In­dia in the top 10 mar­kets

Ac­cord­ing to the In­ter­na­tional Air Trans­port As­so­ci­a­tion's in­dus­try fore­cast, In­dia will be among the 10 largest in­ter­na­tional freight mar­kets by 2018, fol­lowed by United States and China.

Cargo Talk - - Reaserch -

In­dia has emerged as the sec­ond-fastest grow­ing air cargo mar­ket after the Mid­dle East and is ex­pected to grow at a com­pound an­nual rate of about seven per cent over the next five years, an IATA fore­cast said.

In­dia would also be among the 10 largest in­ter­na­tional freight mar­kets by 2018 led by the United States sup­ply­ing 10,054,000 tonnes and China with 5,639,000 tonnes, the In­ter­na­tional Air Trans­port As­so­ci­a­tion's (IATA) in­dus­try fore­cast 2014-2018 shows.

It es­ti­mated that the sec­ond fastest-grow­ing mar­ket, In­dia, will ex­pe­ri­ence a com­pound an­nual growth rate (CAGR) of 6.8 per cent to add 622,000 ex­tra tonnes.

Apart from the US and China, the re­main­ing eight largest in­ter­na­tional freight mar­kets would be the UAE (4,974,000 tonnes), Ger­many (4,763,000 tonnes), Hong Kong (4,648,000 tonnes), Repub­lic of Korea (3,487,000 tonnes), Ja­pan (3,480,000 tonnes), the United King­dom (2,808,000 tonnes), Chi­nese Taipei (2,350,000 tonnes) and In­dia (2,223,000 tonnes).

Not­ing that the global freight vol­umes were ex­pected to rise an­nu­ally around 4.1 per cent over the next five years, it showed the largest air freight traf­fic share last year was within the Asia Pa­cific (21.6 per cent) fol­lowed by the Europe-Asia Pa­cific (12.3 per cent) and the North and Mid-Pa­cific (10 per cent).

Ob­serv­ing that air cargo re­mained a vi­tal pil­lar in the global eco­nomic sys­tem, Tony Tyler, Chief Ex­ec­u­tive Of­fi­cer and Di­rec­tor Gen­eral, IATA said, “More than USD 6.8 tril­lion worth of goods, equiv­a­lent to 35 per cent of to­tal world trade by value, would be trans­ported around the world by air in 2014.”

How­ever, Tyler warned that de­spite the pos­i­tive pic­ture, the over­all risks to the eco­nomic out­look, and there­fore to air freight re­mains to­wards the down­side. Trade pro­tec­tion­ism is a con­stant dan­ger.

He quoted World Trade Or­gan­i­sa­tion data to show that be­tween Novem­ber 2013 and May 2014 alone, 112 new trade- re­stric­tive mea­sures were en­acted by G-20 gov­ern­ments.

"Geopo­lit­i­cal con­cerns, vo­latil­ity of oil prices and com­pe­ti­tion from rail and sea could also af­fect this fore­cast. The air cargo in­dus­try cer­tainly can­not af­ford to be com­pla­cent," Tyler added.

IATA has an­nounced that global air cargo vol­umes, mea­sured by freight tonnes kilo­me­tres (FTKs), rose by 5.1 per cent in Au­gust, com­pared to the same month a year ear­lier. Ca­pac­ity grew at a slower pace of 3.4 per cent from the pre­vi­ous year. This is the sec­ond strong month for cargo vol­umes in a row, fol­low­ing the 6.1% year-on-year rise recorded in July.

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