{"id":73806,"date":"2023-09-28T00:00:00","date_gmt":"2023-09-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2023\/09\/28\/global-trade-falls-at-fastest-pace-since-covid-19-saf-prices-are-not-going-down-anytime-soon-iata-chief-says\/"},"modified":"2023-09-28T00:00:00","modified_gmt":"2023-09-28T00:00:00","slug":"global-trade-falls-at-fastest-pace-since-covid-19-saf-prices-are-not-going-down-anytime-soon-iata-chief-says","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2023\/09\/28\/global-trade-falls-at-fastest-pace-since-covid-19-saf-prices-are-not-going-down-anytime-soon-iata-chief-says\/","title":{"rendered":"Global trade falls at fastest pace since covid-19 + SAF prices are not going down anytime soon, IATA chief says"},"content":{"rendered":"

Global trade takes biggest hit since the pandemic: <\/strong>Global trade contracted at its quickest rate since 2020 in July, according to figures picked by the Financial Times<\/a>. 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.<\/p>\n

Driving the trend: <\/strong>Sharply higher interest rates across the world, higher inflation, and increased domestic spending on services post-lockdown.<\/p>\n

A gloomier forecast: <\/strong> 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\u2019s PMIs for the US, the eurozone and the UK have all signaled a sharp contraction in August and September.<\/p>\n

S <\/strong> AF prices likely to stay high, IATA chief says: <\/strong>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\u2019t deter airlines from meeting their carbon emissions targets, Reuters<\/a> quotes International Air Transport Association<\/a>(IATA) head Willie Walsh as saying during a conference. \u201cSAF will always be priced at a premium to kerosene,\u201d and prices will only come down when deliveries reach a large scale compared to the \u201ctiny volumes now,\u201d Walsh said. <\/p>\n

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