Feb 04, 2016: The International Air Transport Association (IATA) released figures for global air freight markets showing cargo volumes measured in freight tonne kilometers (FTKs) expanded 2.2 percent in 2015 compared to 2014. This was a slower pace of growth than the 5 percent growth recorded in 2014. The weakness reflects sluggish trade growth in Europe and Asia-Pacific.
After a strong start, airfreight volumes began a decline that continued through most of 2015, until some improvements to world trade drove a modest pick-up late in the year, says IATA .
Cargo in Asia-Pacific, accounted for around 39 percent of freight traffic, expanded by a moderate 2.3 percent. The key markets of Europe and North America, which between them comprise around 43 percent of total cargo traffic, were flat in 2015.
Latin America suffered a decline of six percent, while the Middle East grew strongly, up 11.3 percent. Africa also saw modest growth of 1.2 percent.
The freight load factor was at times the lowest for some years, falling to an average 44.1 percent compared to 45.7 percent in 2014, driven down by weak demand and capacity expansion.
Tony Tyler, director general and chief executive officer, IATA, says, “2015 was another very difficult year for air cargo. Growth has slowed and revenue is falling. In 2011 air cargo revenue peaked at $67 billion.In 2016 we are not expecting revenue to exceed $51 billion. Efficiency gains are critical as the sector adjusts to shortening global supply chains and evermore competitive market conditions. We have to adjust to the ‘new normal’ of cargo growing in line with general rates of economic expansion.
“The industry is moving forward with an e-freight transformation that will modernise processes and improve the value proposition. The faster the industry can make that happen, the better.”