Gadgets fly as pickup tonic for freighters

Apple's new iPhones and Samsung Electronics' Galaxy Gear watches are the gadgets that Asian freight airlines have been waiting for.

Asian carriers, suffering from a six-month traffic slump, may be able to break the losing streak with the help of new devices. Samsung just unveiled its Galaxy Gear and Note 3 smartphone and Apple plans to show its new iPhones next week, meaning a rush to deliver product from factories in Asia before the Christmas shopping season.

As economic growth cools on the mainland, cargo carriers will need US and European consumers to scoop up the new models because transporting electronics is their biggest business. Six of the world's 10 largest freight airlines are in Asia, so a revival would ease earnings pressure at companies such as Korean Air Lines, which moves Samsung's phones, and Cathay Pacific Airways.

"The market needs revolutionary products to generate constant demand," said Park Eun-kyung, a Samsung Securities analyst. "Whenever a new device is introduced, there's always an increase in shipments for about 15 days to a month."

Asian cargo shipments have dropped every month since February and declined 1.4 per cent in July, according to the International Air Transport Association. Global shipments rose 1.2 per cent, helped by a 14 per cent surge in the Middle East.

Korean Air, Asia's biggest freight carrier, moved 2.1 per cent less cargo in the second quarter. Cathay, the region's No2, posted six consecutive months of declines to July.

Freight carriers such as United Parcel Service and DHL Worldwide Express get traffic going by moving finished goods and the components that go into making them.