US-China trade row is hammering air cargo growth
US and China trade tensions will hammer air cargo this year, the International Air Transport Association warns and IATA slashed its air cargo growth forecast for this year
US and China trade tensions will hammer air cargo this year, the International Air Transport Association warns and IATA slashed its air cargo growth forecast for this year.
According to AFP, the global body said air cargo volumes are likely to rise by two per cent this year, halving its earlier projection of 3.7 per cent that it released in December.
Air freight traffic contracted 1.8 per cent in January, IATA director general and chief executive Alexandre de Juniac pointed out to a conference in Singapore.
'We are facing a problem with world trade. Cross-border trade is weakening very sharply and that's the thing that's damaging our business in the cargo world,' IATA chief economist Brian Pearce said.
The group said uncertainty over Brexit and general trade protectionism was also hitting air cargo growth.
US and Chinese officials have said they are making progress towards a resolution of their hard-hitting trade dispute but conflicting messages out of Washington and Beijing mean it is still not clear when a deal may finally be sealed.