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10-Jan-2018 8:58 PM

2017 to be the strongest year for air cargo since 2010: IATA

IATA reported (10-Jan-2018) global traffic (FTKs) increased 8.8% year-on-year in Nov-2017, up from 5.8% in Oct-2017, and "Despite indicators pointing to air cargo having passed a cyclical growth peak" global airfreight demand "remains strong". AFTKs increased 4%, marking the 16th consecutive month in which FTKs outgrew capacity, "which is positive for industry load factors, yields, and financial performance", according to IATA. The association noted the increase occurred during the fourth quarter, when strong demand is typically seen, adding that after tracking sideways for much of 2017 the purchasing managers index for manufacturing and export orders "reached a seven-year high in the fourth quarter signifying that growth is carrying momentum into 2018". IATA director general and CEO Alexandre de Juniac said robust airfreight demand will make "2017 the strongest year for air cargo since 2010" and noted "there are several indicators that 2018 will be a good year as well" thanks to "buoyant consumer confidence, the growth of international e-commerce and the broad-based global economic upturn". IATA reported the following regional details for Nov-2017:

  • Africa: African carriers recorded the largest year-on-year increase in demand of all regions in Nov-2017, with freight volumes increasing 17.5% and capacity increasing 24%. International volumes increased 17.8%, down from 27.2% in Oct-2017. Demand was boosted by strong growth to and from Asia, which increased more than 67% in the first 10 months of 2017;
  • Asia Pacific: Freight volumes increased 8.1% and capacity increased 1.2%. Manufacturers in the region continue to enjoy buoyant order books and major exporters in China and Japan report increasing demand driven by a surge in economic activity in Europe and continued solid performance from the US;
  • Europe: Freight demand increased 9.9% and capacity increased 4.7% in Nov-2017 as concerns about the impact of the strengthening euro on the region's exporters failed to materialise. Export orders are growing at their fastest pace on record and this is expected to support demand into 2018;
  • Latin America: Freight demand increased 9.4% and capacity increased by 11.1% as the region's largest economy, Brazil, showed signs of recovery. International freight volumes increased 9.6%, well ahead of the five year average growth rate of 0.9%;
  • Middle East: Freight volume increased 6.6% and load factors increased substantially on Middle East-North America services, indicating a decrease in capacity on these routes. Seasonally adjusted international volumes continued to trend upwards at 8% to 10% over the past six months;
  • North America: Air imports increased 11.6% and export orders increased 6.7% in the first 10 months of 2017, according to the US Census Bureau. The strength of the US economy and dollar have boosted the inbound freight market in recent years and the recently agreed US tax reform bill may help to support freight volumes going forward. [more - original PR]

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