IATA reports fastest growth in global cargo volumes in 18 months in Oct-2016

IATA reported (07-Dec-2016) global FTKs increased 8.2% year-on-year in Oct-2016, marking the most rapid growth in 18 months. IATA said the result is likely to be underpinned by structural market shifts, including strong growth in cross border e-commerce and pharmaceutical flows. The growth may also have been influenced by the increasing popularity of sales events such as 'Black Friday' and 'Cyber Monday', modal shift following the collapse of Hanjin Shipping in Aug-2016 and some last-minute reliance on air transport after cautious ordering in response to weak market conditions earlier in 2016. IATA director general and CEO Alexandre de Juniac said: "It remains to be seen how long this growth trend will endure after the year-end peak period and we still face headwinds from weak global trade. But there are some encouraging signs. The peak has been stronger than expected." Mr de Juniac added: "The drivers of stronger growth are sending a major signal for change to the air cargo industry...shippers are demanding more than current paper processes can support. The shift to e-freight is more critical than ever." IATA noted the following regional details:

• Africa: Capacity increased 24.7% on the back of long-haul expansion, particularly by Ethiopian Airlines. International freight demand slowed, but remained robust at 7.7%;
• Asia Pacific: Demand increased within Asia and on routes to and from the region. International volumes increased 8%, contributing to a seasonally adjusted annualised increase of 15% since Mar-2016;
• Europe: Recorded the largest regional increase in demand. The positive performance corresponds with a sustained increase in export orders in Germany and the ongoing weakness of the euro. International demand increased 13.2%, the fastest rate since Apr-2011, and the upward trend in seasonally adjusted traffic was very strong;
• Latin America: International volumes increased 0.2%, marking an improvement over recent months in seasonally adjusted terms. The region continues to be affected by weak economic and political conditions, particularly in Brazil;
• Middle East: Demand increased year-on-year, but seasonally adjusted growth slowed, mainly due to weak volumes between the Middle East and Asia and the Middle East and North America;
• North America: International volumes increased 7.2%, the fastest rate since Feb-2015. Seasonally adjusted volumes returned to levels reached since the post financial crisis recovery in 2010. US exports continue to suffer from the strength of the US dollar. [more - original PR]