Subscribe Free
in General Aviation

Middle Eastern carriers' freight volumes increase 11.2% year-on-year in December

Posted 1 February 2017 · Add Comment

The International Air Transport Association (IATA) has released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs) grew by 3.8% in 2016 compared to 2015. This was nearly double the industry's average growth rate of 2.0% over the last five years. Freight capacity, measured in available freight tonne kilometers (AFTKs), increased by 5.3% in 2016.

All regions, with the exception of Latin America, experienced positive freight growth in 2016. Carriers in Europe accounted for almost half of the total annual increase in demand.

Middle Eastern carriers’ freight volumes increased 11.2% year-on-year in December and capacity increased 5.9%. This contributed to an annual increase in demand of 6.9% in 2016 – the second fastest growth rate of all the regions. However this was the region’s slowest pace of growth since 2009 and well below the 12% average annual rate seen over the past decade. The slowdown in growth is mainly due to weak freight volumes between the Middle East and Asia, and the Middle East and Europe.

After a weak start to 2016, global freight volumes recovered in the second half of the year. A strong peak season, an increase in the shipment of silicon materials and a turnaround in new export orders contributed to the later uptick in demand. The early timing of the Lunar New Year (in January 2017) may also have helped push demand higher in December

“In terms of demand, 2016 was a good year for air cargo. That was boosted by solid year-end performance. Looking ahead, strong export orders are good news. But there are headwinds. The most significant is stagnant world trade which also faces the risk of protectionist measures. Governments must not forget that trade is a powerful tool for growth and prosperity,” said Alexandre de Juniac, IATA’s Director General and CEO.

“The air cargo industry must also improve its competitiveness. We know that the way forward is defined by digital processes which will drive efficiency and improve customer satisfaction. We must use the momentum of renewed demand growth to drive the important innovations of the e-cargo vision,” said de Juniac.

Regional Performance 

Freight volumes grew by 3.8% in 2016 compared to 2015, outperforming forecasts. All regions, with the exception of Latin America, reported an increase in demand in 2016. 

Asia-Pacific carriers saw demand in freight volumes grow 9.8% in December 2016 compared to the same period in 2015 and capacity grew by 5.7%. This contributed to a growth in freight demand of 2.1% in 2016 compared to 2015. This was slightly below the 2.3% increase seen the previous year. However, seasonally-adjusted volumes are now back to the levels reached in 2010 during the post-global financial crisis bounce-back. The increase in demand is captured in the positive outlook from business surveys in the region. Capacity in the region increased 3.6% in 2016. 

North American airlines saw freight demand increase by 3.7% in December 2016 year-on-year and capacity decrease 1.4%. This contributed to modest annual growth in 2016 of 2.0%, up from 1.3% the previous year. Capacity grew by 3.4% in the 2016 calendar year. The strength of the US dollar continued to boost its inbound market but kept the export market under pressure. 

European airlines posted a 16.4% year-on-year increase in freight demand in December and a capacity rise of 5.9%. The healthy results helped boost cargo volumes for the 2016 calendar year by 7.6% - the largest increase of all regions, and accounting for almost half of the total global annual increase in freight demand. The seasonally-adjusted growth trend is strong and corresponds with the sustained increase in export orders in Germany and the ongoing weakness in the Euro. Capacity in the region increased by 6.7% in the 2016 calendar year.

Latin American airlines experienced a demand contraction of 1% in December 2016, compared to the same period in 2015 and a decrease in capacity of 7.9%. The drop in demand was reflected in the region’s 2016 overall performance - a 4.2% decrease in freight volumes. This was the second consecutive year that demand has fallen. Despite this, in seasonally-adjusted terms, growth levels are in-line with where they were at the start of 2016. The region continues to be blighted by weak economic and political conditions, particularly in the largest economy, Brazil. Capacity in the region decreased by 2.0% in 2016 compared to 2015.

African carriers’ had the second fastest growth in year-on-year freight volumes, up 13.6% in December 2016 and a capacity increase of 5.3%. This contributed to an annual growth in freight demand of 3.1% in 2016, down from 4.5% in 2015. However, capacity surged by 25.5% in the 2016 calendar year on the back of long-haul expansion, particularly by Ethiopian Airlines, causing a fall in the freight load factor.

* required field

Post a comment

Other Stories
Advertisement
Latest News

UAE ops using Wing Loong drones

In recent years, the UAE has embraced a more active military role on the world stage, deploying forces in the Balkans and Afghanistan, as well as in Libya during the 2011 civil war. As Jon Lake reports, the nation has also played a major role

Emirates Group Security hosts visit by Dubai Police Chief

Emirates Group Security welcomed Major General Abdullah Khalifa Al Marri, commander-in-chief, Dubai Police at its headquarters on Sunday 26 March 2017.

EAG, Abu Dhabi Tourism and Culture Authority launch junior educational programme

As part of the programme, 24 female students from Al Jawaher Primary School attended a reading session at Etihad Airways' Academy in Abu Dhabi, hosted by First Officer, Aisha Al Mansouri and Second Officer Fatima Al Zahery. The theme for

Oman Air launches four weekly flights to Nairobi

Oman Air has launched its new four times weekly flight from Muscat to the Kenyan capital of Nairobi.

PAS planning fleet modernisation this year

By Oscar Nkala| Egyptian airline Petroleum Air Services (PAS) says it will in 2017 invest up to US$80 million in a fleet modernisation programme that is aimed at replacing most of its old aircraft.

FalconEye combined vision system now certified on Falcon 8X

Dassault Aviation's revolutionary Combined Vision System (CVS) has been certified by the European Aviation Safety Agency and the Federal Aviation Administration for use on the new Falcon 8X ultra-long range trijet.

EBACE17 SK0103240517
See us at
EBACE17 BT0103240517Aeropodium BT2802240417