Cargo traffic forecasts from the International Air Traffic Association (IATA) show that demand for air cargo space out of China is set to increase this year leading to higher costs for shippers as airlines resist adding capacity despite an increase in factory output. It is estimated that air freight will grow by six percent to 2008.
“We are very concerned about the inbound leg,” says Daniel Desmaison, Air France ’s regional manager China. “The decrease of inbound cargo and the decrease in yields have at times driven the airline close to break even.”
British Airways World Cargo senior vice-president commercial, Keith Packer says, “The trade imbalance and weak demand into China is a major issue and has a significant negative impact on the feasibility of adding freighter capacity to meet outbound demand.”