Subscribe to our free, weekly email newsletter!



Asia Pacific air cargo will bounce back

By Patrick Burnson, Executive Editor
September 21, 2011

The brighter picture painted by the International Air Transport Association contained some disappointing news as well. Asia Pacific carriers have been hit by a dramatic downturn compared to 2010.

It’s important to remember, however, that last year the region delivered $8 billion profit, and it still remains the most promising arena in the world today.

IATA noted that the weakness of air cargo markets is disproportionately affecting airlines from this region owing to the larger share of cargo in airline revenues. The shocks from the Japanese earthquake and tsunami continue to affect supply chains and cargo markets (in which Asia Pacific carriers have the largest market share).

A strong rebound is expected late in the year continuing into 2012.

And in the long term, things look even better.

A recent report issued by World Air Transport Statistics noted that Asia will continue to be at the forefront of the freight industry, expanding at a pace approaching 7 percent by the end of 2029.

This comes as scant surprise to the Boeing Company – China’s leading provider of aircraft – which maintains that the Asia Pacific region’s air traffic growth will exceed the world average by a “large” margin over the next two decades.

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

Working with research partner, The Economist Intelligence Unit, the IBM Institute for Business Value surveyed 1,023 global procurement executives from 41 countries in North America, Europe and Asia.

U.S. Carloads were down 7.8 percent annually at 259,544, and intermodal volume was off 15.7 percent for the week ending February 21 at 213,617 containers and trailers.

The Department of Transportation’s Bureau of Transportation Logistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in December 2014 was up 5.4 percent annually at $95.8 billion. This marks the 11th straight month of annual increases, according to BTS officials.

While the volume decline was steep, there was numerous reasons behind it, including terminal congestion, protracted contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, and other supply chain-related issues, according to POLA officials.

Truckload rates for the month of January, which measures truckload linehaul rates paid during the month, saw a 7.9 percent annual hike, and intermodal rates dropped 0.3 percent compared to January 2014, which the report pointed out marks the first annual intermodal pricing decline since December 2013.

Article Topics

Blogs · Air Cargo · Air Freight · Global Trade · All topics

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