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There was an improvement in global cargo market in the month of May as airlines record a 4.7 percent growth rate compared with a year ago. This is up from the 3.8 percent year-on-year growth recorded in April.
Data released by the International Air Transport Association (IATA) for global air freight markets cargo volumes, measured by Freight Tonne Kilometres (FTKs) were up across all regions, but with significant differences in performance.
African carriers’ demand increased by 7.2 percent in May, considerably ahead of the average growth of 2.9 percent for 2014, as weaker growth in the major African economies in the first months of the year appears to be ending, which will hopefully fuel stronger performance in the months ahead. Meanwhile, the data show that capacity rose 7.2 percent, exactly in line with demand.
The Middle East carriers reported 9.3 percent year-on-year growth, whereas the corresponding growth rate for North American carriers stood at 2.4 percent.
Tony Tyler, IATA director-general, explains that the acceleration of growth reflects improved economic conditions, adding that there are indications that world trade and business confidence would improve after weakness in the first quarter.
“After several months of wavering conditions in the demand environment, the outlook for global air cargo appears to be stabilising. That’s good news but the sector still faces an uphill battle to restore competitiveness and increase its share of trade growth. This will not be achieved with a business-as-usual mindset. The competitors to air cargo are innovating aggressively, cutting end-to-end shipping times and improving efficiency.
“There is tremendous potential in the e-cargo agenda to help shorten average shipping times by 48 hours from the current average of 6.5 days. Airlines have a pivotal role through expanding the use of e-Air Waybills. But success will need a united approach across the value chain,” he says
Also, North American carriers grew by a modest 2.4 percent in May, down on the April year-on-year growth rate of 3.5 percent. This reflects the general slowdown in the United States economy in the first quarter.
However, the latest data support a return to trade and business growth, as capacity was down 0.2 percent.
Meanwhile, European airlines expanded 3.4 percent in May. The month-on-month rise was solid at 0.6 percent (compared with 0.3% growth recorded in April), pointing to a consistent improvement in economic activity.
Sade Williams
