January, February cargo volumes warrant ‘cautious optimism,’ IATA says

The International Air Transport Association’s (IATA) February 2017 data shows an 8.4 percent increase in demand in global air freight markets, measured in freight tonne kilometers (FTKs), compared to the same period last year. Adjusting for the impact of the leap year in 2016, demand increased by 12 percent, almost four times the five-year average rate of 3.0 percent. The numbers substantiate growth in January, where demand rose 6.9 percent compared to the year-earlier period.

In the context of widespread overcapacity, February’s freight capacity, measured in available freight tonne kilometers (AFTKs) actually shrank by 0.4 percent, outpaced by demand.

Air freight demand this year is in line with an uptick in world trade, which IATA noted corresponds with new global export orders. This trend has carried into March.

Alexandre de Juniac, IATA’s Director General and CEO noted that the latest numbers added to the “cautious optimism” building in air cargo markets. “Demand grew by 12 percent in February—about four times the five-year average rate,” de Juniac said. “With demand growing faster than capacity, yields got a boost. While there are signs of stronger world trade, concerns over the current protectionist rhetoric are still very real.”

By region, Asia Pacific registered that fastest FTK growth, at 11.8 percent. Meanwhile, South America continued its slide, declining by 4.9 percent:

• Asia-Pacific airlines freight grew 11.8 percent (over 15 percent adjusting for the leap year) in February. Capacity increased by 2.0 percent over the same time. Seasonally-adjusted volumes dipped slightly in February, but remained up considerably since early 2016.
• North America freight volumes expanded 5.8 percent (more than 9 percent adjusting for the leap year) in February 2017 year-over-year (y-o-y), while capacity decreased by 3.1 percent. Freight traffic to and from Asia increased by 5.7 percent (y-o-y) in January.
• Europe posted a 10.5 percent (around 14 percent adjusting for the leap year) increase in freight volumes in February 2017. Capacity increase by 1.4 percent.
• Middle Eastern volumes increased 3.4 percent (approximately 7 percent adjusting for the leap year) in February 2017. Capacity decreased 1.7 percent.
• African demand increase by 10.6 percent y-o-y (over than 14 percent adjusting for the leap year) in February 2017 and capacity increase by 1.0 percent. IATA noted that year-to-date demand has increased by 16.2 percent, driven by strong growth on trade lanes to and from Asia.

Those interested in learning more about airfreight in 2017, should join us at Cargo Facts Asia in Shanghai, 25 – 26 April.  To register, or for more information, go to CargoFactsAsia.com