Air freight in North America booms with stronger economic growth

Source: Xinhua| 2017-09-06 03:44:10|Editor: Mu Xuequan
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WASHINGTON, Sept. 5 (Xinhua) -- Air freight in North America rose by 11.9 percent year-on-year in July, thanks to stronger economic growth and booming trade flows, said the International Air Transport Association (IATA) on Tuesday.

"The robust growth in air cargo demand is consistent with an uptick in global trade, rising orders and upbeat business confidence indicators," said IATA.

U.S. gross domestic product (GDP) grew at an annual rate of three percent in the second quarter of this year, marking the strongest quarterly growth since the first quarter of 2015, according to the U.S. Commerce Department.

"The strength of the U.S. dollar has boosted the inbound freight market over the past few years. Data from the U.S. Census Bureau showed a 12.5 percent increase in air imports to the U.S. in the first half of 2017. However, the decline in the U.S. dollar since the start of the year is likely to help rebalance trade flows," IATA added.

The growth rate in North America, which accounts for 20.7 percent of the global market, is consistent with an 11.4 percent year-on-year expansion in world air cargo market in July. This was also the fourth time in five months that double-digit annual growth was recorded.

"While the outlook for the rest of the year remains positive, there are signs that the cyclical growth period may be nearing a peak," said Alexandre de Juniac, IATA's Director General and CEO.