Air cargo weakened by shaky global economy

The uncertain economic outlook is having a negative impact on demand for air transport
By Patrick Burnson, Executive Editor
August 30, 2012 - LM Editorial

The International Air Transport Association (IATA) announced global traffic results for July showing slower growth in freight, but with considerable variation by region and market.

July freight demand was 3.2 percent lower than it was in the same month last year. This is down on the 0.1 percent year-on-year growth rate of June. A large part of that decline was due to a comparison with a relatively strong July last year, but overall the trend in air freight is weak, in line with subdued world trade growth.

Airlines have responded to this slower growth environment by reducing the capacity added to markets, a move which has stabilized load factors at relatively high levels and provided some support for profitability in the face of high fuel prices.

“The uncertain economic outlook is having a negative impact on demand for air transport,” said Tony Tyler, IATA’s Director General and CEO. “The cargo business is 3.2 percent smaller than it was a year ago.”



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

The Airforwarders Association, which represents more than 360 companies that move air cargo through the supply chain, today applauded an agreement reached by Congressional leaders to advance legislation giving the President authority to conclude key global trade agreements.

Despite great opportunity for growth, the logistics market in Latin America is lagging behind other emerging markets thanks in part to its notoriety for corruption, violence, poor infrastructure and government bureaucracy.

Both the mega-port of Los Angeles, and the Port of Oakland (California's third largest ocean cargo gateway, issued positive reports this month.

The American Association of Port Authorities (AAPA) applauded introduction of The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015), which is bipartisan legislation to modernize and renew U.S. Trade Promotion Authority (TPA).

Container lines must accelerate their internal-transformation efforts and extract more value from their alliances in order to restore profitability, according to a new report by The Boston Consulting Group (BCG).

Article Topics

Blogs · Air Cargo · Air Freight · Global Trade · 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 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA