Updated: 28 August 2017

Airfreight Demand Growth Outpaces Capacity Growth

  • Airfreight demand growth is at its highest since 2010
  • First half of 2017 saw 10.7% increase in airfreight demand compared to the same period in 2016
  • Global capacity expansion averages 5.2% in June against 11% growth in demand.

Airfreight demand growth in 2017 has tripled its five-year average (2010 - 2015) of 3.9%, with Asia Pacific and Europe accounting for two-thirds of this increase. Capacity growth, on the hand, has fallen behind demand growth since January 2017 for the first time in ten years. 

The tight situation to expected continue well into Q4 and beyond as we move into the festive peak period.

Total freight traffic market shares by region of carriers in terms of Freight Tonne Kilometre (FTK) are: Asia-Pacific 37.4%, Europe 23.5%, North America 20.7%, Middle East 13.9%, Latin America 2.8%, and Africa 1.6%.

Recent demand growth outpaced capacity, allowing load factor to strongly recover.


Managing This Capacity Crunch

To ensure that your supply chain is undisrupted, we recommend that you:

  • Plan ahead as much as possible to avoid delays and high charges.
  • Go through your inventory plans with your Kuehne + Nagel representative to map out your freight needs for the next quarter.
  • Use KN Login to actively monitor your shipments.
  • Use KN FreightNet for freight bookings to reduce administrative time incurred from manual bookings.

Source: IATA eChartbook; IATA Monthly Traffic Results; IATA Air Freight Monthly Analysis; Seabury Consulting analysis (June 2017).

Contact our supply chain specialists to discuss your inventory plans for the next quarter.