We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Global air freight traffic climbs in June; structural problems remain
newsworthy

Global air freight traffic climbs in June; structural problems remain

August 3, 2016
DC Velocity Staff
No Comments

Global air freight traffic rebounded in June in what was the strongest month of a subpar year. The issue now is whether the momentum can last more than a month.

Traffic, measured in freight ton-kilometers (one metric ton of revenue cargo flown one kilometer), rose 4.3 percent in June compared to the same period in 2015, the International Air Transport Association (IATA), the leading global aviation trade group, said today. That is the fastest pace of growth in 14 months, IATA said.

The Middle East, which accounts for 14 percent of world freight share, led the way among the six reporting regions with a 5.1-percent year-over-year rise in traffic. Europe, which accounts for 22.3 percent of share, reported a 5.1-percent year-over-year increase, spurred in part by a pickup in export orders out of Germany. North America, which accounts for 20.5 percent, reported a 4.3-percent gain. Asia-Pacific, the most active region with a 38.9-percent share, posted a 3.5-percent increase. Latin America and Africa each posted year-over-year declines, but the regions combined account for just 4.3 percent of global share, according to IATA data.

In a mildly positive trend for freight profitability at some airlines, traffic growth in North America and Europe slightly exceeded the growth in available freight capacity. For months, capacity in most regions has surpassed demand, depressing carrier selling prices and hurting their yields. Capacity in Asia and the Middle East slightly exceeded growth rates in the regions, according to IATA data.

There is a one-month lag in IATA's data-publishing schedule. As a result, there is yet no official word on July's activity. In its statement, IATA Director General and CEO Tony Tyler, cautioned against reading too much into any one month's performance, noting air cargo markets "have been in the doldrums for several years, during which time there were several false starts or indications of improvement."

Tyler, who has waxed bearish on air cargo's prospects for some time, said the sector remains plagued by declines in the growth of world trade, and lingering uncertainty following Britain's late-June decision to leave the European Union.

Benjamin J. Hartford, transport analyst for Robert W. Baird and Co. Inc., an investment firm, said June's results, especially among European-based air freight forwarders, came in better than expected. Hartford cautioned, however, that the figures could represent a "one-month blip," noting that pricing activity has been weak entering the second half of the year, reflecting sluggish demand, overcapacity, or a combination of both.

The June data marks the 16th consecutive month the Middle East region reported the fastest growth in freight traffic, and reflects the region's growing prominence on the world's air commerce stage. According to estimates from Dutch freight forwarding and logistics giant Ceva Logistics, Middle Eastern airlines account for 45 percent of the lower-hold, or "belly" space, in passenger aircraft ordered by the world's top 15 carriers. Aircraft maker Boeing Co. estimates that 40 to 45 percent of all global airfreight moves in bellies, and that belly space will grow at a faster rate than capacity of air freighters, which handle only freight.

Transportation Air
KEYWORDS Boeing Inc. CEVA Logistics International Air Transport Association (IATA) R.W. Baird & Co.
  • Related Articles

    IATA: global air freight markets still crashing but descent slowed in June

    International air freight posts double-digit gain in June

    Air cargo sector could see rise in volume in 2020, but freight revenue continues to drop.

Recent Articles by DC Velocity Staff

Report: Global TMS revenues to nearly double by 2025

E-commerce fulfillment squeezes retailers’ profit margins, Manhattan Associates says

Logistics-as-a-Service platform expands with $2.5 million funding round

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • IBM survey says digitalization trends will sweep trucking industry by 2030

  • Gartner survey signals increased investment in resilience over the next two years

  • Truck driver hiring pool tightens to lowest point in three years, ACT says

  • What Level of Automation is Right for Your Warehouse?

  • Growing up … and up and up: interview with Sam Bertram

Now Playing on DCV-TV

D92f0dd1 a98c 434a 9e17 30b63ee72c90

Automated Pack-out and Print-Apply System for thredUP

DCV-TV 4: Viewer Contributed
SilMan Industries designed and implemented a mixed polybag-carton system, including automated print and apply, in a new regional Fulfillment Center for thredUP, one of the world’s largest online resale platforms for women’s and kids’ apparel, shoes, and accessories.The Situation Secondhand clothing and online...

FEATURED WHITE PAPERS

  • Using innovation to manage peak seasonal demand

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing