In 2016, Canadian and international air carriers loaded and unloaded an estimated 1.2 million tonnes of freight at Canadian airports according to Transport Canada.
The global air freight industry is breathing a sigh of relief as a stronger world economy has led to the sector's strongest first-half-year demand growth in six years.
Air freight demand in terms of freight tonne kilometres (FTK) — which measures actual freight traffic — grew 10.4 per cent in the first half of 2017 compared to its 2016 increase of 0.6 per cent, according to figures from the International Air Transit Association's (IATA) latest report.
"It's been a bit of a positive and welcome surprise, really, and ... partly reflective on the broader pickup in global economic conditions, as well as trade flows," says David Oxley, a senior economist at the IATA.
Though the industry saw a brief rebound in 2010 after the financial crisis, growth in the following years became sluggish as overcapacity weighed down demand. According to the IATA, the sector's average growth for the previous five-year period was 3.9 per cent; 2017's numbers have almost tripled that, the association reported on August 2.
Air freight is a behind-the-scenes but essential business. Just one per cent of world trade by tonnage is shipped by air — but by value, that number jumps to 35 per cent, according to the IATA. By comparison, the international shipping industry moves 90 per cent of world trade by volume, according to the International Chamber of Shipping.
Here at home, air cargo continues to represent a small but high-value part of Canada's economy. In 2016, Canadian and international air carriers loaded and unloaded an estimated 1.2 million tonnes of freight at Canadian airports according to Transport Canada, which was worth $125.2 billion. Comparatively, an estimated 297.4 million tonnes of freight were shipped by rail in 2016, worth $128.3 billion.
"Ever since the second half of 2016, that's when things have started to take off and we saw freight volumes start to trade upwards," Oxley says, "and that's continuing for the first half of this year." He says that Asia and Europe are expected to be the largest drivers of continued growth.
Matthieu Casey, general sales manager for Air Canada Cargo, the airline's air freight division, notes that while the industry mirrors the cycles of the global economy, the recently-signed Canada-European Union Comprehensive Economic and Trade Agreement (CETA) is an example of an area of "sustainable growth" that could last beyond the next downturn.
He also says the company's new Asia routes to and from Shanghai and Taipei, as well as the expansion of its Japanese service, are all part of "traditionally strong" air freight routes. "We've seen an even larger increase just from that expansion alone, and then on top of that [there's] the growth that came along with the industry growth overall," he says.
Casey's job is to fill up Air Canada's planes with Canadian exports, which trend towards high-value freight like pharmaceuticals, aerospace cargo and perishables, the latter of which makes up at least 35 per cent of the company's outbound cargo.
"Typically, air freight is used for high-value and highly perishable cargo," says Casey.
The majority of those items are transported in the belly of the same planes ferrying passengers to their next destination. While there are planes that carry exclusively freight in their holds, they make up a small percentage of global tonnage. Combination carriers — air carriers that operate both passenger and freight planes — and passenger-only carriers added together make up the bulk.
Combination carriers are also expected to grow their share of worldwide capacity as airlines continue to upgrade to more efficient passenger jets with more cargo capacity and better uplift capabilities.
What passenger planes lack in space, explains Casey, they make up for in frequency. A small freighter could transport 55 tonnes of cargo, and a larger freighter could handle up to 80 tonnes.
"Freighters will always have a role to play, be it for larger pieces or high-demand routes, but passenger planes play a pivotal role," Casey says.
As a point of reference, Air Canada regularly puts 20 to 25 tonnes of cargo on larger passenger aircraft, which although robust, would not match the capacity on a freighter aircraft.
"That said, the frequency and efficiency of the passenger aircraft network, clearly plays an essential role in the global airfreight market," he adds.
This content was produced by The Globe and Mail's Globe Edge Content Studio. The Globe's editorial department was not involved in its creation.