Friday 29 Mar 2024
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KUALA LUMPUR (Feb 4): Global air freight markets data showing cargo volumes measured in freight tonne kilometers (FTKs) expanded 2.2% in 2015 compared to 2014. This was a slower pace of growth than the 5.0% growth recorded in 2014, accodring to the International Air Transport Association (IATA).

In a statement yesterday, IATA said the weakness reflects sluggish trade growth in Europe and Asia-Pacific.

The global association said that after a strong start, air freight 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.

It said cargo in Asia-Pacific, accounting for around 39% of freight traffic, expanded by a moderate 2.3%.

IATA said the key markets of Europe and North America, which between them comprise around 43% of total cargo traffic, were basically flat in 2015.
 

It said Latin America suffered a steep decline (-6.0%) while the Middle East grew strongly, up 11.3%.

It explained that Africa also saw modest growth of 1.2%.

The freight load factor (FLF) was at times the lowest for some years, falling to an average 44.1% compared to 45.7% in 2014, driven down by weak demand and capacity expansion,” it said.

IATA director general and CEO Tony Tyler said 2015 was another very difficult year for air cargo.

He said growth had slowed and revenue was falling.

“In 2011 air cargo revenue peaked at US$67 billion. In 2016 we are not expecting revenue to exceed US$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 modernize processes and improve the value proposition. The faster the industry can make that happen, the better," he said.

 

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