Air Cargo is a US$50 billion business that transports 35% of the value of goods traded internationally and a critical part of the airline business which, as a whole, is the US$490 billion heart of a value chain that supports 32 million jobs and US$3.5 trillion of economic activity. It is an important industry that is critical to global business.
IATA’s job is to improve our industry’s competitiveness. Last year we saved US$5 billion by cutting airport and ANSP charges and improving fuel efficiency. Simplifying the Business is delivering results. E-freight is a reality and our US$310 billion settlement system is the industry’s financial backbone. CASS is an important part of the settlement system. In the last four years the CASS network grew 60%. It now covers 72 countries, handling almost half the business - US$23 billion with a collection rate of over 99.994%.
IATA Cargo Priorities
Our goal is to bring simplicity and efficiency to the air cargo industry. We aim to achieve this by delivering the following challenging agenda:
IATA Cargo Economic Watch (2008 Q4)
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Recession is now the main threat to the air cargo industry over the next 1-2 years;
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Air freight volumes are falling sharply and a decline in world trade is now forecast for 2009;
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Forward-looking indicators such as business confidence and semi-conductor shipments turned sharply negative;
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Cargo yields rose in Q3 reflecting fuel costs but that is likely now to reverse;
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Spot fuel prices now back down to 2005-6 levels but hedging and rise of US$ is delaying cost benefits;
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Cargo load factors falling sharply but increasing numbers of aircraft parked and aircraft deliveries now falling;
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Incredible 92% fall in Baltic Dry Index for bulk commodities. Container shipping yields down 10% in September;
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Confidence of heads of cargo in future profitability declined sharply in September survey
Read the complete report in the Cargo e-Chartbook