ACW - Air Cargo Week

11/11/2011

IATA reports on deterioration in market

A review of the performance of the air cargo industry over the course of this year's third quarter produced by the International Air Transport Association (IATA) makes for some grim reading.

According to IATA, the past quarter saw cargo markets deteriorate significantly. Having been flat for more than a year, cargo volumes began to decline from July.

Moreover, cargo rates are in decline, the review said, although it also noted that surcharges have risen.

The latest industry statistics from IATA reveal that international air freight traffic was down by 2.7 percent year-on-year in September, a greater drop than August's 2.4 percent year-on-year fall.

The association's survey went on: "Forward-looking indicators for demand point to further weakness in the months ahead, while falling sea freight rates and rising twin-aisle capacity are intensifying the competitive environment.

"Coupled with still high jet fuel prices, these developments are putting downward pressure on cargo profitability."

IATA's latest survey of heads of cargo within carriers provided evidence for its gloomy forecast. Respondents had become significantly less confident about the future in the October survey.

The news is not all bad, however - volumes carried on freighters and by the integrators is back up to the highs of 2010; it is global bellyhold cargo that is noticeably down.

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