Page 28 - STAT November 2022 for Magzter

marketreport

HOW TO PREPARE

FOR A CAPACITY

SURPLUS AIR CARGO

MARKET IN 2023

For the last two years, the air cargo industry was severely affected by
shrinking capacity and swelling demand. However, there is another
disruption awaiting in the global economy: this time from the
demand side. Let's pay attention to what the air freight specialists of
logistics companies have to say about how to face this storm.

Libin Chacko Kurian
he International Monetary Fund (IMF) in effects of three powerful forces: the Russian
its October 2022 World Economic Out- invasion of Ukraine, a cost-of-living crisis caused
look forecasted global growth to slow by persistent and broadening inflation pressures,
Tfrom 6 percent in 2021 to 3.2 percent in and the slowdown in China.”
2022 and 2.7 percent in 2023. Clearly, the world is entering a period of
This is the weakest growth profile since 2001 uncertainty and these indicators point towards a
except for the global financial crisis and the acute difficult period in the air cargo market as well.
phase of the Covid-19 pandemic. “Global eco- According to the International Air Transport
nomic activity is experiencing a broad-based and Association (IATA), global demand, measured in
sharper-than-expected slowdown, with inflation cargo tonne-kilometres (CTKs), fell 9.7 percent in
higher than seen in several decades,” it reads. July and 8.3 percent in August compared to 2021.
Pierre-Olivier Gourinchas, economic counsel- As per the WorldACD report for the first two
lor, IMF, wrote in the forward of the outlook, “As weeks of October (3 to 16), chargeable weight
storm clouds gather, policymakers need to keep was down 16 percent YoY
a steady hand. The global economy continues to and yields were down
face steep challenges, shaped by the lingering 17 percent.

26 | NOVEMBER 2022 www.stattimes.com