Air cargo market stagnating: Tony Tyler, IATA CEO

Tony Tyler IATA @ FIATA$6.5 trillion of goods travel by air, 35% of all world trade, but the market share for air cargo is decreasing. World trade has increased by 12% since 2010 but air cargo volumes have only grown by 2%. Revenues are shrinking: from $66 billion in 2010 to $59 billion in 2013. Four forces are challenging air cargo’s competitiveness— (1) changes in the economics of just-in-time manufacturing, (2) longer delivery lead times facilitated by improved predictability of demand, (3) innovation by our competitors (sea, rail, road), and (4) environmental pressures —there is clearly a need for the air cargo industry to take a long and hard look at its value proposition, so as to guide improvements in competitiveness. Read more

Increasing Risks to Emerging East Asia’s Local Currency Bonds: “tough times certainly lie ahead” – ADB

Asia Bond MonitorEmerging East Asia’s local currency bond markets are still expanding but risks to the outlook are rising given the prospects of tighter US monetary policy, slower economic growth in Asia, and persistent capital outflows, according to the latest quarterly Asia Bond Monitor from the Asian Development Bank (ADB). “Asia’s bond markets, and its borrowers, are better placed to stand up to this latest round of global volatility than they were in 1997-1998 but tough times certainly lie ahead,” said Iwan J. Azis, Head of ADB’s Office of Regional Economic Integration. “The challenge will be to ensure the region can cope with higher borrowing costs and falling asset prices, which could hurt corporate balance sheets and dampen economic growth.” Read more