Global air cargo demand rose 9 percent last year, more than double the 3.6 percent annual growth recorded in 2016, according to the latest data from the International Air Transport Association (IATA).
Global airfreight demand soared 9 percent year-over-year in 2017, according to the International Air Transport Association (IATA).
Global airfreight volumes rose 9 percent in 2017 compared with the previous year, according to the latest data from the International Air Transport Association (IATA).
Demand growth for the year was more than double the 3.6 percent annual growth recorded in 2016 and significantly outpaced capacity growth, which ticked up 3 percent in 2017, the slowest annual capacity growth seen since 2012.
IATA noted that full-year 2017 demand for airfreight grew at twice the 4.3 percent pace of the expansion in world trade thanks primarily to “strong global demand for manufacturing exports as companies moved to restock inventories quickly.”
In December alone, demand increased 5.7 percent compared with the same 2016 period, less than half the annual growth rate seen during the middle of 2017, but still well above the five-year average of 4.7 percent. Freight capacity grew by 3.3 percent year-over-year in December.
“Air cargo had its strongest performance since the rebound from the global financial crisis in 2010,” IATA Director General and CEO Alexandre de Juniac said of the results. “Demand grew by 9 percent. That outpaced the industry-wide growth in both cargo capacity and in passenger demand. We saw improvements in load factors, yields and revenues.
“Air cargo is still a very tough and competitive business, but the developments in 2017 were the most positive that we have seen in a very long time,” he said.
Asia Pacific airlines in 2017 experienced a 5.6 percent year-over-year uptick in airfreight volumes in December and 7.8 percent growth for the full year. Capacity for Asian carriers grew 2.2 percent and 1.3 percent, respectively, for December and 2017.
Airfreight volumes carried by European airlines rose 5 percent year-over-year in December and 11.8 percent for 2017, the largest increase of any region with the exception of Africa. Capacity in the region increased 3.2 percent for the month of December and 5.9 percent in the 2017 calendar year.
North American carriers increased air cargo volumes 5.4 percent and 7.9 percent, respectively, in December and for the full year in 2017. Capacity, meanwhile, was up 2.2 percent for the month and just 1.6 percent for the year.
“The strength of the U.S. economy and the U.S. dollar have improved the inbound freight market in recent years,” IATA said. “Looking towards 2018, the recently agreed U.S. tax reform bill may help to support freight volumes in the period ahead, although this may be offset by the recent weakening in the dollar.”
Airfreight volumes carried by Middle Eastern airfreight carriers rose 6.3 percent year-over-year in December and 8.1 percent in 2017, while Latin American airfreight carriers saw a 4.9 percent boost in monthly airfreight volumes and an increase of 5.7 percent of the year, the first annual demand increase for the region in two years.
In addition, African airfreight carriers saw volumes soar 15.6 percent year-over-year in December and 24.8 percent for the full year, posting the fastest growth rate of any region for the first time since 1990.
Overall, the Asia-Pacific made up 37 percent of the total freight traffic market share in 2017, based on freight ton kilometers, followed by Europe at 24.2 percent, North America at 20.5 percent, the Middle East at 13.7 percent, Latin America at 2.7 percent and Africa at 1.9 percent.
Looking ahead to this year, de Juniac called the outlook for airfreight “optimistic,” but noted that demand growth is expected to slow from the 9 percent pace this year to a still “very healthy” 4.5 percent clip in 2018.
“Consumer confidence is buoyant. And we see growing strength in international e-commerce and the transport of time – and temperature-sensitive goods such as pharmaceuticals,” he said. “Challenges remain, including the need for industry-wide evolution to more efficient processes. That will help improve customer satisfaction and capture market share as the expectations of shippers and consumers grow ever more demanding.”