African airlines saw a dramatic increase of 24.3% infreight demand - measured in freight tonne kilometers (FTKs) – in January compared to the same month last year, according to data released by the International Air Transport Association (Iata).
This was helped by very strong growth on the trade lanes to and from Asia, according to the data. “Demand between the two continents jumped by 57% in January on the back of rapid long-haul expansion and increased direct services. The increase in demand has helped the region’s seasonally adjusted load factor to rise after falling by five percentage points in 2016 compared to the previous year.”
Global air freight markets saw demand rise 6.9% in January 2017 compared to the previous year - down from the 10% annual growth recorded in December 2016 but well above the average annual growth rate of 3% over the past five years.
Growth in freight capacity, measured in available freight tonne kilometres (AFTKs), slowed to 3.5% 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 (latest data available) since March 2011, according to Iata. 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) is also seen as a possible contributor to higher demand in January.
"It’s been a good start to the year for air cargo. Demand growth accelerated in January, bolstered by strengthening export orders. And that outpaced the capacity growth which should be positive for yields. And, 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," said Alexandre de Juniac, Iata’s director general and CEO.
