IATA Cargo Figures Q3 2011

Key points from the IATA, report on the air freight industry and markets:

• The past quarter has seen cargo markets deteriorate significantly. Forward-looking indicators for demand point to further weakness in the months ahead.
• The economic outlook has deteriorated in the past quarter - particularly in mature markets. Emerging markets are slowing but so far remain relatively strong.
• Air freight markets started to shrink in the middle of 2011, after over a year of stagnation. Weakness was experienced across all major markets, particularly in Asia.
• Customers of the air freight industry have become gloomy and cut shipments. Inventory-expected sales have risen, semiconductor shipments are down.
• Consumers in developed economies have lost confidence, although this is not the case in emerging economies. World trade is now flat.
• Cargo rates have come under downward pressure from weak demand and falling utilisation.
• Cost pressures shouldn't be a problem given the gloomy economic environment. But they are. Jet fuel prices have not fallen very much at all.
• Cargo-only airlines are trimming fleet size, but expanding capacity from twin-aisle passenger fleet has pushed cargo load factors down.
• Bulk shipping has shown a modest revival, but ocean containers have seen volumes slow sharply and sea freight rates have fallen dramatically.
• Cargo profitability began to fall in the second half of 2010 and declined further this year. Heads of cargo have become much less confident about the outlook.

IATA Cargo E-Chartbook Q3 2011