IATA notes decline in Asia Pacific air cargo volume

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.