IATA - Cargo Growth Trend Pauses
ABOUT US
CAREERS
CONTACT & SUPPORT
Press Release No.: 23
Date: 5 May 2014
Cargo Growth Trend
Pauses
The International Air Transport Association (IATA) released data showing air freight markets in March
were up 5.9% compared to a year ago and capacity grew 3.4%. While this marks a significant
improvement in volumes compared to March 2013, much of the growth took place in the final quarter of
2013 (over and above the usual year-end volume growth). Since the beginning of the year, air cargo
volumes have been basically flat. This plateau in volumes is consistent with the recent pause in
improvements to business confidence and world trade.
Business conditions in the US and Europe, however, provide a reason to be cautiously optimistic for a
resumption of growth in the months ahead. Rising export orders, in particular, are expected to give
positive momentum to US and European markets. But this is balanced against the impact of a slowdown
in Chinese manufacturing which is now into its fourth month. This has already impacted exports from
emerging Asian countries, which contracted in February.
Cargo markets had a boost in the last quarter of 2013, but have now levelled off. It is a competitive
industry with growing capacity chasing weak demand. The business cycle will eventually swing upwards.
But the air cargo industry also needs to improve its value proposition if it is to attract growth when
markets improve. Modernizing air cargo processes and infrastructure offers the potential to cut end-toend shipping times by up to 48 hours. We cannot let market doldrums hold us back from this critical
competitive gain, said Tony Tyler, IATAs Director General and CEO.
In the 40 years since the introduction of the 747 freighter, the end-to-end shipping time for goods by air
has remained unchanged, at six to seven days. During this period, innovators have created a new value
proposition for shippers and consumers based on an end-to-end model, speeding up deliveries through
integrating the airline and ground components of freight, challenging the existing business model for
many participants. At the World Cargo Symposium in March, IATAs Global Head of Cargo Des
Vertannes challenged the industry to cut the end-to-end air freight shipment time by 48 hours by the year
2020, to enhance the competitiveness and value of air cargo.
Mar 2014 vs. Mar 2013FTKGrowthAFTK Growth FLF
International
6.7%
4.0%
53.1
Domestic
0.8%
0.9%
30.7
Total Market
5.9%
3.4%
48.7
[Link] [Link]
IATA - Cargo Growth Trend Pauses
YTD 2014 vs. YTD 2013FTK GrowthAFTK Growth FLF
International
4.9%
4.0%
49.5
Domestic
1.1%
2.1%
29.9
Total Market
4.4%
3.6%
45.6
Regional Analysis in detail
Asia-Pacific carriers grew 6.9% compared to a year ago. Some of the March growth will reflect a
resumption of business activity after the break for the Lunar New Year. Looking ahead, however, the
continuing slowdown of Chinese GDP growth is likely to ultimately impact trade growth and air freight
demand for local carriers. Capacity grew by 7.5%, running slightly ahead of demand.
European airlines expanded by 5.1% compared to March 2013. Measures of business activity in the
Eurozone have been pointing to continuous expansion since mid-2013, which is expected to be
maintained. Capacity expanded just 1.3%, strengthening load factors.
North American carriers grew 1.9% year-on-year. The slower growth could be a reflection of the weatherrelated disruption in the first quarter of the year. Business fundamentals in North America are strong,
which should support greater air freight volumes in coming months. Capacity declined by 0.3%.
Middle Eastern carriers saw a 13.2% year-on-year rise in FTK volumes. This strong performance
comes on the back of airlines taking advantage of growth in both developed and emerging markets.
Carriers in the region are expanding their networks and services, broadening the range of goods they
transport. Capacity grew just 4.7%, taking the load factor to nearly 50%.
Latin American air freight volumes were flat. Trade in the region deteriorated in early 2014, which could
explain the slowdown. Capacity rose by 2.3%, weakening the load factor.
African airlines expanded 5.9% compared to March 2013. Growth in the region remains volatile, but the
average for the first quarter was an expansion of 1.5%. Growth has been affected by a slowdown in the
South African economy. Capacity grew broadly in line with demand, at 5.5%.
View full March air freight results (pdf)
For more information, please contact:
Corporate Communications
Tel: +41 22 770 2967
Email: corpcomms@[Link]
Notes for Editors:
IATA (International Air Transport Association) represents some 240 airlines comprising 84% of
global air traffic.
You can follow us at [Link] for news specially catered for the media.
All figures are provisional and represent total reporting at time of publication plus estimates for
missing data. Historic figures may be revised.
Explanation of measurement terms:
FTK: Freight Tonne Kilometers measures actual freight traffic
AFTK: Available Freight Tonne Kilometers measures available total freight capacity
FLF: Freight Load Factor is % of AFTKs used
IATA statistics cover international and domestic scheduled air freight for IATA member and nonmember airlines.
[Link] [Link]
IATA - Cargo Growth Trend Pauses
Total freight traffic market shares by region of carriers in terms of FTK are: Asia-Pacific 39.7%,
Europe 23.3%, North America 20.1%, Middle East 12.4%, Latin America 2.9%, Africa 1.5%.
Need Help?
Advertisement
Contact us
Our mission is to represent, lead and serve the airline
industry
Explore the world of aviation
[Link]
Aviation and the environment
[Link]
International Air Transport Association (IATA) 2016. All rights reserved.
[Link] [Link]
Privacy
Legal
