India has emerged as the second fastest growing air cargo market after the Middle East and is expected to grow at a compound annual rate of about seven per cent over the next five years, an IATA forecast said today.

India would also be among the ten largest international freight markets by 2018 led by the United States supplying 10,054,000 tonnes and China with 5,639,000 tonnes, the International Air Transport Association’s (IATA) Industry Forecast 2014—2018 shows.

It estimated that “the second fastest—growing market, India, will experience a compound annual growth rate (CAGR) of 6.8 per cent to add 622,000 extra tonnes.”

Apart from the US and China, the remaining eight largest international freight markets would be the UAE (4,974,000 tonnes), Germany (4,763,000), Hong Kong (4,648,000), Republic of Korea (3,487,000), Japan (3,480,000), the United Kingdom (2,808,000), Chinese Taipei (2,350,000) and India (2,223,000).

Noting that global freight volumes were expected to rise annually by 4.1 per cent over the next five years, it showed the largest air freight traffic share last year was within Asia Pacific (21.6 per cent), followed by Europe—Asia Pacific (12.3 per cent) and North and Mid—Pacific (10 per cent).

Observing that air cargo remained vital to the global economic system, IATA chief Tony Tyler said more than $6.8 trillion worth of goods, equivalent to 35 per cent of total world trade by value, would be transported around the world by air in 2014.

However, he warned that despite the positive picture, “the overall risks to the economic outlook, and therefore to air freight, remain towards the downside. Trade protectionism is a constant danger“.

“Geopolitical concerns, volatility of oil prices and competition from rail and sea could also affect this forecast. The air cargo industry certainly cannot afford to be complacent,” Tyler said.

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