Friday 29 March 2024
 
»
 
»
GLOBAL GROWTH SLOWS

Mideast carriers' air freight grows 4pc

GENEVA, February 3, 2016

Middle Eastern carriers' air freight grew four per cent in December and for 2015 in total the region expanded 11.3 per cent compared to the previous year, according to recent figures.
 
The International Air Transport Association's (Iata) figures for cargo volumes said the freight load factor (FLF) was 42.8 per cent of available freight tonne kilometers (FTKs) last year in the region.
 
The region enjoyed a strong year as network expansion into emerging markets was supported by economic growth in local economies, it said.
 
The political instability and the fall in the oil price may impact on some economies in the region but growth as a whole remains robust enough to support further expansion this year.
 
Meanwhile, the global air freight markets showing cargo volumes measured in FTKs expanded 2.2 per cent last year compared to 2014. 
 
This was a slower pace of growth than the five per cent growth recorded in 2014. The weakness reflected sluggish trade growth in Europe and Asia-Pacific.
 
After a strong start, air freight volumes began a decline that continued through most of 2015, until some improvements to world trade drove a modest pick-up late in the year. 
 
Tony Tyler, Iata's director general and chief executive officer, said: “2015 was another very difficult year for air cargo. Growth has slowed and revenue is falling. In 2011 air cargo revenue peaked at $67 billion. In 2016 we are not expecting revenue to exceed $51 billion. Efficiency gains are critical as the sector adjusts to shortening global supply chains and evermore competitive market conditions. We have to adjust to the ‘new normal’ of cargo growing in line with general rates of economic expansion. 
 
"The industry is moving forward with an e-freight transformation that will modernise processes and improve the value proposition. The faster the industry can make that happen, the better.”
 
The industry’s key challenges will be discussed in detail at the World Cargo Symposium (WCS) in Berlin from March 15 to 17. 
 
It will bring together 1,000 delegates under the theme of ‘The Value of Air Cargo’ to debate solutions for strengthening air cargo and the vital service it performs for the world economy. - TradeArabia News Service



Tags: Iata | growth | cargo | freight | Air |

More Industry, Logistics & Shipping Stories

calendarCalendar of Events

Ads