Move to improve air cargo competitiveness

Singapore: The International Air Transport Association (IATA) called on all participants in the air cargo value chain to work together towards the common goals of improved quality, increased efficiency through e-AWB and e-freight and more effective security. Combined, these steps will improve air cargo competitiveness in the face of stagnant demand growth and unfavourable market developments.

Air cargo is suffering from a prolonged slump that has seen falls in yield, revenue and market share. Since 2010 world trade has grown by 12% whereas air cargo demand growth has been basically flat with only a 2% increase.

A divergent trend in passenger demand, with growth continuing in the historical 5-6% range, has complicated the situation.

As airlines grow fleet capacity to meet rising passenger demand, capacity has been introduced into weak cargo markets, putting considerable downward pressure on yields. Cargo revenue in 2013 is expected to be $59 billion, $8 billion below the 2011 peak. "No business or business model survives over the long term without evolving. Air cargo is being buffeted by forces for change.