Purchasing Transformation

Earlier today, The International Air Transport Association (IATA) released international scheduled traffic results for December 2008 (as well as the full year). And the results for December were not even close to what was expected.

“The 22.6% free fall in global cargo is unprecedented and shocking. There is no clearer description of the slowdown in world trade. Even in September 2001, when much of the global fleet was grounded, the decline was only 13.9%,” said Giovanni Bisignani, IATA’s Director General and CEO.”  Air cargo carries 35% of the value of goods traded internationally.

For the full year international cargo traffic was down 4.0 percent (as compared to the 4.3 percent growth of 2007). IATA accounts that the collapse in the airline industry’s freight business is a reflection of 20-30% declines in export and import volumes (which have been reported across Asia, North America and Europe).

In a forecast for 2009, IATA expect airlines/carriers to lose USD 2.5 billion and concluded that there is dire need form major structural changes to the industry. What this will mean to supply chain professionals is yet to be seen (Ariba’s Rachel Rutkoski recently posted on this subject on Supply Excellence), but ensuring that you’ve got your risks covered; especially when it comes to shipping/cargo/logistics; will be a must-do in everyone’s 2009 playbook.

This entry was posted on January 29, 2009 at 5:31 pm and is filed under Global trade, Logistics, Supply Chain Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.