Asia Pacific Biz Scaling Up
The Asia Pacific and emerging regions
including Africa, the Middle East and South America will win a larger
slice of an improving global air freight forwarding market in the coming
years, claim analysts at Transport Intelligence.
According to research compiled by the
specialist logistics consultancy firm in its new ‘Global Freight
Forwarding 2014’ report, the Asia Pacific market commanded a 35.8%
share of the global air freight market by region in 2013, ahead of Europe
with 26.7% and North America with 26%. However, Cathy Morrow Roberson,
the report’s author and Ti’s senior analyst, said North
America and Europe would both see their shares fall in the years ahead.
“It’s a reflection of the
changing global economy,” she told Flying Typers. “The
Asia Pacific market is the biggest for the overall freight forwarding
market, and that is also true for air freight. This will not change
through 2017. In fact, the region will increase its share to almost
40% by 2017 as it takes share from Europe and, to a lesser degree, North
America.
“Emerging markets in other regions–Africa,
the Middle East and South America will also see some gains in market
share by 2017.”
Shippers continued to limit their use
of pure air freight solutions in 2013 to reduce supply chain costs,
instead opting for ocean or sea-air and only using air for high-valued
and/or temperature sensitive goods such as pharmaceuticals and perishables.
But Roberson said the rate of air freight market contraction slowed
during 2013 and this would morph into market expansion in the period
to 2017.
“The global air freight forwarding
market noted another year of decline in 2013,” she said. “However,
the decline was less than that of 2012 at 3.4%, reflecting an improving,
albeit struggling, market.
“Improving signs were noted from
the second quarter 2013 led by the Middle East and Europe.
“For Europe, this was about the
same time as economic conditions appeared to improve as well. For the
Middle East, carriers based in this region noted increasing freight
and as such expanded routes around the world.
“For the period 2013-2017, airfreight
forwarding is expected to improve with anticipated improving economic
conditions. We forecast a CAGR of 5.8% for this time period with emerging
markets in Africa, Asia Pacific, Middle East and South America accounting
for much of this growth.”
Surprisingly, given the consolidation
in the sector over the last decade, Ti found that the world leading
air freight forwarders lost market share in 2013, compared to 2012.
In 2012 the world’s leading forwarders boasted a 44.7% share of
the air freight forwarding market but this fell to 42.7% in 2013.
“The decline is perhaps due to cargo
shifts away from cargo air planes to those of passenger airlines,”
said John Manners-Bell, (left) CEO of Ti. “Of the individual airfreight
forwarders, DHL Global Forwarding has the largest market share with
8.2%. However, this share is down from last year’s estimated 8.8%
probably due to the company’s efforts to not to focus on only
tonnage gains, but rather profitable tonnage gains.
“Meanwhile, Kuehne + Nagel increased
their share from 7.5% to 7.7% for this year. Likewise, DBSchenker also
increased its share from last year.
“For the remaining top 10 airfreight
forwarders, slight increases were noted from 2012.”
Ti also found that the market became marginally
more fragmented during 2013 in terms of tonnage handled. “This
could be the result of various factors including the use of niche players
that may specialize in a particular industry and/or trade lane as well
as the possibility of shippers bringing this in-house to manage as the
use of airfreight focuses more towards higher-valued goods,” said
Roberson.
SkyKing
