China-Brazil Trade Milestone: First Local Currency Transaction
The International Air Transport Association (IATA) has shared August 2023 data, highlighting a 1.5% year-on-year rise in global air cargo demand, the first in 19 months. International operations reported a slightly better 2% growth.
Cargo capacity, in available tonne-kilometers (ACTKs), has grown by 12.2% since August 2022. A major factor contributing to this growth is a 30% increase in belly capacity, as airlines expanded their operations for the summer.
Economic indicators to consider:
- August’s manufacturing and new export orders PMI values hint at a slowing global manufacturing downturn.
- Cross-border trade decreased by 3.2% in July.
- Inflation trends varied, with the US seeing rising consumer prices, Europe and Japan experiencing declines, and China noting a slight increase.
Willie Walsh, IATA’s Director General, acknowledged the growth but also mentioned the mixed market signals. He expressed a muted optimism due to improving PMI data, especially with the year-end season approaching.
Regional Highlights:
- Asia-Pacific: Enjoyed a 4.9% growth in air cargo, benefitting from stronger Europe-Asia and Middle East-Asia trade lanes.
- North America: Experienced a slight 1.2% dip, but it’s an improvement from the previous month.
- Europe: Saw a marginal decline of 0.2% in cargo volumes.
- Middle East: Reported a 1.4% increase in cargo volumes.
- Latin America: Led the chart with a 6.2% growth.
- Africa: Faced a 4.7% decrease, with notable reduction in the Africa–Asia trade route.
In summary, global air cargo is showing signs of recovery, but regional performance remains varied. See full article here.
