customs brokerage, freight forwarding and truck transportation

Continued Growth In Airfreight

: Transport

Air Cargo Off to a Robust Start in 2018 2018-03-07

Geneva – The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 8.0% in January 2018 compared to the year-earlier period. This was up from the 5.8% annual growth recorded in December 2017. 
Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 4.2% year-on-year in January 2018.
The continued positive momentum in freight growth into 2018 reflects the fact that demand drivers for air cargo remain supportive. Global demand for manufacturing exports is buoyant and meeting this strong demand is leading to longer supply chain delivery times. Demand for air cargo may strengthen as a result, with companies seeking faster delivery times to make up for longer production times.
"With 8% growth in January, it’s been a solid start to 2018 for air cargo. That follows an exceptional year in which demand grew by 9%. We expect demand for air cargo to taper to a more normal 4.5% growth rate for 2018. But there are potential headwinds. If President Trump follows through on his promise to impose sanctions on aluminum and steel imports, there is a very real risk of a trade war. Nobody wins when protectionist measures escalate," said Alexandre de Juniac, IATA’s Director General and CEO.   
January 2018
(% year-on-year)
World share¹ FTK AFTK FLF (%-pt)² FLF (level)³
 Total Market         100.0% 8.0% 4.2% 1.5% 43.3%
 Africa 1.9% 12.9% 5.3% 1.7% 24.6%
 Asia Pacific 37.0% 7.7% 2.2% 2.7% 52.4%
 Europe              24.2% 10.5% 5.3% 2.1% 45.4%
 Latin America              2.7% 8.0% 5.4% 0.7% 30.5%
 Middle East              13.7% 4.4% 6.3% -0.8% 41.0%
 North America             20.5% 7.5% 4.2% 1.1% 36.3%
¹% of industry FTKs in 2017   ²Year-on-year change in load factor   ³Load factor level              

Explanation of measurement terms:
  • FTK: freight tonne kilometers measures actual freight traffic
  • AFTK: available freight tonne kilometers measures available total freight capacity
  • FLF: freight load factor is % of AFTKs used
IATA statistics cover international and domestic scheduled air freight for IATA member and non-member airlines.
Read more about this trend on the IATA website.
Source: IATA


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