Air Forwarders look to Asia for new business

“A World of Opportunities: Asia 2011,” is a theme that will drive discussion on strategic penetration of the emerging markets in the Far East

By ·

As the Airforwarders Association annual conference gets underway in San Diego today, the industry continues to focus on the Pacific Rim.

“A World of Opportunities: Asia 2011,” is a theme that will drive discussion on strategic penetration of the emerging markets in the Far East.

But while Asia remains the focus, demand for global air cargo transport in general rebounded sharply in 2010 after a calamitous 18-month decline that began in May 2008. Boeing executives insist that in spite of this downturn, world air cargo traffic will triple over the next 20 years, compared to 2009 levels, averaging 5.9 percent annual growth.

“The number of airplanes in the freighter fleet will increase by more than two-thirds over the same period,” said Thomas Hoang, Boeing’s regional director of cargo marketing in Seattle. “China is the main engine for this growth, but nearly every developed country in Asia will be a factor.”

Boeing analysts note that in 2009, world air cargo traffic declined 11.3 percent after declining 1.8 percent in 2008 and growing 3.3 percent in 2007. The 2008-2009 period marked the first time that air cargo traffic has contracted in two consecutive years. The decline affected nearly every geographic market; however, regions connected to industrial freight flows generally fared worse than regions that are less dependent on these flows. It was the rising price of fuel that diverted air cargo to less expensive road transport and maritime modes beginning in 2005.

Although the tepid rate of world air cargo traffic growth between 2005 and 2008 can be attributed in part to rising fuel prices, the nearly 13 percent drop in cargo traffic during the two years ending in 2009 reflects the steep plunge in industrial activity attendant to the global economic downturn.

For related stories click here.


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!

Latest Whitepaper
Managing Global Transportation: How NVOCCs can operate more profitably
Global transportation isn’t getting any easier to manage. With new rules and regulations to learn, new compliance requirements to adhere to, and new customers and business partners to onboard, navigating the complexities of the global market can be difficult for any company. To fully leverage their global supply chains, firms need a robust, global transportation management system that helps them navigate this ever-changing environment.
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo