Air freight demand is finally back on the rise, according to the latest reports from Drewry’s East-West Airfreight Price Index and the Airports Council International. Barring any seasonal fluctuations, Drewry maintains that the air freight industry is up 8% over the same period in 2016. IATA corroborates the findings stating the current levels are the highest since 2010.
“[It] was clearly a very strong quarter … FTKs have grown by 9.7% in annual terms so far this year,” IATA senior economist David Oxley said. “In fact, adjusting for the …  leap year, we estimate that the true pace of FTK growth was even faster, closer to 11%.”
North American international freight alone was up 14.2% in the fastest jump since the West Coast ports shut down.
Signs for the robust recovery come from a combination of business confidence, an optimistic economic outlook and increasing global trade opportunities. While part of the increase is in total tonnage moving via air freight, further information reveals that an increase in rates from Asia to North America was the most important factor in this climb.
Drewry claims that the recovery will likely continue though a seasonal downturn in May might offset the gains slightly, they expect another strong rebound in June as peak season ramps up. Lending credence to this theory, IATA states that this growth trend is part of an overall improvement in trade conditions worldwide as new export orders reach a six-year high.
While most expect the recovery to be steady, the rising fuel and labor costs might cause a bit of turbulence along the way. As a shipper, rate increases may not be the best news to hear when you have urgent cargo moving overseas. However, we at Edward J. Zarach and Associates are on hand to assist and advise our clients on how to navigate the climb and mitigate cost increases by sharpening efficiency, protecting the interests of our customers, and streamlining supply chain processes. Economic growth, especially in the logistics market can bring more capacity, better routings and an increase in services offered by growing companies eager to gain market share. Our company’s industry expertise is dedicated to providing each and every one of our customers unmatched, personalized service.. We are always in your corner and remain excited to watch our industry bloom once again.