The international air cargo industry experienced its longest peak season in sometime during the latter half of last year, and experts are cautiously predicting another strong run for 2015.
Though not everyone had a great 2014 in the airline shipping industry, overall, it will be noted as a good year in a sector that hasn’t experienced many fruitful stretches since the Great Recession, according to the Journal of Commerce. Last year brought significant demand for new products, which in turn boosted the air cargo industry to new heights. For example, in the third quarter, the newly released iPhone 6 sold over 40 million units.
Trade across the Pacific was especially strong through last year, a notable boon to the air cargo industry, the publication explained. Trans-Pacific trade demand kept freighters and air carrier belly utilization strong for the second half of last year, ensuring a smooth holiday season for an industry that has had a few rough ones. James Woodrow, director of cargo for Hong Kong-based Cathay Pacific Airways, told the publication that 2015 is likely to start with the same vigor, though as the calendar pages turn, his projections become less clear.
“Overall, I am expecting 2015 to be a better year for air freight than 2014 – a continuation of the recovery that we have seen,” he explained to the Journal of Commerce. “The trans-Pacific is currently strong and is likely to continue being so, which has a knock-on effect on intra-Asia. Asia-Europe routes are also seeing an encouraging improvement in rates.”
International Air Transport Association predicts strong 2015 for air cargo industry
The demand for airfreight in 2015 should grow by 4.5 percent, one-half percentage point higher than the projected rise in total world trade, the International Air Transport Association (IATA) projected, according to Air Cargo World. Tony Tyler, CEO of the association, warned that although the IATA’s outlook for air cargo volume in 2015 is rosy, other factors could change the optimistic expectations – such as macro-economics and political strife.
Last year, most demand for airfreight came from the Asia-Pacific and Middle East regions, the publication noted. These areas of the globe accounted for 93 percent of the international rise in air cargo demand. Asia-Pacific airlines reported a 5.9 percent jump in freight-tonne-kilometers (FTKs) in November 2014. The growth posted by regions such as the Middle East and Asia-Pacific placed the areas apart from places like North America – where FTKs fell 0.3 percent – and Latin America, where airlines saw a 0.7 drop in FTKs.