The Middle East will lead global air cargo growth by 2018 with the UAE set to become the third-largest market worldwide, the International Air Transport Association said yesterday.
Globally, air freight growth is estimated at 4.1 per cent over the next five years. Emerging economies, particularly in the Middle East and Africa, will lead growth, according to Iata.
“[However] geopolitical concerns, volatility of oil prices, and competition from rail and sea could also affect this forecast,” said Tony Tyler, Iata’s director general and chief executive. “The air cargo industry certainly cannot afford to be complacent.”
The airlines’ association expects the region to post a compound annual growth rate of 4.7 per cent between this year and 2018. The UAE will rank after the United States and China and, in the process, surpass Germany, Hong Kong, Korea and Japan, according to the statement.
Cargo volumes at Abu Dhabi International Airport were up 16 per cent year-on-year for the first six months of this year as Etihad Airways boosted its route network. Last year, Dubai International Airport ranked the fifth-busiest worldwide for cargo handling.
Surging aircraft traffic through the UAE is adding thousands of tonnes of extra cargo capacity every day. Restaurants, hotels and other fresh produce importers are reaping the benefits of the trend. At the same time demand is rising for warehouses around airports in Dubai and Abu Dhabi as the fresh produce logistics industry swells.
Iata also regards Qatar as another significant growth country. It expects compound annual growth rate to be 5.7 per cent, making it the sixth-fastest growing country. It predicts that Qatar will add 361,000 tonnes to take its total freight to 1.48 million tonnes.
Despite starting from a slow base, Iran will also experience significant growth between 2014 and 2018. Iata forecasts the country’s compound growth at 7 per cent per annum. It expects the country to add 44,000 tonnes of freight by 2018.
For international routes, Iata said that the fastest-growing segments will be between the Middle East and Asia at 6.2 per cent per year, followed by North America to South America at 3.9 per cent and Europe to southern Africa at 3.8 per cent.
selgazzar@thenational.ae
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