Airlines picked up business from shippers doing an end run around West Coast port congestion.
Global air freight volumes, measured in freight-ton kilometers, surged 11.7 percent in February compared to the same month in 2014, according to the International Air Transport Association. IATA attributed the growth to the timing of the Chinese Lunar New Year and reaction by shippers to congestion at U.S. West Coast ports.
Last year, the Lunar New Year fell in January. Air freight volumes tend to benefit in the weeks leading up to the holiday because factories in China and other countries shut down for a week or more and shippers that pre-buy merchandise want to get their goods out to avoid a gap in inventory.
Port congestion intensified at West Coast ports for several months prior, as bad blood between negotiators for the International Longshore and Warehouse Union and waterfront employers, represented by the Pacific Maritime Association, spilled onto the terminals and led to a severe decline in productivity. The crisis finally broke when a tentative contract was agreed to on Feb. 20.
Asia-Pacific carriers benefited the most from the two circumstances, with carriers in that region recording a rise in volumes of 20.8 percent year-over-year. In particular, Japanese carriers were big winners from the modal shift.
Many manufacturers, retailers and food distributors said they resorted to air freight at the beginning of the year to keep business going without interruption. North American carriers also benefited from the port congestion with year-over-year growth of 8.7 percent.
The European market was stagnant at 1.1 percent growth, due to weak economic conditions and the effects of Russian sanctions, IATA said. Latin American air freight volumes declined sharply by 9.6 percent as the Brazilian and Argentine economies struggled.
During February, global air freight capacity increased 7.4 percent, but load factors were still below 50 percent.
IATA officials said the pace of growth is expected to diminish in the coming months, but expressed optimism that improvements in business confidence and trade would keep airlines busy.
Despite the temporary shift to air, the air freight industry for several years has seen customers migrate more business to ocean freight. Industry officials say they must offer better customer service and product tracking to reverse the trend.
Mode shift boosts February air freight volumes
