Recently, global logistics giant DHL released an industry watch stating that the air cargo market is gradually coming back to life in March, led by strong exports from the Asia-Pacific region. Citing data from WorldACD Market Data, an air cargo data publishing company, the total tonnage exported from the Asia-Pacific region during the two-week period from 4 to 17 March increased by 8 per cent compared to the previous two weeks. The year-on-year increase for the same period was 10 per cent.

It should also be noted that freight rates rose sharply in March despite a significant increase in new capacity on most Asia-Pacific routes. WorldACD reported that average freight rates originating in the Asia-Pacific region increased by 8 per cent in weeks 10 and 11 of the year compared to the previous two weeks.

These are clear signs that global demand for air freight is on the rise following the traditional Chinese New Year, and March's volume figures are encouraging. While the rise in volumes is partly seasonal or product-specific, consumer demand is picking up in a number of key markets, a trend that is also reflected in the rebound in volumes at DHL's hubs and gateways across Asia.

While uncertainty and risk continue to dominate the overall freight market for the time being, the increasingly positive outlook is a further boost to air cargo stakeholders.

The Nomura Research Institute's Leading Index of Total Exports in Asia ex-Japan (NELI) soared to 99.9 in March and then to 100.3 in April, suggesting that overall export growth in Asia may be on track to rise into positive double-digit territory by the beginning of the second quarter. A major reason for this upturn is the recovery in the global semiconductor and consumer electronics markets, which account for about one-fifth of Asia's (ex-Japan) total exports.

The Nomura Research Institute expects the Asian commodity cycle to transition from a recovery phase to an expansion phase. However, much will depend on the performance of the Chinese economy and foreign trade. China's key data for the first quarter suggests the economy is off to a good start, with GDP up 5.3 per cent year-on-year and 1.6 per cent year-on-year from the fourth quarter of last year; the scale of trade in goods imports and exports exceeded 10 trillion yuan for the first time in the same period in history, with import and export growth at a six-quarter high. The improvement of global external demand drove the growth of China's exports and the recovery of foreign trade in the first quarter of import and export. In addition, the Chinese government introduced a series of measures to stabilise foreign investment and attract and utilise foreign investment with remarkable results.

E-commerce, technology products and demand for textiles also contributed to the recovery, and DHL's Monthly Air Cargo Report noted that e-commerce continued to drive volume growth in South China and Hong Kong. In addition, air cargo demand from Bangkok to Europe remained high, fuelled by increased demand for land and air freight volumes from Vietnam and other areas affected by the Middle East conflict.