We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
Home » Global air cargo traffic will grow at a rate that's well ahead of earlier forecasts, IATA says
Forward Thinking

Global air cargo traffic will grow at a rate that's well ahead of earlier forecasts, IATA says

June 6, 2017
Supply Chain Quarterly Staff
No Comments

Worldwide air cargo traffic will grow this year by 7.5 percent over 2016 levels, as strong demand for e-commerce and pharmaceuticals drive activity well ahead of levels projected at the start of the year, the International Air Transport Association (IATA), the leading global airline trade group, said today.

Airlines worldwide will transport 58.2 million tons this year, about 4 million tons over 2016 levels and 2.5 million tons over what IATA previously forecast. The rate of year-over-year growth will be more than double the rate of increase from 2015 to 2016, and will be 4 percentage points higher than the 3.5-percent gain that IATA had originally forecast.

The projections were issued at the group's annual meeting in Cancun, Mexico. At the meeting, IATA raised its profit outlook for the entire airline industry, projecting a U.S. $31.4 billion profit, up from the $29.8 billion prior forecast, on revenue of US$743 billion, up from $736 billion.

Air cargo is thriving as inventory re-stocking patterns normally seen at the start of an economic upturn raise demand for fast-cycle air transport to get goods to market as quickly as possible, IATA said. Though the U.S. economic recovery is considered somewhat long in the tooth, economies in Europe, Asia, and parts of Latin America are believed to be in the early stages of a rebound.

In the first quarter, demand, measured in freight ton-kilometers, rose 11 percent year over year. In April, freight ton-kilometers rose 8.5 percent from 2016 levels.

The question now is whether the current upturn is sustainable. Since 2010, air cargo demand has been moribund, save for some monthly upward blips that proved to be nothing more than false starts. IATA Director General and CEO Alexandre de Juniac said air cargo has been in a "coma" for the past six years.

Separately, IATA's 275 airline members adopted a resolution to accelerate the modernization of cargo systems and processes in the wake of the signing of the World Trade Organization's "Trade Facilitation Agreement" (TFA), which IATA said would contribute $1 trillion in trade to the global economy. The four-part resolution calls for IATA to complete the multi-year task of converting information to digital formats so it can be shared instantly; adopt harmonized standards that support safe and secure operations; use improved technology that allows customers the flexibility to make changes to their shipping flows; and develop advanced analytics that could improve the industry's overall performance.

TFA, the first multilateral agreement in the WTO's 21-year history, is expected to reduce WTO members' trade costs by an average of 14.3 percent, with developing countries reaping most of the gains, according to a 2015 WTO forecast. The compact will cut 36 hours off the average time required to import goods, and two days off average export delivery times, both significant reductions from current levels, the report projected.

  • Related Articles

    Global air growth climbed 9 percent in 2017; best year since 2010, IATA says

    Global air cargo sector shows “continuing and severe capacity crunch”

    Cargo thieves target containers rushed into U.S. ahead of threatened tariffs

Recent Articles by Supply Chain Quarterly Staff

Blasgen to retire as leader of CSCMP in March

Reports: Outlook calls for stronger supply chains

Gartner: 4 ways to compete with industry disruptors

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • The 3PL industry: time to reset

  • Supply chain resiliency starts with supplier mapping

  • Freight market growth expected to slow in 2021

  • Seizing the helm

  • The Top Supply Chain Pains That You Should Address For a Healthier 2021

Featured Video

Be8de8b1 9bd3 48d6 9400 0bf476fd1f5d

Optimization Through Lean Management 

Viewer Contributed
Uncertain times can put a tremendous strain on your business’s people, processes and supply chains. However, operations can mitigate some of these factors by adopting lean management principles and instilling a culture of continuous improvement. Raymond Lean Management Manager of Solutions and Support Centers Keith...

FEATURED WHITE PAPERS

  • The Top Supply Chain Pains That You Should Address For a Healthier 2021

  • Research Report: New Rules for Supply Chain Insights, Collaboration and Overall Resiliency

  • Logistics 2030 – Navigating a Disruptive Decade (Year 2 Report)

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing