Air freight markets worldwide showed signs of stabilising in January 2013 with encouraginggrowth on levels seen in late 2012, according to figures released today by The International Air
Transport Association (IATA).Demand for air freight was apparently very strong in January, with a year-on-year rise of 5%.However, the rise was from an exceptionally low base, caused by the timing of Chinese New Year,which occurred in February this year, skewing year-on-year comparisons as many Asian factoriesclose and last year the holiday period occurred in January, IATA explained.
Compared to the level of Freight Tonne Kilometers (FTK) in December, air freight volumes inJanuary were 0.9% lower. Year-on-year, capacity expanded by 2.1% and the global load factor stoodat 41.9%.
“The air freight business is showing some encouraging signs. But it’s too early to be overlyoptimistic. While the decline has stopped, overall volumes are still below the levels of 2010 and2011. Load factors are low. And the global economy is fragile. Our forecast remains for modestdemand growth of 1.4%. But with weak load factors, yields are going to continue to be under severedownward pressure,” said Tony Tyler, IATA’s Director General and CEO.
At a regional level, Asia-Pacific carriers, which represent some 39.2% of global air cargo, sawyear-on-year demand growth of 7.1% while capacity was down 0.4%. Adjusting for the effect ofChinese New Year, it is estimated that the region’s carriers saw demand growth of about 3.0%. Theregion’s airlines have captured about 60% of the growth in FTK volumes seen in January compared toOctober. This has been led by the acceleration in the Chinese economy and with export-dependenteconomies like South Korea and Chinese Taipei experiencing stronger global demand.
North American airlines saw a modest 0.6% growth compared to January 2012, while capacity wastrimmed by 1.0%. US consumers are looking more positive about their economic prospects, and NorthAmerican airlines have contributed 15% of the global FTK increase observed in January compared toOctober, according to IATA.
European airlines reported demand growth of 1.2% year-on-year, which was half the 2.4% growth incapacity. Persistent economic weakness in the Eurozone, which is a major market for air freightedconsumer goods, is dampening global world trade growth, and will limit the growth in air freightvolumes in 2013, the airline association said.
Middle Eastern airlines continued to be the most rapidly growing to be the fastest-growing,reporting a demand increase of 16.3% over January 2012. This was ahead of a 12.4% capacityexpansion. The region’s airlines continue to benefit from route and capacity expansion intorapidly growing economies in West Africa and Asia.
Latin American airlines were the only regional grouping to report a fall in demand, with a 1.6%decline on the previous year. That was against a 10.2% increase in capacity. Latin Americanairlines have been adding air freight capacity to seize the opportunities of solid trade growth inmany regional economies. This potential is also attracting airlines from other parts of the worldwhich has led to very stiff competition.
African airlines reported a demand increase of 3.7% while capacity expanded by 13.9%. Theregion’s carriers benefitted from strong economic growth, particularly in West Africa.
Looking ahead, IATA highlighted its forthcoming World Cargo Symposium which will take place inDoha, Qatar, later this month.
“The challenge is sustainable business growth. Headwinds presented by the fragile globaleconomic situation are strong. But if governments and all the players of the value chain arealigned, there is much that can be done to improve the competitiveness of the global air cargoindustry. Infrastructure, technology, environment, security and industry processes are amongthe symposium’s topics,” said Tyler.
“Air cargo is important to the global economy and everyday life. By value, nearly a third ofgoods traded internationally are shipped by air. Jobs and economic opportunities are created byconnecting goods to markets. And lives are enriched by the global trade of products and serviceswhich is made possible by air connectivity. Supporting the sector’s success is in everybody’sinterest,” he concluded.
