Air cargo faces troubling waters
14 Mar 2019 - by Chanté Ho Hip
The International Air Transport Association (Iata) has lowered its air cargo growth projection from 3% to 2% for the year ahead.
Speaking at the World Cargo Symposium in Singapore yesterday, Iata chief economist Brian Pearce said the adjustment followed the larger-than-expected impact caused by the China-US tariff debates.
These are believed to have stagnated the Asian market, taking the global economic demand down with it.
“Air cargo operators should expect worse to come,” said Pearce.
And with trade indicators still in negative territory, the air cargo industry is expected to decline for a while longer.
“Protectionism, trade friction, Brexit and anti-globalisation rhetoric are part of a genre of developments that pose real risk to our business and broadly across the economies of the world,” said Iata director general and CEO Alexandre de Juniac at the opening of the symposium.