Innovation may fuel air cargo recovery

High oil prices have turned fuel management into a fine art of conserving every last drop.

By ·

As noted in today’s news story, all the major regions experienced year-on-year air cargo declines, but the introduction of new consumer products such as the iPhone 5 could offset some downward pressure from the weak business environment.

To put this “two-speed” recovery into perspective, The International Air Transport Association (IATA), drilled down to these details:

*Asia-Pacific carriers saw a 1.6% decline in demand in September compared to the previous year. This is an improvement over August, when demand dropped 5.3% but still no progress compared to a year ago. Capacity dropped 3%.

*North American airlines had a 1.1% drop in demand, against a 3.1% drop in capacity. The load factor climbed 0.7% points to 35.2%.

*European airlines had a 0.4% decline in traffic, but capacity climbed 1.2% and the load factor dropped 0.7% points to 45.6%.

*Middle Eastern carriers had a 16.3% rise in traffic on a 6.9% rise in capacity, pushing up the load factor 3.8% points to 46.1%.

*Latin American airlines’ demand slipped 1.6% while capacity jumped 9%, resulting in a load factor of 37.8%, down 4.1% points.

African carriers saw a 4.1% rise in demand with capacity up 1.4%, raising the load factor 0.6% points to 24.1%, the lowest for any region.

But there may be some positive numbers surfacing in the final months of the year, IATA analysts suggest. They conclude their report by observing that “tough times deliver innovation. High oil prices have turned fuel management into a fine art of conserving every last drop.”


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 · Air Freight · Global · All Topics
Latest Whitepaper
Sharpen Your Competitive Edge with B2B Managed Services
Read this whitepaper to learn how B2B managed services help organizations reach their supply chain goals
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

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...