European Trade Volumes Falling

Discussion in 'Economics' started by Trendytrader, Feb 19, 2012.

  1. It looks like European growth has likely stalled and contraction is taking place. Air cargo and container freight volumes have fallen sharply.

    The $64,000 question is if the US will have a similar downturn and the likely impact. With gas now $4/gallon the highest ever in February and forecast to hit $5/gallon this summer it must have an impact on the US consumer. God forbid if Iran is attacked and retaliates then $$/gallon.

    http://www.shippingonline.cn/news/newsContent.asp?id=8464


    STEEP declines on Asia/Pacific and Americas routes have resulted in an 18.5 per cent fall in cargo volume in February for Air France-KLM, Europe's biggest airline.

    British Airways cargo volume fell 20.7 per cent in February year on year, but the company said it was maintaining global market share and making gains in some territories, reported Newark's Journal of Commerce.


    Air France-KLM cut capacity eight per cent in February but greater falls in volume resulted in a load factor of 60.7 per cent, down 8.1 per cent year on year.


    There was a 13.9 per cent decline in Americas traffic in February and Asia/Pacific shipments fell 17.7 per cent. Africa/Middle East routes again bucked the trend with volumes soaring 31.9 per cent from a year ago.


    Air France-KLM is cutting capacity from April 1 and has delayed the delivery of two Boeing 777 freighters, originally scheduled for later this year, to sometime between 2010 and 2012.


    Despite BA's cargo traffic decline, the carrier was less vulnerable than rivals to the global downturn as its business is smaller, less exposed to the Asia/Pacific region and focused on higher value traffic such as perishable products.
     
  2. Tsing Tao

    Tsing Tao

    Futures up.