The worldwide air cargo market is set for only moderate growth in 2008 due to the combined impactof the slowing US economy, higher operating costs and competition from sea freight, according to
international organisations. This follows slower growth rates for the sector in 2007 compared torecent years.In 2007, international air freight traffic grew by 4.3%, according to the latest monthlytraffic figures from the International Air Transport Association (IATA). This was down slightlyfrom growth of 4.6% seen in 2006 and much lower than the 7% – 8% growth trend of recent years. Airfreight demand grew 4.7% in December, up from 3.5% in November, largely due to temporary, year-endrelated, factors.
“Freight was below the 7.5% at which global trade expanded, highlighting a competitivenessissue with shipping,” pointed out Giovanni Bisignani, IATA’s Director General and CEO.
For 2008, IATA said that the air freight demand environment will remain challenging. Growthis expected to slow in the first half of 2008 before picking up with overall growth of 4% – 4.5%projected for the full year.
In terms of regional trends, Middle East airlines generated the top growth rates with a 10.1%increase in freight demand, although this was down sharply from a 16.1% increase in 2006. Airlinesin Asia Pacific, which account for 45% of the international total, saw freight demand rise 6.5% in2007, driven by strong growth in several economies in the region. European airlines had growth of2.7% but North American carriers stagnated with a fractional 0.7% rise.
The international airports association Airports Council International said in its provisional2007 figures that data from key international airports representing 70% of the world totalindicated that world freight traffic grew just 3% last year. International freight was up by 4.6%but domestic freight grew just 0.3%. Growth rates clearly dropped in the second half of the year,the ACI data showed.
The air freight figures reflected “the impact of the unrelenting rise in fuel prices, forcingshippers to seek alternative transportation modes in a highly competitive marketplace”, theairports association commented.
Among the key regions, airports in Europe increased freight volumes by 4.1%, while Asianairports generated growth of 3.2% last year, according to ACI. In North America, where domesticfreight accounts for about 58% of total volumes, tonnage was virtually flat, with a rise of just0.7%. The Middle East grew by 9.3% and Latin America was up by 6.1%.
