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Challenges facing the international air freight shipping china
Dec 16, 2019 Freight Forwarder
The prosperity of the global air freight shipping china depends on the free movement of people and trade. No one can benefit from trade frictions, protectionist policies and isolationist policies. A more inclusive globalization is the way forward for the world.
The International Air Transport Association believes that the global air transport industry will continue to be profitable this year, reaching 10 consecutive years of profitability, but under the influence of many challenges, this year's net profit will be reduced.
In December 2018, the International Air Transport Association predicted that the net profit after tax of the global air transport industry in 2019 will reach 35.5 billion U.S. dollars, but the growth rate has recently been significantly reduced to 28 billion U.S. dollars. Alexander de Juniac, chairman and chief executive officer of the International Air Transport Association, said that rising costs in labor, fuel and infrastructure will directly squeeze profit margins, and Sino-US trade frictions will intensify, and global trade weakness continues. Not only will it directly impact air cargo, it will also slow down passenger growth.
What challenges does the air freight shipping china face this year?
First, the cost of the air transport industry has risen.
Fuel prices remain high in 2018 and will continue to rise this year. It is expected that the fuel cost of the air transport industry as a percentage of operating costs will rise from 23.5% last year to 25% this year.
Second, the demand for air cargo and passenger transport will slow down.
The volume of air cargo in 2018 was 63.3 million tons, and the growth rate of demand dropped significantly from 9.7% in 2017 to 3.4%. Air cargo will continue to be under pressure this year, with cargo volume expected to drop to 63.1 million tons.
Third, the uncertainties in the international situation have increased risks.
International unstable political situations and potential conflicts will increase the operational risks of the air transport industry, and protectionism and unilateralism will also have a negative impact on the air transport industry.
Alexander de Juniac said that the prosperity of the global air transport industry depends on the free movement of people and trade, and no one can benefit from trade frictions, protectionist policies and isolationist policies.
Taken together, the International Air Transport Association estimates that the total expenditure of the global air transport industry in 2019 may reach US $ 822 billion, a year-on-year increase of 7.4%; total revenue may reach US $ 865 billion, an increase of 6.5% year-on-year; the growth rate of expenditure is higher than the revenue Rate, this year's net profit rate may drop from 3.7% last year to 3.2%.
In addition, Ma Tao, vice president of the North Asia Region of the International Air Transport Association, said in an interview with the Economic Daily that China ’s air transport industry has achieved rapid and safe development in recent decades. China ’s experience is worth learning from for the development of the global air transport industry.
The International Air Transport Association believes that the global air transport industry will continue to be profitable this year, reaching 10 consecutive years of profitability, but under the influence of many challenges, this year's net profit will be reduced.
In December 2018, the International Air Transport Association predicted that the net profit after tax of the global air transport industry in 2019 will reach 35.5 billion U.S. dollars, but the growth rate has recently been significantly reduced to 28 billion U.S. dollars. Alexander de Juniac, chairman and chief executive officer of the International Air Transport Association, said that rising costs in labor, fuel and infrastructure will directly squeeze profit margins, and Sino-US trade frictions will intensify, and global trade weakness continues. Not only will it directly impact air cargo, it will also slow down passenger growth.
What challenges does the air freight shipping china face this year?
First, the cost of the air transport industry has risen.
Fuel prices remain high in 2018 and will continue to rise this year. It is expected that the fuel cost of the air transport industry as a percentage of operating costs will rise from 23.5% last year to 25% this year.
Second, the demand for air cargo and passenger transport will slow down.
The volume of air cargo in 2018 was 63.3 million tons, and the growth rate of demand dropped significantly from 9.7% in 2017 to 3.4%. Air cargo will continue to be under pressure this year, with cargo volume expected to drop to 63.1 million tons.
Third, the uncertainties in the international situation have increased risks.
International unstable political situations and potential conflicts will increase the operational risks of the air transport industry, and protectionism and unilateralism will also have a negative impact on the air transport industry.
Alexander de Juniac said that the prosperity of the global air transport industry depends on the free movement of people and trade, and no one can benefit from trade frictions, protectionist policies and isolationist policies.
Taken together, the International Air Transport Association estimates that the total expenditure of the global air transport industry in 2019 may reach US $ 822 billion, a year-on-year increase of 7.4%; total revenue may reach US $ 865 billion, an increase of 6.5% year-on-year; the growth rate of expenditure is higher than the revenue Rate, this year's net profit rate may drop from 3.7% last year to 3.2%.
In addition, Ma Tao, vice president of the North Asia Region of the International Air Transport Association, said in an interview with the Economic Daily that China ’s air transport industry has achieved rapid and safe development in recent decades. China ’s experience is worth learning from for the development of the global air transport industry.
