Air Freight News
Below are links to stories relating to air freight
Approval granted for £100m Manchester Airport logistics hub covering 91 acres
TManchester Airport’s parent group MAG’s outline planning application has been approved for a 91.2 acres, £100 million world logistics hub in the southern part of Greater Manchester’s Airport City Enterprise Zone. The development will create 1.2 to 1.4 million sq ft of new logistics space. The airport hopes it will attract new international businesses and help existing airport businesses to expand, generating economic growth and - they claim" "over 1,800 new jobs" (in reality, many of those jobs are transferred from elsewhere). Some of the site will have new landscaping and natural habitats. Construction could begin by the end of the year. On 25th October, the local Wythenshawe Area Committee recommended the application for approval. Local opponents worry that it will result in serious loss of amenity, environmental damage for local people, and have serious consequences on local biodiversity and ecology.
Global air freight tonnage fell by – 0.7% in 2011 compared to 2010. Freighters being parked.
IATA data show there was a fall of - 0.6% in tonnage (FTKs) of international air freight globally in 2011. There was a larger fall in domestic air freight, of - 1.4% giving an overall decline of - 0.7% compared to 2010. The industry is not optimistic about next year's air freight volumes, and air cargo companies are having difficulty remaining profitable. Earnings per tonne of cargo have fallen. Air freight capacity rose 5.2% in 2011, according to the IATA figures, as many companies had deliveries of new freighters that they now cannot fill. Their load factors are going down. World trade is flat, while international air FTKs (freight tonne kilometres) are dropping sharply, indicating that cargo is now being moved by other transport modes. Increasing numbers of air freighters are being parked in the Mojave desert.
Hong Kong airport authority says 3rd runway necessary
Hong Kong airport, which has two runways, wants to build a third as it says the two will be full by 2020. It claims this is needed to keep up with the rapid growth in air traffic. There has been a 3 month consultation. The runway would cost perhaps much more than $17 billion. Hong Kong overtook Memphis in 2010 as the world's busiest air cargo hub on the back of strong import and export growth in China. Critics are calling for a thorough environmental assessment before any decision is made, but time constraints will make such a report unlikely. WWF has questioned the project.
IATA: global air freight down – 3.1% in November compared to a year earlier
IATA data for November show global air freight tonnage, domestic and international, was down -3.1% in November, compared to a year earlier. Tonnage was down 4% compared to January 2011 though up 1.1% compared to October. November 2011 international freight was down -3.8% while domestic freight was up +25, giving the overall -3.1%. European carriers reported a 4.6% fall in demand reflecting continued uncertainty associated with the Euro-zone crisis. Shares of global air freight by region are Asia-Pacific 40.5%, Europe 22.0%, North America 23.6%, Middle East 9.8%, Latin America 3.0%, Africa 1.1%.
Global air freight down – 4.7% in October. It has been declining since May
The confidence of purchasing managers has caused shippers to switch some transport needs to slower and cheaper sea options to the detriment of air freight which showed a 4.7% decline in October compared to the previous year. Airlines have responded to weaker demand by cutting their freighter fleet. There has been a steady and substantial 5% fall in freight load factors compared to their early 2010 peak. Air freight has been down every month since May.
Declining air freight – various news items
At UK airports, CAA figures show air freight tonnage has fallen each month since May. It had been rising during the first part of the year. IFW reports that Lufthansa Cargo is cutting 20% or even 30% of its cargo capacity in the new year, to counter anticipated slowdown in demand. (a 25% drop = one aircraft). Lufthansa has shelved its plan for a new cargo hub at Frankfurt, as there is a night flights ban from 11pm to 5am. Moving flights elsewhere is now costing it many millions of €s.
Do air cargo carriers need new thinking? IFW article
Air freight companies say air cargo carries less than 5% of worldwide goods shipments, (by tonnage?) but about 35% of the world's goods' value. Also that the value per kg of goods shipped by air has been increasing year on year for the past 10 to 12 years. Yet they have very small profit margins. This IFW article goes into how airlines could get more money and increase their profitability by cutting the profits of the freight forwarders.
OECD statistics shows slow air cargo growth in 2011 first half
International trade statistics for the 1st half of 2011 show growth in global freight has slowed. The recovery has faltered and volumes are now only 9% above pre-crisis levels in the EU area compared to 15% in [February 2011]. In the US external trade in tonnes of goods carried by air is 2% above the pre-crisis peak. Air freight between the US, or the EU, and China also slowed. However, some in the industry still expect 4.5 to 5.5% annual growth.