0800 0787 747
Search
Blog
 
     

POSITIVE FIGURES FOR AIR FREIGHT

Jan 27 2017

Strong global air freight growth in recent months looks set to continue into 2017, as reported by IATA. The latest data for global air freight markets showed that demand, measured in freight tonne kilometres (FTKs), rose 6.8% in November 2016 compared to the year-earlier period. This was a slight slowdown from the 8.4% annual growth recorded in October 2016 - which was a 20-month high - but was still more than 2.5 times the average annual monthly growth rate of 2.6% over the past decade. IATA noted that the increase in freight growth coincides with an increase in the shipment of silicon materials typically used in high-value consumer electronics shipped by air, and an apparent turnaround in new export orders. A modal shift to air cargo following the collapse of the Hanjin Shipping Company in August may have also contributed, the association added. On a regional level, airlines in all regions except Latin America reported an increase in year-on-year demand in November.

Asia-Pacific airlines saw demand in freight volumes grow 6.1% in November 2016 compared to the same period in 2015 and capacity grew by 4.0%. Seasonally adjusted volumes are now back to the levels reached in 2010 during the post-global financial crisis bounce-back. 

North American carriers’ freight volumes expanded 5.6% in November 2016 compared to the same period a year earlier, and capacity increased by 2.6%. Freight traffic across the Atlantic continued to strengthen, increasing by 9% in October. This is being driven in part by an increase in westbound import flows from Europe to the US helped by a strong dollar. European airlines posted a 9.0% year-on-year increase in freight demand in November. 

Middle Eastern carriers enjoyed a boost in demand from the strong peak season, with freight volumes increasing by 7.8% in November 2016, year-on-year. Seasonally adjusted growth has slowed, however, mainly due to weak freight volumes between the Middle East and Asia, and the Middle East and Europe. Freight volumes grew by just 4% on these routes in the January-October 2016 period, compared with 8-11% over the same period in 2015.

Latin American airlines experienced a demand contraction of 1.3% in November 2016, compared to the same period last year. However in seasonally adjusted terms, growth levels are in-line with where they were at the start of 2016.

African carriers’ posted the largest increase in freight demand among the regions in November, 10.9% year-on-year, and the seasonally adjusted growth remains strong. 

Copyright 2018 by Cargocall Ltd