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 (Q3 2008)
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After reasonable Q1 very severe deterioration in business environment for cargo in Q2 and July;
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During Q2 freight volumes shrank -0.6%, after growth of 4.4% during Q1;
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Forward looking indicators point to further freight volume weakness in months ahead;
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Cargo yields rose during Q2 but not enough to offset one-third rise in fuel price;
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Ocean freight yields falling despite rise in bunker fuel price, improving competitiveness against air freight;
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Much needed improvement in fuel efficiency from new twin aisle aircraft, but excess capacity emerging;
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Majority of airlines making losses during first half of 2008.