Air Cargo Forecasts: The MergeGlobal Forecast

The MergeGlobal forecast entitled Steady Climb speaks of the breeze incubus tonnage growth after the traffic break of 2004, spare-time activity years of stagnation in 2002 and 2003 because of the dot-com bubble and collapse in technological spending in 2001 (Clancy & Hoppin, 2006, p.65).After the global traffic boom came the backward but confirming growth since 2005 until 2010 (Clancy & Hoppin, 2006, p.65). What we ask on that pointfore, is how long it would take in front the next downturn of growth position begins again.MergeGlobal, however, forecasts that Global traffic growth is just about likely to maintain and to gently accele post over the next 5 years (Clancy & Hoppin, 2006, p.65). Because of sustained economic growth in North America, Europe, and Japan, there would be an additional demand in world intercontinental note incubus, while increasing metric tons by 3.0% from 2000 to 2005, and by 6.4% from 2005 to 2010 (p.65).Industrial goods intersection from North Am erica and Europe would be transported to Asia via aerate freight because of unconquerable congestion and delay problems in the ocean transport system, and thus, creating a exacting upgrade and effect to the world intercontinental breed freight.As indicated above, the absence of a downturn would lead to a compound average growth rate that is 6.4% that is double the growth rate from 2000 to 2005.This is more than twice the forecasted growth rate in 2000, and slightly above the long-term growth trend of the air cargo tonnage. As indicated too, the single most in-chief(postnominal) driver of air freight traffic growth is consumption growth, broadly measured by Gross Domestic Product (p.66).Because there appears to be sustained positive GDP growth in the worlds most important air freight regions (except China), then it is presumed that, consistent with the historical patterns of the globe, the air freight tonnage is expecting steady growth until 2010.Majority of the new traffic is e xpected to boom in the Asian regions for trade and industry. This includes Australia and the Indian subcontinent while Mexico is put in the Latin America category.ReferenceClancy, B., & Hoppin, D. (2006, August). Steady climb MergeGlobal forecasts accelerating intercontinental air freight demand growth through 2010. Retrieved July 30, 2009, from the MergeGlobal database http//www.mergeglobal.com/articles/2006-08_Steady-Climb_Article.pdf.