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air freight

Air Freight up 5.9% in October – a strong start for Q4

The International Air Transport Association (IATA) has released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 5.9% in October 2017 compared to the year-earlier period. 

This was a slowdown from the 9.2% annual growth recorded in September 2017 but still exceeded the average annual growth rate of 3.2% over the past decade.

Freight capacity, measured in available freight tonne km (AFTKs), rose by 3.7% year-on-year in October. This was the 15th consecutive month in which demand growth outstripped capacity growth, which is positive for load factors, yields, and financial performance.

Airlines in all regions reported an increase in total year-on-year demand in October. However, in contrast, international freight growth slowed in all regions except Africa.

Asia-Pacific airlines saw freight volumes increase by 4.4% and capacity expanded by 3.9% in October, compared to the same period last year. Demand for freight is now around 3% higher than the peak reached in the post-financial crisis rebound in 2010.

European airlines posted a 6.4% increase in freight demand in October 2017. This was a marked slowdown from the 10.6% growth in demand in September, however it was still above the five year average of 4.9%. Capacity increased 2.5%. Concerns that the recent strengthening of the euro might have affected the region’s exporters have not materialised yet. Europe’s manufacturers’ export orders are growing at their fastest pace in more than seven years. Freight demand remains very healthy on transatlantic routes and is strong on routes to and from Asia – having received a boost in trade from the economic stimulus measures put in place by China.

According to the IATA, freight volumes are still expected to grow in 2018, although at a slower pace than in 2017.

Alexandre de Juniac, IATA’s Director General and CEO said that “Demand for air freight grew by 5.9% in October.  And tightening supply conditions in the fourth quarter should see the air cargo industry deliver its strongest operational and financial performance since the post-global financial crisis rebound in 2010”

why use us air freight

Air Freight – Why use us?

When it comes to international shipping, there are many choices as to how to move goods.  The main decision to make is what kind of transport to use.  Deciding between ocean freight and air freight is an important choice. Here, we give you the reasons why its a good idea to choose air freight.  

Going by air is the most time efficient. Its the fastest shipping method which means that goods can be moved quickly and is usually the more cost effective for smaller cargo.

The routes for air freight are large and diverse.  Most destinations in the world are covered and relatively easy to get to.  Air offers reliable departure and arrival times – a large amount of flights depart daily and this means that the risk of delay is lower than that of sea freight, with container ships usually on a weekly schedule.

Supreme freight specialise in restricted and hazardous goods, and dangerous cargo by air.  These types of goods need more rigorous checks, and with air freight comes a higher level of security generally, airport safety controls are paramount meaning that the restrictions can be difficult to navigate.

We have a team of highly skilled experts at our Heathrow Airport office with a broad range of experience in handling all types of shipments. We can:

Arrange daily nationwide collections

Offer an Air Freight consolidation service

Offer Direct and indirect shipment options

Create house airway bills on your behalf

We offer very competitive rates and we can invoice in USD to avoid any high currency exchange rates.

Why not contact us and see what we can offer?

enquiries@supremefreight.com

02380 337778

air freight

Air freight rates climb in March

The latest figures from Drewry’s Sea and Air Shipper Insight report show that average ‘all-in’ air freight rates across 21 major east-west trade lanes increased by 7.9% year on year in March to reach $2.84 per kg. Prices were also up on February levels when airlines achieved an average price across the trade lanes of $2.73 per kg.

Drewry said that this time last year prices remained broadly flat compared with the previous month but added that current prices were still relatively low. The major airports reporting tonnage figure surged month-on-month displays that despite relatively low airfreight rates, there has definitely been growth in the trade. Capacity continues to rise, albeit at a slower pace than last year, although utilisation has gone up along with the rise in load factors.”

Major airports have seen double-digit rises, while key carriers also reported good tonnage increases – the biggest gains from Lufthansa, up 19% year-on-year, and American and United rose 24%. Meanwhile, airlines have reported that product launches are now no longer confined to the fourth quarter and perishables are in year-round demand.

Back in February, Drewry said it expected pricing to soften through March, due to lower volumes following the Lunar New Year holiday and the easing of congestion at the US West Coast ocean ports. However, beginning in April, rates should recover as air freight demand picks back up.

There was a two cent dip in prices paid compared with February, but month-on-month declines are expected at this time of the year and the rate of decline was much slower than that of both 2015 and 2016.

The improvement in airfreight prices comes as airlines have been seeing unusually high demand for the time of the year, with some suggesting this is down to a containership capacity shortage as shipping lines are in the process of launching a series of new alliances. Underlying demand also seems to be improving, while jet fuel prices have increased by around 30% compared with a year ago.

airfreight-offer

Free customs clearance on any air freight bookings this month!

For this month only, we would like to offer our loyal customers free customs clearance on any air freight bookings made!

We have electronic links to all UK airports. This means that our team can skilfully arrange customs clearance for your cargo. With knowledge of all customs clearance procedures, home use, CFSP, IPR, OPR and warehousing entries we can also organise BTI classification for your goods.

Our team of highly skilled experts at our office at Heathrow Airport have extensive knowledge of handling all aspects of air shipments, with daily nationwide collections and an air freight consolidation service. We are able to offer a range of direct and indirect shipment options from any airport worldwide.

Contact us now to take advantage of this great offer! Call 02380 337778 or email enquiries@supremefreight.com