Air Forwarders look to Asia for new business

“A World of Opportunities: Asia 2011,” is a theme that will drive discussion on strategic penetration of the emerging markets in the Far East
By Patrick Burnson, Executive Editor
March 10, 2011 - LM Editorial

As the Airforwarders Association annual conference gets underway in San Diego today, the industry continues to focus on the Pacific Rim.

“A World of Opportunities: Asia 2011,” is a theme that will drive discussion on strategic penetration of the emerging markets in the Far East.

But while Asia remains the focus, demand for global air cargo transport in general rebounded sharply in 2010 after a calamitous 18-month decline that began in May 2008. Boeing executives insist that in spite of this downturn, world air cargo traffic will triple over the next 20 years, compared to 2009 levels, averaging 5.9 percent annual growth.

“The number of airplanes in the freighter fleet will increase by more than two-thirds over the same period,” said Thomas Hoang, Boeing’s regional director of cargo marketing in Seattle. “China is the main engine for this growth, but nearly every developed country in Asia will be a factor.”

Boeing analysts note that in 2009, world air cargo traffic declined 11.3 percent after declining 1.8 percent in 2008 and growing 3.3 percent in 2007. The 2008-2009 period marked the first time that air cargo traffic has contracted in two consecutive years. The decline affected nearly every geographic market; however, regions connected to industrial freight flows generally fared worse than regions that are less dependent on these flows. It was the rising price of fuel that diverted air cargo to less expensive road transport and maritime modes beginning in 2005.

Although the tepid rate of world air cargo traffic growth between 2005 and 2008 can be attributed in part to rising fuel prices, the nearly 13 percent drop in cargo traffic during the two years ending in 2009 reflects the steep plunge in industrial activity attendant to the global economic downturn.

For related stories click here.



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 PMI, the ISM’s index to measure growth, increased 1.8 percent to 57.1 in July. This is 1.8 percent higher than the 12-month average of 55.3. The PMI has grown in 18 of the last 20 months, with economic activity in the manufacturing sector expanding for the last 14 months as the overall economy was up for the 62nd consecutive month.

YRC Worldwide, whose regional and long-haul units provide the second-largest LTL capacity in the trucking industry, narrowed its second-quarter loss to $4.9 million on $1.32 billion revenue, compared with $15.1 million loss on $1.24 billion revenue in the year-ago quarter.

With NFL training camps in full swing, it stands to reason that Congress must be replete with football fans, given how it basically has elected to punt on federal transportation funding yet again, with the Senate yesterday signing off on a ten-month bill to keep federal surface transportation funding intact through May 2015 through a nearly $11 billion stopgap measure.

Carload volumes were up 4.3 percent at 306,988, and intermodal volume for the week ending July 26 was up 3.3 percent at 264,809

Article Topics

News · Air Freight · Air Cargo · Transportation · 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