Caution Over Predicted 2011 International Air Freight Figures
In the wake of heavy oil price increases since the start of the year, experts are adjusting their forecast for air traffic and international freight movements.
Cheshire, UK (PRUnderground) April 15th, 2011
Recently the International Air Transport Association (IATA) was still predicting international air freight growth would stabilise between 2010 and 2014 at five percent. Since then, world events have forced the association to rethink their figures.
At a press conference held at the start of March 2011, director general of the IATA, Giovanni Bisignani, revised its predictions, downgrading 2011 airline industry revenues to $8.6 billion from the previously announced $9.1 billion.
Bisignani commented: “The oil price rise is based on political fears with the Middle East unrest. If the price rises to levels that stall economic growth, the impact will be severe.” Back in December 2010, IATA based predictions on $84 a barrel, yet oil has already passed the 100$ mark during the first two months of 2011. Any predicted increases in international freight yields could easily be wiped out completely by increased oil prices.
Despite the fears over fuel, the emerging market for international air freight is the Far East. According to IATA, the top five fastest growing international freight markets between 2010 and 2014 will be Hong Kong (12.3%), China (11.7%), Vietnam (11.4%), Chinese Taipei (11.3%) and the Russian Federation (11%).
Looking towards 2014 the association confirmed the USA would still be the largest player in the international freight market, moving 8.8 million tonnes a year, followed by Hong Kong (5.4 million tonnes), Germany (4.4 million tonnes), Japan (4.4 million tonnes) and China (3.8 million tonnes).
The focus of the air freight on an international level will continue to shift eastward, with the Asia-Pacific expected to account for 28% of all global air freight volumes by 2014.
In an unpredictable time for air freight and aviation in general, it may appear that dispatching goods by air will become cost-prohibitive for many. As profit margins are further squeezed in the light of increased fuel costs, international freight providers are looking at diversifying to improve yields.
A relatively new concept for this industry is to actively seek out loads to fill spare capacity in cargo aircraft, especially on return routes. To this end, international air freight forwarders and customs brokers are using websites aimed at smaller businesses and individuals to complete capacity in planes.
One such site is DeliveryQuoteCompare.com, owned by Daniel Parry. This UK-based website hosts requests for goods to be transported internationally by air and allows providers to quote for the consignment.
Daniel commented : “This reverse auction style may be a completely new arena for companies offering international air freight services, but the website is easy to use for both those looking for goods to be moved by air and those offering such services. We hope to be able to help decrease spare capacity on cargo flights with this online service.”
For more information contact email@example.com
Giovanni Bisignani is director general and CEO of the International Air Transport Association a global trade organisation based in Geneva to represent, lead and serve the airline industry, including air freight.
Daniel Parry is CEO of online transportation website Delivery Quote Compare, offering free quotes for international air freight and other transportation services.
Deliveryquotecompare.com was set up to provide transport companies with an opening to make quotes and win delivery work from customers who need goods delivering to national, European and international destinations.
All types of delivery companies are registered with the site, from international air freight companies to specialist vehicle delivery services. All types of goods are quoted for and handled, from eBay seller deliveries and whole house removal jobs to boat deliveries and furniture shipments throughout the UK, in Europe and beyond.
Customers with goods that need to be delivered simply register and post the job details on the Delivery Quote Compare website and the details are then sent on to relevant transport companies who can provide the service required. The companies then look at the details and work out a bespoke price for that delivery job.
The customer then receives email alerts to let them know quotes are coming in. If the ‘auction format’ is chosen, the transport companies can see all quotes being posted and how competitive they need to be to win the job.
For customers using Delivery Quote Compare, the service is completely free.