Impact Publications : Aircargo_237
Page 20 • aircargo asia-Pacific • JUNE-JULY 2015 Page 20 • aircargo asia-Pacific • JUNE-JULY 2015 Apr 2015 vs. Apr 2014 FTK growth AFTK growth FLF International 3.6% 6.6% 47.8% Domestic 0.9% 1.2% 31.2% Total market 3.3% 5.5% 44.7% YTD 2015 vs. YTD 2014 FTK growth AFTK growth FLF International 4.8% 6.3% 48.8% Domestic 1.2% -0.4% 30.7% Total market 4.3% 4.9% 45.3% Air cargo global outlook is ‘not bright’ - IATA report ThE INTErNaTIoNaL air Transport association (IaTa) has released data for global air freight markets show- ing a 3.3 per cent increase in cargo volumes (freight tonne kilometres or FTKs) in april 2015 compared to april 2014. however, there has been no growth in aggregated global cargo volumes since late last year. at a regional level, only asia-Pacif- ic and Middle Eastern airlines report- ed growth in april. North american carriers reported essentially flat demand, while Europe, Latin amer- ica and africa all reported declines when compared to 2014. april data also revealed a slow- down from the growth for the first quarter of 2015 at an average 5.3 per cent, in line with a recent weakening in world trade growth. Despite a cycli- cal pick-up in the global economy, acceleration in trade and air freight demand is seen as un- likely in the near term as business confidence and export orders are flat or declining. “after a volatile start to 2015, the market is settling down, and it is clear that momentum in air freight growth is being lost. First there is the structural challenge of world trade no longer expanding at a faster rate than domestic production. Lay- ered on top of that trend we now see a weakening of economic indicators in the crucial air cargo markets of asia-Pacific and Europe,” said Tony Tyler, IaTa’s director general and ceo. “These factors point toward a need to kick-start trade by reversing protec- tionist trade measures. Implementing the Bali Trade Facilitation agreement would be a good start, as well as commitments to help facilitate trade in emerging markets,” said Tyler. also of note was the significant ca- pacity increase of 5.5 per cent in april 2015, driving the load factor down to its lowest for the past 12 months. regional analysis in detail asia-Pacific carriers reported demand growth of 4.5 per cent in april compared to april 2014, below a capacity expansion of seven per cent. Current trade volumes for emerging asia markets are down 10 per cent, and the region has been affected by a slowdown in exports to Europe. European carriers saw demand de- cline by 0.3 per cent in april, compared to a year ago while capacity grew by five per cent. recent improvements in European business confidence have yet to be reflected in air freight vol- umes. a firming-up of oil prices and the Euro has meant that positive mo- mentum from the European Central Bank stimulus has faltered. North american airlines reported demand growth of 0.1 per cent year- on-year while capacity was cut by 1.6 per cent. a disappointing economic performance in the first quarter is expected to improve in the coming months, with the likely impact of fall- ing oil prices and the end of the West Coast port strikes. Middle Eastern carriers saw de- mand grow by 14.1 per cent on the back of increased trade within the region, along with network and capac- ity expansion. Capacity grew 18.5 per cent. Latin american airlines reported a fall of 6.8 per cent in demand, while capacity grew by seven per cent. Month-on-month results for carriers in the region indicate that recent declines may have come to an end. The hope is that general increases in re- gional trade activity start to be reflected in stronger air freight demand. african airlines experienced a 0.2 per cent decline in demand and a 2.2 per cent decrease in capacity. The region still appears to be affected by the under-performance of the Nigerian and South african economies. Bottom Line “after a brief optimistic period, the global outlook for cargo shows that once again the business is stagnating. But the good news is that with digital processes, new standards for phar- maceutical handling, and a focus on reducing end-to-end shipment times the air cargo industry is well-placed to stage a recovery,” said Tyler. Tony Tyler, IATA’s director general and ceo.