Page 14 - AAA JUNE - JULY 2017 Online Magazine

FEATURE CARGO

Telling Statistics

Demand for air cargo transport is clearly rising, not just in the U.S. but worldwide
By Jay Menon

tHe WorLdWide groWtH in e-CommerCe Juniac, IATA’s Director General and CEO. statistic is that 70 per cent of online sales has
has clearly boosted the importance of air Demand for air cargo transport is clearly an international component, be it buying a
cargo as online retail stores, especially those rising, not just in the U.S. but worldwide. product from a different country or buying a
selling fashion items, have become the major Russia, for example, saw a 30 per cent product that has an international production
source of revenue for the airfreight market. annual increase while cities like Singapore line. That’s good news for air cargo, the
Growth in worldwide air cargo traffic reached and Dubai see a 6.3 per cent and 3.4 per cent obvious way to get goods and components
its highest level in nearly seven years as increase, respectively. Carriers in Europe and across borders, quickly and safely. Trade is
March Freight Tonne Kilometres (FTK) Asia, which combined carry 61 per cent of no longer about finished goods, producing
expanded 14 per cent compared to a year the world’s air freight, had strong showings in one country, shipping to another. Rather,
ago, according to IATA’s March Air Freight in March, as freight traffic demand in each countries now specialise in specific areas
Market analysis. Freight capacity increased region rose 18.2 per cent and 13.6 per cent and components, a process made easier by
4.2 per cent during the month, leading to a respectively, year-over-year (YOY). European increasing trade facilitation, says a report in
total market freight load factor of 47.4 per carriers’ capacity grew 6.7 per cent, for a 50.8 Airlines International magazine an exclusive
cent, up 4.1 points year-over-year. per cent freight load factor, up 4.9 points YOY. media brand of IATA.
“It’s been a good start to the year for Asia-Pacific carriers’ freight capacity was up Foreseeing the emerging trend, Amazon
air cargo. Demand growth accelerated in 4.8 per cent; the region’s freight load factor last year unveiled its first branded cargo
January, bolstered by strengthening export increased by 4.4 points YOY to 57 per cent. plane, in a bid to speed up and take more
orders. And that outpaced the capacity control of its delivery process. The “Amazon
growth which should be positive for yields. Online Spending One” is a Boeing 767-300, operated by
And, longer-term, the entry into force of As popular as e-commerce seems today, Amazon’s air cargo provider Atlas Air. It is
the Trade Facilitation Agreement (TFA) online retailing represented 7.4 per cent one of 40 aircraft that the company plans
will cut red tape at the borders for faster, of total retail sales in 2016, according to to lease from Atlas Air and ATSG. Currently
cheaper and easier trade. The onus is now Invesp. But by 2018, it will be 8.8 per cent there are about a dozen dedicated planes
on the industry to seize the opportunity to with the extraordinary growth curve set to flying for Amazon with the additional planes
accelerate the modernization of processes continue. One forecast has US$4 trillion rolling out over the next few years. “Creating
to make air cargo an even more compelling being spent online by 2020, close to 15 per an air transportation network is expanding
option for shippers,” says Alexandre de cent of total retail sales. The most telling our capacity to ensure great delivery speeds

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