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CAPACITY JUMPS 18pc

Mideast cargo carriers riding on successful hub strategies.

ME carriers record strongest freight growth in January

GENEVA, March 3, 2015

Middle Eastern carriers continue to post the strongest growth in freight, a report said, adding that their FTKs (freight-tonne-kilometres) expanded 9.2 per cent in January as compared to same month in 2013.

The capacity of the regional carriers jumped 18.1 per cent during the period, added the monthly Air Traffic Analysis released by the International Air Transport Association (Iata).

The hub strategies of the leading airlines in the region are proving successful as network and capacity expansions help satisfy demand on international routes and serve inward trade to Middle Eastern economies, Iata said.

African airlines grew cargo volumes 5.2 per cent. While major economies such as Nigeria and South Africa are under-performing, regional trade activity is holding up. Capacity rose just 2.4 per cent, strengthening the load factor.

Globally, air freight markets showing a 3.2 per cent expansion in freight tonne kilometres (FTKs) in January 2015 compared to the same month last year. The growth is slower than the average of 4.5 per cent recorded for 2014.

Asia-Pacific, African and Middle Eastern airlines expanded strongly, but airlines in Europe and North and Latin America all reported demand contractions. Although it is too early to be certain of a trend towards weaker air freight, there are at least two emerging factors which could negatively impact demand for air cargo in the coming months:

•    Business confidence has been declining since mid-2014 and export orders tailed-off towards the end of the year

•    A reversal of the positive trade-to-domestic production ratio which boosted cargo volumes last year

"January was a disappointing start to the year for air cargo,” said Tony Tyler, Iata’s director general and CEO.

 “And it is difficult to be too optimistic about the rest of the year given the economic headwinds in Europe and growing concerns over the Chinese economy. Add to that the continuing trends of on-shoring production and trade protectionism and 2015 is shaping up to be another tough year for air cargo.”

World Cargo Symposium

The World Cargo Symposium will gather leaders from across the cargo value chain in Shanghai, China, from March 10 to 12.

"The global air cargo industry continues to face challenges. While vulnerability to the economic cycles is beyond the control of any business sector, it is clear that the air cargo industry needs to do a better job of improving its value proposition. Shippers rightly demand modern processes,” said Tyler.

“Taking e-air waybill penetration above 22 per cent in 2014 was a strong signal that the e-cargo revolution is finally taking shape. This year’s World Cargo Symposium is an opportunity for the entire industry to sharpen further its focus on innovation, efficiency and high-quality service," he concluded. – TradeArabia News Service




Tags: Iata | freight | air cargo | January | Middle East carriers |

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