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 » Cargo traffic jumped 12.1 percent in August, continuing double-digit run
newsworthy

Cargo traffic jumped 12.1 percent in August, continuing double-digit run

October 4, 2017
DC Velocity Staff
No Comments

World air cargo traffic rose by 12.1 percent in August over the year-earlier period, the fifth month out of the last six that demand has grown at double-digit levels, the International Air Transport Association (IATA), the leading world airline group, said today.

The August data is a further sign that world cargo activity is on pace to rise by double-digit levels in 2017, above the 7.5-percent increase that IATA forecast at the start of the year, and well above the 4.4-percent average growth rate for the past five years. Traffic growth in the first half of 2017 was up 10.7 percent, and the market has recorded year-on-year gains above those levels in the two months since then.

IATA said in a statement that its original 2017 forecast holds "significant upside potential" even if cyclical factors that have been driving growth this year, such as an uptick in inventory restocking in the U.S., have peaked.

Cargo capacity, meanwhile, grew in August by just 4.7 percent year over year, continuing the trend in 2017 of demand easily exceeding capacity. For most of the past seven years, the opposite has been the case.

The current trend helps airlines by allowing them to charge more for their services, thus strengthening their yields. However, it pressures air freight forwarders, typically the largest users of air cargo services, because it compresses their margins at a faster rate than they can compensate for by passing on rate increases to their customers.

The combination of strong demand and tighter capacity means that cargo space is now "growing in response to real cargo demand, rather than automatically as carriers responded to passenger demand," Alexandre de Juniac, IATA's director general and CEO said in the statement. About 40 to 45 percent of global air trade moves in the lower-hold compartments, or "bellies," of passenger aircraft. Bookings for belly cargo are dictated by schedules for passenger flights, because passenger tickets account for the bulk of the revenue generation.

All markets except for Latin America reported double-digit cargo increases in August, IATA said. The Asia-Pacific region, which has the largest market share, gained 11.3 percent. North American airline volumes rose 11.7 percent year over year, IATA said.

Transportation Air
KEYWORDS International Air Transport Association (IATA)
  • Related Articles

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

    USPS posts double-digit gains in shipping, package revenue in FY '16; mail declines

    International air freight posts double-digit gain in June

  • Related Events

    LINk2021: The Retail Supply Chain Conference

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