Freight markets in Asia-Pacific, Africa and Middle East grow
JULY 6, 2015: The International Air Transport Association (IATA) released data for global air freight markets showing that growth continued to depict growth in the Asia Pacific, Middle East and Africa regions. Asia-Pacific carriers witnessed a demand growth of 2.8 percent in May compared to May 2014, below a capacity expansion of 6.7 percent. At the end of Q1, trade volumes for emerging Asia markets were down 10 percent compared to Q4 2014, although there have been signs of improvement at the start of Q2, which if sustained, would help ease downward pressure on air freight demand. Middle Eastern carriers saw demand grow by 18.1 percent, on the back of increased trade within the region, as well as shippers taking advantage of the Gulf carriers’ hub strategy. Capacity expanded by 19.4 percent. African airlines experienced a 3.0 percent rise in demand and a 1.3 percent increase in capacity. Despite some volatility, the region is the third-fastest growing for the year-to-date. The under-performance of the Nigerian and South African economies may be outweighed by trade activity in the wider region. "Governments are meeting in Geneva to discuss ‘aid for trade’ and the World Trade Facilitation agreement. If implemented, this could boost world GDP by up to $1 trillion. I urge governments worldwide to bring down the barriers to facilitate trade that will accelerate prosperity and innovation," said Tony Tyler, IATA’s Director General and CEO.