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            april 26, 2018

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Global air cargo has seen ups and downs, but players still optimistic


The global air cargo industry has seen its revenues contract from a peak of US$67 billion in 2011 to $50 billion at present, according to the International Air Transport Association (IATA).
FedEx Express and Emirates Skycargo have had a difficult few years. Global trade growth has stalled, and along with it, demand for air freight, while additional cargo capacity has flooded the industry, causing air freight rates to tumble, reported The Economist.
Even business the electronics sector has dived, according to Seabury Consulting's Marco Bloemen. Since 2007 the total volume of electronics being air freighted has fallen by a tenth and is still going down.
Over the past two years alone the total weight of laptops and tablets being delivered by plane has been cut in half.
The drop is partly due to the production of ever more compact and lighter computers and smartphones, however, most of the decline is accounted for by the increased proximity of final assembly lines to customers, as manufacturing localises and as Asian demand for electronics has risen.
The market for fresh food, in contrast, is a thriving, with the volume of perishables growing by one third since 2007, outstripping any other product category.
Over the past year, the weight of flown fresh food rose by a tenth, while the weight of computing equipment transported declined by the same amount. Flowers, salmon and milk powder, highly sought after by Asian consumers, have seen some of the strongest growth.
A rapidly emerging bright spot is express-parcel deliveries as the e-commerce market is burgeoning. The total value of online cross-border shopping increased by a third to $400 billion over the past year. It is forecast to rise to $1 trillion annually by 2020, according to a joint study by consultancy Accenture and AliResearch. Most of it will travel by air.

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