The global air freight logistics industry’s revenue is predicted to rise in the five years through 2018, mainly driven by expansion in newly industrialized countries, according to an IBISWorld report.
Manufacturing output in China and other Asian countries is anticipated to improve from 2013 to 2018, which will contribute to gains in freight volume transported during that period, the report said. Demand for merchandise is also forecast to increase in newly industrialized economies, in turn boosting demand for air freight logistics. Furthermore, the report said it is probable that freight service providers will raise the average fare for their services in the next five years, adding value to sales.
The industry, which primarily transports commercial cargo and time-sensitive freight and mail, is expected to rise 2.9 percent in this year alone, the report added.
“The industry is essential to international trade, granting it a degree of demand stability,” explained Lauren Setar, IBISWorld industry analyst, in a written statement.