Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Air Cargo Resumes Fragile Recovery  Join our daily free Newsletter

MENAFN Press - 04/12/2013

No. of Ratings : 0
Add to Mixx!


 


(MENAFN Press) The International Air Transport Association (IATA) released figures showing a small improvement in air freight growth in October. Compared to October 2012, global freight tonne kilometers (FTK) grew 4.0%, with growth in all regions except Africa.

The gradual expansion continues a trend that began in the third quarter as air freight markets have responded to better economic confidence and improved consumer demand. Performance varies significantly by region, however. Middle East carriers reported the most impressive growth at 12.3%. European and North American airlines reported growth of 4.4% and 3.7% respectively which is below the long-term cargo growth trend of 5%-6%. Asia-Pacific carriers grew by a marginal but significant 2.0%, finally countering the decline over most of 2013. The pick-up in Chinese growth and trade volumes across the region indicates that Asia-Pacific, which is comfortably the largest air freight region by market share, is potentially poised for continued expansion.

"Since mid-year we have seen modest but sustained growth in cargo fed by stronger business confidence and improving trade flows. Air cargo is still a very tough business. Matching capacity to demand has been difficult in an environment where passenger traffic is growing more robustly. There is some evidence that the fall in load factors has stabilized, but yields remain under pressure," said Tony Tyler, IATA's Director General and CEO.

The average load factor for October was 46.4%, which is an improvement on the year-to-date load factor of 44.8%. This is still several percentage points below 2010 when they peaked at over 50%.

Regional Analysis in Depth

All regions but Africa grew in October 2013 compared to a year ago. The strongest growth was in the Middle East, but Europe also showed healthy improvement. Europe and the Middle East combined have carried three quarters of the cargo increase over the past six months.

Asia-Pacific carriers' traffic grew 2.0%, with capacity up 4.1%. Asian cargo volumes benefited from a resurgence in trade across the region, fueled by a stronger Chinese economy where manufacturing activity hit a 7-month-high. Both export and import volumes rose strongly in emerging Asian markets, reversing a mid-year decline. This bodes well for further growth in air freight in the months to come.

European airlines expanded FTKs by 4.4%, maintaining the steady improvement in recent months, as the continent continued to emerge from recession. The recovery remains fragile, however, with growth in Q3 slowing to 0.1% from 0.3% in Q2. Weak growth for the remainder of the year should support a further modest expansion in European FTKs. Capacity grew by just 3.6%.

North American carriers rebounded from their September contraction to record a solid rise of 3.7%, despite the 17-day federal government shutdown. Although activity in the US manufacturing sector has been increasing for the past three months, the expansion is much slower than at the start of the year. Given that year-to-date there has been a decrease of 0.9%, it is clear that the outlook remains difficult.

Middle Eastern carriers grew 12.3% compared to a year ago. After the year-on-year slowdown in September caused by Ramadan, freight growth in the Middle East resumed its strong upward trajectory. Capacity was well-matched to demand, with an increase of 12.1%.

Latin American airlines grew by 1.5% year-on-year, a slowdown from the 3.6% rate recorded in September. However, the year-to-date growth rate (3.6%) remains the second-fastest of all regions, supported by a 10% increase in regional trade volumes. Competition from European and US carriers on routes from Latin America, however, does impact on carriers from the region.

African carriers experienced the only decline in October compared to October of last year (-2.7%). Growth in air freight carried by African airlines has seen a slow decline for several months. Although trade volumes for the region continue to increase, competition on important trade routes is strong and lack of adequate infrastructure and political stability continue to hinder growth potential. Weak demand coupled with continued capacity expansion has placed load factors under further pressure, falling 3.5 percentage points compared to a year ago.

Trade Talks Key to Unlocking Growth

Delegates at the World Trade Organization meet in Bali this week to attempt to re-start the Doha round of trade liberalization negotiations. It is crucial that governments make progress to unblock the barriers to global trade. Since the start of the financial crisis, some 500 pieces of protectionist legislation have been enacted round the world, but there is strong evidence that liberalization measures help to increase trade volumes.

"Governments looking for 'quick wins' to facilitate improved trade flows should check that they have ratified the Montreal Convention 99. This treaty provides the legal framework for paperless cargo shipments, dispensing with up to 30 pieces of paper and leading to improvements in efficiency, speed, and cargo security. At present, 88 states have not signed MC99 into law. These include countries in some of the fastest-growing air cargo markets, such as Africa and South-East Asia. At its recent 38th Assembly, International Civil Aviation Organization members passed a resolution urging states that have not yet ratified MC99 to do so. The air cargo industry wholeheartedly supports that resolution and IATA and the International Federation of Freight Forwarders Associations(FIATA) will be in Bali this week to reinforce that message," said Tyler.


About IATA
IATA (International Air Transport Association) represents some 240 airlines comprising 84% of global air traffic. You can follow us at http://twitter.com/iata2press for news specially catered for the media.An IATA-FIATA joint position paper calling for states to ratify MC99 can be found here.Explanation of measurement terms: oFTK: Freight Tonne Kilometers measures actual freight traffic oAFTK: Available Freight Tonne Kilometers measures available total freight capacity oFLF: Freight Load Factor is % of AFTKs usedIATA statistics cover international and domestic scheduled air traffic for IATA member and non-member airlines. All figures are provisional and represent total reporting at time of publication plus estimates for missing data. Historic figures may be revised. Total freight traffic market shares by region of carriers in terms of FTK are: Asia-Pacific 38.8%, Europe 23.9%, North America 20.8%, Middle East 12.0%, Latin America 3.1%, Africa 1.4%.

