Air, Freight News

Trump trade war weighs on airfreight

[ September 6, 2019   //   ]

Air cargo continues to suffer from weak global trade and the intensifying trade dispute between the US and China, said the International Air Transport Association (IATA) on releasing data for global air freight markets in July. Demand, measured in freight tonne kilometres (FTKs), contracted by 3.2% in July 2019, compared to the same period in 2018, the ninth consecutive month of year-on-year decline in freight volumes.
Global trade volumes are 1.4% lower than a year ago and trade volumes between the US and China have fallen by 14% year-to-date compared to the same period in 2018.
Freight capacity, measured in available FTKs rose by 2.6% year-on-year in July 2019. Capacity growth has now outstripped demand growth for the  ninth consecutive month.

IATA’s director general and chief executive Alexandre de Juniac, said: “Trade tensions are weighing heavily on the entire air cargo industry. Higher tariffs are disrupting not only transpacific supply chains but also worldwide trade lanes. While current tensions might yield short-term political gains, they could lead to long-term negative changes for consumers and the global economy. Trade generates prosperity. It is critical that the US and China work quickly to resolve their differences.”