While manufacturing in May was still experiencing declines, June PMI figures are looking mostly positive and showing signs of recovery, finds Cargo Facts Consulting.
Forecasts for the third quarter have also been revised upwards for a number of key economies including the Euro area, the US, China, India, Brazil, Canada and Australia. In most cases this means the expectation of expansion instead of contraction, although in the case of Canada less contraction than expected.
Manufacturing activity is the primary driver of global airfreight volumes. While much of the focus is on e-commerce, it is worth nothing that airfreight remains an industrial tool. 65-75% of international airfreight consists of primary inputs, intermediate goods, parts and supplies, and capital equipment. Even over the past months where COVID-19 related medical shipments have increased their share of airfreight, for example, 80% of US and EU imports by air were still related to normal airfreight.
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