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

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

A number of key topics impacting the freight transportation and logistics marketplace were front and center at a panel at the Council of Supply Chain Management Annual Conference in San Antonio last week.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA