GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Travel and Tourism

 
  Share

Dubai, UAE, December 5, 2017:  The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 5.9% in October 2017 compared to the year-earlier period. This was a slowdown from the 9.2% annual growth recorded in September 2017 but still exceeded the average annual growth rate of 3.2% over the past decade.

Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 3.7% year-on-year in October. This was the 15th consecutive month in which demand growth outstripped capacity growth, which is positive for load factors, yields, and financial performance. 

While cargo demand remains strong, several indicators show that we may have passed the growth peak. The inventory-to-sales ratio in the US is tracking sideways, indicating that the period when companies look to restock inventories quickly—which often gives air cargo a boost—has ended. The new export orders component of the global Purchasing Managers' Index (PMI) is stable. And the upward trend in seasonally-adjusted freight volumes has moderated. 

Freight volumes are still expected to grow in 2018, although at a slower pace than in 2017. 

“Demand for air freight grew by 5.9% in October.  And tightening supply conditions in the fourth quarter should see the air cargo industry deliver its strongest operational and financial performance since the post-global financial crisis rebound in 2010,” said Alexandre de Juniac, IATA's Director General and CEO.

 Regional Performance

Airlines in all regions reported an increase in total year-on-year demand in October. However, in contrast, international freight growth slowed in all regions except Africa. 

Asia-Pacific airlines saw freight volumes increase by 4.4% and capacity expanded by 3.9% in October 2017, compared to the same period last year. Demand for freight is now around 3% higher than the peak reached in the post-financial crisis rebound in 2010. The region's manufacturers continue to enjoy buoyant order books. And the major exporters in China and Japan are reporting growing backlogs supported in part by stronger economic activity in Europe.

North American carriers posted an increase in freight volumes of 6.6% for October. This was a slowdown from the 7.4% recorded in September but still ahead of the five-year average pace of growth. Capacity increased 3.8%. The strength of the US economy and the US dollar has boosted the inbound freight market in recent years. Data from the US Census Bureau shows an 11.6% year-on-year increase in air imports to the US in the first nine months of 2017, compared to a slower rise in export orders of 6.5%. 

European airlines posted a 6.4% increase in freight demand in October 2017. This was a marked slowdown from the 10.6% growth in demand in September, however it was still above the five year average of 9.0%. Capacity increased 2.5%. Concerns that the recent strengthening of the euro might have affected the region's exporters have not materialized yet. Europe's manufacturers' export orders are growing at their fastest pace in more than seven years. Freight demand remains very healthy on transatlantic routes and is strong on routes to and from Asia - having received a boost in trade from the economic stimulus measures put in place by China.  

Middle Eastern carriers' year-on-year freight volumes increased 4.6% in October and capacity increased 3.4%. During the same period international freight volumes slowed to 4.7% from 9.2% the previous month. The recent volatility produced by the region in the year-on-year growth rate for international freight volumes is due to developments in demand in 2016 rather than a marked change in the current traffic trend. In fact, seasonally-adjusted international freight volumes have continued to trend upwards at a rate of 8-10% over the past six months. 

Latin American airlines experienced a growth in demand of 7.2% in October and a capacity increase of 4.4% compared to the same period in 2016. International freight volumes rose by 7.7% over the same period. This is nearly nine times the five-year average rate of 0.9%. The pick-up in demand reflects signs of recovery in the region's largest economy, Brazil. Seasonally-adjusted international freight volumes are now back to the levels seen at the end of 2014. 

African carriers posted the largest year-on-year increase in demand of all regions in October, with freight volumes rising 30.3%. Capacity increased 9.2%. During the same period international freight volumes grew by 28.5%. This is more than three times the five-year average growth pace of 9.4%. Demand has been boosted by very strong growth on the trade lane to and from Asia, which increased by more than 67% in the first nine months of the year. 



Posted by : GoDubai Editorial Team
Viewed 8333 times
Posted on : Tuesday, December 5, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Turkish Airlines on board with UFW
Next Story : October Passenger Demand Rebounds from Weather-Impacted September
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
NARS Erdem SS19 Beauty Report
Diana Arno Expands Online Shopping to Middle East
Introducing Home Fragrance at Robinsons, Dubai Festival City
Introducing VK Beauty Lounge & Bar
Defying Age With Skin Republic's Gold and Platinum Face Masks
The Future Is Here
Roberto Cavalli's Exclusive Duo of Fragrances
Lacoste.12.12 Collection
Bring a Touch of Sophistication to Your Home with The Exclusive SmegXDolce&Gabba...
FOREO To Attend TFWA: the World's Largest Travel Retail Show
Trevor Sorbie Range Relaunches in the UAE
Carl F. Bucherer Celebrates Debut of Its Online Boutique on Jd.Com Launch of Lim...
GROHE Smart Home: The App-Controlled Water Security System
Pamper yourself at Perfumery & Co this month, at The Dubai Mall
Le Meridien Dubai Hotel & Conference Centre's Restaurant Promotions- October
O Boticário Opens in Dubai its First Amphora Store outside Brazil Come Join...
William Collection by Hugo Boss
Dubai Parks and Resorts Celebrates Saudi National Day
Al-Futtaim ACE launches its stylish new Outdoor collection
Honor Set to Go Beyond Limits With the Launch of Honor 8x
Honda voted “Preferred Sedan Car Brand of the Year” for the fourth year in a row
The Mummies of Dubai Give Their Kids a Preppy Style Makeover
Al-Futtaim Toyota swoops another win at the Filipino Times Awards
Huawei Deepens Cooperation with Duisburg to Transform Germany's Industrial Hear...
Tips & Toes Hits the Big 3-5!
Hyperloop Transportation Technologies, Partners, and Government Stakeholders Mov...
Ministry of Human Resources and Emiratisation, Huawei and Honor launch ICT Compe...
Dubai Design Week continues to grow, cementing Dubai as the design capital of t...
New GUESS Handbags for FW18
du Wins Smart Cities Award at the Telecoms World Middle East 2018
Mousses Etoiles to reveal the latest luxury designs of commercial-use outdoor fu...
Eberhard & Co. Scafograf 100 For Elegant Lady
Tata Communications launches a specialised cyber security lab at Shanmugha Arts,...
Consonni Wraps Up La Vuelta a Espana With a Seventh Place Finish for UAE Team Em...
Akamai Unveils Solutions at IBC 2018 Designed to Mitigate the Challenges and Cos...
Abu Dhabi wins bid to host 2022 ITU Grand Final in world first
Cadillac XT4 Delivers Dynamic Driving Experience
du Opens New Business Centre in DIFC for Enterprise Customers
Volunteers from the UAE join hands with the community in Tasset Peulh village in...
Sharjah's Recognition as ‘Accessible City for Physically Disabled' Hailed as His...
WWE® Crown Jewel Set for November 2 in Saudi Arabia
New Homologations for Pirelli Tyres
The Dubai Business Women Council meets with the UN Assistant Secretary-General t...
Dubai Festival City Mall Celebrates KSA National Day with Special Imagine Show
The Ferrari Monza SP1 and SP2 unveiled – the first models in a new concept of li...
Registration for the 5th edition of Camel Trek is now open
2018 FW in style at Zippy
New Headmaster for Repton School, Abu Dhabi School's Rose Campus (FS1 to Year 1...
Huawei becomes one of the first multi-national technology companies to register ...
Fidu Properties unveils second office in Dubai; eyes expansion in UAE