Air freight market inched forward 3.8% last year

Air freight market inched forward 3.8% last year

The global air freight market finished last year on a positive note.

New figures released by the International Air Transport Association (IATA) showed demand, measured in freight tonne kilometres, rose by 3.8% in 2016 from 2015.

The growth was nearly double the industry's average growth rate of 2% over the previous five years, the global aviation industry body said.

Freight capacity, measured in available freight tonne kilometres, grew by 5.3% in 2016.

After a weak start to 2016, global freight volumes recovered in the second half of the year. A strong peak season, an increase in shipments of silicon materials and a turnaround in new export orders contributed to the latter uptick in demand.

The early timing of the Lunar New Year last month may also have helped push demand higher in December last year.

In terms of demand, 2016 was a good year for air cargo, boosted by solid year-end performance, said Alexandre de Juniac, IATA director-general, in a statement.

"Looking ahead, strong export orders are good news. But there are headwinds," he said. "The most significant is stagnant world trade, which also faces the risk of protectionist measures. Governments must not forget that trade is a powerful tool for growth and prosperity."

"The air cargo industry must also improve its competitiveness. We know the way forward is defined by digital processes that will drive efficiency and improve customer satisfaction."

All regions, with the exception of Latin America, experienced positive freight growth in 2016. Carriers in Europe accounted for almost half of the total annual increase in demand.

Asia-Pacific carriers saw their freight volumes grow 2.1% year-on-year in 2016. North American airlines registered modest annual growth of 2%, up from 1.3% in 2015.

European airlines posted a 7.6% boost in tonnage in 2016, the largest increase of all regions.

Middle Eastern carriers' freight volumes increased 6.9% in 2016, the second-highest rate for a region.

Latin American airlines experienced a demand contraction of 4.2% in freight volumes last year. African carriers registered annual growth in freight demand of 3.1% in 2016, down from 4.5% in 2015.

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