Air Freight in Cautious Recovery
Home » Latest News » Air Freight in Cautious Recovery
The IATA reports that growth in air freight markets moderated in February, rising 2.9% compared to a year ago, down on the 4.3% increase in January. But combining the first two months of the year shows there has been a solid 3.6% gain in 2014 compared to the year ago period – well above the growth in 2013 overall (1.4%).
The growth trend in air freight volumes showed a 2.8% slip in February compared to January. While this could be interpreted as a reversal in the recent acceleration of the growth trend, fundamental drivers of air freight remain broadly positive, which suggests the contraction in February is likely due to temporary factors leading to volatility in volumes.
The IATA freight model shows that recent increases in world trade growth contributed about 2.0% pts to the 2.9% year-on-year rise in FTK in February. The model also indicates that a slight rise in inventory-to-sales ratios had about a 1.2% point dampening effect on the February year-on-year growth rate. The rise in inventories, however, is likely reflecting improvements in business conditions which point to stronger output and sales ahead.
Regional performance was mixed in February. Middle Eastern airlines continue to record the strongest increases, up 11.9%, with regional carriers continuing to expand capacity and network reach. European carriers have experienced steady increases in air freight demand since mid-2013, consistent with the region’s emergence from recession, and have continued on this path with a 5.5% rise in FTK in February. By contrast, Asia Pacific carriers, which have seen improvement in air freight demand over recent months due to acceleration in regional trade growth, recorded almost no change in FTK volumes in February (0.1%) compared to a year ago.
Load factors slipped slightly in February compared to January, as the fall in volumes exceeded the contraction in capacity. Nonetheless, air freight load factors are currently in line with levels a year ago, with only Asia Pacific and Africa seeing a fall, in both cases as a result of weak demand.
The outlook for air freight remains broadly positive, consistent with the cyclical pick-up in global economic growth. But current growth in trade is slower than expected at this point in the economic cycle, largely due to on-shoring trends which have equalized the relationship between world trade and domestic production growth. Moreover, while the US and Europe gain economic momentum, China is entering a steeper downturn. These factors will likely keep future growth in air freight demand contained, but still stronger than performance in 2013.
Article from www.tandlnews.com.au
Latest News
- Latest News
- Gaseous Fuels for Transport and Heavy Machinery Working Group
- Roadblock to Chain of Responsibility Laws on Roadworthiness ?
- Safework SA National Freight Transport Project
- First Emission Reduction Fund Auction - One Transport Company Sucessful
- TLISC Launch 2015 E-Scan
- SA's WorkReady Subsidised Training List Survey 2015
- Privacy Laws to be Amended to Allow Reporting of Dangerous Truck Driver Offences to their Bosses
- Skills for All Scrapped
- Rail R U OK? Day
- Review of Transport and Logistics Qualifications
- Shipping Australia Limited release 2014 Annual Review
- SAFC Launches Benefits of Training Document
- SA Freight Council Calls for More Women in Transport Industry
- Eco-Driving helps DHL win Environmental Accolades
- TLISC Awards for Excellence
- Truck Fuel Efficieny Guide
- SA Freight Council to host free Gender Equity in T&L Breakfast in Adelaide
- Web Series about Women Truck Drivers Launched
- Industry Leading Coolant Calculator Launched
- Transporter fined $100,000 for mass breaches
- Unique Student Identifier (USI)
- TNT Australia receive Australia’s first Euro VI truck fleet
- Iron Road to deliver Environmental Impact Statement
- TLISC E-Scan 2015 Environmental Scan – Key Findings Discussion Paper
- Interested parties eye Asciano's freight rail business
- T&L Christmas Jobs Boost
- Promoting Dynamic Leadership in Supply Chain
- Women in Supply Chains launches their report "Making Women Visible"
- Transport Hall of Fame
- Australian Freight Industry Award Winners
- Heavy Vehicle Stress and Road Trauma Guide updated
- Toll cost cutting success sees profits soar
- Synnex opens $45m Logistics Centre in Sydney
- Overcome Supply Chain Sustainability Challenges
- 2014 Transport & Logistics Green Light Day
- Barossa Pathway to Employment Expo
- New T&L Board Game looks to transform Supply Chain Learning
- Barossa Pathways to Employment Expo
- SA Skills for All Funded Training Place Update
- New Australian Dangerous Goods Codes Released
- Hays sees Logistics Recruitment Demand in SA
- Green Light Day
- UK Logistics Body Suggests New Initiative to Raise Maths Standards for Students
- Toll to cut 100 jobs
- Gina Rinehart & Jessica Paton win Global CILT Logistics Award
- Vocational Training in South Australia hits 10-year low
- Beyondllue Launches Mental Health Initiatives for the Transport and Logistics Sector
- Latest from the National Heavy Vehicle Regulator
- Ocean View College’s Leading Logistics Launch
- Submissions open for the 2014 Supply Chain & Logistics Awards
- All Eyes on Today's Federal Budget
- Tasmanian Freight Logistics Committee calls for Transparency on new Shipping Provider
- New Victorian Terminal to create 200 jobs
- Northline opens new $24 million T&L Facility in Sydney
- TLISC E-Scan 2014
- Shipping to Cast Off Red Tape & Set Sail for Productivity Boost
- Air Freight in Cautious Recovery
- Acquisition of Scott’s Refrigerated Freightways
- SAFC launches their "Green Freight" document
- New SA MInster for Transport and Infrastructure
- Michael Byrne CEO at Linfox Logistics to leave company
- Steve Harper Launches Material Handling & Logistics Recruitment Division
- ARTC Launches Rail Freight Marketing Campaign
- 2014 Salary Growth Estimates for Transport & Logistics Personal
- Logistics Company Pledges to Employ 40 Local Youth
- Survey reveals fears of Skills Shortage as Transport Sector prepares for Growth
- Tough Decisions ahead for Qantas
- NHVR Experiences Teething Problems
- SAFC welcomes Black Spot Funding Commitment
- ARA Rail Industry Courses 2014
- Emissions Reduction Fund Green Paper
- New Australian Design Rule—Antilock
- Southern Expressway Enjoys Milestone
- Commencement of the NHVR
- ALDI joins Sedex to improve its ethical Supply Chain
- And they’re off ! … The South Rd Superway Opens to South Bound Traffic for the first time !
- 2014 Salary Growth Estimates for Transport and Logistics Personal
- Transport Training Solutions Opens New Facility
- Changes in Skills For All Funding
- Group Captain Sue McGready's life of Logistics and Supply in the Air Force
- Toll expands business with Shell
- ALDI Targeting Western Australia
- DB Schenker to Employ 40 Local Youth in Queensland
- School-based Trainees undertake great Charitable work in Elizabeth, SA