AIR CARG O WEEK


MIDDLE EAST


SUPPLEMENT


LOCATION, LOCATION, LOCATION


Editor: Associate Editor: Director of Operations:


International Sales Director: International Sales Executive: Finance Manager:


James Graham Chris Lewis Kim Smith


Rosa Bellanca Zainab Khalid Rachel Burns


Design & Production Manager: Alex Brown Production Supervisor Website Consultant:


I


t only takes a glance at the world map to notice how important the Middle East’s geographical position is to the global airfreight supply chain. Its importance springs from several key factors. For instance, it is strategically positioned at the crossroads of major global trade routes connecting Asia, Europe and Africa. This


central location enables efficient and cost-effective transportation of goods between these continents. For instance, Dubai, one of the re- gion’s primary air cargo hubs, is within an 8-hour flight to two-thirds of the world’s population. The region is home to some of the world’s largest and most advanced


air cargo hubs, such as Dubai International Airport (DXB) and Hamad International Airport (DOH) in Doha. These hubs serve as critical trans- shipment points for global air cargo, offering extensive connectivity and state-of-the-art facilities that handle significant cargo volumes efficiently. The Middle East’s role in global trade extends beyond air cargo. The


region’s economic activities, such as energy exports and increasing di- versification into non-oil sectors, generate substantial cargo volumes that necessitate efficient logistics solutions. This economic dynamism further enhances the region’s importance as a hub for global air cargo. The region often serves as a reliable alternative when other global


logistics routes face disruptions. For example, during disruptions in container shipping in the Red Sea, Middle Eastern hubs like Dubai saw significant increases in air cargo traffic as businesses sought reliable alternatives to sea freight.


These are some of the reasons that the region’s air cargo market has


been experiencing robust growth while playing a crucial role in global logistics due to its strategic location and significant investments in infrastructure. As well as millions of dollars in investments in the re- gional airfreight sector in the Middle East has seen substantial growth in demand. For instance, air cargo demand in January 2024 rose by 18.4% year-on-year, driven by the booming e-commerce sector and in- creasing international trade. This trend continued into February with an 11.9% increase in demand compared to the same period the previous year. Dubai, of course, remains a pivotal hub for airfreight, particularly due


to its strategic position connecting Asia, Europe and Africa. Recent data showed a significant increase in Dubai-Europe air cargo traffic, with a 146% rise in tonnage in February 2024 compared to the previ- ous year. The growth in demand has been supported by an increase in available cargo capacity. In January 2024, the capacity measured in available cargo tonne-kilometres (ACTKs) increased by 14.6%, largely due to the rise in belly capacity from passenger aircraft returning to service. While the sector is performing well, challenges such as economic


uncertainties, particularly regarding China’s economic slowdown, and political instability in certain regions remain concerns. However, the ongoing digitalisation, efforts to enhance efficiency, and sustainability initiatives are expected to support continued growth and resilience in the market


Managing Director: Kevin Dennis Tim Brocklehurst Steven Polmans


The views and opinions expressed in this publication are not necessarily those of the publishers. Whilst every care is taken, the publishers cannot be held legally responsible for any errors in articles or advertisements. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by electronic, mechanical, photographic or other means without the prior consent of the publishers. USA: The publishers shall not be liable for losses, claims, damages or expenses arising out of or attributed to the contents of Air Cargo Week, insofar as they are based on information, presentations, reports or data that have been publicly disseminated, furnished or otherwise communicated to Air Cargo Week.


AZURA INTERNATIONAL


Erratum


In the last supplement, on pharmaceuticals, there was an inadvertent mention that referenced a co-operation agreement between CMA CGM Air Cargo and AFKLMP Cargo in 2023. AFKLMP Cargo has asked us to point out that this agreement is now concluded. We are happy to acknowledge this error on


our part and apologise to AFKLMP Cargo for this confusion by erroneously entering this in the article.


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