Industry Pulse: Air freight traffic rises 10.4% in first half of 2017
Editor's Note: This story is part of a weekly analysis of the logistics industry's latest statistics. See an overview in our data hub.
- June 2017 marked air freight's strongest first six months of growth since 2010, according to the International Air Transport Association (IATA) June 2017 Air Freight Report.
- Global freight ton kilometers (FTKs) grew 10.4% in H1 2017, and the report also noted that increasing demand is now "outpacing" capacity.
- Although air freight growth slowed from 12.7% in May to 11% in June, H1 2017 grew 27% YoY from 2016, which is why the IATA believes air freight will continue its upward trend.
Even though air freight growth dipped again in June, the first half of the year still finished strong, the strongest it has ever been since 2010. Shippers and carriers should be confident in the growing air freight market, especially since the market is currently moving 3.9% ahead of the five-year average pace.
June's report also noted that the 27% YoY increase in FTKs is largely due to a "jump" in freight traffic between Africa and Asia, which increased 60% YoY. European traffic also increased 13.6% YoY. Ups and downs between months are normal, and it's pretty clear that the overall trajectory for air freight is continuing upward.
E-commerce continues to grow, which is positively affecting all freight markets as online sellers flood the freight industry with shipments. In Europe, for example, this year's Amazon Prime Day sales increased more than 100% YoY, with the UK in the lead by increasing 240% from Prime Day 2016.
However, as the traffic increases, shippers can expect prices to rise throughout 2017 as air freight supply continues to show limited growth. Thus, limited capacity will drive up rates, which will be good for carriers, but shippers will need to put more work into calculating the best shipping options.
- International Air Traffic Association Strong Demand Growth Resumes in June
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