Subscribe to our free, weekly email newsletter!


IATA notes modest air cargo rebound

The International Air Transport Association (IATA) released figures showing a 1.4% expansion of global freight ton kilometers (FTKs) in 2013 when compared to 2012.
By Patrick Burnson, Executive Editor
February 06, 2014

The International Air Transport Association (IATA) released figures showing a 1.4% expansion of global freight ton kilometers (FTKs) in 2013 when compared to 2012.

Cargo markets made very slow progress during the first half of the year. Acceleration in the trend took root in the latter half of 2013, placing air freight volumes on a steadily increasing trajectory. Capacity grew faster than demand at 2.6% and load factors were weak at 45.3%.

Regional performance varied. Middle Eastern and Latin American carriers reported the strongest growth in demand (12.8% and 2.4% respectively). Asia-Pacific carriers, which have nearly 40% of the global air freight market, saw cargo activities shrink by 1.0% over the year.

“2013 was a tough year for cargo. While we saw some improvement in demand from the second half of the year, we can still expect that 2014 will be a challenging year. World trade continues to expand more rapidly than demand for air cargo. Trade itself is suffering from increasing protectionist measures by governments. And the relative good fortunes of passenger markets compared to cargo make it difficult for airlines to match capacity to demand,” says Tony Tyler, IATA’s Director

“As world trade accelerated in the past, air cargo has always followed closely,” says Charles “Chuck” Clowdis, managing director of transportation advisory services for IHS Global Insight. “However, this time the growth will not likely be at the 2X level as in the past.”

In an interview with LM, Clowdis notes that while air cargo volumes will rise, shippers should not expect to see the same pace or to reach the same levels as in the past.

“This will be true at least until the overall economy returns to 2005-2006, pre-recession levels,” he adds.

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

A couple of years ago, the rush to alternatively fueled vehicles was on. Diesel prices had surged past $4, the American Trucking Associations hosted an overflow crowd at its alternative fuels “summit” for trucking executives and energy tycoon T. Boone Pickens offered what might have been the ultimate assessment of where fuel prices were headed.

As a sector with myriad moving parts, coupled with obstacles like increased risks, cost pressures, among others, the healthcare supply chain is replete with uncertainties. But there are ways for the sector to counter these challenges, too, according to the seventh annual UPS “Pain in the (Supply) Chain healthcare surve

The study examines the trajectory of offshoring cost arbitrage to low-cost developing countries, the rise of new locations, and the fact that there’s ample room for growth.

In a rare show of solidarity, various trucking interests are asking the Department of Transportation’s Federal Motor Carrier Safety Administration to remove online safety ratings of individual motor carriers until flaws in the CSA methodology are fixed.

While it feels somewhat hard to fathom, the stage is set for the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio, Texas.

Article Topics

News · Air Freight · Air Cargo · Economy · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA