IATA: 'a good start to the year for air cargo' in Jan-2017

IATA reported (06-Mar-2017) global FTKs increased 6.9% year-on-year in Jan-2017, down from 10% growth in Dec-2016 but above the average annual rate of 3% over the past five years. Continued positive momentum coincided with a steady rise in Feb-2017 new export orders, which reached the highest level since Mar-2011. Shipments of silicon materials used in consumer electronics also increased and the timing of Lunar New Year may have contributed to higher demand in Jan-2017. Regional details:

• Africa: Demand growth supported by strong growth on trade lanes to and from Asia. Demand between the continents increased 57% due to long haul expansion and increased direct services. Increased demand helped seasonally adjusted load factor rise after falling 5ppt in 2016;
• Asia Pacific: Seasonally adjusted volumes increased considerably since early 2016 and returned to levels reached during the post global financial crisis recovery in 2010. Regional business surveys indicate a positive outlook. China's Purchasing Managers Index (PMI) rose to a 21 month high, Japan's PMI to a 36 month high and Taiwan, Korea and Vietnam also reported increases in new export orders;
• Europe: Strong performance corresponded with an increase in new export orders, particularly in Germany, and was helped in part by ongoing weakness in the Eurozone;
• Latin America: Recovery in seasonally adjusted volumes stalled, with demand 13% lower than the peak in 2014. The region continues to be affected by weak economic and political conditions;
• Middle East: Seasonally adjusted freight volumes continued to trend upwards, supported by growth between the Middle East and Europe. Growth nevertheless eased from double digit rates recorded over the past 10 years, corresponding with a slowdown in network expansion by the region's major carriers;
• North America: International volumes increased 8.7%, the fastest rate since the US seaport disruption in Feb-2015. The strength of the US dollar supported the inbound market but kept the outbound market under pressure. [more - original PR]