Air cargo weakened by shaky global economy
The uncertain economic outlook is having a negative impact on demand for air transport
in the NewsFedEx partners with Vecna Robotics as part of automation growth strategy Most recent Freight TSI is strong, says BTS AAR reports strong U.S. carload and intermodal gains for week ending March 17 Gartner’s 2018 Magic Quadrant Names Kuebix as Prominent TMS Player Meet the 2018 Modern Show Daily team More News
The International Air Transport Association (IATA) announced global traffic results for July showing slower growth in freight, but with considerable variation by region and market.
July freight demand was 3.2 percent lower than it was in the same month last year. This is down on the 0.1 percent year-on-year growth rate of June. A large part of that decline was due to a comparison with a relatively strong July last year, but overall the trend in air freight is weak, in line with subdued world trade growth.
Airlines have responded to this slower growth environment by reducing the capacity added to markets, a move which has stabilized load factors at relatively high levels and provided some support for profitability in the face of high fuel prices.
“The uncertain economic outlook is having a negative impact on demand for air transport,” said Tony Tyler, IATA’s Director General and CEO. “The cargo business is 3.2 percent smaller than it was a year ago.”
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
Subscribe to Logistics Management Magazine!Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
Reverse Logistics in the “Age of Entitlement” Logistics Management’s Viewpoint on E-commerce: Leveraging available tools View More From this Issue