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The Economic Downturn And The Impact On Air Cargo

The Economic Downturn And The Impact On Air Cargo. Ram C Menen Divisional Senior Vice President Cargo. Air Cargo India. Mumbai. 2nd February 2  1 . skycargo.com. Economy Is Bouncing Back!!. World air cargo traffic growth has been resilient, averaging 6.5% per year since 1970.

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The Economic Downturn And The Impact On Air Cargo

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  1. The Economic Downturn And The Impact On Air Cargo Ram C Menen Divisional Senior Vice President Cargo Air Cargo India Mumbai 2nd February 21 skycargo.com

  2. Economy Is Bouncing Back!!

  3. World air cargo traffic growth has been resilient, averaging 6.5% per year since 1970 Source: Boeing : 2008 world air cargo traffic data

  4. Since 1978, 5.8% Since 1988, 4.8% Since 1998, 3.4% Economic Cycles Technology Market Collapse, Terrorists Attacks, SARS, Gulf War II Recession 1st Oil Induced Economic Crisis 2nd Oil Induced Economic Crisis Oil Shock, Financial Crisis Asian Economic Recession Gulf War I Recession Source: Boeing : 2008 world air cargo traffic data

  5. World Containership and Air Cargo Traffic Have Been Affected in 2009 World air cargo traffic, RTKs, billions World maritime dry cargo traffic in containers, RTKs, billions World air cargo traffic 2008 vs. 2007: -5.9% 2009 vs. 2008 -15.8% Comparative traffic growth rate 1987-2007 1997-2007 Air cargo 5.6% 4.1% Dry cargo in containers 9.9% 9.8% World containership traffic 2008 vs. 2007: +5.7% 2009 vs. 2008 -14% Source: Boeing : world air cargo traffic data

  6. World Air Cargo Declined By 3.4% in October 2009 Relative to Traffic Levels of October 2008 Air Cargo Revenues Were Down By40% in H1 2009 Monthly Percentage Change Over Prior Year Air Cargo Declined By 10.1% In 2009 Sources: U.S. Department of Commerce, AAPA, AEA, ATA, and the Boeing World Air Cargo Forecast.

  7. A Lot Of Capacity Has Been Parked… AnEstimated 10% of Global Air Cargo Capacity Has Disappeared…… Source: Ascend database, Boeing as of January 2010

  8. Since 1978, 5.8% Since 1988, 4.8% Since 1998, 3.4% Global Economy Has Now Reset Itself Technology Market Collapse, Terrorists Attacks, SARS, Gulf War II Recession 1st Oil Induced Economic Crisis 2nd Oil Induced Economic Crisis Oil Shock, Financial Crisis Asian Economic Recession Gulf War I Recession RESET > REBOOT Source: Boeing : 2008 world air cargo traffic data

  9. Airfreight Rises Sharply During Q4 2009 Source: IATA Economics

  10. Inventory To Sales Ratio

  11. Freight Growth By Region Source: IATA Economics

  12. World Trade (All Modes) is Forecast to Resume Growing at the pre-2002 Trend in 2010 Source: IHS Global Insight, September 15, 2009

  13. Trends

  14. The Inventories Push US GDPUp By 5.7% The U.S. economy grew at its fastest pace in six years in the fourth quarter, expanding 5.7 percent as companies scaled back their attempts to cut inventories, the U.S. Commerce Department said Friday the 29th of January 2010.

  15. Japanese factory output +2.6% • German retail sales figures +2.8% • UK consumer index remains +27 • Indian GDP growth forecast +7.3% • US stock market has been stable for the past 11 months and is expected to stay this way during 2010

  16. We Are Not Out Of The Woods Yet –There Will Be Challenges…. Balancing the global economy Dealing with environmental and climate change issues sensibly Dealing with paradigm shift in retail markets: China, India vs. The World Newly developing consumer markets

  17. Air Cargo Will Grow Airfreight will continue to grow with the main driver being the advancement in the science of supply chain management and, within this, inventory and logistics management. We need to get the air cargo business back to sustainable profitability in order to ensure Investments to bring growth capacity back to the market

  18. More Efficient 747-400 Freighters are Replacing 747 Classic Freighters 747-400 series in majority 279 260 44 747F Classics have been taken out of service since January 2009 Source: Ascend database, Boeing as of January 2010

  19. Focus Has To Be On: Business partnerships and relationships Looking for operational efficiencies Provision of sustainable capacity to ensure right capacity, at the right time, at the right place to allow unconstrained growth Cost efficiency thru better transparency and transactional efficiency: “e-Freight”

  20. Leveraging Technology Will Be Key

  21. e-Freight is the way forward…

  22. IATA e-freight: Benefits Better for the environment IATA e-freight will eliminate more than 7,800 tons of paper documents, the equivalent of 80 Boeing 747 freighters worth of paper. Up toUS$4.9 billionannual net benefits across the supply chain

  23. LookingAhead • Asia Pacific is set to continue to lead the way with China and India in the forefront of growth • Growth is also set to be above average in the Middle East, Africa and Latin America, however, it will be slower in more mature markets like Europe and Japan

  24. History Repeats Itself??

  25. Thank You skycargo.com

  26. Economic Growth in 2010 Is Likely To Remain Geographically Uneven Source: IATA Economics: www.iata.org/economics

  27. Regional Airfreight Data Reflects The Uneven Growth Data Source: IATA Economics: www.iata.org/economics

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