While global passenger traffic grew by 5.9 per cent in the month of December 2015 and by 6.1 per cent for the period from January to December 2015, global air freight markets were substantially weaker, coming to the finish line with a modest 2.3 per cent growth in total freight, according to the Airports Council International (ACI).
This modest growth was largely due to subdued growth in emerging markets and developing economies, along with a more modest recovery in advanced economies, ACI said. This growth is comprised of +2.5 per cent in international freight and +1.8 percent in domestic freight on an annualised basis. The faster-than-expected slowdown in Chinese imports and exports reflects weaker capital investment and manufacturing activity, which were key drivers for global economy over the last two decades.
Even though all regions remained in positive territory where air freight growth is concerned, only the Middle East demonstrated a strong increase of 10.7 per cent in 2015, while all other regions grew only marginally.
Regional markets
Africa
Total freight traffic in Africa increased by 1.7 per cent in December as compared to the previous year and by 3.2 per cent during the twelve months of 2015. On a country-by-country basis the results were mixed, even though the major air freight markets of South Africa and Egypt grew by 11.3 and 6.0 per cent respectively in 2015, a number of countries reported air freight declines, including Kenya (-5.1 per cent) and Nigeria (-2.6 per cent).
Geopolitical risks in Northern Africa coupled with lower commodity prices and high borrowing costs weighed heavily on several African economies, even though most countries are expected to see a gradual pickup of growth in the coming years, according to ACI.
Asia-Pacific
Total air freight traffic in Asia-Pacific saw a marginal increase of 0.7 per cent in December 2015, which is in line with weak freight growth over the course of the year (+1.5 per cent on an annualised basis). International air freight growth was especially weak during the twelve months, amounting to only 1.0 per cent.
China, accounting for almost a third of air freight traffic in the region, grew by a modest 3.3 per cent in total traffic (+3.3 per cent in domestic and +3.4 per cent in international freight). Japan grew by a marginal 0.9 per cent, where a 5.2 per cent decline in domestic freight was counterbalanced with 3.4 per cent growth in international freight.
Hong Kong remained flat at 0.1 per cent, while India posted robust 6.4 per cent in total freight, where both domestic and international traffic went up by 7.4 and 5.8 per cent respectively. Korea reported marginal growth of 0.4 per cent in total freight, where the 0.9 per cent growth in international freight was suppressed by a 3.7 per cent decline in domestic freight traffic. Taiwan went into negative territory with a 3.2 per cent decline in international and total freight.
Europe
Even though air freight in Europe grew by 2.8 per cent in the sole month of December 2015, this performance was well above the growth rate for the full year: 0.7 per cent due to weak growth of 0.9 per cent in international freight and a 3.9 per cent decline in domestic freight.
The largest European air freight markets of Germany, France and the Netherlands saw declines in air freight volumes of 0.2, 0.5 and 0.7 per cent respectively, while the United Kingdom remained flat at 0.2 per cent. The marginal growth at the regional level was achieved with the help of Belgium, Italy, Luxembourg and Turkey, growing by 8.6, 5, 4.2 and 3.5 respectively.
The four largest European cargo hubs experienced air freight declines in 2015: Frankfurt (FRA, -2.8 per cent), Paris-Charles de Gaulle (CDG, -1.4 per cent), Amsterdam (AMS, -0.7 per cent) and London-Heathrow (LHR, -0.2 per cent).
Latin America-Caribbean
Latin America-Caribbean was the only region that dipped into negative territory in terms of air freight in the month of December, coming in at -0.4 per cent. The performance was symptomatic of weak freight growth for the twelve months of the year (1.2 per cent). ACI noted that the region saw marginal growth in international freight (+2.2 per cent) and a 1.0 per cent decline in domestic freight over the course of the year.
Brazil—the largest air freight market in the region—experienced a major decline in air freight traffic of 9.1 per cent, with the decline in domestic freight being more pronounced than in international freight (-15.2 versus -3.8 per cent respectively).
At the same time, Colombia (+4.9 per cent) and Mexico (+7.8 per cent) kept their momentum as the key air freight growth drivers in the region. Similar growth rates in domestic air freight were achieved in the two countries (10.2 and 10.8 per cent respectively), but a higher growth rate in international freight was seen in Mexico (6.5 versus 2.4 per cent in Colombia).
The results for other significant air freight players in the region are varied: while Peru and Argentina reported air freight declines (-1.2 and -8.1 per cent respectively), Ecuador boasted solid 8.3 per cent growth.
On an individual airport level, the results are mixed: Some major airports experienced air freight increases, such as Mexico City (MEX, +50,000 tonnes), San Juan (SJU, +50,000 tonnes) and Bogota (BOG, + 32,000 tonnes). Others reported air freight traffic losses, such as in Campinas (VCP, -40,000 tonnes), Manaus (-30,000 tonnes) and Sao Paulo-Guarulhos (GRU, – 25,000 tonnes).
Middle East
Middle Eastern airports posted an outstanding 9.1 per cent growth in air freight for the sole month of December and 10.7 per cent growth on an annualised basis, which is over five times greater than the global growth rate.
In nine out of twelve months over the course of the year, the Middle East outstripped all other regions in international freight growth, and in ten out of twelve months the region outperformed the rest of the world in total freight.
At the country level, the United Arab Emirates reported a 4.4 per cent growth in international and total air freight, while the second largest air freight market, Qatar, reported impressive growth of 47.3 per cent in total freight. Over the course of the year, Doha (DOH) added an additional 463,000 tonnes of air freight, which represents an average of nearly 39,000 additional tonnes of air freight every month. Put differently, this impressive growth is equivalent to an additional 340 movements of a B747-400 Freighter at maximum revenue payload every month.
North America
North America, the second largest air freight market after Asia-Pacific, reported a 1.4 per cent growth in air freight for the month of December and 2.4 per cent for the full year. A number of airports reported substantial increases in air freight volumes on an annualized basis, including Chicago-O`Hare (ORD, +163,000 tonnes), Anchorage (ANC, + 132,000 tonnes), Los Angeles (LAX, + 98,000 tonnes) and Cincinnati (CVG, + 74,000 tonnes). Houston (IAH) lost 33,000 tonnes of air freight as compared to the previous year. With regard to Memphis (MEM) and Louisville (SDF), the two major cargo hubs in the region, both reported growth of 0.9 per cent and 1.9 per cent respectively.
