Global demand for air freight, measured in freight ton kilometers, increased 14 percent in March compared to a year ago, according to the International Air Transport Association (IATA).
This marks the largest growth since October 2010. Freight capacity also grew compared to 2016, increasing 4.2 percent. Actual growth was 11 percent for demand and 3.7 percent for capacity when adjusted for last year’s leap year,.
The increase is attributed to a spike in trade, especially for silicon materials used in electronics.
Asia-Pacific and Europe witnessed the highest growth, collectively accounting for two-thirds of global demand.
In North America, international freight increased 14.2 percent, its highest level in two years.
Latin America was the only region to see the market contract, decreasing 4.2 percent. The region has seen a drop in volume for 26 of the past 28 months.
“March capped a robust first quarter with the strongest year-on-year air freight growth in six-and-a-half years,” IATA CEO and Director General Alexandre de Juniac said. “Optimism is returning to the industry as the business stabilizes after many years in the doldrums.”
There still are improvements that must be done, Juniac said. Both labor and fuel costs have increased. Modern technology needs to be implemented to reduce costs and increase efficiency.