Per the IATA Press Release No. 69 dated 12 December 2013
The airline financial outlook for cargo demand remains largely ‘stagnant’. Airlines are expected to carry a modest increase of 52.5 million tonnes in 2014. This small increase in demand is expected to be offset by a decline in yields. Cargo revenues are expected to be flat for 2013 and 2014.
The “on-shoring” of production is having an adverse impact on the cargo business. This is being driven by two forces. Since the recession we have seen a rise in protectionist measures by governments aiming to stimulate domestic economies. In tandem the effects of earlier liberalization are fading as costs rise in previously low labor-cost locations. These conditions are likely to extend over several years.
The Bali agreement (per World Trade Organization) liberalizes markets and the improvement trade facilitation is expected to be good news for the air cargo industry.
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