Industry players expect air cargo to hit 2007 peak this year

SEVERAL participants at the Air Cargo Management Group's (ACMG) annual workshop have taken a bullish stance on the strength of the air freight sector, with ACMG managing director Bob Dahl saying that the industry would revisit its 2007 peak by the end of the year.

The positive outlook could help alleviate flagging Boeing 747-8 sales, which have fallen far short of expectations. Officials at the Seattle-based manufacturer however remain cautious.

Boeing cargo marketing director Tom Hoang told the Seattle Times that current projections were highly optimistic. The surge in air freight towards the end of last year, he said, was largely driven by a Christmas inventory swing, while the reduction in capacity among ships operators, Mr Hoang added, had also contributed to the rise. The Boeing executive went on to warn that any broad recovery across the freight industry would likely dampen current air cargo traffic estimates.

Atlas Air CEO Jason Grant, operator of the world's largest fleet of 747 freighters, echoed Mr Dahl's optimism. Atlas, he said, foresaw a long-term trend whereby companies would continue to retain smaller inventories, which in turn would favour air shipments.

Mr Grant, whose company recently ordered a dozen more 747-8s, also said he expected Chinese manufacturing to migrate inland, which again, would give air transport an edge over shipping.

(Source: www.schednet.com)