Global air cargo volume grew 4.5% in 2014 – IATA
Demand for global air cargo, measured in freight tonne kilometers (FTKs), increased 4.5% for 2014 versus 1.4% in the preceding year and was concentrated in Asia-Pacific and the Middle East, according to data from the International Air Transport Association (IATA).
Driven by the uptick in world trade in the second semester, the industry ended 2014 on a positive note, with FTK growth accelerating to 4.9% in December. Asia-Pacific contributed to 46% of this growth while the Middle East accounted for 29% in FTKs.
"After several years of stagnation, the air cargo business is growing again,” according to Tony Tyler, IATA’s Director General and CEO.
All regions, with the exception of Latin America, reported a strengthening of demand in December.
“Recent concerns over the health of the global economy and a corresponding fall in business confidence have not yet impacted air cargo. But it’s a downside risk we need to watch carefully as we move through 2015," he warned.
Asia-Pacific carriers grew 5.9% in December compared to December 2013, and 5.4% for 2014 as a whole.
Volumes have benefitted from increasing import demand in addition to continuing manufacturing strength. Japanese and Chinese markets were particularly important contributors.
Overall, capacity expanded 5.7% in 2014 leading to a slight fall in load factor to 55.4%, although this remains the strongest load factor of any region.
North American airlines reported demand growth of 2.8% in December and 2.4% for 2014 as a whole.
After a slow, weather-affected start to the year, growth quickened, driven by import and export demand. Carriers in the region cut back capacity in 2014 by 0.5%, helping to underpin the load factor of 35.3%.
European airlines saw FTKs expand 2.3% in December, and by 2.0% in 2014 overall. The Eurozone remains weak and close to recession, with the effects of Russian sanctions also having an impact. Load factors also fell in 2014 as capacity expanded 3.0%.
Middle Eastern carriers enjoyed the strongest growth of any region, expanding 11.3% in December and 11.0% for the year as a whole.
Airlines in the region have extended their networks and grown capacity by 11.1% to make the Middle East a hub for freight traffic. In fact they have been responsible for over 37% of the total increase in global freight capacity in 2014.
Latin American airlines reported FTKs falling 4.5% in December. This was the only region to report a decline.
As a whole, Latin America grew 0.1% for the year, with economic slowdown across the region, particularly in Brazil and Argentina affecting volumes. Capacity grew by 0.3% in 2014.
African carriers expanded FTKs by 12.2% in December and 6.7% for the year as a whole.
Although major economies Nigeria and South Africa underperformed during parts of 2014, regional trade activity held-up, supporting demand for air transport of goods.
Capacity rose just 0.9% for the year as a whole, helping to strengthen the load factor.
"Despite the improving growth trend, big challenges remain,” Tyler stressed. “Yields declined for the third straight year in 2014, with no immediate prospect of improvement.”
Basically, cargo revenues remained unchanged at $62 billion, some $5 billion below their 2011 peak.
To move forward, the industry is focusing on providing a stronger value proposition to meet evolving customer needs, cutting shipping times, ensuring high-quality handling of temperature-sensitive goods, or benchmarking quality to improve customer transparency.
“It’s all about delivering value as a supply chain with a strong vision of the future," the IATA CEO concluded.