Boeing forecasts air cargo rebound

While the current air cargo industry is underperforming this year, Boeing is predicting a robust rebound, particularly in the Asia Pacific.
By Patrick Burnson, Executive Editor
September 06, 2012 - LM Editorial

While the current air cargo industry is underperforming this year, Boeing is predicting a robust rebound, particularly in the Asia Pacific.

In its Current Market Outlook Boeing predicts that there will be a long-term demand for 34,000 new airplanes, valued at $4.5 trillion.

“These new airplanes will replace older, less efficient airplanes, benefiting airlines and stimulating growth in emerging markets and innovation in airline business models,” noted the forecast.

Boeing admitted that while commercial aviation has weathered many downturns in the past, recovery has followed quickly as the industry reliably returned to its long-term growth rate of approximately 5 percent per year.

China has been a particularly bright spot.

“It’s impressive that over 75 percent of the demand in China will be for growth instead of replacement,” said Randy Tinseth, Boeing Commercial Airplanes vice president of Marketing. “Sustained strong economic growth, growing trade activities and increasing personal wealth are some of the driving forces.”

The forecast observed that air cargo traffic has been moderating after a high period in 2010. Air cargo contracted by 2.4 percent in 2011.

“Expansion of emerging-market economies will, however, foster a growing need for fast, efficient transport of goods. We estimate that air cargo will grow 5.2 percent annually through 2031. We forecast a long-term demand for 34,000 new airplanes, valued at $4.5 trillion,” the forecast stated.

Boeing said these new airplanes will replace older, less efficient airplanes, benefiting airlines and stimulating growth in emerging markets and innovation in airline business models.



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 Port of Oakland has undertaken a series of measures in recent years to attract more import volume.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 8.2 percent from September 2013 to September 2014 at $102.2 billion.

NS said that the D&H lines it plans to acquire connect with the NS network at Sunbury, Pa. and Binghamton, N.Y. and give NS single-line routes from Chicago and the southeast U.S. to Albany, N.Y., which is in close proximity to NS’ Mechanicville, N.Y.-based intermodal terminal.

This follows a 1.6 cent decrease last week, which was preceded by a 5.4 gain the week before and stands as the first increase going back to the week of June 23, when the weekly average headed up 3.7 cents to $3.919 per gallon.

BNSF said that its 2015 capital expenditures will be allocated towards various areas of its business, including maintenance and expansion of the railroad to meet the expected demand for freight rail service, with 2015 representing the third straight year BNSF has invested a record annual capital expenditures investment.

Article Topics

News · Air Freight · Air Cargo · 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 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA