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 American Association of Port Authorities (AAPA) had nothing but praise for the Senate passage over the past weekend of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015).

While there are apparent benefits to switching from diesel fuel to natural gas in terms of promised climate benefits, they come with a catch according to a research paper recently researched by the Environmental Defense Fund (EDF).

The popularity of cloud computing has consumed headlines ranging from fear and doubt, to claims of being the ultimate answer to all software applications in the enterprise. You may be asking yourself, what's the real story? Download the white paper, WMS in the Cloud, today to find out if cloud computing is right for your business.

A well-designed driver wellness program could make the job more attractive and help alleviate driver turnover.

Download this new white paper to understand vital (and complex) customs requirements and competitive strategies for business shipping through the US/Canada border.

Article Topics

News · Air Cargo · Air Freight · 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