In November of last year, reports showed that more and more people were looking to air freight to supply their demands for almost instant delivery or gratification of e-commerce products. With an 8.8% increase against the previous year, compared to the earlier 5.8% rise in the 2015-2015 period. IATA reports that this could indeed changes the way e-commerce supply chain works and puts the air freight industry on the path to being the strongest contender for financial and operational performance. With air freight demands on the rise coinciding despite passing a cyclical peak, it continues to maintain its performance progression.
The increase in air freight demands is based on the fast the e-commerce industries have picked alongside the need for instantaneous delivery of goods, making the global e-commerce industry steady with ongoing customer confidence especially in return purchases based on good buyer-consumer relationships. This correlates to airlines reporting back an year on year rise in demands, making these claims robust, making the year 2017 a record year since 2010. With consumer buyer confidence in mind, the year 2018 is staged to a great year for e-commerce businesses and the industry hand in hand.
Air freight operators in the Asia Pacific region have reported freight volumes increasing by 8.1% as well as a capacity increase of 1.2 per cent in November of 2017 compared to the same period of 2016. Furthermore, Chinese and Japanese exporters have also reported a rise in demand for product exports with the rise in economic stability in Europe as well as continued US economic performance. Having said this, North American air freight demands have also risen to 9.6% in volume, and 3.9% in capacity. European air freight operators have also reported that there was a 9.9% increase in volume, and 4.7% increase in capacity.
In Australia, air freight demands are also on the rise, with August of 2017 reporting a 10.7% hike in air freight demands in volume, and a 5.2% increase in capacity. The air freight demand growth and consistency is hand in hand due to the global trade improvements, with global trade exports out of Australia maintaining a steady 6 year increase in trend. With companies restocking quickly with the help of a healthy global trade economy and maintaining the momentum of process modernization and improving customer-seller-supply chain relations.
Having said so, the year 2018 is paved to being another great year for air fright operators.