2014 Air freight market analysis
Recently, the air freight transportation market was analyzed to see what kind of profit margin the industry as a whole may be looking at for the year 2014. The findings were that January had a growth of 4.3%, and February followed up with a 2.9% rate of growth. This was up over the same month last year. During the same two months in 2013, the market saw 1.4% overall growth, but 2014 has shown a 3.6% growth, more than doubling the overall growth of last year's numbers.
While the fundamental drivers of growth remains broadly positive, the growth moderation during February was likely due to temporary factors. World trade factors likely contributed to approximately 2% out of the 2.9% seen during February. The growth probably declined slightly because of lower than expected rises in inventory-to-sales ratios. However, these ratios are pointing to stronger sales and output in the near future.
The analysis of the region is showing European carriers to be benefitting from the improved demands within the Eurozone (an increase of 5.5%). Asia-Pacific carriers have little to no change when compared to the same time frame during 2013. Most growth factors have remained near where they were two years ago, and only two areas seeing a decline from decreased demand: Africa and Asia-Pacific.
Overall, the air freight transportation market remains positive, even with a slower trade growth than was previously expected. While these trade growth expectations may limit future growth to some extent, stronger performance than was seen in 2013 is still expected.