Air cargo association Tiaca is predicting another tough 12 months for air cargo demand, but has also outlined positives for the industry.

In its latest newsletter, the association said that high inflation, high interest rates, high energy costs and concern over job security have compounded to create an air of defensive consumer spending, which is in turn affecting the air cargo industry.

“However, the current situation is temporary and we can hope that later in 2023 central banks will start reducing interest rates when inflation is considered to be under control,” Tiaca said.

“Although before things improve, we can expect a further slowdown as energy costs are expected to remain high through winter 2022, particularly in Europe.

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