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.
  • 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
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • 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
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • 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
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Airfreight continues multi-month roll in May with global double-digit growth
newsworthy

Airfreight continues multi-month roll in May with global double-digit growth

July 5, 2017
DC Velocity Staff
No Comments

No one knows how long it will last, but the international airfreight industry is partying like it's 1999.

Airfreight demand, measured in freight ton-kilometers, rose 12.7 percent in May compared with the same period in 2016, according to data released today by the International Air Transport Association (IATA), the global airline trade group. This was up from the 8.7-percent annual growth recorded in April, and is more than three times higher than the overall five-year average growth rate of 3.8 percent, according to IATA data.

Freight capacity, measured in available freight ton-kilometers (AFTKs), grew in May by 5.2 percent year over year. This continues a multi-month trend of demand exceeding supply, a recent reversal of what had been a persistent oversupply condition. The surge in demand bodes well for airfreight yields, which have been a problem for the past seven years.

In the five months that IATA's 2017 data has been available, demand has either been in the high single digits or in double digits. The weakest month so far has been January, when demand rose by 6.9 percent.

The strong performance this year may remind industry veterans of the halcyon days of the late 1990s, when the Internet and telecommunications build-outs, combined with the popularity of global just-in-time supply chain operations supported by air services, produced airfreight's last great period of success. The industry has been in a funk for the past 17 years, however, punctuated by short-term growth bursts that eventually fizzled.

Present-day demand growth is following the recovery in global economies, with the pace of new export orders nearing a six-year high in May. Industry executives expect demand to grow by 8 percent during the third quarter, IATA said.

Airlines in the Asia-Pacific region, the world's largest region for freight activity, reported a 11.3-percent rise in May volumes over the same period a year ago, while capacity rose 6.2 percent year over year, according to IATA data. Demand grew by 13 percent to 15 percent respectively on international routes within Asia and on Asia-to-Europe routes, IATA said. North American carriers posted a 13.9-percent volume increase year over year, while capacity rose by just 4.1 percent, IATA said. Seasonally adjusted volumes rose again in May after a jump in April, a sign of a lasting pick up, IATA said.

European airlines posted a 15-percent increase in freight volumes and a capacity increase of 5.7 percent, IATA said.

Transportation Air
KEYWORDS IATA - International Air Transport Association
  • Related Articles

    JAXPORT CONTINUES DOUBLE DIGIT GROWTH IN ASIAN CONTAINER VOLUMES

    Global airfreight industry muddles through another tough month in September

    Cimcorp Automation Ltd. Announces Double-Digit, Year-Over-Year Growth in 2017

Recent Articles by DC Velocity Staff

Freight sector missed the boat on strong U.S. economy in Q3 and Q4, FTR says

Sloppy thieves botch trailer heist

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

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

Report Abusive Comment

Most Popular Articles

  • Fred Smith is not worried about Amazon

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

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

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing