Freight Air Cargo demand raises up to 9% in 2017
The International Air Transport Association (IATA) released a statement about the behavior of global air freight markets in year 2017. According to the report, the demand for freight grew by 9%, marking double the growth from 2016.
The uprising demand is moreover being registered as the strongest since the financial crisis in 2010. Increase of air freight demand by 9% shows more than double the growth which was recorded in 2016. According to IATA, the freight capacity rose by 3% in 2017. The demand overtook the capacity by a factor of three.
In terms of demand and capacity growth, December 2017 was above average. The freight capacity grew by 3.3% year-on-year and approved the strong uprising air freight in 2017.
Reasons for the strong growth are increasing demands for E-Commerce, as well as the transportation of goods such as pharmaceuticals. Especially African carriers noticed strong capacity increase with 9,9%. This demand reasons in very strong growth in the African-Asian cargo area, which amounted to more the 64% in the first eleven months of 2017.
Alexandre de Juniac, IATA's Director General and CEO, stated: "Air cargo had its strongest performance since the rebound from the global financial crisis in 2010. Demand grew by 9.0%. That outpaced the industry-wide growth in both cargo capacity and in passenger demand. We saw improvements in load factors, yields and revenues. Air cargo is still a very tough and competitive business, but the developments in 2017 were the most positive that we have seen in a very long time."
For 2018, de Juniac expects further growth: "The outlook for air freight in 2018 is optimistic. Consumer confidence is buoyant. And we can see growing strength in international e-commerce and the transport of time- and temperature-sensitive goods such as pharmaceuticals. Overall the pace of growth is expected to slow from the exceptional 9.0% of this year. But we still expect a very healthy 4.5% expansion of demand in 2018.
Source © iata.org