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US-China trade tensions to hammer air cargo: industry body

AFP  |  Singapore 

Trade tensions between the US and will hammer air cargo this year, an industry body warned Tuesday, the latest sign the slugfest is damaging the global outlook.

The world's top two economies have been locked in a trade war since last year, swapping tit-for-tat duties on hundreds of billions of dollars worth of goods and sending markets into a tailspin.

The fallout has gone far beyond their shores, with in many export-dependent Asian economies taking a hit.

In the latest sign of the dispute's effects, the (IATA) sharply cut its forecast for air cargo growth this year, citing US-tensions as a major factor.

It said air cargo volumes are expected to grow 2.0 per cent this year, nearly halving its projection made in December for 3.7 per cent.

Air freight traffic contracted 1.8 per cent in January alone, IATA told a conference in

"We are facing a problem with world trade... Cross-border trade is weakening very sharply and that's the thing that's damaging our business in the cargo world," IATA said.

The group said uncertainty over Brexit and general protectionism was also hitting air cargo growth.

US and Chinese officials have said they are making progress toward a resolution of the trade dispute but conflicting messages out of and mean it is still not clear when a deal may finally be sealed.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 12 2019. 15:15 IST