IATA report 2013 as a 'weak' year for airfreight

The International Air Transport Association (IATA) has reported airfreight saw a weak growth during 2013, with only 1.8% more volumes overall compared to the previous year. The trend is a possible reflection of on-shoring, where manufacturing is kept close to its market. Domestic freight tonnes carried and freight and mail tonne kilometres both saw domestic growth overtake international increases.

The amount of tonnes carried increased by 3.4% domestically, however internationally the increase was a sheer 1.3%. Freight and mail tonne kilometres rose by 2.9% domestically, while international traffic saw a rise of 1.6%. Despite the slight increases, IATA's Director General and Chief Executive Officer, Tony Tyler, has said that 2013 saw "48 million tonnes of cargo...carried on about 100,000 flights a day."

Statistics also reported the decreases in the average price of jet fuel, brining it down by 3.9% in 2013 compared to 2012, however this year has seen a slight rise in jet fuel prices again.

According to the World Air Transport Statistics, the top 10 airlines for tonnes carried were; Asiana Airlines, Lufthansa, Qatar Airways, Singapore Airlines, China Airlines, Cathay Pacific Airways, Korean Air, United Parcel Service, Federal Express, with Emirates being the number one.

IATA welcome Glyn Hughes as global Head of Cargo

The International Air Transport Association (IATA) has recently announced Glyn Hughes as its next global Head of Cargo. Hughes is no stranger to the company, having joined IATA in 1991 to assist in helping expand and develop the cargo accounts settlement service. Hughes helped the service grow from 35 to nearly 100 operations, whilst also maintaining extremely low levels of agency default and reducing the overall operating costs for its members.

IATA's new Head of Cargo, Glyn Hughes

Hughes has also led IATA Cargo's initiatives over recent years, becoming involved with industry management and relationship building. He has also been part of the global air cargo advisory group steering committee, in additional to leading a campaign to promote the value and use of air cargo.

IATA's Director General and Chief Executive Officer, Tony Tyler, has commented on Hughes' movement within the company: "I am delighted that Glyn has agreed to become our new hard of cargo. He has worked very closely with [former Cargo Head] Dan Vertannes these past four years and is well placed to continue the important work."

Tyler proceeded to advise that "air cargo faces considerable challenges" and that the company has an "ambitious goal to improve the industry's competitiveness." Tyler believes Glyn's addition will ensure focus is "dedicated to that goal", in additional to delivering the industry priorities, which include safety, security, quality, modernisation and transformation through the e-cargo agenda.

Hughes began his new duties recently by speaking at IATA's 70th annual general meeting in Doha. Hughes presented in regards to the air cargo industry, speaking on three key areas, these being: safety, security and modal competitiveness.

Air freight on the rise in the Middle East and Africa

Recent stats published by the International Air Transport Association (IATA) showed some small, but significant improvements in the air freight industry.

Whilst Asia Pacific is still struggling with a decline of 7.3 percent, the Middle East positions itself amongst the growing markets with a increase in demand for air freight by approximately 14.5 percent. According to Analytica, the reason for Asia Pacific’s decrease can be found in the weakening export in China.

Although Western nations continue to face difficult times in current air freight markets, the Middle East and Africa appear to be on the “bright side” of business life. In fact, African carriers can pride themselves with a 6.1 percent increase in demand and an impressive 9 percent increase in capacity.

For more information on freight traffic market shares of regional carriers please refer to the following graph:

Sources: Analytica, Transglobal Express (graph)