Air Cargo Feasibility Study between Brazil and U.S

Air Cargo Market USA

The industry includes businesses that provide air transport of commercial and private cargo, on either scheduled or non-scheduled routes. It includes air transportation that is part of a national postal system but excludes door-to-door courier services.

The industry has returned to sustainable growth in 2011, after an excessive bounce back in 2010 and an extreme drop in 2009. The industry transports mainly commercial cargo and is dependent on the level of international trade between countries as well as the transport of time-sensitive freight and mail. During the global downturn of 2008 and 2009, demand for all goods and services weakened around the world. Overall, demand for airfreight declined considerably because of poor economic conditions. However, companies around the globe replenishing their stock in 2010 caused a rise in demand for cargo. This allowed industry revenue and profit margins to rebound. Over the past five years to 2011, total industry revenue is expected to grow at an annualized rate of 4.6% (Wald, 26-37).

Prior to 2008, industry sales increased each year from 2006, supported by strong economic growth in developing countries. However, demand for airfreight began to level off during 2008. Extremely high fuel prices resulted in higher airfares and demand for international trade weakened. Companies had to cut prices to attract customers, which put downward pressure on income. Cargo airlines saw the light at the end of the tunnel in 2010 as profit finally improved away from the red zone. An emerging trend in the last five years has been the progress made on open skies agreements between two countries or regions. These agreements remove government restrictions and open routes to increased competition, which in turn allow airlines to fly more frequently and make routes more accessible (Edwards, 90-107).

The industry is expected to experience rapid growth over the next five years mainly due to expansion in developing economies. Demand for the latest fashion and electronic goods will fuel continued growth in air freight. China and other Asian countries are expected to increase their manufacturing output over the next five years, which will aid growth in freight volumes transported. Industry operators are likely to increase the average fare for their service, which will also add value to sales. During the five years through 2016, industry revenue is expected to rise at an annualized rate of 3.9%.

As globalization increases, the industry will become an essential element for the sourcing, manufacturing, assembling and distribution of goods for individuals and businesses around the world. Countries with poor existing route networks and strong economic growth are likely to experience the most growth in the next five years. Demand for high-end time-sensitive goods is growing, including from luxury goods to mobile phones. As such, the (express) integrated services freight transport segment is expected to grow at a solid rate over the next five years. Aircraft manufacturing cantered on the production of more fuel-efficient aircraft in the past few years will likely result in more flights offered by the ...