Subscribe to our free, weekly email newsletter!



Connectivity is critical for enhanced trade

“Trade is the key to growth. For that connectivity is critical. And it is aviation that makes connectivity happen.”
By Patrick Burnson, Executive Editor
January 22, 2013

2013 is the 100th year of commercial aviation. Over that century, through an ever-expanding network, air transport has transformed the way we live, work and play, providing jobs for some 57 million people and supporting $2.2 trillion in economic activity by connecting people and goods on 35,000 routes.

But continued connectivity growth is not guaranteed, cautions the International Air Transport Association (IATA). The industry’s expected margin in 2013 of 1.3% is very weak. Furthermore current returns on investment are less than half the industry’s cost of capital, which continues to erode shareholder value.

In the New Year, IATA believes governments should resolve to bring down the barriers to connectivity growth. This can be done by addressing excessive taxation, high infrastructure costs, onerous regulation and improving the capacity and efficiency of airports and air navigation services.

We agree with Tony Tyler, IATA’s Director General and CEO, who feels a strong air transport sector is in the self-interest of governments eager to support economic growth and development.

“Trade is the key to growth. For that connectivity is critical. And it is aviation that makes connectivity happen,” said Tyler.

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

DHL said this investment is being made to meet customer needs for ongoing growth in international e-commerce and global trade and will also provide more gates to accommodate additional aircraft, warehouse space, and new equipment to provide more capacity for sorting shipments and for unloading and reloading planes.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in March dropped 5.3 percent annually to $96.1 billion.

U.S. carloads were down 9.1 percent annually at 273,387, and intermodal volume was up 4.3 percent annually at 281,090 containers and trailers.

NRF's Jonathan Gold explains that the past year was replete with disruptions, slowdowns and partial shutdown, which can no longer be the norm, saying ports and dockworkers must adapt to ensure they provide shippers with the predictability and stability they need.

Last month, I gave a presentation to a group of senior transportation and supply chain executives. It was entitled “Predictable Surprises,” because it addressed how transportation and supply chain professionals can eliminate unpleasant surprises by looking at and evaluating issues in the transportation industry, and projecting how those issues will affect their companies.

Article Topics

Blogs · Air Cargo · Air Freight · 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