Subscribe to our free, weekly email newsletter!


IATA notes decline in Asia Pacific air cargo volume

While air freight markets continued their decline in line with weak economic performance and falling business confidence, the biggest surprise may have occurred in the Asia Pacific martket.
By Patrick Burnson, Executive Editor
January 04, 2012

The International Air Transport Association (IATA) announced global traffic results for November showing a weaker air cargo market compared to levels attained earlier in the year.

Freight markets were 3.1 percent below November 2010 levels despite a 1.1 percent increase on October 2011 performance.

“Weak global economic performance is being reflected in air transport markets,” said Tony Tyler, IATA’s Director General and CEO. “Freight markets have contracted some 4 percent compared to January. Although passenger markets have had some growth relative to the beginning of the year – about 2 percent – the trend has been both soft and volatile. Continuing economic uncertainty will likely mean market shortcomings deepening as we enter 2012.”

While air freight markets continued their decline in line with weak economic performance and falling business confidence, the biggest surprise may have occurred in the Asia Pacific martket. Here, said analysts, growth was expected to remain strong.

According to Jim Edgar, regional director of cargo marketing for Boeing World, air cargo traffic will triple over the next 20 years and cargo rates should mirror demand during this time period.

“From now through 2029, we expect world air cargo traffic to grow at an annual rate of 5.9 percent,” says Edgar. “And Asia will continue to be at the forefront of the air cargo industry. Routes associated with Asia will continue to experience the world’s highest growth rates over the next 20 years, at 6.8 percent.”

Alas, IATA has found that Asia-Pacific carriers have seen the weakest demand performance driven by falling demand for Asian manufactured goods from U.S. and European consumers. The region’s carriers saw the market decline by 6.4 percent.

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

Disruptions at West Coast ports, which were resolved at the end of February, may have distorted the numbers

Growth firmly remains in the cards for both the manufacturing and non-manufacturing sectors in 2015. That was the main takeaway from the December 2014 Semiannual Economic Forecast from the Institute for Supply Management (ISM), which, in many ways, picked up where its companion Spring 2014 report published last April left off.

First quarter revenue of $1.776 billion was down 4.8 percent annually but up 4.6 percent in constant currency. And adjusted EBITDA at $51 million saw an 18.6 percent annual gain, with a 23.3 percent increase in constant currency.

Heading into 2015, the intermodal sector was faced with the same challenges it had exiting 2014, namely the West Coast port labor disruption and harsh winter weather. But even with these obstacles volumes still managed to show overall growth on an annual basis, according to the most recent edition of the Intermodal Market Trends & Statistics Report from the Intermodal Association of North America (IANA).

Forget cost cutting. Innovation and sustainability are the most important factors in business today. The companies that get it right can still win in a flat economy, says ISM CEO Tom Derry.

Article Topics

News · 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