IATA notes modest air cargo rebound

The International Air Transport Association (IATA) released figures showing a 1.4% expansion of global freight ton kilometers (FTKs) in 2013 when compared to 2012.
By Patrick Burnson, Executive Editor
February 06, 2014 - LM Editorial

The International Air Transport Association (IATA) released figures showing a 1.4% expansion of global freight ton kilometers (FTKs) in 2013 when compared to 2012.

Cargo markets made very slow progress during the first half of the year. Acceleration in the trend took root in the latter half of 2013, placing air freight volumes on a steadily increasing trajectory. Capacity grew faster than demand at 2.6% and load factors were weak at 45.3%.

Regional performance varied. Middle Eastern and Latin American carriers reported the strongest growth in demand (12.8% and 2.4% respectively). Asia-Pacific carriers, which have nearly 40% of the global air freight market, saw cargo activities shrink by 1.0% over the year.

“2013 was a tough year for cargo. While we saw some improvement in demand from the second half of the year, we can still expect that 2014 will be a challenging year. World trade continues to expand more rapidly than demand for air cargo. Trade itself is suffering from increasing protectionist measures by governments. And the relative good fortunes of passenger markets compared to cargo make it difficult for airlines to match capacity to demand,” says Tony Tyler, IATA’s Director

“As world trade accelerated in the past, air cargo has always followed closely,” says Charles “Chuck” Clowdis, managing director of transportation advisory services for IHS Global Insight. “However, this time the growth will not likely be at the 2X level as in the past.”

In an interview with LM, Clowdis notes that while air cargo volumes will rise, shippers should not expect to see the same pace or to reach the same levels as in the past.

“This will be true at least until the overall economy returns to 2005-2006, pre-recession levels,” he adds.



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

Following the lead of its Congressional Colleagues in the House of Representatives, the United States Senate yesterday approved a measure geared to keep federal surface transportation funding intact through the end of December with a nearly $11 billion stopgap fix.

XPO Logistics announced second quarter earnings and the acquisition of two companies, New Breed Logistics, a non asset-based 3PL focusing in contract logistics services, for roughly $615 million, and Atlantic Central Logistics, a 3PL provider of last-mile logistics services, for roughly $36.5 million.

The report, entitled “Outlook for the Domestic Transport and Logistics Market in 2H14 and Beyond,” takes the view that strong freight levels in the second quarter have left trucking companies in a good position: one in which they need to come up with new plans to handle rising demand. But even with that positive momentum afloat, the report observes that there are some familiar challenges intact, such as a lack of qualified drivers and the regulatory drag from the new hours-of-service rules that took effect in July 2013.

Flags of Convenience are a fact of life in the commercial maritime trade, but several European political action groups are worried that they will pose a threat to the Continent’s air cargo industry.

For May, which is the most recent month for which data is available, the SCI is -7.5, following April’s -7.5. FTR said this reading represents a still-tight capacity environment, as utilization rates hover between 98 percent and 99 percent.

Article Topics

News · Air Freight · Air Cargo · Economy · 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