Asia-Pacific cargo airlines performed well in November 2014, posting robust growth as international airfreight demand accelerated, according to data from both the Association of Asia Pacific Airlines (AAPA) and International Air Transport Association (IATA).
In freight tonne kilometers (FTK), air cargo demand increased by 5.6%, with monthly volumes reaching the year’s high, mainly from healthy shipments of electronic goods going into the year-end festive season, said AAPA. Offered freight capacity grew by a comparatively modest 1.9%, leading to a 2.4 percentage point gain in the average international freight load factor to 68.3% for the month.
Airfreight markets continued to advance on the back of further improvement in consumer sentiment within the region and robust trade with the United States, said Andrew Herdman, AAPA director general.
During the first 11 months of the year, the region’s airlines saw a 5.1% increase in airfreight tonnage compared to the same period last year, he added.
Meanwhile, IATA reported that the most significant growth for November was recorded by carriers in the Asia-Pacific and Middle East regions, at 5.9% and 12.9%, respectively.
Carriers in these regions captured the vast majority of the global increase, or 93% of the total. Carriers in Asia-Pacific accounted for 55% of the total year-on-year growth (with a market share of 39.7%), while airlines in the Middle East region contributed a further 38% of growth (with a market share of 13.3%).
Overall, November 2014 data for global airfreight markets showed that demand measured in FTK grew 4.2% compared to November 2013. Capacity grew by 3.3% over the previous November. Compared to October 2014, airfreight demand expanded by 0.8%.
Growth forecast of 4.5%
An important development emerged at the end of 2014 which, if it continues, bodes well for airfreight markets. This, according to IATA, is the “strong growth trend in cross-border trade” that emerged over the second half of 2014 and has had a positive impact on air cargo volumes.
“More goods are being traded internationally and that is fueling the growth in air freight. It was clear in November that most of that growth is being captured by carriers in the dynamic and relatively business-friendly Asia-Pacific and Middle East regions. This year we expect airfreight markets to expand by 4.5%, outpacing projected growth in world trade (4.0%). But that optimism is tempered by the many macro-economic and political risks that continue to impact trade flows,” said Tony Tyler, IATA’s director general and CEO.
For other regional carriers, European airlines saw a small 0.9% rise in FTKs while capacity expanded by 2.6%. The Eurozone economy continues to flatline, affected by renewed concerns over the Euro and Russian sanctions. Export markets in Asia and North America have potential but this is not outweighing the negative impact of weak home markets, said IATA.
North American carriers recorded an FTK decline of 0.3% and a fall in capacity of 2.6%. This was despite a ports strike on the West Coast which helped shift some demand from sea to air. Underlying indicators for the U.S. economy remain sound, which should support a return to growth.
Latin American airlines saw FTKs fall by 0.7%, reflecting economic weaknesses across the continent, but particularly in Brazil and Argentina. Capacity was reduced 0.5%.
African airlines expanded FTKs by 10.5%, maintaining the positive trend of previous months. Load factors also improved as capacity was trimmed by 2.9%.
“The air cargo industry enters 2015 propelled by solid growth trend. Shippers have a choice in modes of transport and, like customers everywhere, demand ever greater value. To turn the growth into sustained stronger profitability, the air cargo industry faces the challenge of investing in more efficient and higher quality processes and facilities that will give it the winning edge over its competitors,” said Tyler.
Photo: Vinoth Thambidurai
