World: 2017 air freight traffic up 9%

Strong demand for manufacturing exports stoked the air freight sector to its best performance in seven years, as global cargo traffic grew 9% year-over-year in 2017, according to IATA’s December Air Freight Market Analysis. Comparatively, in 2016, air freight traffic increased 3.6%. Worldwide air cargo capacity, meanwhile, increased 3% in 2017, leading to a global freight load factor of 45.5%, up 2.5 points from 2016. Annual air cargo capacity growth in 2017 was its slowest since 2012. IATA senior economist David Oxley noted the air cargo sector’s growth was more than twice as fast as world trade volumes (4.3%) in 2017, reflecting an improved environment for manufacturers linked to the global restocking cycle as well as resurgent investment. “Air cargo had its strongest performance since the rebound from the global financial crisis in 2010. [At] 9%, that outpaced the industry-wide growth in both cargo capacity and in passenger demand,” IATA DC and CEO Alexandre de Juniac said. “The outlook for air freight in 2018 is optimistic … we see growing strength in international e-commerce and the transport of time and temperature sensitive goods such as pharmaceuticals.” De Juniac acknowledged that challenges remain, citing a needed industry-wide evolution to more efficient processes.<br/>