Now that 2017 is behind us, we look back at trends and key figures that affected the air cargo market.
We look at what trends and predictions are here to stay, and what impact these will have on the Australian market for the year ahead. 2017 was a year of growth for the global air cargo market. The increase of e-commerce, growing demand from Asia-Pacific economies and the influx of pharmaceuticals, temperature sensitive and perishable products had an enormous influence on the market.
These areas of demand resulted in a record high 59.9 million freight tonnes moved globally, an increase of 9.1% from 2016. Transporting high-value and temperature sensitive bio-pharma, has shown to be a substantial part of the market in 2017. Airlines and forwarders are now leveraging these opportunities by offering door-to-door cold chain solutions; a market that experts are estimating to reach USD 1.12 trillion by 2022.
The growing popularity of online retail had such an impact on the air cargo market that the majority of airlines announced a temporary stop on all new bookings during this year’s peak season. But is this just the tip of the iceberg?
As e-commerce continues to show rapid growth and the air cargo budget for 2018 set at 62.6 million freight tonnes, are we set to see freight rate increases and space demands beyond resolve?
The Australian Air Cargo market followed suit with the global market in 2017 showing consistent growth over the past two years.
High value commodities such as machinery, electrical equipment and computer technology continues to be in demand by importers, whilst Australian product demand in Asia created a direct link to increased exports.
Year on year this activity has led to a 5.5% growth from 2016 to 2017 and according to IATA, this is a trend that will continue well into 2018.
So did ICE follow the 2017 air freight trend and finish the year with a positive result?
In the past three years ICE have experienced vast growth in all departments, hitting a record high number of jobs year on year.
From 2015 to 2017 our total air freight shipment count increased by 37% and with a growing number of clients using air transport we anticipate that this increase will continue overview the next year.
Everyone at ICE are very proud of being a big part of the positive development on the Australian market and look forward to being an even bigger part in 2018.
* All statistics and figures are gathered from The International Air Transport Association (IATA), The Bureau of Infrastructure, Transport and Regional Economics (BITRE) and Boing’s annual reports.