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Cargo Continues to Flat-line

Cargo Continues To Flat-line

Geneva The International Air Transport Association (IATA) released data for global air freight markets showing that air cargo volumes measured by freight tonne kilometers rose just 0.5% in October compared to a year ago. Year-over-year expansion fell back from September s faster growth rate, and total cargo volumes in October stand 1.1% lower than the peak of the uptrend at the end of 2014.

European carriers have driven recent improvements in air cargo growth, but they ran out of steam in October with a rise of just 0.2%. Other regions also underlined the weak October trend. The most significant decline in cargo activity was experienced by North American carriers, who reported a 2.4% fall in volumes. Latin America (-8.1%) and Africa (-1.1%) are smaller markets and also declined. Asia-Pacific was up, little more than Europe with a rise of 0.3%. Growth in the Middle East, although a robust 8.3%, was some 4.3 percentage points down on the average performance for the year to date.

The outlook for air cargo continues to be very difficult. While there was some optimism from third quarter growth it has all but disappeared as the industry basically flat-lined. Cargo capacity has grown largely in lock-step with the continued robust demand for passenger travel. As a result, freight load factors have sunk to the 44% range a level not seen since 2009. Early signs of improvement in export orders may bode well for trade and air cargo but this is unlikely to prevent air cargo finishing 2015 on a low note, said Tony Tyler, IATA s Director General and CEO.

Oct 2015 vs. Oct 2014 FTK Growth AFTK Growth FLF International 0.5% 6.0% 48.0 Domestic 0.4% 4.2% 31.2 Total Market 0.5% 5.7% 44.8 YTD 2015 vs. YTD 2014 FTK Growth AFTK Growth FLF International 3.0% 6.6% 47.3 Domestic 0.2% 2.6% 29.9 Total Market 2.6% 5.8% 44.0

Regional analysis in detail

Asia-Pacific carriers saw a slight rise in FTKs of 0.3% in October compared to October 2014, and capacity expanded 2.9%. Trade growth in China and other key export economies remains disappointing. Chinese export orders, however, spiked in October, which could result in better demand for air freight in the next 2-3 months.

European carriers reported a rise in demand in October of just 0.2% compared to a year ago and capacity rose 5.6%. Although this is a weaker performance than in recent months, improvements in the Eurozone are expected to continue, especially trade activity to/from Central and Eastern Europe.

North American airlines experienced a decline of 2.4% year-on-year and capacity grew 6.0%. There are mixed signals from this market. Recent month-to-month results appeared to indicate a return to growth, but the latest manufacturing and export reports are poor. Strong demand for air freight in the coming months appears unlikely.

Middle Eastern carriers saw demand expand by 8.3%, and capacity rise 11.6%. Recent air cargo growth in the region continues to trend well below the rates seen for the first half of the year. Saudi Arabia and the UAE, among others in the region, have seen slowdowns in non-oil sectors, but growth rates remain robust enough to sustain solid demand for air cargo.

Latin American airlines reported a decline in demand of 8.1% year-on-year, and capacity expanded 5.0%. Year-to-date performance for Latin American air cargo is the worst of any region by some margin, contracting by 5.9%. Air cargo demand appears to be mirroring weakening consumer sentiment in key regional economies.

African carriers experienced a fall in demand of 1.1%, and capacity rose by 6.9%. Despite the October result, Africa is still the second fastest growing air cargo market for the year-to-date. Demand is holding up despite the underperformance of Nigeria and South Africa.

View October freight results[1] (pdf)

Press release IATA
Picture Rob Vogelaar

References

  1. ^ View October freight results (www.iata.org)

Airbus Helicopters to provide global service solution for French …

Airbus Helicopters To Provide Global Service Solution For French ...

  • A 5-year contract for full-by-the-hour support, logistics, and technical assistance
  • Support and service solution tailored to critical missions
  • Milestone contract for the recently created Military Support Center France

The SIMMAD (Structure int gr e du maintien en condition op rationnelle des mat riels a ronautiques du minist re de la D fense, responsible for the maintenance and overhaul of French state-owned aircraft) has awarded Airbus Helicopters with a milestone contract for a global service solution covering the entire fleet of 50 EC145 operated by the French Gendarmerie Nationale and S curit Civile.

Airbus Helicopters will provide for the next 5 years a global service solution with a Full-by-the-Hour (FBH) support for nose-to-tail coverage of the helicopter parts (except for the engines) thanks to high performing logistics services with 24/7 delivery for aircraft on ground (AOG) situations, and a comprehensive technical support. The contract also includes the possibility to perform aircraft maintenance and training. Ineo Support Global will also contribute to this contract as sub-contractor by providing competitive repair solutions.

We are committed to providing the French Gendarmerie Nationale and the S curit Civile with the highest quality of services, enabling them to perform their critical search and rescue, medical evacuation and law enforcement missions to support the French population when they most need it stated Dominique Maudet, Executive Vice President Global Business and Services. This contract underlines our commitment to support Airbus Helicopters largest customer, the French government, which operates around 600 Airbus Helicopters aircraft. Fifteen EC145 are used by the Gendarmerie Nationale and 35 by the S curit Civile. The aircraft are on call 24/7 throughout France and its overseas departments (France, Corsica, Guadeloupe, Martinique, Guyane and the R union). These helicopters are used to perform public service missions (search and rescue) as well as police missions. The 50 EC145 will be supported by the recently created Military Support Center France, a dedicated Airbus Helicopters organisation designed to support all French military and parapublic customers and providing them with the most tailored services fitting their specific needs. The creation of this entity illustrates Airbus Helicopters commitment to service quality and performance to keep customers flying, anytime, anywhere.

Press release and picture Airbus Helicopter

Cargo Trends.in Lufthansa Cargo voted best international freight …

The quality offensive of Lufthansa Cargo is reaping rewards. The carrier has been voted the best international freight airline by its customers in the US. The acclamation pitching Lufthansa Cargo at the peak of the industry came at the annual general meeting in Las Vegas of the Air forwarders Association, an alliance of forwarders in the United States.

Germany s biggest cargo carrier scored highly in numerous categories. In their vote, the forwarders rate carriers according to categories such as their customer service, on-time performance, reliability and security processes. Achim Martinka, Vice President The Americas, expressed thanks on behalf of all Lufthansa Cargo staff at the Las Vegas ceremony: This accolade is a great reward for the daily efforts put in by our team and, moreover, a huge incentive to continue working on further improvement of our services and performance .

The prize, awarded for the third time, has been won twice by Lufthansa Cargo.

The German cargo carrier is market leader in terms of tonnage on the North Atlantic.

Aside from offering capacities on scheduled passenger flights, Lufthansa Cargo operates additional two-way freighter services to seven cities in the USA.

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Cargo Trends.in Lufthansa Cargo voted best international freight …

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