Boeing sees a $3.2 trillion fuel-efficient aircraft market

boeing 787

Demand for new fuel-efficient airliners and fleet renewal will create a $3.2 trillion market over the next two decades, Boeing has projected.

Releasing the Current Market Outlook report, the aircraft builder said that the aviation sector will call for 29,400 new passenger and freighter aircraft by 2027, while also acknowledging the industry’s near-term challenges such as a slowing global economy, spiralling fuel prices and shrinking airlines to balance costs and revenues.

“We’re facing a very dynamic situation today in the commercial aviation industry,” said vice president of Boeing Commercial Airplanes Marketing, Randy Tinseth.

“This year’s forecast is roosted in today’s realities, but also recognises the nature of a long-term outlook.”

According to the report, replacement aircraft represented a greater share of demand of 43 per cent than a previous projection of 36 per cent, boosted by the loss of economic viability of older aircraft amidst soaring fuel costs.

The company also forecasts a fleet size of 35,800 at the end of the 20-year period, which represents an annual increase of 3.2 per cent compared with today’s world fleet of 19,000 units.

New aircraft are expected to accommodate a forecasted 5.8 per cent annual increase in air cargo traffic and a five per cent annual increase in international air travel.

Also projected is strong growth in the delivery of single-aisle jet planes, driven by rapid expansion of Asia-Pacific aviation markets along with continued growth of low-cost carriers worldwide.

“We’re seeing an increasing share of aircraft deliveries to the Asia-Pacific region, as well as the Middle East, Latin America and the Commonwealth of Independent States (CIS),” Tinseth said.

“The result is a much more geographically balanced and more stable long-term market, which is less vulnerable to swings in regional economies or other variations in demand.”

Boeing upbeat on air cargo growth

Boeing 777 Freighter

Boeing 777 Freighter :the next big thing

The global air freight market will continue to experience strong long-term growth, aircraft manufacturer Boeing has projected in its Current Market Outlook 2008.

According to the report, based on a 20-year forecast period, the sector is expected to expand at an annual average of 5.8 per cent with the world freighter fleet significantly increasing from 1,948 to 3,892 jets.

The growth needs to be supported by an additional 3,358 cargo jets by 2027, factoring in an anticipated fleet retirement of 1,414 airplanes.

“The forecast is based on a number of factors, most significantly economic growth in diverse areas of the world,” said Jim Edgar, regional director of cargo marketing for Asia.

“Over the long-term, global economic growth will drive demand for new, high-value products as well as seasonal perishables that people have become accustomed to enjoying.”

A major portion of the new fleet is expected to be taken up by around 2,500 converted aircraft. 863 new production freighters, with a value of around USD 206 billion, will also be a part of the fleet growth. Demand for new production equipment will revolve around fuel-efficiency and meeting environmental regulations, including emissions and noise.

Among major changes projected is the dominance of the demand for widebody freighters with payloads of 36.3 to 72.6 tonnes, accounting for 60 per cent of the fleet additions. Similarly, large freighters will increase their fleet share from the current 61 per cent to 65 per cent in 2027. 

“We expect several trends to continue – dedicated freighters will continue to provide an increasing proportion of air cargo capacity, going to nearly 54 per cent; and the industry will continue to move to larger aircraft,” Mr Edgar said.

“Additionally, freighters will continue to comprise about 10 per cent of the world jetliner fleet during the forecast period.”

Over the past three consecutive years, Boeing has booked record numbers of new freighter production orders, a total of 236 aircraft, dominated by the company’s new 777F and 747-8F models.

The Current Market Outlook report is available at www.boeing.com/commercial/cmo/.

QR, P&O team up for big intermodal business

wimmera container line

Under the new contract, QR will operate services for

Victorian intermodal freight company, Wimmera Container Line.

National freight logistics companies QR and P&O Trans Australia have joined forces to establish new regional freight services in Victoria, moving up to 20,000 containers from Horsham to Melbourne.

QR’s group executive general manager of freight, Stephen Cantwell, said the agreement was the first intermodal freight contract signed since QR announced an investment of almost $200 million in new rolling stock and an upgrade of freight terminals by 2010.

“QR is committed to the intermodal freight market and this agreement is an exciting opportunity to bring our services to regional Victoria,” Mr Cantwell said.

“By working with P&O Trans, we can ensure certainty of delivery for our new customers from distributor to port by providing fully integrated rail transport.”

Under the new contract, QR will operate three services weekly for Victorian intermodal freight company Wimmera Container Line, with the majority of the freight hauled expected be grain containers.

“QR will haul 12,000 twenty-foot equivalent units (TEU) during the 12-months as part of this service and this could increase to 20,000, depending on seasonal demand,” he said.

P&O Trans director of operations John Digney said the new contract would strengthen its ties with QR.

“This agreement works for all parties involved,” Mr Digney said.

“We bring our expertise in port logistics, QR brings its experience in providing competitive rail transport and together we can provide our customers with the best services available.”

Mr Cantwell said the outlook for the rail sector would remain strong in the long term, with non-bulk freight volumes between mainland cites projected to double in size by 2020.

 “We expect rail to take an increasing share of the market from road due to rail’s lower carbon emissions, track upgrades and increasing costs for road transport.

“QR aims to capture a slice of this growth and keep building its share of this highly competitive market by demonstrating the quality, competitiveness and reliability of our service,” he said.

Landmark gets a new lift

A new forklift fleet is expected to lift operational and cost efficiency at agribusiness company Landmark.

The fleet renewal project will be undertaken by Adapt-A-Lift Forklift Rentals and Sales, engaged by the rural company as its forklift and materials handing supplier.

Under the agreement, Landmark will replace its current materials handling equipment with a fleet of new equipment at over 250 sites across Australia.

The decision follows Landmark

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