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African freight demand increases by 24.3% in January – IATA

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The International Air Transport Association (IATA) says that freight demand on African carriers increased by 24.3 per cent in January 2017 compared to the same month in 2016.

The Geneva-based IATA stated this in a statement obtained by the News Agency of Nigeria (NAN) on Monday in Abuja.

The agency said that very strong growth on trade lanes to and from Asia accounted for the increase.

The statement said the demand between the two continents jumped by 57 per cent in January on the back of rapid long-haul expansion and increased direct services.

 

 

It added that the increase in demand had helped the region’s seasonally adjusted load factor to rise after falling by five percentage points in 2016 compared to the previous year.

Data for global air freight markets released by IATA showed that demand, measured in freight tonne kms, rose by 6.9 per cent in January 2017 compared to the previous year.

It said that while it was down from the 10 per cent annual growth recorded in December 2016, it was still well above the average annual growth rate of three per cent over the past five years.

According to IATA, growth in freight capacity, measured in available freight tonne kms (AFTKs), slowed to 3.5 per cent in January 2017.

 

 

“The continued positive momentum in freight growth into 2017 coincides with a steady rise in new export orders, which reached their highest level in February.

“There has also been an increase in the shipment of silicon materials typically used in high-value consumer electronics shipped by air.

“The timing of the Lunar New Year (in January 2017) also may have contributed to higher demand in January,’’ it said.

IATA’s Director-General Alexandre de Juniac said it had been a good start in the year for air cargo.

De Juniac said the demand growth was bolstered by strengthening export orders that outpaced the capacity growth which should be positive for yields.

According to him, in the longer-term, the entry into force of the Trade Facilitation Agreement (TFA) will cut red tape at the borders for faster, cheaper and easier trade.

“The onus is now on the industry to seize the opportunity to accelerate the modernisation of processes to make air cargo an even more compelling option for shippers,” he said. (NAN)
OYS/DO/NKO

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