in General Aviation

African air freight carriers see large increase in demand in November

Posted 11 January 2017 · Add Comment

The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 6.8% in November 2016 compared to the year-earlier period, with African carriers' seeing the largest increase.

This was a slight slowdown from the 8.4% annual growth recorded in October 2016 - which was a 20-month high - but was still more than 2.5 times the average annual monthly growth rate of 2.6% over the past decade.

Growth in freight capacity, measured in available freight tonne kilometers (AFTKs), slowed to 4.4% November.

The uptick in freight growth coincides with an increase in the shipment of silicon materials typically used in high-value consumer electronics shipped by air, and an apparent turnaround in new export orders. A modal shift to air cargo following the collapse of the Hanjin Shipping Company in August may have also contributed.

“Air cargo enjoyed a strong peak season in November. And there are encouraging signs that this growth will continue into 2017, particularly with the shipment of high-value consumer electronics and their component parts. But, the trend in world trade is still stagnant. So it remains critically important for the air cargo industry to continue to improve its value offering by implementing modern customer-centric processes,” said Alexandre de Juniac, IATA’s Director General and CEO.

African carriers’ posted the largest increase in freight demand among the regions in November, 10.9% year-on-year, and the seasonally-adjusted growth remains strong. However, capacity surged by 26.9% on the back of long-haul expansion, particularly by Ethiopian Airlines, and this caused the freight load factor to fall in annual terms for the 19th consecutive month.

Regional Performance

Airlines in all regions except Latin America reported an increase in year-on-year demand in November.

Asia-Pacific airlines saw demand in freight volumes grow 6.1% in November 2016 compared to the same period in 2015 and capacity grew by 4.0%. 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.

North American carriers’ freight volumes expanded 5.6% in November 2016 compared to the same period a year earlier, and capacity increased by 2.6%. Freight traffic across the Atlantic continued to strengthen, increasing by 9.0% in October. This is being driven in part by an increase in westbound import flows from Europe to the US helped by a strong dollar. However US exports continue to suffer from the strength of the US dollar.

European airlines posted a 9.0% year-on-year increase in freight demand in November. This was a slight slowdown compared to the 13.3% growth recorded in October, possibly attributable in part to the strike at Lufthansa. Notwithstanding this, the seasonally-adjusted growth trend is strong and corresponds with the sustained increase in export orders in Germany over the last few months and the ongoing weakness in the Euro. Capacity in the region increased by 4.8%.

Middle Eastern carriers enjoyed a boost in demand from the strong peak season with freight volumes increasing by 7.8% in November 2016, year-on-year. Seasonally-adjusted growth has slowed, however, mainly due to weak freight volumes between the Middle East and Asia, and the Middle East and Europe. Freight volumes grew by just 4% on these routes in the January-October 2016 period, compared with 8-11% over the same period in 2015. Capacity in the region increased by 5.1% in November.

Latin American airlines experienced a demand contraction of 1.3% in November 2016, compared to the same period last year. However 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. The ‘within South America’ market has been the weakest performer to date with volumes down nearly 20% compared to the same period in 2015. Capacity in the region decreased by 1.6% in November.

 

 

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Airbus launches new open aviation data platform to support digital

Airbus has launched a new aviation data platform in collaboration with Palantir Technologies pioneers in big-data integration and advanced analytics. Skywise aims to become the single platform of reference used by all major

PARIS AIRSHOW: GE and its JV partners receive more than $31 billion in orders

GE Aviation and its joint venture companies, led by CFM International, announced more than $31 billion (USD) in orders and commitments at this week's Paris Air Show.

Flight simulation technique centre in India purchases simulator from Flight Safety International

FlightSafety International, that has a training centre in South Africa, has signed an agreement with Flight Simulation Technique Centre (FSTC) for the purchase of a full flight simulator for the Bombardier Q400 aircraft.

Boeing raises forecast for new aircraft demand

Boeing has raised its forecast for new airplane demand, projecting the need for 41,030 new airplanes over the next 20 years valued at $6.1 trillion dollars.

PARIS AIRSHOW: Farnborough International launches 2018 show

Organisers of the Farnborough International Airshow detailed their plans for the forthcoming show which will take place from 16th 22nd July 2018 at the Farnborough International Exhibition & Conference Centre.

Embraer sees market demand for 6,400 new deliveries in 70-130+ seat segment

According to the latest Market Outlook, Embraer projects a steady market demand for 6,400 new jets in the 70-130+ seat capacity category (2,280 units in the 70-90 seat segment and 4,120 units in the 90-130+ seat segment), worth USD 300

Aviation Africa SK18418
See us at
GroundHandling BT0303280917Global Aerospace BT28218Aviation Africa BT18418