Air cargo con­tin­ues to flat-line

Data for global air freight mar­kets re­leased by In­ter­na­tional Air Trans­port As­so­ci­a­tion ( shows that air cargo vol­umes rose just marginally in Oc­to­ber 2015 as com­pared to the same pe­riod in 2014.

Cargo Talk - - News -

The In­ter­na­tional Air Trans­port As­so­ci­a­tion (IATA) re­leased data for global air freight mar­kets show­ing that air cargo vol­umes mea­sured by freight tonne kilo­me­tres rose just 0.5 per cent in Oc­to­ber 2015 com­pared to a year ago. Year-over-year ex­pan­sion fell back from Septem­ber’s faster growth rate, and to­tal cargo vol­umes in Oc­to­ber 2015 stand 1.1 per cent lower than the peak of the up­trend at the end of 2014.

Euro­pean car­ri­ers have driven im­prove­ments in air cargo growth, but they ran out of steam in Oc­to­ber 2015 with a rise of just 0.2 per cent. Other re­gions also un­der­lined the weak Oc­to­ber 2015 trend. The most sig­nif­i­cant de­cline in cargo ac­tiv­ity was ex­pe­ri­enced by North Amer­i­can car­ri­ers, who re­ported a 2.4 per cent fall in vol­umes. Latin Amer­ica (-8.1 per cent) and Africa (-1.1 per cent) are smaller mar­kets and also de­clined. Asia-Pa­cific was up, lit­tle more than Europe with a rise of 0.3 per cent. Growth in the Middle East, al­though a ro­bust 8.3 per cent, was some 4.3 per­cent­age points down on the av­er­age per­for­mance for the year to date.

“The out­look for air cargo con­tin­ues to be dif­fi­cult. While there was some op­ti­mism from third quar­ter growth, it has dis­ap­peared as the in­dus­try ba­si­cally flat-lined. Cargo ca­pac­ity has grown largely in lock-step with the con­tin­ued ro­bust de­mand for pas­sen­ger travel. As a re­sult, freight load fac­tors have sunk to the 44 per cent range—a level not seen since 2009,” said Tony Tyler, DDG and CEO, IATA. Re­gional anal­y­sis

Asia Pa­cific car­ri­ers saw a slight rise in FTKs of 0.3 per cent in Oc­to­ber com­pared to Oc­to­ber 2014, and ca­pac­ity ex­panded 2.9 per cent. Trade growth in China and other key ex­port economies re­mains dis­ap­point­ing. Chi­nese ex­port or­ders spiked in Oc­to­ber, which could re­sult in bet­ter de­mand for air freight in two to three months.

Euro­pean car­ri­ers re­ported a rise in de­mand in Oc­to­ber of just 0.2 per cent com­pared to a year ago and ca­pac­ity

Euro­pean car­ri­ers have driven im­prove­ments in air cargo growth, but they ran out of steam in Oc­to­ber 2015 with a rise of just 0.2 per cent

rose 5.6 per cent. Al­though this is a weaker per­for­mance than in re­cent months, im­prove­ments in the Eu­ro­zone are ex­pected to con­tinue, es­pe­cially trade ac­tiv­ity to/from Cen­tral and East­ern Europe.

North Amer­i­can air­lines ex­pe­ri­enced a de­cline of 2.4 per cent year-on-year and ca­pac­ity grew 6.0 per cent. There are mixed sig­nals from this mar­ket. Middle East­ern car­ri­ers saw de­mand ex­pand by 8.3 per cent, and ca­pac­ity rise 11.6 per cent. Re­cent air cargo growth in the re­gion con­tin­ues to trend well below the rates seen for the first half of the year. Saudi Ara­bia and the UAE, among oth­ers in the re­gion, have seen slow­downs in non-oil sec­tors, but growth rates re­main ro­bust.

Latin Amer­i­can air­lines re­ported a de­cline in de­mand of 8.1 per cent year-on-year, and ca­pac­ity ex­panded 5.0 per cent.Year-to-date per­for­mance for Latin Amer­i­can air cargo is the worst of any re­gion by some mar­gin, con­tract­ing by 5.9 per cent.

African car­ri­ers ex­pe­ri­enced a fall in de­mand of 1.1 per cent, and ca­pac­ity rose by 6.9 per cent. De­spite the Oc­to­ber re­sult, Africa is still the se­cond fastest grow­ing air cargo mar­ket for the year-to-date.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.