The global air freight market continues to witness declines
in tonnage. According to IATA, year-to-date through September, tonnage is down
2.6%. However, Middle East carriers have been able to defy this downward spiral
and have reported a 14.1% increase in tonnage for the same period. What is
behind this apparent success?
A number of reasons could be affecting this trend, such as the
Middle East’s geographic location. According to Ram Menen, Emirates SkyCargo’s
Senior Divisional Vice President of Cargo, “In eight flying hours, we have
access to 5.8bn people in the world. Two-thirds of that is just east of us, and
two-thirds of that is India and China, which are the factories of the world.”
In order to support this growth, the region, particularly
the UAE has invested heavily in infrastructure ranging from new and expanded
airports to distribution center facilities to port enhancements. With the
majority of Middle East cargo transiting through Dubai, Dubai Airports recently
announced its $7.8bn Strategic Plan 2020 to continue the cargo growth. The plan
calls for expansion and renovation of Dubai International Airport’s cargo
facilities and to build a new transshipment facility for freight transferred
between Dubai International Airport and Dubai World Central.
The large airlines for the region – Emirates, Etihad, Qatar
and Saudi – have all enjoyed a good 2012. Emirates, for example, reported a
record third quarter for cargo – 93,560 tonnes – an 18% increase from third
quarter 2011. It appears fourth quarter may be another record breaking quarter
for the company as October figures indicate another record – 32,500 tonnes – a 15%
increase from October 2011.
In general, the airlines are enjoying newer fleets and new
routes around the world. However, the geographic location of the Middle East
also bodes well for air-sea options. According to industry analysts, Emirates
is the largest air freight carrier of air-sea cargo and derives 20% of its
cargo volume from sea volumes transshipped to air at its Dubai hub.
Particularly for those shippers that ship between India and Southeast Asia to
Europe or vice versa may find this a viable option.
The uncertainty in the global economy is helping to drive
changes in trade lanes. While airfreight throughout much of the world is in
decline, the Middle East appears to be doing well. Combined with its geographic
location as well as infrastructure improvements, solutions such as air-sea may
be reasonable transportation options for shippers that are interested in the
India/Southeast Asia - Europe tradelane as well as Africa – Europe and/or Asia.
