Even as the Middle Eastern carriers experienced a slight decrease in cargo volumes in April 2023 owing to a recovery in passenger demand and other economic factors, plenty of tailwinds and developments in aviation this year underscore the soaring air cargo ambitions and might witnessed in the region.
As per the International Air Transport Association’s (IATA) May figures, the Middle Eastern carriers experienced a 6.8% year-on-year decrease in cargo volumes in April 2023. While this was a slight decline in performance compared to the previous month (-5.5%), the capacity increased by 10% compared to April 2022. While this could be attributed to the air cargo industry adjusting to the recovery in passenger demand that brings along belly capacity, several tailwinds however were noted by IATA like improvements in the Purchasing Managers’ Index (PMI) in April, indicative of global export orders and of China’s improving PMI as well. Also Read – Kuehne+Nagel is appointed official freight forwarding, logistics supporter of Team GB While the global goods trade increased by 0.2% in March, consumer and producer price increases have also moderated as per the Consumer Price Index (CPI) rates globally, IATA noted. Fastest growing airline markets Industry watchers claim that the Middle East is slated to be one of the fastest-growing airline markets in the world in the next decade owing to the gigantic economic transformations planned by many Gulf countries and others, and many having become key transit hubs for transporting people and cargo and owing to the growth of aviation in Africa and the runaway cargo successes built by countries like Turkey and several Gulf nations. Also Read – Transporting Live Animals: Ensuring Safety while Overcoming Challenges Lloyd Dsouza, Business Development Manager IMEA – Cargo, Chapman Freeborn, who took over this role in April, told the publication, “In the short term, the air cargo market in the Middle Eastern region may face challenges due to muted demand and the excess capacity that has been added to both air and ocean freight. This oversupply has resulted in a free fall in rates. However, it is important to view this as a temporary correction.” Also Read – North American market in corrective mood as supply outstrips demand Dsouza added that the medium to long-term outlook for air cargo in the Middle Eastern region appears promising, considering that government policies, partnerships, and moves towards greater integration and cooperation are expected to support cargo growth in the region and contribute to the development of efficient multimodal transportation networks and improved trade facilitation. “In the short term, the air cargo market in the Middle Eastern region may face challenges due to muted demand and the excess capacity that has been added to both air and ocean freight. This oversupply has resulted in a free fall of rates.” – Lloyd Dsouza, Chapman Freeborn Also Read – ACMI market continues to grow, come what may He said, “There are several high-level projects in action that indicate closer cooperation among Gulf Cooperation Council or GCC countries. These projects include the Middle East railway network, joint electric grid infrastructure, unified customs tariff, and infra-trucking (initiatives). These initiatives will contribute to improved connectivity and logistics capabilities within the region. The implementation of the Middle East railway network will enhance land transportation options, facilitating the efficient movement of goods across borders. The joint electric grid infrastructure will support sustainable energy solutions, reducing operational costs and environmental impact. The unified customs tariff will streamline trade procedures, reducing barriers and promoting smoother cargo flows. Infra-trucking initiatives will strengthen road transport infrastructure, enabling seamless connectivity within the region.” Affirming the same is Darren Baker, Regional Commercial Director – Middle East, Kerry Logistics Network, who said, “Despite the challenges faced by the Middle East in global trade during the first half of 2023, the economies of most GCC countries have remained strong. The UAE, KSA (The Kingdom of Saudi Arabia), and Qatar are expected to experience significant growth. While it is difficult to predict what will happen in the remainder of 2023, we anticipate a volume increase in Q3 and Q4. At Kerry Logistics, we are investing in our airfreight and express products by opening new airport gateway terminals that will complement our existing infrastructure across the Middle East. We are proud to be one of the pilot logistics companies to provide in-house security screening and build ULDs for our airfreight and express customers by 2023, as the GCAA (The General Civil Aviation Authority) in the UAE launches the Regulated Agent Programme. Kerry Logistics Middle East is also paving the way for emerging markets and serving as a global gateway for Africa.”
Source : stattimes