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World Trade Issues Set to Impact Rentals?

May 27, 2019

The best that can be said for the trend in airfreight growth is that it is uncertain. The increase for March was virtually non-existent and indeed for the first three months of 2019, there was a fall in traffic. The global economy continues to suffer from the lack of progress with regard to trade talks between China and the U.S. This means that the fall in traffic at the same time as capacity is being added has resulted in the load factor experiencing a decline. This is now 46.5 percent, far less than the 50 percent which is considered desirable (unlike passenger aircraft, cargo aircraft transport goods in one direction or carry less on the return flight). The fall in traffic is noticeable in the Asia/Pacific region, previously the powerhouse of airfreight. Traffic was done by nearly four percent compared to a year ago demonstrating the weakness of the market. The slowing Chinese economy has been particularly evident. The Middle East traffic has also suffered.

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