Air cargo/global logistics: IATA issues promising forecast
Global air cargo traffic is back to pre-recession levels, declared Giovanni Bisignani,?director general and CEO?International Air Transport Association.
in the NewsPanjiva data highlights a solid February for trade activity U.S. West Coast shippers discover intermodal advantages of Reno, Nevada New FedEx offering focuses on high-volume returns U.S. trade with Canada and Mexico sees annual gain in 2016, BTS reports Knight-Swift to add 400 trucks, drivers with Abilene tuck-in acquisition More News
Global air cargo traffic is back to pre-recession levels, declared Giovanni Bisignani,?director general and CEO?International Air Transport Association (IATA). Speaking at its 66th Annual General Meeting and World Air Transport Summit?in Berlin, Germany, he provided a “snapshot” suggesting cautious optimism.
“Our resilience has been tested by disease, war, terrorism, spiking oil prices and even a volcano,” he said. “The worst economic recession in 80 years saw revenues drop by $81 billion and losses of almost $10 billion in 2009.”
Chief among them, he said, is capacity?excess. Bisignani warned that the upturn “will bring temptation.” 1,340 aircraft will be delivered this year and only 500 are for replacement. The discipline of chasing profits, not market share, is the only way to protect the bottom line, he emphasized.
The next concern is organized labors, which he characterized as being “out of touch with reality.” Bisignani said airlines cannot pay salary increases at a time when they are trying to recover collectively from $47 billion in losses.
Taxation is another worry for the air cargo sector. Governments went $2.7 trillion in debt to rescue the bankers, stimulate economies and support currencies, he said.
“And the risk of oil price volatility may not be over, either. Hedging is critical for our business, but speculators are making huge profits. Governments must protect the economy from irresponsible profiteering.”
About the AuthorPatrick 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 [email protected]
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!
Reverse Logistics in the “Age of Entitlement” Logistics Management’s Viewpoint on E-commerce: Leveraging available tools View More From this Issue