 






  MENA News Headlines
Apr 24 2014Kuwait inflation edges up 2.96% y/y in March ,Arab Times
(MENAFN - Arab Times) Wait city april 23 (kuna): kuwait's annual record of the general index of consumer prices (inflation) rose in march by 2.96 percent compared with the same month of last year ...

Apr 24 2014Tim Hortons opens at Dubai Chamber ,Khaleej Times
(MENAFN - Khaleej Times) Tim hortons recently celebrated the opening of its newest cafe and bake shop restaurant at the dubai chamber of commerce and industry by the dubai creek. hamad buamim ...

Apr 24 2014Abu Dhabi investment zones home prices jump 20% in Q1 ,Khaleej Times
(MENAFN - Khaleej Times) 2100 residential units were delivered to the market: adib report homes prices in abu dhabi’s investment zones rose up to 20 per cent in the first quarter of ...

Apr 24 2014How well do you know Macklemore & Ryan Lewis? ,Khaleej Times
(MENAFN - Khaleej Times) One of 2013?s most successful acts worldwide hip-hop pair macklemore & ryan lewis are back with a bang for their abu dhabi concert on friday ...

Apr 24 2014UAE- Banks asked to submit customers' credit data ,Khaleej Times
(MENAFN - Khaleej Times) Al etihad credit bureau has asked the banking and financial institutions to submit their customers? credit data for the past two years. the bureau’s board of ...

Apr 24 2014FM holds luncheon for Qatari counterpart ,Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) First Deputy Prime Minister and Foreign Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah held Wednesday a luncheon for visiting Qatari Foreign Minister Dr. Khaled ...

Apr 24 2014Kuwaiti wins Arab sports body post ,Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) A Kuwaiti sports figure has been elected deputy chairman of the technical committee of the Arab Athletics Federation. Fahad Thamer, a member of the technical ...

Apr 24 2014UN Chief: All Parties in Syria Blocking Aid ,Qatar News Agency
(MENAFN - Qatar News Agency) w York April 24 - The UN Secretary General Ban Ki-moon has accused all parties in Syria's civil war of "flagrant violations" of international law over the delivery of ...

Apr 24 2014DPG launches Masat to oversee portfolio ,Khaleej Times
(MENAFN - Khaleej Times) Dubai properties group (dpg) has announced the establishment of masat a new dedicated portfolio management company responsible for overseeing and managing dpg?s built to ...

Apr 24 2014Dubai Holding to repay USD319 m debt ,MENAFN
(MENAFN) Dubai Holding Commercial Operations Group (DHCOG), a unit of Dubai Holding, plans to repay USD319.3 million debt next month, 18 months earlier than the debt is due, according to the Emirates ...

Apr 24 2014UAE- Investcorp continues expansion ,Khaleej Times
(MENAFN - Khaleej Times) Investcorp a global provider and manager of alternative investment products announced that it has opened a new representative office in abu dhabi. the office is situated ...

Apr 24 2014UNSC welcomes progress in eliminating Syria's CW, mulls investigating chlorine gas attacks near Hama ,Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The Security Council on Wednesday welcomed the progress achieved so far by the UN and the Organisation for the Prohibition of Chemical Weapons (OPCW) Joint ...

Apr 24 2014UAE- Shapoorji Pallonji enters final stage on Bloom Central ,Khaleej Times
(MENAFN - Khaleej Times) Leading regional and international construction company shapoorji pallonji has entered the final stage of construction of bloom central project a 25-storey mixed-use ...

Apr 24 2014Dubai Investments raises foreign ownership cap to 35% ,Khaleej Times
(MENAFN - Khaleej Times) Dubai investments (di) the largest investment company listed on the dubai financial market (dfm) has raised the foreign ownership limit in the company from the existing 20 ...

Apr 24 2014UAE- UPC issues guidelines on underground utilities installations ,Khaleej Times
(MENAFN - Khaleej Times) Abu dhabi has come up with new guidelines for the installation of underground utilities which will also help in cutting costs. the new guidelines would benefit ...

Apr 24 2014SMEs play crucial role in boosting Dubai's growth ,Khaleej Times
(MENAFN - Khaleej Times) Pinsent dec and zawya recommend relaxing lending rules more could be done to enable small and medium-sized businesses to get the finance they need to grow and boost ...

Apr 24 2014Kuwait- Information Minister discusses media cooperation with Qatar ,Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Minister of Information and Minister of State for Youth Affairs Sheikh Salman Sabah Salem Al-Sabah discussed on Wednesday with Qatar Media Foundation President ...

Apr 24 2014US DoD to send military equipment to Australia and Egypt ,Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The US Department of Defense (DoD) announced Wednesday plans to sell a F-35 Lightning II joint strike fighter plane to Australia and added they will also deliver ...

Apr 24 2014Al Attiyah leads Qatar field Barreda outshines Coma ,The Peninsula
(MENAFN - The Peninsula) Qatar's Nasser Saleh Al Attiyah, Spaniard Joan Barreda and home hope Mohammed Abu Issa stole the limelight by setting the fastest times in the third 411.76km selective ...

Apr 24 2014UAE- Huge turnout recorded at Gitex Shopper's first day ,Khaleej Times
(MENAFN - Khaleej Times) Buyers seek deals on newly launched smartphones the first day of gitex shopper spring edition recorded strong turnout despite the fact that it was a working day and ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help