily trumped, with applications for the seventh round of TIGER grants coming in at $9.8 billion, or nearly twenty times the available amount, DOT said this week.

Global logistics managers will be tracking the progress of the controversial Trans-Pacific Partnership (TPP) talks in Maui, Hawaii this week, as negotiating parties hope to finalize the agreement.

As has been noted in recent coverage on this site in regards to Peak Season, one underlying theme has been, and remains, how Peak Season is not what it used to be. That is not to say there will not be any Peak Season-related activity. Make no mistake, there will be and things driving it from the seasonal nature of business activity and cargo flows to higher demand and increased e-commerce activity, among others.

UPS Access Point locations serve as a replacement delivery address when consumers are not at home to receive a package or when consumers want a delivery to go somewhere other than their residence.

Comments

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