The surge in freight volume outstripped a capacity increase of 12.3 percent, pushing the load factor to a record high of 55.7 percent, the Geneva-based group reported in its latest monthly survey.

The freight market is 6 percent above pre-crisis levels, outpacing a 1 percent rise in global passenger traffic.

The increase in May followed a 26 percent rise in April which was impacted by the six day closure of European air space by a plume of ash from an erupting Icelandic volcano.

Latin American and African carriers led the rally with year-on-year increases of 60.2 percent and 58.2 percent respectively in May.

Asia-Pacific airlines, which account for the biggest cargo sector with a 45 percent world market share, boosted volume by 38.7 percent from May 2009, just ahead of U.S. carriers, which grew 35.3 percent, and Middle East airlines, which were up 38.6 percent.

European airlines continued to lag the rest of the industry with May traffic rising by 21.9 percent, but the 15 percent fall in the value of the euro likely will stimulate outbound traffic with cheaper exports, IATA said.

Strong traffic growth is boosting the industry's bottom line with airlines expected to post a collective $2.5 billion profit in 2010 compared with a $9.9 billion loss in 2009.

"This is good news, but it is still only a 0.5 percent margin. We are still a long way from sustainable profitability," said Giovanni Bisignani, IATA Director General and CEO.

"There is speculation that there won't be reauthorization in the entire first term of the Obama administration," American Trucking Associations President and CEO Bill Graves told the Los Angeles Transportation Club.

With the Highway Trust Fund "insolvent," and both Democrats and Republicans fearful of the political consequences of approving an increase in the fuel tax, the nation could be heading toward an infrastructure crisis now that freight volumes are once again growing, Graves said.

Congress extended the previous highway spending bill 12 times before approving the current bill. The current program, known as SAFETEA-LU, expired on Sept. 30, 2009, and has since been extended a half-dozen times. The latest extension authorizes spending until Dec. 31, 2010.

It was obvious that Congress wanted to put off any tax increases to fund a costly highway appropriation bill until after the mid-term elections, but by pushing reauthorization into next year, Congress may be setting the stage for the delay to extend until after the 2012 presidential election year, Graves said.

The most effective solution to funding the nation's infrastructure needs is to increase the fuel tax, and the trucking industry supports this approach, Graves said. Elected officials in Washington, however, appear fearful of the political consequences of an increase in the tax.

If there is no reauthorization bill relatively soon, and if an increase in the federal fuel tax is off the table, individual states may decide to address their pressing infrastructure needs with their own taxes or tolls.

This scenario can also be problematic. When Washington does get around to authorizing a new spending bill, those states that have funded their own highway improvements may be unwilling to support a federal bill, Graves said.

The ATA president said transportation interests from all of the modes are working together better than ever for the good of the national freight network. That means that relations between two formerly antagonistic associations -- the ATA and the Association of American Railroads -- are "as good as they have ever been."

"The Hatfield and McCoy days are over," he said.

ATA has also improved relations with Transportation Secretary Ray LaHood. Earlier this year, Graves questioned LaHood's emphasis on taking polluting trucks off the road by encouraging greater use of intermodal rail.

The first Reach registration for chemical substances is November 30. By the same date chemical companies will be required to comply with CLP by classifying, labeling and packaging substances according to new criteria. Companies also will have to submit a notification of their products to the EU's classification and labeling inventory by January 3, 2011.

ECHA's key concern is that it only has 2,590 lead registrants for the substance information exchange forums (SIEFs) for the tens of thousands of chemicals that it expects companies to register under Reach. The advice being given is that companies must "focus on the main issues and - no matter what - submit your registration well in advance of the deadline."

It was the third consecutive month with a year-over-year increase of at least 24 percent, but freight value in April still was 11.4 percent below its level in April 2008.

The value of U.S. surface transportation trade with Canada and Mexico in April was 5.9 percent below March levels. Month-to-month changes can be affected by seasonal factors and other factors.

The value of U.S. surface transportation trade with Canada and Mexico in April was up 12.9 percent compared to April 2005, and up 40.5 percent compared to April 2000. Imports in April were up 38.2 percent compared to April 2000, while exports were up 43.3 percent.

U.S.-Canada surface transportation trade totaled $39.9 billion in April, up 32.1 percent compared to April 2009. U.S.-Mexico surface trade totaled $25.9 billion, a 32.8 percent year-over-year increase.