Innovation may fuel air cargo recovery

High oil prices have turned fuel management into a fine art of conserving every last drop.

By ·

As noted in today’s news story, all the major regions experienced year-on-year air cargo declines, but the introduction of new consumer products such as the iPhone 5 could offset some downward pressure from the weak business environment.

To put this “two-speed” recovery into perspective, The International Air Transport Association (IATA), drilled down to these details:

*Asia-Pacific carriers saw a 1.6% decline in demand in September compared to the previous year. This is an improvement over August, when demand dropped 5.3% but still no progress compared to a year ago. Capacity dropped 3%.

*North American airlines had a 1.1% drop in demand, against a 3.1% drop in capacity. The load factor climbed 0.7% points to 35.2%.

*European airlines had a 0.4% decline in traffic, but capacity climbed 1.2% and the load factor dropped 0.7% points to 45.6%.

*Middle Eastern carriers had a 16.3% rise in traffic on a 6.9% rise in capacity, pushing up the load factor 3.8% points to 46.1%.

*Latin American airlines’ demand slipped 1.6% while capacity jumped 9%, resulting in a load factor of 37.8%, down 4.1% points.

African carriers saw a 4.1% rise in demand with capacity up 1.4%, raising the load factor 0.6% points to 24.1%, the lowest for any region.

But there may be some positive numbers surfacing in the final months of the year, IATA analysts suggest. They conclude their report by observing that “tough times deliver innovation. High oil prices have turned fuel management into a fine art of conserving every last drop.”

About the Author

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 [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!

Article Topics

Air Cargo · Air Freight · Global · All Topics
Latest Whitepaper
Warehouse Management Systems (WMS) / Inventory Management Technology: 6 Trends for the Modern Age
Here’s how the next generation of warehouse and inventory management systems are evolving to help logistics operations operate more efficiently and improve their bottom lines in our brave, new digital age.
Download Today!
From the March 2018 Logistics Management Magazine Issue
We know e-commerce is reshaping logistics, but what are the technologies savvy managers can leverage to meet evolving requirements and shifting operational constraints? We’ve rounded up insights from leading analysts to share tools that are available now as well as what’s on the horizon.
Reverse Logistics in the “Age of Entitlement”
Logistics Management’s Viewpoint on E-commerce: Leveraging available tools
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Securing IoT data across the connected supply chain
Learn why a holistic approach to IAM is the most effective way to govern access to your systems and information requested by your partners, vendors, customers, and connected devices.
Register Today!
Evolution of E-commerce: The possibilities of tomorrow
We know e-commerce is reshaping logistics, but what are the technologies savvy managers can leverage...
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...

2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...
Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...