Global air cargo is recovering and is forecast to reach  212.9 FTK (freight tonne kilometre) by 2015, according to US market research firm Global Industry Analysts Inc (GIA). 

GIA said in a report domestic air cargo markets in emerging regions such as China, India, Africa and the Middle East were expected to propel growth of the overall market.

The requirement for advanced electronic goods in developed nations such as Western Europe and North America is expected to act as a major factor driving demand for air cargo in the near future, said GIA whose report is titled “Air Cargo: A Global Strategic Business Report” 

According to the company, currently about 20 per cent of manufactured goods traded internationally use air cargo transport and this percentage is expected to reach 77 per cent by 2020. In terms of value, about 38 per cent of goods traded at the international level are shipped by air. Freight demand will continue to grow in the future and is likely to exceed passenger demand in the long run. Just-in-time delivery remains the key factor for the success of the global air cargo industry. Reforms in government regulations, air cargo processing operations and supply chain distribution would further propel the growth of the air cargo industry, encouraging it to enhance product mix further.

The global air cargo market experienced negative growth since 2008 due to reduced trading of goods on account of economic recession and slowdown. The impact of the global downturn on trading activity was clearly visible, with stocks of unsold goods piled up in company warehouses amid low demand due to reduced consumer spending. Air cargo carriers found it difficult to receive fresh orders for the transport of goods. North America, Europe, Africa and Asia-Pacific were among the major regions that experienced considerable impact of slowdown. The year 2009 recorded the most significant influence on demand, as average load factors fell to nearly 49.4 per cent from a previous high of over 65 per cent. The slowdown in the airfreight market also led to the parking of 24 per cent of the global freighter fleet and inactivity of large freighters such as MD-11s and Boeing 747s.

Pressing issues
Some of the most pressing issues faced by the air cargo industry include the adverse effect of the worldwide crisis, volatile fuel prices, and a changing shift towards cargo transport from air to sea. The air cargo market still faces issues related to overcapacity, which in turn has a devastating effect on annual yields. However on the whole, global demand for air cargo is expected to witness a slow recovery, primarily due to the sluggish economic recoveries in the US, Europe and Asia-Pacific.

The US continues to rule the world market, as stated by the new market research report on air cargo. The domestic US airfreight cargo route is the largest and most matured, with a majority of air cargo movement to and from the US to other parts of the world. China-North America and Asia-North America constitute the other major air cargo traffic routes. Domestic China is the fastest growing airfreight market, projected to grow at the overall highest compounded annual rate through 2015. The international air cargo traffic is slated to grow at a faster rate over the domestic air traffic as well as the maritime traffic.

Key market participants leading the global air cargo market include Air China Limited, Air France-KLM, Alitalia, British Airways PLC, Cathay Pacific Airways Ltd., China Cargo Airlines Ltd., Delta, DHL International GmbH, Deutsche Lufthansa AG, Emirates SkyCargo, FedEx, Japan Airlines Corporation, Korean Air, Polar Air Cargo Worldwide, Inc, Cargolux Airlines International SA and Qantas Airways Limited, among various others.