Global trade takes biggest hit since the pandemic: Global trade contracted at its quickest rate since 2020 in July, according to figures picked by the Financial Times. The World Trade Monitor, published by the Netherlands Bureau for Economic Policy Analysis, shows that volumes declined 3.2% y-o-y during the month, accelerating from June when trade fell 2.4%. This is the most severe fall since mid-2020 when global supply chains were suffering through the wave of covid-19 lockdowns across the world.

Driving the trend: Sharply higher interest rates across the world, higher inflation, and increased domestic spending on services post-lockdown.

A gloomier forecast: The figures are likely to add to the concerns that a slowdown in global growth could accelerate in the coming months. Industry experts anticipate trade volumes to continue to weaken: S&P Global’s PMIs for the US, the eurozone and the UK have all signaled a sharp contraction in August and September.

S AF prices likely to stay high, IATA chief says: Sustainable aviation fuel (SAF) prices are more likely to stay more expensive than kerosene even in the face of large-scale production kicks, but the cost won’t deter airlines from meeting their carbon emissions targets, Reuters quotes International Air Transport Association(IATA) head Willie Walsh as saying during a conference. “SAF will always be priced at a premium to kerosene,” and prices will only come down when deliveries reach a large scale compared to the “tiny volumes now,” Walsh said.

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