This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

World Air Cargo Shipments Start Growing After 18 Stagnant Months

Stocks in this article: UPS

GENEVA ( TheStreet) -- The International Air Transport Association said it is seeing something unusual in the global air freight markets --- expansion, even in Europe.

Results in June for global air freight demand showed 1.2% growth from the same month last year. That represents expanding improvement over a 0.9% increase in May and over 0.1% growth in the first half of the year.

"It's too early to tell if June was a positive turning point after 18 months of stagnation," said Tony Tyler, CEO of IATA, in a prepared statement. "Air freight volumes are at their highest since mid-2011, but that good news needs to be tempered with a dose of reality. The global economic environment remains weak, and the basis for the acceleration of air cargo growth in June appears to be fragile."

Asia-Pacific volumes contracted by 1.8% from June 2012 and by 2.3% from the first six months of 2012. "This reflects the broad impact of the slowing Chinese economic expansion," IATA said. Asia-Pacific carriers are the biggest players in global air freight. Meanwhile, North America reported a 1.2% decline.

But other areas showed growth. In June, cargo volumes carried by European carriers rose 2.6% from June 2012. "Although the Eurozone remains in recession, there are some signs of stability," IATA said. "For example, manufacturing activity contracted at its slowest pace in 16 months (while) an improvement in consumer confidence is likely to support demand for the sale of light-weight high-value goods that are typically shipped by air."

Additionally, June cargo volumes grew by 12.7% in the Middle East, by 7% in Latin America and by 2.4% in Africa.

On the UPS (UPS) second-quarter earnings call last week, executives were generally positive about Europe, noting that the company's daily export shipments increased 5%, driven by gains from Asia and Europe. At the same time, CEO Scott Davis reminded that air freight has been in decline in recent years. '

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,897.02 +92.22 0.52%
S&P 500 2,070.85 +0.20 0.01%
NASDAQ 4,767.6660 +2.2860 0.05%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs