North America Impacts of NAFTA and TPP Trade Agreements for Air, Sea and Land
1. 2016 CILT International Convention
North America Impacts of NAFTA and TPP Trade
Agreements for Air, Sea and Land—Challenges and
Future from a Transportation and Logistics Perspective
May 11, 2016
Montréal, Quebec, Canada
Douglas Brittin
Secretary General,
The International Air Cargo Association (TIACA)
2. Table of Contents
• Global and regional air cargo markets
• NAFTA
• TPP
• Summary
• About TIACA
4. World air cargo markets
208 billion RTK
Asia–North America, Europe-Asia, and Europe–North
America are the leading east-west air cargo markets
2013
Long-haul air cargo markets
131 billion RTK
Domestic and regional Europe-Asia Europe–North America
Asia–North America Other long haul
Boeing World Air Cargo Forecast 2015
5. International express market share reached
17.0% in 2013
RTKs
in billions
International express International freight and mail
1998 2008
Boeing World Air Cargo Forecast 2015
6. Factors and constraints for air cargo growth
Trade quotas and
restrictions
Currency
revaluations
“Open skies” and
new air services
agreements
Industry relocation
Directional imbalances
Surface
competition
Airport curfews
New
commodities
Widebody
freighters and
lower holds
Airline market
research
Airline market and
shipper education
Shipper
utilization
Proliferation
of points served
Just-in-time
concepts
Express
market
Deregulation
Oil and fuel prices
and availability
National
development
programs
New trade
relationships
Export
promotion
Terrorism and armed
conflict
Lack of
airport access
Environmental
regulations
World and
regional GDP
growth
Air and surface
labor stoppages
Boeing World Air Cargo Forecast 2015
7. • Growth of e-commerce
(especially via Post)
• De minimus increase
- Easier consumer imports
- Dramatic effect on
express and mail
streams
Other issues affecting transpacific
air cargo
8. World airmail will grow 1.0% per year through 2033
RTKs
in billions
1.2% growth per year
History Forecast
Average annual growth, 2013–2033
High, 1.2% Base, 1.0% Low, 0.9%
2003 2013 2033
Boeing World Air Cargo Forecast 2015
10. Impact on Intra-North America Air Cargo
US-Canada
• Negligible as “trade”
• Facilitated easier cross-border
“truck/air” moves
Canada-Mexico
• Limited growth
US-Mexico
• Strong, early growth
• Maquiladora, especially for
automotive/hi-tech JIT
• Stabilized as transborder
truck/rail capability increased
11. Transborder tonnage northbound continues
to exceed that southbound
US to Canada Canada to US
Tonnes
in thousands
1985 1989 1993 1997 2001 2005 2009 2013
Boeing World Air Cargo Forecast 2015
12. 2013 data
Latin America–North America trade can be
classified into sub regions
South America
1,036,000 tonnes
Central America
265,000 tonnes
Caribbean
75,000 tonnes
Chile
Colombia
Brazil
Peru
Ecuador
Argentina
Venezuela
Less than 1% each: Bolivia, Falkland
Islands (Islas Malvinas), French
Guiana, Guyana, Paraguay, Uruguay,
Suriname
Mexico
Costa Rica
Guatemala
Panama
Honduras
Nicaragua
El Salvador
Less than 1%: Belize
Dominican Republic
Trinidad and Tobago
Jamaica
Barbados
Haiti
Between 1% and 2% each Bahamas, Grenada, Curacao, St
Kitts and Nevis, Sint Maarten, Bermuda
Less than 1% each Aruba, British Virgin Islands, Cayman
Islands, Antigua and Barbuda, St Lucia, St Vincent and the
Grenadines, Guadeloupe, Turks and Caicos Islands,
Martinique, Dominica, Anguilla, Cuba, Montserrat,
Netherlands Antilles
Boeing World Air Cargo Forecast 2015
14. Air cargo has maintained its market share
in the key transpacific cargo market
Air cargo market share
by percentage
Maritime tonnes Air cargo tonnes
2.0% 1.8%
2.0% 2.0%
2.2%
2.0%
1.7%
2.0%
2.0%
2.3%
2.5%
2.2%
2.1% 2.0%
Boeing World Air Cargo Forecast 2015
Tonnes
in millions
Top 20 air cargo commodities for the Asia–North America market
15. Forecast average regional GDP growth rates
Growth
average annual percentage change for 2013–2033
Boeing World Air Cargo Forecast 2015
16. Asia markets will continue to lead industry growth
RTKs
in billions
Annual growth
by percentage
5.4%
5.3%
6.5%
3.1%
2.1%
6.7%
4.8%
4.0%
5.2%
4.3%
4.7%
2.0%
2013 RTKs 2013 RTKs
Boeing World Air Cargo Forecast 2015
17. China accounts for 46% of the transpacific
air cargo market
3,690,000 tonnesChina
Japan
South Korea
Taiwan
Singapore
Hong Kong
Australia
Thailand
Malaysia
Less than 2% each: Cambodia,
Indonesia, Macao, New Zealand,
Philippines, Vietnam
Boeing World Air Cargo Forecast 2015
18. Asia to North America
2,175,000 tonnes
North America to Asia
1,516,000 tonnes
Consumer goods drive eastbound transpacific flow;
manufacturing materials drive westbound flow
Apparel
Chemical materials
Documents and small packages
Electrical machinery and apparatus
General industrial machinery and equipment
Scientific and specialized equipment
Telecommunication equipment
Other
Boeing World Air Cargo Forecast 2015
19. China accounts for 33.8% of
US-Asia air cargo trade in 2005
• Source: US Department of Commerce
Tonnes
Tonnes
Boeing World Air Cargo Forecast 2015
20. China accounts for 47.1% of
US-Asia air cargo trade in 2015
• Source: US Department of Commerce
Tonnes
Tonnes
Boeing World Air Cargo Forecast 2015
22. Summary
• TPP will have a positive impact on air cargo, for
Importers, Exporters, and Consumers
– simplifies trade and creates new opportunities for US
companies
• National Treatment and Market Access for
Goods provisions
– reduction or elimination of 18,000 duties
(90% almost immediately)
– makes US goods more competitive, duties eliminated
on 86% of US manufactured goods
23. Summary
• Customs Administration and Trade Facilitation
– improves and simplifies clearance process in TPP counties
(faster and more transparent)
– customs clearance is a main obstacle for small businesses
wanting to increase exports
• expedited procedures for express shipments
• electronic, pre-arrival clearances
• release of express shipments within 6 hours
• on-line publication of rules and regulations
25. TIACA Mission
TIACA connects all members of the global air cargo supply chain, from the
owners of the cargo (shippers or consignees) to integrators, forwarders,
airlines, infrastructure providers and all other stakeholders, and promotes
the key interests of the industry.
We accomplish this with our three pillars:
Advocacy, Networking and Knowledge
www.tiaca.org
26. Freight forwarders 23.3%
Airports 18.5%
Airlines 16.7%
Shippers 7%
Honorary Members 5.6%
GSAs 3.8%
Associations 3.6%
GHAs 3.1%
Consultants 2.7%
Charter Services 2.4%
IT Providers 2.4%
Educational Institutions 2.4%
Manufacturers 2%
ACMI Operators 1.3%
Other 4.1%
Membership
Representing the entire
Air Cargo Supply Chain.
27. Air Cargo Forum
& Exhibition
• Meet with over 3,000 air cargo industry
professionals and 200 exhibitors.
• Identify new business opportunities and
network with market leading exhibitors
from across the globe.
• Benefit from bookable one-to-one
meetings with leading suppliers at
CargoLinX.
• Learn from the experts at our workshops
and panel discussions.
October 26 – 28, 2016
Paris, France