WORLD CARGO SYMPOSIUM
IATA SEES A ROSY FIVE YEARS AHEAD, WITH MODEST AIR CARGO GROWTH THROUGH 2022 By Caryn Livingston This month, IATA released its five-year airfreight demand forecast and projected that total airfreight traffic, measured in freight tonne kilometers (FTKs), will see growth averaging 4.9 percent each year through 2022, on the prospect of continued opportunities arising from e-commerce and other high-demand commodities.
After a wildly successful 2017, it appears that the airfreight business is headed down the same path, not just for this year, but for the next five.
The new forecast represents a slight increase over the actual compound annual growth rate (CAGR) of 4.7 percent at which FTKs grew each year from 2012 to 2017, but a significant decline from the 9 percent average y-o-y increase in FTKs for 2017. However, if, during the fiveyear horizon, trade growth resumes at its pre-global-financial-crisis level, IATA isn’t ruling out the possibility
CARGO IN 2017: IT WAS A VERY GOOD YEAR By Glyn Hughes, Global Head of Cargo, IATA Welcome to Dallas for the 12th World Cargo Symposium (WCS). It’s incredible to think that a full year has passed since we were last together in Abu Dhabi. But what a smashing year it has been for air cargo.
mand grew by 9.0 percent — twice the pace at which world trade expanded (4.3 percent) in 2017. And as capacity only rose by 3.0 percent, we saw significant improvements in load factors, revenues, and yields.
The industry posted its strongest performance since the rebound from the global financial crisis in 2010. De-
Over the same period, air cargo carried 59.9 million metric tonnes of
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that FTK growth could instead average as much as 9.5 percent per year. Historically, the relationship between global gross domestic product (GDP) and goods trade growth has been key to airfreight demand, with global goods trade growing at twice the rate of global GDP. But since the 2008 financial crisis, the 2x multiplier has gone, and global goods trade has only grown in line with global GDP. The global GDP growth that helped support robust airfreight volumes through 2017 is expected to remain steady over the next five years, according to forecasts from the International Monetary Fund (IMF). The IMF predicts 3.1 percent GDP growth between 2018 and 2022, up from 2.8 percent over the past five years. Whether or not growth in global goods trade will return to pre-crisis levels remains to be seen, IATA said, [Continued on p4]
TUESDAY • MARCH 13, 2018
Careen: Changing Faces, Changing Cargoes
Southwest to launch SCS, international routes
Smart Facilities update
March 13, 2018
WCS Daily Report
KEEPING IT FRESH AROUND THE WORLD Here at American Airlines Cargo, we are fully committed to the proper handling of your perishables. Through our worldwide network and an attention to detail on even your most time-sensitive shipments, you’ll enjoy fast and safe delivery to more than 50 countries across the globe. With you all the way. Let us keep it fresh for you at aacargo.com/freshcargo
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World Cargo Symposium DALLAS, TX
CHANGING FACES, CHANGING CARGOES By Nick Careen, Senior Vice President Airports, Passenger, Cargo, Security, IATA This year’s 12th World Cargo Symposium (WCS) promises to be bigger and bet