English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

IATA: "another tough year for air cargo"

PRESS RELEASE

March 03, 2015: The International Air Transport Association (IATA) released data for global air freight markets showing a 3.2 percent expansion in freight tonne kilometers (FTKs) in January 2015 compared to the same month last year. The growth is slower than the average of 4.5 percent recorded for 2014.

There was much regional variation in the January performance. Asia-Pacific, African and Middle Eastern airlines expanded strongly, but airlines in Europe and North and Latin America all reported demand contractions. Although it is too early to be certain of a trend towards weaker air freight, there are at least two emerging factors which could negatively impact demand for air cargo in the coming months:

  • Business confidence has been declining since mid-2014 and export orders tailed-off towards the end of the year
  • A reversal of the positive trade-to-domestic production ratio which boosted cargo volumes last year

"January was a disappointing start to the year for air cargo. And it is difficult to be too optimistic about the rest of the year given the economic headwinds in Europe and growing concerns over the Chinese economy. Add to that the continuing trends of on-shoring production and trade protectionism and 2015 is shaping up to be another tough year for air cargo," said Tony Tyler, IATA's Director General and CEO.

Regional analysis in detail

Asia-Pacific carriers grew their FTKs 6.9% compared to January 2014, supported by an improvement in regional import activity. Japan's expansion is helping regional volumes, but there could be concerns over the Chinese economy, which saw export orders contracting at the fastest pace in three years. Capacity rose 5.4%.

European airlines saw volumes fall 1.2% compared to a year ago. The Eurozone is facing deflationary economic headwinds and the weakness of the Russian economy is also impacting demand. Weak home demand is not being offset by North Atlantic and Asian growth opportunities. Capacity grew 3.6%, further weakening the load factor.

North American carriers experienced a 1.0% fall in FTKs. This decrease, however, is most likely due to the strong result that occurred in January 2014. Underlying trends for North American volumes are positive. Trade is growing and the month-to-month comparison of FTKs shows expansion in January compared to December. Capacity fell 2.8%, continuing the recent trend of improving load factor.

Middle Eastern carriers expanded FTKs 9.2%. The hub strategies of the leading airlines in the region are proving successful as network and capacity expansions help satisfy demand on international routes and serve inward trade to Middle Eastern economies. Capacity jumped 18.1%.

Latin American airlines suffered a 6.4% fall in FTKs compared to January 2014. The region continues to be affected by the weakness in the key economies of Brazil and Argentina. Although other Latin American markets have increased regional trade in recent months, this has not yet translated into increased air freight demand. Capacity fell 2.0%.

African airlines grew cargo volumes 5.2%. While major economies such as Nigeria and South Africa are under-performing, regional trade activity is holding up. Capacity rose just 2.4%, strengthening the load factor.

