Middle Eastern carriers’ freight volumes increased 8.4 per cent year-on-year in January 2017 and capacity increased 3.3 per cent, according to data from the International Air Transport Association (Iata).

Seasonally adjusted freight volumes continued to trend upwards during the first month of the year supported by an increase between the Middle East and Europe. Despite this, growth has eased from the double-digit rates which were the norm over the past 10 years, the report said.

This corresponds with a slowdown in network expansion by the region’s major carriers, it added.

Globally, air freight markets showed that demand, measured in freight tonne kilometers (FTKs), rose 6.9 per cent in January compared to the year-earlier period. While this was down from the 10 per cent annual growth recorded in December 2016 it still was well above the average annual growth rate of 3 per cent over the past five years, it said.

Growth in freight capacity, measured in available freight tonne kilometers (AFTKs), slowed to 3.5 per cent in January.

The continued positive momentum in freight growth into 2017 coincides with a steady rise in new export orders, which reached their highest level in February (latest data available) since March 2011. There has also been an increase in the shipment of silicon materials typically used in high-value consumer electronics shipped by air. The timing of the Lunar New Year (in January) also may have contributed to higher demand in January, it said.

“It’s been a good start to the year for air cargo. Demand growth accelerated in January, bolstered by strengthening export orders. And that outpaced the capacity growth which should be positive for yields. And, longer-term, the entry into force of the Trade Facilitation Agreement (TFA) will cut red tape at the borders for faster, cheaper and easier trade. The onus is now on the industry to seize the opportunity to accelerate the modernization of processes to make air cargo an even more compelling option for shippers,” said Alexandre de Juniac, Iata’s director general and CEO.

 All regions, with the exception of Latin America, reported an increase in demand in January.   -TradeArabia News Service