Hope for a brighter 2013

The year 2012 will be another benchmark for the history books of air cargo. It is a year virtually all will be happy to forget. It does however end with some optimism that the prolonged ‘bottoming’ of the air cargo will come to an end soon – at least sooner than later.


Hope for a brighter 2013


The year 2012 will be another benchmark for the history books of air cargo. It is a year virtually all will be happy to forget. It does however end with some optimism that the prolonged ‘bottoming’ of the air cargo will come to an end soon – at least sooner than later.

As the year comes to a close, global economic growth estimates for 2012 remain weak at just over two per cent, with only a slightly better outlook for 2013, according to the latest figures from the International Air Transport Association (IATA).

European economic growth contracted in 2012 while the US and Japan are set to improve on last year. Looser monetary policy and bank lending standards in the US have helped that economy grow faster than Europe. Banks in Europe are maintaining tight lending standards, helping reduce the risk of another banking credit crisis but also creating a more challenging environment for private investment activity.

And while the demand environment for air cargo remains soft, there are some promising signs, according to IATA. Although world trade continues to expand the pace of growth has been slowing as weakness in European economies persists. However, declines in business confidence signaled by the Purchasing Manager’s Index throughout Q3 have now reversed and stability is indicated for the months ahead, IATA said. Moreover, there is still no sign of an inventory overhang, meaning businesses have no immediate need to reduce quick transportation of cargo.