Asia to lead surge in air cargo volume

Dubai: Air cargo is set to grow worldwide by an average of 5.3 per cent annually between 2006 and 2010, the International Air Transport Association said.

Much of the growth will take place in Asia, with intra-Asia routes accounting for 8.3 million tonnes of cargo, or 26 per cent of the global total by 2010, said Giovanni Bisignani, IATA director general at the World Cargo Symposium in Mexico City.

Challenges

"That is good news, but it also presents challenges. China alone will account for 30 per cent of the industry's growth and we must work particularly hard to overcome potential infrastructure bottlenecks. IATA's role in promoting global business standards will be critical."

The director general also said that the dynamic growth in one area would pose unique challenges, such as how to add capacity to meet outbound peak demand from Asia, while effectively utilising the equal inbound capacity."

Both cargo and commercial operations are emerging from a slump since 2001 and are expected to finally post a profit of $2.5 billion this year. "This is good news, but a long way from the 7 to 8 per cent return that the industry must generate to cover its cost of capital," Bisignani said.

IATA, which represents more than 250 airlines worldwide, is promoting efficiency improvement programs to improve carriers' bottom lines in the $55 billion global air cargo industry.