IATA sees gentle surge in air cargo demand

“The world is moving again,” said Giovanni Bisignani, IATA’s director general and CEO.

<div style=Giovanni Bisignani
IATA’s director general and CEO.
" class="img-responsive" />
Giovanni Bisignani
IATA’s director general and CEO.

in the News

UPS and China-based SF Holding to launch joint venture
Motors, gears and drives MRO
Hub Group announces plans to acquire Estenson Logistics
MRO Technician Spotlight: Derek Ingram, Carolina Handling
MHEFI announces call for nominations for 2017 awards
More News
By ·

The International Air Transport Association (IATA) reported full-year 2010 demand statistics for international scheduled air traffic that showed a 20.6 percent increase in freight. Demand growth outstripped capacity increases of 8.9 percent for cargo. The freight load factor saw a 5.2 percentage point improvement to 53.8 percent.

“The world is moving again,” said Giovanni Bisignani, IATA’s director general and CEO. “After the biggest demand decline in the history of aviation in 2009, people started to travel and do business again in 2010. Airlines ended the year slightly ahead of early 2008 volumes, but with a pathetic 2.7 percent profit margin. The challenge is to turn the demand for mobility into sustainable profits,” said Giovanni Bisignani, IATA’s Director General and CEO.

Compared to the pre-recession levels of early 2008, air freight was 1 percent higher than pre-recession levels, however volumes have fallen 5 percent since the peak of the post-recession inventory re-stocking boom in early 2010.

“Most Californians don’t appreciate that, in terms of dollar value, almost half of this state’s export trade moves by air,” said Jock O’Connell, Beacon Economics’ International Trade Adviser.
The outlook for exports going into 2011 is balance of promise and worry, he cautioned.

“Outside of Europe, most of our primary trading partners continue to be major customers for California exporters, while a number of emerging economies in Latin America and Southeast Asia are significantly increasing their imports from California.”

Indeed, IATA reports that the regional variation in growth remains particularly marked. Latin American carriers recorded the highest full-year growth rate of 29.1 percent, followed by Middle East carriers (accounting for 11 percent of the market) at 26.7 percent, Asia Pacific airlines (with a 45 percent market share) grew by 24.0 percent, Africa at 23.8 percent and North America by 21.8 percent.  Against these industry gains, Europe’s 10.8 percent growth stands out as exceptionally weak.

www.iata.org


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 · Transportation · All Topics
Latest Whitepaper
Unlock the Value of Your Supply Chain Through Embedded Analytics
Learn how embedded analytics can provide deeper supply chain intelligence and help you extract maximum value from data for your supply chain operations
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Going Beyond Rate Negotiations for Logistics Cost Savings
The pressure to reduce cost is a fundamental part of every organization today leaving many supply chain professionals constantly renegotiating rates. This webcast examines four areas that may hold untapped savings potentials and even help organizations negotiate better rates.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...

LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...