Reality check for air cargo
The air cargo industry “is living in several different realities,” reports the International Air Transport Association
in the NewsUPS and Independent Pilots Association come to terms on tentative labor deal Panjiva reports May has a bounce back month for global trade activity ISM reports manufacturing finishes first half of 2016 in good shape ISM reports manufacturing finishes first half of 2016 in good shape AAR reports another down week for U.S. carload and intermodal volumes More News
The air cargo industry “is living in several different realities,” reports the International Air Transport Association.
The ability of airlines to recoup aggregated fuel costs is critical to staying in the black for the year, said IATA. Slower economic growth makes these challenges all the more difficult:
“It is certainly not the time to burden the industry with increases in other costs, including taxation,” said Tony Tyler, IATA’s Director General and CEO.
IATA is forecasting an industry profit of $4 billion for 2011 which is a 78 percent fall from the $18 billion that the airlines made in 2010. On anticipated revenues of $598 billion, this translates to a net industry margin of 0.7 percent.
Freight volumes have not grown since July-August 2010. May 2010 was the post-recession re-stocking peak, compared to which the June 2011 international freight market was 6 percent smaller.
So here’s the reality check: While world trade is expanding at 7 percent a year, the benefit is being realized more by modes of transport other than air.
About the AuthorPatrick 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!
WMS Update: What do we need to run a WMS? Supply Chain Software Convergence: Synchronization Realized View More From this Issue