Ted Scherck, Colography presidents, predicts that, “Air freight should benefit from a recovering U.S. economy, accelerating trade with China and the continued replenishment of low inventories.”
In the research and strategic planning firm’s annual study, “Expedited Cargo Market Projections for 2005,” three of the five categories monitored are anticipated to grow. Those to show year over year gains are overnight packages between two and 70 lbs. to grow 1.6%; overnight freight of 70 lbs. and more, up 1.2%; and deferred or non-next-day freight to increase by 1%. While not earth-shaking figures, they all are positive growth.
Colography predicts a modest decline of 0.8% for overnight letters and envelopes and a large loss of3.4% in the deferred package category, most of which the company lays on weakness in the Priority Mail product being offered by the U.S. Postal Service.
Some other projections include U.S. air exports to grow the 87.8 million shipments this year, an increase of 4.4%
The U.S. expedited market, which includes domestic air, air exports, ground parcel, and LTL is projected to grow to 6.76 billion shipments this year. Ground parcel will represent 60.8% of the total number of shipments, which is up 175 million shipments over last year’s levels.
Scherck speculates that, “as shippers and consignees grapple with driver shortages, tightening truck capacity and higher rates for LTL and ground parcel services, air freight may become an attractive alternative, particularly on medium-length hauls.”