The International Air Transport Association (IATA) last week announced that Ethiopia’s air cargo market is the fourth fastest growing in the world.
IATA’s Airline Industry Forecast 2013-2017 released at the IATA annual Cargo Media Day held on December 11 in Geneva, Switzerland, shows that Vietnam is expected to be the fastest growing country for air freight volumes over the forecasting horizon with a compound annual growth rate (CAGR) of 6.6 per annum, followed by Bangladesh (5.7 percent CAGR), Brazil (5.5 percent CAGR), Ethiopia (5.3 CAGR) and Peru (5.2 percent CAGR).
Africa is forecast to be the fastest growing region over the forecast period with a growth rate of 4.0 percent CAGR. According to IATA, the fastest growing freight route for Africa is the inter-Africa market (5.3 percent).
Not far behind Africa are the Middle East and Latin America, both with a CAGR of 3.8 percent and the Asia-Pacific at 3.5 percent per annum, followed by Europe and North America at 2.4 and 2.7 CAGR respectively. The report indicates that the five largest international freight markets will be the United States, China, Germany, Hong Kong and the United Arab Emirates. Desmond Vertannes, global head of cargo with IATA, told The Reporter that the growing investment coming from Asia to Africa is boosting the air freight business in Africa. “China’s increasing Trade and investment in Africa is a big contributing factor. African exporters are finding new markets. The big contributor is the perishable cargo industry. The perishable industry, the flower, fish industry and the manufacturing industry contribute to the growth of the air cargo in Africa,” Vertannes said.