IATA notes divergence between supplier delivery times and airfreight demand

IATA noted (16-Mar-2018) periods in which global manufacturing firms have reported a lengthening in their supplier delivery times typically coincide with rising demand for air cargo. The relationship stems from the ability of airfreight to move goods quickly, allowing firms to recover some time in their production processes during busy periods. IATA reported a divergence between delivery times and airfreight demand in recent months and noted current bottlenecks in global supply chains are most acute in capital goods, which are less likely to be transported by air. As a result, although the general increase in supplier delivery times remains supportive of FTK growth, airfreight volumes would not be expected to grow at the double digit rate suggested by the delivery times indicator alone. IATA said while the upward trend in freight volumes has slowed somewhat as the inventory restocking cycle has waned, other indicators remain consistent with solid year-on-year FTK growth in 1H2018. The association continues to forecast 4.5% FTK growth in 2018, broadly in line with the five year average rate and "a robust outcome following the very strong performance in 2017". [more - original PR]