The airfreight logistics industry’s revenue is expected to rise by nearly 3 percent in 2013 and to continue to grow until 2018 as expansion continues in newly industrialized economies, according to a research firm’s recently updated sectoral report.
“The industry is essential to international trade, granting it a degree of demand stability,” IBISWorld industry analyst Lauren Setar said.
The sector experienced a global downturn in 2008 and 2009, resulting in revenue plummeting by 24.6 percent in 2009. In 2010, companies replenished their inventories, causing a dramatic rise in cargo demand and enabling revenue and profit margins to rebound.
Due to greater freight volumes and higher prices, the industry has returned to a more sustainable growth rate, which includes an estimated increase in revenue of 2.9 percent this year, the research firm said.
Faster growth is expected in the five years to 2018, mainly due to expansion in newly industrialized economies. Manufacturing output in China and other Asian countries is anticipated to increase during the period and contribute to this growth.
Additionally, demand for merchandise is expected to climb considerably in newly industrialized economies, and this demand will continue to grow across developed countries, boosting the requirement for airfreight logistics. Freight service providers will also hike their service rates, adding to their sales numbers, IBISWorld predicts.