Boeing forecasts air cargo rebound

While the current air cargo industry is underperforming this year, Boeing is predicting a robust rebound, particularly in the Asia Pacific.

By ·

While the current air cargo industry is underperforming this year, Boeing is predicting a robust rebound, particularly in the Asia Pacific.

In its Current Market Outlook Boeing predicts that there will be a long-term demand for 34,000 new airplanes, valued at $4.5 trillion.

“These new airplanes will replace older, less efficient airplanes, benefiting airlines and stimulating growth in emerging markets and innovation in airline business models,” noted the forecast.

Boeing admitted that while commercial aviation has weathered many downturns in the past, recovery has followed quickly as the industry reliably returned to its long-term growth rate of approximately 5 percent per year.

China has been a particularly bright spot.

“It’s impressive that over 75 percent of the demand in China will be for growth instead of replacement,” said Randy Tinseth, Boeing Commercial Airplanes vice president of Marketing. “Sustained strong economic growth, growing trade activities and increasing personal wealth are some of the driving forces.”

The forecast observed that air cargo traffic has been moderating after a high period in 2010. Air cargo contracted by 2.4 percent in 2011.

“Expansion of emerging-market economies will, however, foster a growing need for fast, efficient transport of goods. We estimate that air cargo will grow 5.2 percent annually through 2031. We forecast a long-term demand for 34,000 new airplanes, valued at $4.5 trillion,” the forecast stated.

Boeing said these new airplanes will replace older, less efficient airplanes, benefiting airlines and stimulating growth in emerging markets and innovation in airline business models.


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!

Article Topics

Air Cargo · Air Freight · Trade · All Topics
Latest Whitepaper
The Benefits of Shared Transportation & Supply Chain Networks
In this new digital issue, the editors of Logistics Management have gathered four feature articles designed to help mangers break away from traditional, “transactional” relationships and move toward integrated provider partnerships for freight transportation.
Download Today!
From the August 2016 Issue
A growing number of low-cost lift trucks offer new avenues for pairing equipment and applications, but less cautious buyers might find that small up-front costs come at a steep price. Selecting the proper lift truck, lift truck tips 2016, Choosing the right Lift Truck
Megatrends in ocean freight
Ocean Cargo Roundtable: What’s in store for 2017?
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
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
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...