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Vol. 16 No. 97 | Friday December 8, 2017 |
Cargo C'est Magnifique |
Most indicators suggest the market hit new highs in recent months and ‘peak air’ could last through to Chinese New Year in February. But some forwarders report a slight easing of demand in early December. C’est Magnifique Why the French? Well, it is almost a New
Year and nearing the time to pop some bubbly, celebrate, and live a little
as we report: “The latest air freight data on rates and volumes
points to a magnificent Q4—unless, that is, you were caught in the
perfect demand storm without enough space to airlift product to market
in time for the holidays.” YoY Up Times 14 “For the fourteenth month in succession,
the industry showed a year-over-year (YoY) growth well above 5 percent,
easily outpacing the growth in world trade,” said WorldACD. “And
the records set in October are almost certain to be broken when November
figures are in.” Driving High Tech The main market drivers in October included
impressive yield growth from Europe, the Middle East, and South Asia,
and high volume growth from Europe—from and to North America, and
to Central and South America. “Looking at the Top-20 origin countries,
we noticed a more than average YoY volume growth in parts of the USA (Atlantic
South +19.1 percent, and Midwest +14.4 percent), Vietnam (+16.6 percent),
Australia (+15.9 percent), Japan (+12.3 percent), the UK (+10.4 percent),
Spain (+8.6 percent) and Germany (+7.6 percent),” reported WorldACD.
“Lagging behind were such diverse origins as Taiwan (-8.8 percent),
the Netherlands (+1.5 percent), China East (+2.9 percent), and India (+3.7
percent).” IATA Positive But Hedges Cautious
IATA’s figures for October largely matched those of WorldACD, with
demand measured in freight ton kilometers (FTKs) up 5.9 percent year-on-year.
Although this represented a slowdown from the 9.2 percent annual growth
recorded in September 2017, it still exceeded the average annual growth
rate of 3.2 percent over the past decade. October also proved the 15th
consecutive month that demand growth outstripped capacity growth; global
capacity expanded just 3.7 percent year-on-year in October. The Beat Goes On Drewry also expects the rest of Q4 to
remain buoyant. “Based on seasonal trends and anecdotal reports,
Drewry expects airfreight rates to increase further in November,”
added the analyst. Slowdown at The Hoedown Throwdown? There are also signs of a slight slowdown
in loadings in Asia. “The cost of air freight has dropped for the
last two weeks, and the overall situation has improved quite a bit, but
for large volume of movement we are still having some difficulty [finding
space],” Paul Tsui, managing director of Hong Kong-based forwarding
and logistics operator Janel Group, told FlyingTypers in the
second week of December. Continues To Seek Peak Lucas Kuehner, Panalpina’s Head
of Global Air Freight, said ‘peak air’ could last beyond the
first week of December, the traditional point where things start to slow
down. “It’s really difficult to forecast,” he added.
“But I would not be surprised if, due to e-commerce stocking up
in the second half of December and thereby creating a kind of vacuum for
heavy freight, the peak went right into January and only slowed down after
Chinese New Year. I think there’s a chance this might happen. At
least, that's what we are prepared for.” |
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Vol. 16 No. 94 We Like Mike For CNS President Chuckles for November 27, 2017 At 90 Pandit Parikh's Music Continues |
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