freight-analysis-jan-2015.pdf

More News

Written on 18/08/2017, 20:38
cyber-attack-to-hit-a-p-moller-maersk-third-quarterCOPENHAGEN: August 16, 2017. A.P. Moller-Maersk says the 'Not Petya' cyber attack that hit Maersk Line, APM Terminals and Damco at the end of June is...
Written on 18/08/2017, 15:55
new-amazon-fulfillment-center-at-sacramento-air-parkSACRAMENTO, CA: August 17, 2017. Amazon is putting the finishing touches to an 855,000 square feet, four-story fulfillment center at Sacramento...
Written on 17/08/2017, 21:45
nippon-express-signs-kazakhstan-mouASTANA, Kazakhstan: August 16, 2017. Nippon Express has signed an MoU with Kazakhstan's railway company Kazakhstan Temir Zholy (KTZ) to develop container...
Written on 16/08/2017, 22:16
descartes-acquires-macropoint-and-new-shareholderWATERLOO, ON: August 16, 2017. Descartes Systems Group is to acquire Cleveland, OH-based transport visibility network MacroPoint for US$107...
Written on 16/08/2017, 21:45
jebel-ali-ftz-gains-us-80-billionDUBAI: August 14, 2017. Jebel Ali Free Zone (Jafza) increased the value of its non-oil foreign trade by US$80.2 billion in 2016 with volumes rising 17...
Written on 16/08/2017, 20:46
wincanton-to-operate-from-dp-world-london-gatewayLONDON: August 16, 2017. Wincanton, one Britain's largest logistics companies, is to establish a truck base at DP World London Gateway's logistics park...
Written on 16/08/2017, 20:03
freightweek-news-update-week-33FRANKFURT: August 18, 2017. Jettainer is now offering short-notice, short-term leases on its range of horse boxes. Read more: horsebox.pdf HAMBURG:...
Written on 15/08/2017, 23:01
swiss-worldcargo-reorganizes-the-americasZURICH: August 15, 2017. The air cargo division of SWISS is to reduce its American organization from three to two regions effective October 01 covering...
Written on 10/08/2017, 14:58
zeaborn-now-owns-six-rickmers-line-shipsBREMEN/HAMBURG: August 07, 2017. The Zeaborn Group has acquired five 30,000dwt 'Superflex Heavy Lift' vessels from Rickmers Holding. The purchase price...
Written on 09/08/2017, 21:06
qatar-lifts-visa-requirement-for-latam-marketDOHA: August 09, 2017. Qatar Airways has introduced visa-free entry for citizens from 80 countries with those from the EU, Switzerland and Turkey allowed...
Written on 09/08/2017, 16:48
freightweek-news-update-week-32LONDON, Heathrow: August 12, 2017. To celebrate World Elephant Day and help stop illegal trade of wildlife, Heathrow has installed a pop-up interactive...
Written on 08/08/2017, 21:57
another-record-ebit-for-deutsche-post-dhlBONN: August 08, 2017. Deutsche Post DHL (DPDHL) has reported a 4.7 percent increase in net profit to €1.18 billion on a 5.8 percent rise in revenue to...
Written on 07/08/2017, 21:23
amazon-operator-atsg-to-add-a321-freighter-conversionsBEAVERTON, OR/WILMINGTON, OH: August 07, 2017. Conversion specialist Precision Aircraft Solutions (PAS) and Air Transport Services Group (ATSG) have...
Written on 03/08/2017, 20:14
cargo-still-challenging-despite-turnaround-says-lufthansaFRANKFURT: August 03, 2017. The Lufthansa Group has reported a 99 percent rise in pre-tax profit to €1.03 billion on a 12.7 percent increase in revenue to...
Written on 02/08/2017, 20:19
hong-kong-air-cargo-leases-atlasPURCHASE, NY: August 02, 2017. Atlas Air Worldwide Holdings (AAWH) has leased three B747-400 freighters under an ACMI contract beginning in September 2017...
Written on 02/08/2017, 19:27
dunkerque-to-power-brittany-ferriesDUNKERQUE: August 01, 2017. A month after signing an agreement to develop an LNG station to supply tank trucks, Dunkerque LNG and Total Marine Fuels...
Written on 01/08/2017, 16:53
revenue-gain-for-g-w-railroadDARIEN, CT: August 01, 2017. Railroad company Genesee & Wyoming (G&W) has reported an unchanged net income of US$75.4 million on a 7.6 percent...
Written on 01/08/2017, 14:48
freightweek-news-update-week-31KUWAIT: August 05, 2017. Global logistics provider Agility has reported a Q2 net profit of KD16.8 million on revenue of KD342.1 million, an increase of...
Written on 31/07/2017, 15:32
sohar-ocean-container-throughput-upSOHAR, Oman: July 31, 2017. The Port of Sohar and Freezone reports an 11 percent increase in container volume in Q2 2017 over the same period last year....
Written on 30/07/2017, 23:45
crowley-introduces-another-cuba-servicePORT EVERGLADES, FL: July 27, 2017. Crowley Logistics has begun a three times a month service to deliver "approved donated goods" from South Florida to...

- powered by Quickchilli.com -