Air cargo turns around in 2010

After a tumultuous period for air cargo carriers, things are once again looking up, and New Zealand airfreight operators are leading the way. Singapore Airlines Cargo’s New Zealand manager, Maurice Bearsley, explains why.

The air cargo industry is an important bellwether for New Zealand’s economy. If manufacturing and produce are up, air transport benefits first. Conversely, when dairy products or meat exports drop off, we take the first barrage of punches.

Throughout 2008 and 2009, the airfreight industry on a worldwide basis took a big hit. To many air cargo operators it felt like cargo just stopped, or at best, freight simply halved. As airlines parked planes and scaled back operations, we Kiwis held our breath. It was a tough time for carriers, not only in New Zealand, but around the world – luckily we are already seeing a turnaround in 2010.

This year, New Zealand airfreight operators will remain better off than their international
counterparts. Most perishable goods, including meat, seafood and produce, held much of their ground last year and are starting to show strong gains this year. The perishable industry continues to insulate much of New Zealand’s air cargo industry from the continuing global crisis.

Since October 2009, air cargo has recorded double-digit increases in goods moving in and out of the country, and operators are seeing a very good turnaround in business. Through March and into the future we expect to see this growth continue and to record load increases year on year across the industry. North Island perishables are exporting well – meat, seafood and milk products have long been performers for not only the cargo industry, but also New Zealand’s economy.

What would benefit the industry most would be a sharp increase in North and South Island manufacturing, which would generate significant additional revenue for air cargo carriers. New Zealand’s lack of manufactured dry goods shipping was at the core of the air cargo downturn.

Statistics New Zealand’s Overseas Merchandise Trade Report for January 2010 sheds some light on what air cargo carriers can expect. Compared with January 2009, imports and exports still registered slight declines, but were held by rises in dairy products. Mechanical machinery and equipment, and electrical machinery and equipment,
led the imports decline. Regardless, import trends have increased 4.4 percent since Since October 2009, air cargo has recorded double-digit increases in goods moving in and out of the country, and operators are seeing a very good turnaround in business September 2009, and indicate that total merchandise exports appear to have been rising in recent months.

Overall, 2010 isn’t going to be like 2004 when aircraft bellies were full and air cargo companies were hunting for places to fit all that needed to be shipped. We don’t expect to see shipping at those golden levels for some time, but compared with the last two years, today’s business outlook is positive.

Should New Zealand’s manufacturing industry experience significant growth and the perishable industry continues to buoy loads, air cargo companies can expect major increases in their loads.

For further information, visit www.siacargo.com