Air Cargo
Air cargo breaks losing streak
April 1st 2015
Asia-Pacific air cargo business recorded a increase in 20.8% of demand in February that pushed up the region’s air freight load factor and continues the positive results for the sector. Read More »
The Association of Asia Pacific Airlines (AAPA) said 2014 exports from manufacturing hubs across the region led to the rebound, a lift in business assisted by the relatively modest pace of available freight capacity, at 4.1% for the 12 months.
“Air cargo markets experienced a welcome upswing in 2014, with the second half of the year registering 6.0% growth compared with the same months in 2013, following several years of stagnant demand,” said AAPA director general, Andrew Herdman.
Statistics released by the International Air Transport Association (IATA) confirmed the upswing was from strong Lunar demand in the Asia-Pacific.
IATA said the air cargo market expansion gathered momentum as 2014 progressed, finishing the year on a positive note, at 4.9% in December, compared with 12 months earliers.
Most of the growth was generated in the Asia-Pacific, and to a lesser degree, the Middle East, with an expansion in FTKs, at 46% and 29%, respectively.
IATA’s director general and CEO, Tony Tyler, said the cargo revival was largely being driven by the uptick in world trade in the second half of 2014. “Recent concerns about the health of the global economy and a corresponding fall in business confidence have not yet impacted air cargo. But it is a downside risk that will need to be watched carefully as we move through 2015,” he said.
IATA’s reported that cargo transported by Asia-Pacific carriers grew 5.9% in December, compared with an average of 5.4% for all of 2014.
Increased import demand in addition to continuing manufacturing strength across the region, with a particular focus on Japanese and Chinese markets, built growth.
Tyler cautioned big challenges remained for air freight. “Yields declined for the third straight year in 2014, with no immediate prospect of improvement. Cargo revenues remained basically unchanged at $62 billion, some $5 billion below their 2011 peak,” he said.
“To move forward, the industry is focusing on providing a stronger value proposition to meet evolving customer needs. That’s what is driving efforts such as 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,” said Tyler.
The focus on value in delivering change and an initiative to encourage more industry innovation was center stage at IATA’s 9th World Air Cargo Symposium, which was held in Shanghai with more than 1,000 delegates in attendance in March.
At the gathering, the emphasis was on laying the foundations to “energise the sector, recapture market share and grow revenues”, said Tyler.
