Head of Cargo
2011, IATA and its supply chain partners will be carrying out several
exciting initiatives to build a more competitive supply chain:
Having put the e-freight network in place,
the focus is now on volumes. With the collaboration of our supply chain
partners, 2011 will see a significant ramp up in e-freight adoption,
from 2.8 percent of shipments on capable trade lanes to 10 percent by
the end of the year. E-freight also enhances the provision of security
data for regulators, helping authorities intelligently manage freight
Secure Freight has taken on new relevance in
the wake of the October 2010 security incidents. The initiative, which
describes the processes and tools needed, implements a secure supply
chain approach and is currently being piloted in Malaysia. Egypt will
introduce the system this year. Two additional countries will be encouraged
to adopt Secure Freight principles during the course of the year.
Cargo 2000 provides a key measure for electronic
standards between forwarders and airlines, identifying errors in data
provision, delays in transmitting messages and accuracy. IATA will look
to develop criteria of common service standards within the cargo ground
handling community in 2011, collaborating with major ground handling
companies to do so.
2010 was a year of recovery for air cargo.
While concerns over a possible double dip phenomenon continue to recede,
there are marked differences in the rates of economic growth between
and within regions. We are still closing the
books on 2010, but growth beyond previous peak levels is now evident.
Cargo revenue for 2010 equaled the previous peak in 2008; yields improved
by 7 percent and overall volumes were up 18.5 percent as per our December
outlook. Cargo growth made a significant contribution to the industry’s
$15.1 billion profit. A black number on the bottom line is good news,
but we must also remember that this is just a 2.7 percent margin.
We do not track data on business performance
by segment. Information on industry performance is available on the
cargo e-chartbook. In 2010, air cargo led the recovery of the air transport
industry as a whole. Consumer products from Asia were the initial catalyst
as inventory re-stocking took place, followed by export-led growth of
high-value products from the USA and Europe.
More information is available in the IATA cargo
Looking ahead the sharp upswing in 2010 will moderate
in 2011. Profits are expected to decline by 40 percent to US $9.1 billion
with margins shrinking to 1.5 percent. Sustainable profitability is
the challenge. Much of the industry’s fortune depends on global
economic performance. However, we can improve performance by ensuring
a secure, competitive, reliable and efficient supply chain. IATA, in
partnership with freight forwarders, shippers, ground handlers, and
government customs authorities, is working to build such a supply chain
through greater adoption of e-AWB and e-freight, expanding the use of
Secure Freight principles and measuring performance through the Cargo
The key to our success in building a better supply chain is partnership.
IATA must work closely with all partners to maintain the industry’s
competitiveness and its crucial role in global trade. One opportunity
to come together and determine solutions to key challenges facing air
cargo is the World Cargo Symposium. Taking place from March 8-10 2011
in Istanbul, the symposium, named “Connecting the World,”
will reflect the importance and potential of air freight. Over 700 delegates,
including top cargo executives and key decision makers from airlines,
forwarders, ground handling agents, customs, airports, shippers and
vendors are expected to participate.
will also be attending Air Cargo Europe from May 10-13, 2011, and other
TIACA and FIATA tradeshows, in an effort to maintain the industry engagement
critical to our collective success.