TravelNewsAsia.com
Tue, 7 March 2017

Air Cargo: FTKs Up 6.9% in January 2017

IATA's global air freight market data shows that demand, measured in freight tonne kilometers (FTKs), rose 6.9% in January 2017 compared to the same month last year.

While this was down from the 10% annual growth recorded in December 2016 it still was well above the average annual growth rate of 3% over the past five years.

Growth in freight capacity, measured in available freight tonne kilometers (AFTKs), slowed to 3.5% in January 2017.

The continued positive momentum in freight growth into 2017 coincides with a steady rise in new export orders, which reached their highest level in February (latest data available) since March 2011. There has also been an increase in the shipment of silicon materials typically used in high-value consumer electronics shipped by air. The timing of the Lunar New Year (in January 2017) also may have contributed to higher demand in January.

"It’s been a good start to the year for air cargo," said Alexandre de Juniac, IATA’s Director General and CEO. "Demand growth accelerated in January, bolstered by strengthening export orders. And that outpaced the capacity growth which should be positive for yields. And, longer-term, the entry into force of the Trade Facilitation Agreement (TFA) will cut red tape at the borders for faster, cheaper and easier trade. The onus is now on the industry to seize the opportunity to accelerate the modernization of processes to make air cargo an even more compelling option for shippers."

Bravo LM100J

All regions, with the exception of Latin America, reported an increase in demand in January 2017.

Asia Pacific airlines saw demand in freight volumes grow 6.0% in January 2017 and capacity increase by 6.6%, compared to the same period in 2016. Seasonally-adjusted volumes were up considerably since early-2016 and 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. China’s Purchasing Managers Index (PMI) rose to a 21-month high, Japan’s PMI to a 36-month high, while Taiwan, Korea, and Vietnam also reported increases in new export orders.

North American airlines’ freight volumes expanded 6.1% in January 2017 year-on-year, as capacity increased 0.6%. International freight volumes grew by 8.7% – their fastest pace since the US seaports disruption boosted demand in February 2015. The strength of the US dollar continued to pump up the inbound market but kept the export market under pressure.

European airlines posted an 8.7% increase in freight volumes in January 2016. Capacity increased 3.3%. The strong European performance corresponds with an increase in reported new export orders, particularly in Germany over the last few months. It was also helped in part by the ongoing weakness in the Eurozone.

Middle Eastern carriers’ freight volumes increased 8.4% year-on-year in January 2017 and capacity increased 3.3%. Seasonally adjusted freight volumes continued to trend upwards during the first month of the year supported by an increase between the Middle East and Europe. Despite this, growth has eased from the double-digit rates which were the norm over the past ten years. This corresponds with a slowdown in network expansion by the region’s major carriers.

 Latin American airlines experienced a demand contraction of 4.1% in January 2017 compared to the same period in 2016 and a decrease in capacity of 1.4%. Recovery in the seasonally-adjusted volumes also stalled with demand 13% lower than at the peak in 2014. The region continues to be blighted by weak economic and political conditions.

 African carriers’ saw freight demand increase by 24.3% in January 2017 compared to the same month last year, helped by very strong growth on the trade lanes to and from Asia. Demand between the two continents jumped by 57% in January on the back of rapid long-haul expansion and increased direct services. The increase in demand has helped the region’s seasonally adjusted load factor to rise after falling by five percentage points in 2016 compared to the previous year.

World Cargo Symposium

The positive start to the year will set an optimistic backdrop for the World Cargo Symposium which will gather the air cargo industry in Abu Dhabi, capital of the UAE, from 14-16 March.

See other recent news regarding: IATA, Cargo, Freight.

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address to the right. You can also stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
     
Sustainable Hotels and MICE. Exclusive HD video interview with Grace Kang, Managing Partner of Greenview Hospitality. Criteo Travel Flash Report 2016. Exclusive HD video interview with Mr. Daniele Beccari, Global Head of Travel at Criteo. Chef Fernando Arevalo, originally from Bogota, Colombia, worked his culinary magic in New York and Hong Kong before moving to Singapore where he is today the Executive Chef of Artemis Grill on the 40th floor of Singapore's newest green building - CapitaGreen.
Sustainable Hotels and MICE Criteo Travel Flash Report Colombian Chef in Singapore
Exclusive HD video interview with Mr. Hiroshi Sawabe, Executive Director of the Office of International Tourism, at JATA (Japan Association of Travel Agents). In this interview filmed on 24 September at the JATA Tourism Expo 2016 in Tokyo, Japan, Mr. Sawabe speaks to Steven Howard of TravelNewsAsia about the status of tourism within the country. HD Videos from Sabre's Travel Technology Exchange APAC 2016. Sabre, a leading technology provider to the global travel industry, hosted over 500 members of the Asia Pacific travel industry at its inaugural Asia Pacific Travel Technology Exchange (TTX) conference in Beijing from 21 to 24 September 2016 Spa and Wellness Industry - HD Video Interview with MD of Thailand-based Destination Spa Management, Joy Menzies.
Japan Tourism Update Sabre TTX APAC 2016 Destination Spa Management
Jonathan Wigley, CEO of Travelodge Thailand, outlines expansion plans in HD Video Interview. Exclusive HD video interview with Myanmar's Minister of Tourism and Hotels, H.E. U Ohn Maung, about the status of tourism in the beautiful and mystical country of Myanmar (formerly known as Burma). Birth of a Luxury Thai Hotel Brand - HD Video Interview with Christopher E. Stafford, Chief Operating Officer of the newly formed 137 Pillars Hotels & Resorts.
CEO of Travelodge Thailand Myanmar Tourism Update Birth of Luxury Thai Hotel Brand
This HD video tour of Thai AirAsia X's brand new 337-seat Airbus A330-300 aircraft was filmed at Don Mueang Airport in Bangkok, Thailand on 14 May 2014  Exclusive HD video interview with Jaime J. Bautista, President & Chief Operating Officer (COO) of Philippine Airlines (PAL) HD video of the interior and exterior of a Thai Vietjet Airbus A320-200.
Thai AirAsia X A330-300 PAL President & COO Thai Vietjet A320-200
Inside Qatar Airways Boeing 787-8 Dreamliner - HD Video It takes 800 workers between 65 and 80 days to assemble, install, test, paint, furnish and deliver an Emirates Airbus A380. Showers, Bars, Lounge - The Emirates Airbus A380 Has Them All - HD Video Tour Thai Airways International Takes Delivery of Brand New Boeing 777-300ER
Qatar Airways B787 Emirates A380 Thai Airways B777-300ER
Latest Travel News
Advertising
Advertising
Copyright © 1997-2017 ASIATravelTips.com/TravelNewsAsia.com