Asia Pacific air cargo still surging

The Association of Asia Pacific Airlines (AAPA) reports that air cargo services ramped up again in February.

“Air freight demand achieved an impressive 12.8% increase during the same two month period, with robust demand for Asian exports, particularly to North America where the recent port dispute affected some maritime shipping operations,” said Andrew Herdman, AAPA Director General.

Given the great congestion problems now plaguing our ports, logistics managers are becoming increasingly reliant on air cargo as a “safety valve,” analysts told LM earlier this year.

International air cargo demand, as measured in freight tonnage registered a hefty 20.5% jump in February, outpacing a 12.6% increase in offered freight capacity, which resulted in a 4.2 percentage points increase in the average international freight load factor, to 65.2%.

“The demand outlook for Asian carriers remains broadly positive, supported by the benefits of lower oil prices,” said Herdman. “Nevertheless, Asian airlines are having to carefully match capacity growth with actual demand, while coping with the effects of increased currency volatility affecting both costs and revenues.”