newstodate.aero
May 05, 209 (newstodate): Iceland's air cargo industry is still hard hit by the world economic crisis and the especially unstable political situation in the country.
-I would love to bring good news to the market, but I am afraid the situation is little changed during the last few months, says Arnar Bjarnason, TVG Zimsen manager airfreight and business development.
-First, the Icelandic currency is at a low again, creating difficult conditions for the country's import sectors. We are still seeing not more than about half of the air cargo imports, compared to last year, and this is crucial to Iceland's freight airfreight forwarders that are almost entirely dependent on imports. We are now probably at levels comparable to 2003-2005.
-Also we are still seeing the political situation overshadowed by the rift between the country's two major political parties over EU membership. And as long as this continues, the long range of important political decisions that should be made remains in limbo.
-First of all, to revive the economy, and indeed the airfreight business, we will need banks to return to normal business which has not been the case since October 2008. Also we would need a stable Icelandic currency to be re-established, and we would need to see the job situation recovered.
-While airfreight imports remain low in volumes, airfreight exports are booming due to the strong position of Icelandic seafood in the markets. But this business is traditionally between exporters and airlines directly, and also rates are so low that no airfreight forwarder would be attracted to become involved in it.
-So all in all, times remain tough, and the political situation is not very helpful to the industry either, says Mr Bjarnason.
-I would love to bring good news to the market, but I am afraid the situation is little changed during the last few months, says Arnar Bjarnason, TVG Zimsen manager airfreight and business development.
-First, the Icelandic currency is at a low again, creating difficult conditions for the country's import sectors. We are still seeing not more than about half of the air cargo imports, compared to last year, and this is crucial to Iceland's freight airfreight forwarders that are almost entirely dependent on imports. We are now probably at levels comparable to 2003-2005.
-Also we are still seeing the political situation overshadowed by the rift between the country's two major political parties over EU membership. And as long as this continues, the long range of important political decisions that should be made remains in limbo.
-First of all, to revive the economy, and indeed the airfreight business, we will need banks to return to normal business which has not been the case since October 2008. Also we would need a stable Icelandic currency to be re-established, and we would need to see the job situation recovered.
-While airfreight imports remain low in volumes, airfreight exports are booming due to the strong position of Icelandic seafood in the markets. But this business is traditionally between exporters and airlines directly, and also rates are so low that no airfreight forwarder would be attracted to become involved in it.
-So all in all, times remain tough, and the political situation is not very helpful to the industry either, says Mr Bjarnason.