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IATA global cargo update
The document discusses the state of the global cargo market as of October 2015, highlighting modest economic growth but noting vulnerabilities in emerging markets and a decrease in cargo volume compared to the end of 2014. It emphasizes the need for modernization in air cargo processes, including the adoption of electronic air waybills (e-awb), to improve efficiency and stay relevant in a changing industry. The document outlines initiatives to boost e-awb penetration rates and the importance of collaboration between airlines and freight forwarders to achieve these goals.
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IATA global cargo update
- 1. To represent, leadand serve the airline industry SAAFF congress: Global cargo update 14th October 2015, Durban Sidy GUEYE, Regional Director Africa – Airport, Passenger, Cargo and Security (APCS)
- 2. Key topics Economicoutlook and traffic performance – Surf’s up or down? Demand environment and drivers – From strength to… ? Payload - Capacity bloat or crunch? Revenues, costs and profits – Can lower yields lead to higher profits? 2IATA Economics www.iata.org/economics
- 3. IATA Economics www.iata.org/pax-forecast3 0% 1% 2% 3% 4% 5% 6% US Japan Euro Area ASPAC excl Japan Latin America Middle East North Africa Sub- Saharan Africa World 2013 2014 2015 % change over year Source: EIU Viewswire Forecast for GDP growth
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- 18. Key points ↗ Modestgains in global economic growth expected in 2015 but vulnerabilities in emerging markets present downside risks ↗ On aggregate, the cargo market has shrunk this year compared to the levels achieved at the end of 2014 ↗ Inventory overhang in US and a drop in semi-conductor shipments point to weakness in key air freight demand drivers ↗ Reduced freighter aircraft utilization and plunging load factors are other indications of underlying demand weakness ↗ Relative to oil prices, yields have held up but lower load factors and aircraft utilization may compromise profitability IATA Economics www.iata.org/pax-forecast 18
- 19. Air cargo modernization Expectations lower than 2014 projections Air cargo still supports expansion of the global economy However time change, markets evolve, regulations change and customer expectations rise: Need for the industry to transform in order to stay relevant and to position itself to seize opportunities while delivering a safe, secure, robust, profitable and sustainable industry
- 20. Air cargo modernization Processes and technology modernized very little in the last decade Need to catch up to improve cumbersome procedures Two pillars: enable e-freight network and removal of core transportation documents
- 21. Air cargo modernization E-freight: take the paper out of the process and to replace it with exchange of electronic data and message E-AWB: first step towards e-freight e-AWB penetration rate in AFI: 44.3% (ET, KQ and SA) – below 2015’s industry target Penetration rate in SA: 63% (outbound) – 34% (total)
- 22. Air cargo modernization Launching of e-AWB 360 campaign to boost penetration rate The core message of e-AWB 360 is that e-AWB will become the preferred means for shipping cargo to all destinations from the e-AWB 360 Airports effective a Go-Live date (march 2016 for JNB) Objective: 100% outbound JNB airport
- 23. Air cargo modernization FF in SA: 41.5% of FF have joined Multi lateral Agreement (MeA) 66% of MeA FF are doing e-AWB The Multilateral e-AWB Agreement provides a standard industry agreement that airlines and freight forwarders can sign once with IATA, and start doing e-AWB with other parties to the agreement SA FF encouraged to join MeA (http://www.iata.org/whatwedo/cargo/e/eawb/Pages/multilateral-forwarders.aspx) Conduct workshop in 2016 for forwarders who have joined MeA to help them implement e-AWB
- 24. To represent, leadand serve the airline industry THANK YOU 24