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Global air freight markets come out strong in February with demand up 8.4pc
THE global air freight markets in February saw an 8.4 per cent year-on-year increase in demand, as measured in freight tonne-kilometres (FTKs), on an air freight capacity decline of 0.4 per cent, according to IATA data.
After adjusting for the impact of the leap year in 2016, global air freight demand was up 12 per cent, four times the five-year average rate of three per cent.
"February further added to the cautious optimism building in air cargo markets," remarked IATA's director general Alexandre de Juniac.
"The continued growth of air freight demand in 2017 is consistent with an uptick in world trade which corresponds with new global export orders remaining at elevated levels in March," an IATA statement highlighted.
"While there are signs of stronger world trade, concerns over the current protectionist rhetoric are still very real," Mr de Juniac added, London's Air Cargo News reported.
The rapid growth of businesses such as cross-border e-commerce and time- and temperature-sensitive pharmaceutical are currently enjoying robust growth. "Any optimistic look at the future sees growing demand for specialised value-added services," Mr de Juniac noted.
A breakdown of the regions show that Asia Pacific airlines recorded the strongest year-on-year demand increase, with freight volumes up by 11.8 per cent on a capacity gain of two per cent, driven by an uptick in trade across Asia Pacific's main freight lanes over the past six months, IATA said.
North American airlines' freight volumes grew by 5.8 per cent on a capacity decrease of 3.1 per cent year on year, partly on the back of freight traffic to and from Asia. However, the further strengthening of the US dollar continues to boost the inbound freight market but is keeping the export market under pressure.
European airlines posted a 10.5 per cent increase in freight volumes in February, and a year-on-year capacity increase of 1.4 per cent. The ongoing weakness of the Euro continued to boost the performance of the European freight market, which has benefited from strong export orders, particularly in Germany, over the last few months.
Middle Eastern carriers' year-on-year freight volumes rose by 3.4 per cent, while capacity fell by 1.7 per cent. However, growth has eased from the double-digit rates which have been the norm over the past ten years. This correlates to a slowdown in network expansion by the region's major airlines.
Demand in Latin American contracted by 4.9 per cent and capacity was down 7.2 per cent. Freight volumes on the region's carriers have now plummeted for 25 out of the last 27 months amid weak economic and political conditions.
African carriers' saw freight demand increase by 10.6 per cent on capacity growth of one per cent. However, demand between January and February rose by 16.2 per cent, helped by strong growth on the trade lanes with Asia.
After adjusting for the impact of the leap year in 2016, global air freight demand was up 12 per cent, four times the five-year average rate of three per cent.
"February further added to the cautious optimism building in air cargo markets," remarked IATA's director general Alexandre de Juniac.
"The continued growth of air freight demand in 2017 is consistent with an uptick in world trade which corresponds with new global export orders remaining at elevated levels in March," an IATA statement highlighted.
"While there are signs of stronger world trade, concerns over the current protectionist rhetoric are still very real," Mr de Juniac added, London's Air Cargo News reported.
The rapid growth of businesses such as cross-border e-commerce and time- and temperature-sensitive pharmaceutical are currently enjoying robust growth. "Any optimistic look at the future sees growing demand for specialised value-added services," Mr de Juniac noted.
A breakdown of the regions show that Asia Pacific airlines recorded the strongest year-on-year demand increase, with freight volumes up by 11.8 per cent on a capacity gain of two per cent, driven by an uptick in trade across Asia Pacific's main freight lanes over the past six months, IATA said.
North American airlines' freight volumes grew by 5.8 per cent on a capacity decrease of 3.1 per cent year on year, partly on the back of freight traffic to and from Asia. However, the further strengthening of the US dollar continues to boost the inbound freight market but is keeping the export market under pressure.
European airlines posted a 10.5 per cent increase in freight volumes in February, and a year-on-year capacity increase of 1.4 per cent. The ongoing weakness of the Euro continued to boost the performance of the European freight market, which has benefited from strong export orders, particularly in Germany, over the last few months.
Middle Eastern carriers' year-on-year freight volumes rose by 3.4 per cent, while capacity fell by 1.7 per cent. However, growth has eased from the double-digit rates which have been the norm over the past ten years. This correlates to a slowdown in network expansion by the region's major airlines.
Demand in Latin American contracted by 4.9 per cent and capacity was down 7.2 per cent. Freight volumes on the region's carriers have now plummeted for 25 out of the last 27 months amid weak economic and political conditions.
African carriers' saw freight demand increase by 10.6 per cent on capacity growth of one per cent. However, demand between January and February rose by 16.2 per cent, helped by strong growth on the trade lanes with Asia.
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