2017 was undoubtedly a record-breaking year for the air cargo industry. After nearly six years of anaemic demand, resurgent global economic conditions coupled with increasing import and export orders, helped stoke the air freight industry to its best performance. The air cargo industry in North America, like any other part of the world, also witnessed a sharp rebound and is well on its way to make significant investments to bolster growth
For North American carriers, freight demand grew 5.4 percent year-on-year in December 2017 while capacity inched up 2.2 percent. This contributed to an annual growth in 2017 of 7.9 percent. Capacity grew by 1.6 percent in the 2017 calendar year, IATA’s recently released data stated.
The strength of the US economy and the US dollar attributed to the increase in the inbound freight market in recent years. Looking towards 2018, the recently agreed US tax reform bill may help to support freight volumes in the period ahead although this may be offset by the recent weakening in the dollar, the industry body forecasted.
“It’s refreshing to see renewed demand for air cargo after several years of industry revenue decline. When I think about 2017 overall, I am reminded that the entire air freight industry revenue contracted 28 percent between 2010 and 2016 while annual growth in cargo capacity grew 18 percent between 2011 and 2016. This put a tremendous downward pressure on yields. It’s difficult for any business to make needed investment in products and services in that kind of operating environment, so 2017 and especially the December quarter was clearly a welcome change,” said Eric Wilson, managing director global sales cargo, Delta Cargo.
“Throughout 2017, we saw load factors, yields and revenue all improve. And while cargo is still a very tough and competitive business, the developments in the course of the year were certainly the most positive that we’ve seen in a very long time. Here at American, we reported that our growth outpaced the industry and our global team worked really hard to make that happen. In fact, we delivered improved operational performance at a time when volumes increased by over 15 percent,” revealed Lisa Oxentine, managing director, Global and Key Accounts – Cargo Sales, American Airlines.
Denne historien er fra March 2018-utgaven av The STAT Trade Times.
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Denne historien er fra March 2018-utgaven av The STAT Trade Times.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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AVIATION INDUSTRY: FUELING THE FUTURE WITH SUSTAINABILITY
Following rising concerns about climate change and the urgent need to reduce greenhouse gas emissions, the aviation industry is building a well-established strategy for sustainability. Thanks to technological advancements, innovative practices, and a strong commitment to environmental stewardship, sustainable aviation is emerging as the path to a greener future.
WHO IS CHANGING THE GAME FOR AIR CARGO?
Up until five years ago, the air cargo industry was considered less digitally mature than other sectors marked by rigid legacy systems. But with the onset of Industry 4.0, innovation is on every business manager’s agenda and exciting changes are transforming this industry. Also, as consumer habits change and customer expectations grow, clients demand end-to-end visibility of their delivery. With emerging technologies like Blockchain, Artificial Intelligence and IATA’s initiatives One Record and Interactive Cargo, technology is definitely making changes to efficiency.
WAITING TO BE FILLED AIR CARGO CONTINUES TO BE IN THE DOLDRUMS
Global air cargo industry continues to suffer across all regions and the demand decline experienced in 2019 is the steepest drop since 2009 during the global financial crisis. Airline association IATA predicts that air cargo demand will increase by two percent in 2020; however there are several ifs and buts for the industry to get back to growth momentum.
TRADE WAR ADDS CANADIAN FLAVOUR INTO CHINESE CUISINE
The surging lobster business in Canada built on the trade war between the US and China shows the capability of Nova Scotia in addressing the supply chain issues of stakeholders, at a time when China demanded more lobster than the province exported earlier. By exporting around 22 tonnes from January-October 2019, one of the three maritime provinces of Canada is confident to face the aftermath if trade war ends, by foraying into new markets.
INDUSTRY RISES AGAINST DANGERS OF ROGUE LITHIUM SHIPMENTS
As the threat of mis-declared or ill-packaged shipments carrying lithium batteries looms large, the aviation industry is joining forces to fight the menace. As e-commerce and demand for cleaner technology grows, the demand for lithium batteries is also seeing an upward trend. It’s time this industry affair got more attention to make aviation safer.
GECAS, IAI Launch The B777 Freighter Conversion Programme, Freighter To Enter Service In 2022
GECAS and Israel Aerospace Industries (IAI) have launched the Boeing 777-300ER freighter conversion programme.
From Booking Middlemen To Strategic Partner
Founded in the united kingdom in 1994, Air Logistics Group (ALG) has developed significantly from the traditional ‘general sales agent’ to a strategic partner offering the highest level of value added services to its airline and forwarding partners. As ALG completes 25 years, Stephen Dawkins, founder & chief executive officer of ALG, speaks to Reji John, about many more exciting years ahead providing airlines and forwarders with a reputable, financially sound partnership that can deliver in terms of revenue, network coverage, digitalisation and manpower. Edited excerpts.
FLA-PLA 2019 Call For Embracing Technology, Sustainability, Better Infrastructure
Sustainability and need for collaboration dominated the narrative of the latest Flower & Perishable Logistics Africa conferences in Nairobi, Kenya. Attendees discussed the importance of infrastructure development, exploring new markets, and looking beyond the traditional avenues.
Raising The Stakes On Perishable Logistics
When dealing with fresh produce and other food items intended for human consumption, there is no wiggle room when it comes to freshness and quality. For the food to reach one’s plate, there is a lot that happens along the way – this includes harvesting crops at the right time, maintaining proper temperatures, and of course, on-time delivery from farm to fork. As consumption patterns change, regulations vary, customer expectations rise, industry players are converging to create a seamless supply chain.
Connecting Intelligently For Cargo Mobility
The air freight industry, which has remained traditional in its processes and business models for a very long time has seen a perceptible shift on the back of advances both in operation and information technology in the last few years. For the industry to work more efficiently, the supply chain needs to generate a constant stream of data that can be collected, analysed and used to optimise productivity.
