The report points out that optimistic predictions for 2019 turned out to be wrong, with a fall of around 4 per cent in industry-wide Freight Tonne Kilometres (FTK) recorded in the latest quarterly report from the International Air Transport Association (IATA).
It also highlights global economic policy uncertainty is at an all-time high, as measured by Veritas using the frequency of phrases in press reports on monetary, fiscal and trade policy uncertainty.
“If economic uncertainty deters investment, it can have disproportionately adverse impact on trade and in particular air cargo demand, since capital goods that make up investment tend to have higher import content and are also more likely to create demand for air cargo,” said George Anjaparidze, CEO of Veritas Global and author of the report.
Anjaparidze will be moderating a panel at next month’s TIACA summit on the topic of volatility in air cargo and how to best manage it in the coming year.
For more information on the event you can visit the following page: TIACA Executive Summit.