Recent fall of the economy in China is showing a remarkable impact on multiple things along with air cargo volumes. There is great decline witnessed in volumes of air cargo service day by day which are affected from imbalance caused in China’s economy. It is from a recent report that great decline is experienced by cargo services due to high reduction in cargo traffic to and from Asia. Almost all the airports starting from Seattle to Amsterdam are facing this issue and are highly threatened about the future of global trade. A month back, all the airports reported good growth in freight volumes but according to the recent report, a fast decline is seen in air cargo volumes which are completely due to drop in China’s economy. Fast decline seen in air freight service volumes around US and Europe depicts the economic problems faced by China and its impact seen in the form of export declines around the world. A sudden imbalance caused in China’s economy this year is a completely unexpected situation caused due to Yuan devaluation. A great decline in country’s economy – aided to the downfall of the stock market with drastic drop seen in share values worldwide. All are in fear whether the fall of China’s economy may reduce global growth in future.
It is a fact that air cargo service acts as the main indicator for tracking trade business especially shippers are facing such situations of last-minute economic developments. Some freight services have already got symptoms of shipping declines that going to come in future. Even customers are in the opinion that peak demand season of freights may decline this year compared to last year. Air freight in the Americas for Panalpina is the largest freight forwarder around the world which is in hope of trade increase but not in expectation of usual boom again. It is said by Stephen Fenwick that considerable decline is seen in volumes but expecting a rebound as the market is stabilizing slowly. He added that they are not reducing their fleet capacity as the US will never stop buying stuff from China which intends that volumes of air cargo service may decline but never degrades. Despite volume slow down of all freight services, Atlas Air Worldwide Holdings Inc. is on positive end with great demand in shipping, said by William Flynn, chief executive. He said that freight volumes are high this year compared to last year although the rate of growth is less. He said that they are expecting furthermore peak demand for the rest of year.
Many logistic companies affected due to a great decline seen in shares. Parental company of DHL named Deutsche Post AG shares dipped by 12 percent whereas Atlas Air shares declined by 22 percent. One of the largest cargo carriers of Asia named as Cathy Pacific Airways Ltd. Faced a stock decline of 18 percent. This week, Los Angeles airport cargo volume declined by 1 percent compared to previous year. In the first half of the year, freight tonnage was in a hike with 10 percent increase but reported decline this month as Los Angeles acts as the main gateway for US-China trades especially for air cargo service. In the first half, freight tonnage recorded was 21 percent hike compared to previous years which was declined by 0.4 percent in this month. China Airlines is the second largest freight carrier service which is based at Taiwan recorded 39 percent decline in cargo volumes compared to previous years. If Yuan declines further, exports out from China will be more which is not commendable for global trade. Asia’s largest air cargo hub named Hong Kong International airport recorded flat performance this year reporting 1.9 percent decline cargo volumes compared to previous years.