Air cargo demand remains strong

After adjusting for seasonality, the improvement in demand was faster month-to-month in July than it was in June.
By Patrick Burnson, Executive Editor
August 26, 2010 - LM Editorial

The International Air Transport Association (IATA) announced international scheduled traffic statistics for July which showed continued strengthening of demand for cargo traffic. Compared to July 2009, international scheduled freight traffic showed a 22.7 percent improvement.

These year-on-year comparisons for July were less than the June growth data showing 26.6 percent increases for cargo traffic. The apparent slowdown was entirely due to the fact that by July 2009 traffic was already starting to recover. After adjusting for seasonality, the improvement in demand was faster month-to-month in July than it was in June.

It is clear that the recovery has entered a slower phase. During the second half of 2009, demand was rebounding at an annualized rate of 28 percent for cargo. In the year to July, the annualized growth rates had dropped to17 percent for air freight.  However, this is still considerably above the industry’s traditional 6 percent growth trend.

“The recovery in demand has been faster than anticipated. But, as we look towards the end of the year, the pace of the recovery will likely slow,” said Giovanni Bisignani, IATA’s Director General and CEO. “The jobless economic recovery is keeping consumer confidence fragile, particularly in North America and Europe. This is affecting leisure markets and cargo traffic. Following the boost of cargo demand from inventory re-stocking, further growth will be largely determined by consumer spending which remains weak.”



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

Phoenix-based Knight Transportation, one of the top and most profitable truckload companies said this week it has acquired Barr-Nunn Transportation, a dry van truckload carrier based near Des Moines, Iowa.

A weak fourth quarter growth forecast is on the horizon for ocean container volumes in Northern Europe, according to the most recent edition of the Global Port Tracker report from maritime consultancy Hackett Associates and Institute of Shipping Economics and Logistics.

3PL makes its first acquisition in its 85-year history with purchase of the Southeast and Northeast regional hubs of Bloomington, Indiana-based 3PL Nexus Distribution Corporation.

Jacksonville, Fla.-based Florida East Coast Railway (FECR), a 351-mile freight rail system on the state’s east coast, recently made two separate announcements. One had to do with an expansion of intermodal services between Charlotte, N.C. and various locations in South Florida and another was related to the company boosting its intermodal capacity through the addition of new equipment.

The International Air Transport Association (IATA) announced August 2014 data for global air freight markets showing continued “robust”growth in air cargo volumes.

Article Topics

News · Air Freight · Freight · Inventory · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

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