International Express
International express traffic, which expanded rapidly throughout the 1990s, has decelerated to about 7 percent growth per year since year 2000.
The distinction between express and general air cargo continues to blur as traditional providers expand their time-definite offerings, air cargo firms consolidate, and postal authorities make inroads as full-fledged logistics providers. Ultimately, the air cargo customer benefits from improvements, increased service options, and lower prices as market pressure brings competing products into the market.
As a result of this provider and service expansion, international express has grown at more than twice the rate of total worldwide air cargo traffic, averaging 12.9 percent annually over the past decade, as measured in revenue tonne-kilometers (RTK). Since 2000, however, annual growth has been somewhat slower at 6.9 percent. This pattern parallels the express industry's strong double-digit U.S. domestic growth during the 1970s and 1980s, followed later by slower growth.
As a proportion of total international air cargo traffic, international express expanded from 4.1 percent in 1992 to nearly 11.4 percent in 2005, reflecting higher-than-average annual growth. Average international express shipment size grew from 2.7 kg in 1992 to 5.4 kg in 2005, further bolstering the overall express component of international air freight traffic. As businesses continue to expand beyond domestic or close regional markets, the international express sector will continue to grow, albeit at more sustainable, long-term rates.