Air Freight Slowdown Continues - Several Regions in Decline

The International Air Transport Association (IATA) released data for global air freight markets showing a slowdown in growth for air cargo demand in June. Air freight volumes measured in freight tonne kilometers (FTK) rose just 1.2% compared to a year ago. This is consistent with falling trade activity and weaker than expected global growth.

Regional performance varied widely. Asia-Pacific, North American and Latin American carriers reported year-on-year declines (-0.3%, -3.3%, and -1.6% respectively) while European carriers reported that markets were flat. This was offset by the strong performance of Middle Eastern (+15.3%) and African (+6.7%) carriers to keep growth in positive territory. 

The general trend of a weaker 2015 compared to 2014 can be seen in the half-year data. Air freight markets expanded by 5.8% in 2014; however year-to-date growth for 2015 stands at 3.5%.

Indonesia's logistics industry to grow at 15.2%

Frost & Sullivan is expecting the transportation & logistics market to grow with expected CAGR 15.2 per cent in 2015. Gopal R, global vice president, transportation and logistics practice at Frost & Sullivan said that the industry is set to record strong double digit growth over the forecast period due to the continuous growth of the Indonesian economy driven by resilient domestic demand.

Gopal R is expecting strong private consumption growth, higher trade growth, lower external financing cost & oil price and infrastructure development to continue drive logistics industry growth in 2015. However, he said that rising labour wages will force businesses, including transportation & logistics to incur lower profit margin. He also said that the limitations to invest optimally in logistics infrastructure such as ports, airports and roads will hamper freight movement.