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 22/10/2017, 19:17
aramex-to-electrify-the-middle-eastDUBAI: October 22, 2017. Aramex has acquired 10 more electric delivery vehicles in Amman as part of a CO2 emissions reduction plan to convert its entire...
Written on 19/10/2017, 16:33
kerr-to-leave-etihad-cargoABU DHABI, October 19, 2017. Etihad Cargo senior vice president David Kerr is to leave the organization at the end of 2017. The airline said his successor...
Written on 18/10/2017, 18:56
kn-profits-from-eurasia-rail-linksHAMBURG: October 17, 2017. Six months after its launch, Kuehne + Nagel (KN) has added points in northern China, Japan and South Korea to its Eurasia...
Written on 17/10/2017, 21:07
bbc-chartering-and-jumbo-create-project-cargo-allianceLEER, Germany/ SCHIEDAM, Netherlands: October 17, 2017. Heavylift and project cargo ocean carriers BBC Chartering and Jumbo have agreed to collaborate in...
Written on 17/10/2017, 15:53
compressors-support-turkmenistan-gas-for-chinaCALGARY: October 17, 2017. Bolloré Logistics China has chartered four AN-124-100 flights to ship compressor skids from Calgary, Canada to the vast...
Written on 16/10/2017, 19:43
freightweek-news-update-week-42MARIETTA, GA: October 19, 2017. Lockheed Martin has successfully completed the first flight of its LM-100J, the 17th version of its C-130J Super Hercules...
Written on 16/10/2017, 15:47
maserati-makes-an-entrance-at-naritaMODENA: October 16, 2017. Maserati chartered an Air Bridge Cargo Airlines 747-400 freighter for the Japan launch of its MY18 Maserati GranTurismo and...
Written on 13/10/2017, 18:36
apl-adds-to-guaranteed-service-suiteSINGAPORE: October 09, 2017. APL has renamed its two guaranteed service offerings 'Eagle Guaranteed' and added 'Eagle Go' to the suite with a guarantee of...
Written on 13/10/2017, 16:59
dp-world-to-expand-in-dominican-republicDUBAI: October 12, 2017. DP World is planning to expand its US$400 million Caucedo port operations in the Dominican Republic with a new 400-meter berth...
Written on 12/10/2017, 19:48
hawaii-to-meet-the-maxDALLAS: October 12, 2017. With 44 consecutive years of profitability, Southwest Airlines has announced it will begin service to Hawaii from the U.S....
Written on 12/10/2017, 18:43
skyteam-members-look-towards-joint-ventureGUANGZHOU/AMSTERDAM: October 12, 2017. China Southern Cargo and Air France KLM Martinair Cargo have taken the first step towards a joint venture with the...
Written on 12/10/2017, 16:17
turkish-airlines-outperforms-marketISTANBUL: October 12, 2017. Turkish Airlines reported a 25 percent year-on-year increase in air cargo carried to over 97,000 tons in September as traffic...
Written on 10/10/2017, 16:47
cargolux-signs-cargo-codeshare-with-emiratesDUBAI/LUXEMBOURG: October 10, 2017. Cargolux and Emirates SkyCargo have signed a cargo codeshare agreement for passenger and freighter services. Both...
Written on 10/10/2017, 15:24
freightweek-news-update-week-41PITTSBURGH, PA: October 15, 2017. A Qatar Airways Cargo Boeing 777 freighter arrived at Pittsburgh International Airport last Thursday as the airline's...
Written on 06/10/2017, 21:28
miami-and-iata-agree-air-cargo-outlook-remains-strongGENEVA: October 04, 2017. IATA reports a 12.1 percent year-on-year increase in freight tonne kilometers (FTKs) in August for its members, the fifth time...
Written on 06/10/2017, 17:05
more-flying-fish-from-emirates-sky-cargoCOLOMBO: October 03, 2017. Emirates Sky Cargo says Sri Lanka fish exports have been booming in the past 12 months following the lifting of European...
Written on 05/10/2017, 21:25
wal-mart-to-provide-a-new-parcel-serviceBENTONVILLE, AK: October 03 2017. Walmart has acquired Parcel, a technology-based, 24/7 service that uses routing algorithms to deliver perishable and...
Written on 05/10/2017, 20:44
french-fruit-exporter-acquires-danish-reefersTINGLEY, Denmark: October 03, 2017. British-registered Africa Express Line Ltd (AEL) has acquired 500 Star Cool integrated containers from Maersk...
Written on 05/10/2017, 19:36
qatar-cargo-adds-helsinki-as-finnish-pharma-industry-expandsDOHA: October 03, 2017. Qatar Airways Cargo has added Helsinki as its 74th pharma destination following the addition of Dublin in June this year. Chief...
Written on 05/10/2017, 16:53
volga-dnepr-returns-landshut-to-germanyFRIEDERICHSHAFEN, Germany. October 05, 2017. A former Lufthansa B737-200 aircraft, hijacked in 1977 by a faction of the Popular Front for the Liberation...

- powered by Quickchilli.com -