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19-Mar-2019 9:52 AM

IATA predicts airfreight to gain share from other transport modes

IATA forecast (18-Mar-2019) airfreight to gain market share over other transport modes. Under IATA's five year FTK forecast, growth for 2019 was downgraded from a forecast of 3.7% in Dec-2018 to just 2%, but average growth is expected to reach 4.4% over the next five years. IATA's prediction of modal shift is based on the trend over the past five years of airfreight growing faster than world trade due to the increased use of airfreight by industry sectors including pharmaceuticals, retail and e-commerce. IATA stated: "The past year has been challenging for air freight. Initially this was due to the passing of the business restocking cycle which had produced such strong growth in 2017. However, this cyclical weakness was joined at the end of the year, and into early 2019, by the damage from increased tariffs by the US on Chinese imports and vice versa, as well as indications of a modest slowing in global economic activity". IATA noted its forecast "is based on the US and China reaching a deal on trade". [more - original PR]

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