Air cargo demand remains strong

After adjusting for seasonality, the improvement in demand was faster month-to-month in July than it was in June.
By Patrick Burnson, Executive Editor
August 26, 2010 - LM Editorial

The International Air Transport Association (IATA) announced international scheduled traffic statistics for July which showed continued strengthening of demand for cargo traffic. Compared to July 2009, international scheduled freight traffic showed a 22.7 percent improvement.

These year-on-year comparisons for July were less than the June growth data showing 26.6 percent increases for cargo traffic. The apparent slowdown was entirely due to the fact that by July 2009 traffic was already starting to recover. After adjusting for seasonality, the improvement in demand was faster month-to-month in July than it was in June.

It is clear that the recovery has entered a slower phase. During the second half of 2009, demand was rebounding at an annualized rate of 28 percent for cargo. In the year to July, the annualized growth rates had dropped to17 percent for air freight.  However, this is still considerably above the industry’s traditional 6 percent growth trend.

“The recovery in demand has been faster than anticipated. But, as we look towards the end of the year, the pace of the recovery will likely slow,” said Giovanni Bisignani, IATA’s Director General and CEO. “The jobless economic recovery is keeping consumer confidence fragile, particularly in North America and Europe. This is affecting leisure markets and cargo traffic. Following the boost of cargo demand from inventory re-stocking, further growth will be largely determined by consumer spending which remains weak.”



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

In recently issued research and data, JLL pointed out that its market data indicates rents are on the rise, with companies on the hunt for warehouse and distribution space.

New retail, rental fleet and floor plan financing solutions available in U.S. first before rolling out to Canada, Mexico, Brazil and Chile.

Equipment Leasing and Finance Association suggests favorable conditions will drive replacement and expansion spending.

The former Boesel Opera House, originally built in 1895, previously housed a bar and restaurant and was gutted by a fire in 2012.

Acquisition to boost real-time visibility features of current Wynright warehouse control systems applications.

Article Topics

News · Air Freight · Freight · Inventory · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.