UAE to have third largest air cargo market by 2018
by Andy Sambidge
The UAE will have the third largest international air cargo market in the world by 2018 according to a new report by the International Air Transport Association (IATA).
IATA's Airline Industry Forecast 2014-2018 forecast that the UAE will see freight totalling nearly five million tonnes in 2018, behind only the United States (10,054,000 tonnes) and China (5,639,000).
Its market will be bigger than Germany (4,763,000), Hong Kong (4,648,000), Republic of Korea (3,487,000), Japan (3,480,000), the United Kingdom (2,808,000), Chinese Taipei (2,350,000) and India (2,223,000), the figures showed.
The report added that another notable growth country will be Qatar with a compound annual growth rate (CAGR) of 5.7 percent, making it the sixth-fastest growing to take its total freight tonnes to 1,484,000.
IATA said the United States, China and the UAE will each be adding more than 1 million additional tonnes of freight in 2018 compared to today.
The fastest growing international routes will be between the Middle East and Asia, at 6.2 percent per year. Within Middle East (4.6 percent), North America to South America (3.9 percent), and Europe to Southern Africa (3.8 percent), will also grow strongly.
The Middle East is forecast to be the fastest growing region over the forecast period with a CAGR of 4.7 percent, IATA added.
Globally, its Airline Industry Forecast 2014-2018 showed that international freight volumes are expected to increase at a CAGR of 4.1 percent over the next five years.
"Air cargo remains as vital to the global economic system as ever. This year, more than $6.8 trillion worth of goods, equivalent to 35 percent of total world trade by value, will be transported around the world by air. So it is welcome to see a forecast for a return to growth for the air cargo sector after several years in the doldrums," said Tony Tyler, IATA's director general and CEO.
"Nevertheless, despite the positive picture, the overall risks to the economic outlook, and therefore to air freight, remain towards the downside. Trade protectionism is a constant danger... The air cargo industry certainly can not afford to be complacent," added Tyler.