Latest news with #intra-European
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
US firms may mull sourcing from suppliers other than China: McKinsey
Amid pressure on US-China trade, US companies may look to rearrange sourcing to alternative suppliers, and if they cannot, they may instead reduce purchases, replace imported products with something similar, or ramp up domestic production, according to McKinsey and Company. These alternatives require a combination of sacrifice, resources, know-how, and time, a recent research piece by McKinsey Global Institute said. The authors introduced a 'rearrangement ratio' to quantify how hard the change might be. Thirty-five per cent of US imports from China have a ratio less than 0.1, signifying a global available export market ten times larger than current US imports from China. Amid pressure on US-China trade, US firms may look to rearrange sourcing to alternative suppliers, or may reduce buying, replace imported products with something similar, or ramp up domestic production, McKinsey and Company said. Consumer goods are harder to rearrange than business inputs. Exports to the US from as many as 70 countries may rise by more than 10 per cent under such a condition. For higher ratios, rearrangement becomes harder, and for the 5 per cent of trade with a ratio greater than 1, US imports from China exceed available global exports, noted the authors. Consumer goods are harder to rearrange than business inputs. Sixty-one per cent of business input imports have a rearrangement ratio less than 0.1, versus 16 per cent of consumer goods. Europe emerges as the fulcrum of trade rearrangement. Across nine varied simulations, European imports from China and exports to the United States both go up by nearly $200 billion. As intra-European trade shifts to the United States, it leaves holes filled by increased Chinese exports—assuming Europe does not choose to alter its own trade policies. Others will be affected, too: exports to the United States from as many as 70 countries may increase by more than 10 per cent, the authors said. Strategies will need to handle continued uncertainty and ongoing shifts, they cautioned. Customers will buy new things from new sources and use them in new ways. Granularity is key. Shifts across many thousands of products will reshape the geometry of global trade. The average US China-rearrangement ratio is about 0.4, but the figure varies widely across sectors. It is mid-range for textiles. In general, apparel such as T-shirts, jerseys and trousers is exported by a wide range of economies, with rearrangement ratios generally less than 0.1. Indeed, China has been shifting away from this category and moved from representing nearly 45 per cent of global apparel exports in 2010 to 25 per cent in 2023. However, rearrangement ratios are greater than 0.5 for other products ranging from synthetic-fibre socks to face masks and surgical drapes. Members of the Association of Southeast Asian Nations (ASEAN) could also replace a substantial share of China's textile exports to the United States, but this is more dependent on the specifics of rearrangement, the article added. For example, with tariffs as outlined on April 2, 2025—which are typically higher for ASEAN members—a tariff-minimising approach results in US textile imports coming more from economies like Morocco and Turkiye. ASEAN members substitute only about 5 per cent of US imports from China. Conversely, under some rearrangement-minimising approaches, this share rises to nearly 40 per cent. Fibre2Fashion News Desk (DS)
LeMonde
06-06-2025
- Business
- LeMonde
Air travel: Passenger compensation for flight delays set to decrease in Europe
In a rare move, the 27 member states reached an agreement on Thursday, June 5, on an issue that affects millions of Europeans: compensation for flight delays or cancellations. The topic is politically sensitive due to its broad impact, and as it also has major economic consequences for airlines. The issue has proven so contentious that it took member states more than a decade to reach a consensus. Even so, the meeting of transport ministers that was held on Thursday in Luxembourg nearly ended in failure. Currently, passengers can claim up to €600 in compensation when their flight is delayed by at least three hours. In practice, airlines rarely inform customers of their rights, relying on a European Union regulation dating back to 2004, which has been clarified over the years by rulings from the Court of Justice of the European Union. This complex legal landscape has allowed claims agencies to thrive. Member states have now raised the thresholds for compensation. In the future, passengers will need to experience a delay of more than four hours to be eligible for €300 on an intra-European flight. For journeys of more than 3,500 kilometers, compensation will increase to €500, but will only be payable after a delay of more than six hours. Flights to overseas territories are treated as intra-European flights, but delays on these routes qualify for the long-haul compensation rate.
Business Insider
01-06-2025
- Business
- Business Insider
European travel to the US slowed down this year — but travel companies say a summer rebound is already underway
Despite political tensions and growing anti-American sentiment, US travel is holding steady among European tourists — especially when prices drop. From January to April, several major travel platforms observed a slowdown in European bookings to the US. Thomas Cook reported a dip that exceeded typical seasonal fluctuations. "We did observe a softening in bookings to the US between January and April this year — a dip that goes beyond the usual seasonal adjustments," Nicholas Smith, holidays digital director at Thomas Cook and eSky Group, told Business Insider. However, by May, things began to shift. Smith said aggressive pricing strategies, including hotel rate cuts of around 25% and deposits of just over $1, triggered an uptick in bookings. "This has, in turn, helped stimulate demand, particularly among UK travelers adept at spotting good deals," he said. "We expect this rebound to continue into the summer months." Other travel firms echoed that optimism. TravelPerk, which serves business and corporate travelers, said bookings to the US from Europe rose 1% year over year in April, while US to Europe bookings climbed by 14%. Cancellation rates remained stable at 7 to 9%. Etraveli Group, which analyzed bookings through April, found that while demand for flights from the EU to the US declined by 7%, overall trip orders to the US from Europe jumped 19.5% year over year. However, bookings to other intercontinental destinations grew even faster, up 24.3% overall, 29% for Africa, and 25% for Asia. Shorter intra-European trips surged by 29%. Tariff backlash These shifts are unfolding against a politically charged backdrop. President Donald Trump's escalating trade war, with tariffs on EU imports swinging from 20% to 10% and now potentially rising to 50%, has triggered grassroots consumer backlash across Europe. Apps like Brandsnap in the Netherlands and Detrumpify in France are helping Europeans identify US brands to avoid in supermarkets and online. In Denmark, major retailer Salling Group labelled European-made products with black star labels, while Norway's largest oil bunkering operation company, Haltbakk Bunkers, made headlines for briefly refusing to refuel US Navy ships. Meanwhile, high-profile American brands like Tesla and Coca-Cola are already seeing a fallout. Tesla's sales in Europe dropped by 46% between January and April, according to data from the European Automobile Manufacturers Association, and McDonald's reported a global sales dip linked to "anti-American sentiment," especially in Northern Europe. This behavior may reflect more than a passing political reaction. In its March Consumer Expectations survey, the European Central Bank found that 44% of about 19,000 respondents preferred to switch away from US brands, regardless of tariff levels. The bank warned that this suggested a "possible long-term structural shift in consumer preferences away from US products and brands." It may not be a long-term shift French hotel giant Accor added to the concerns last month. CEO Sébastien Bazin told Bloomberg that summer bookings to the US from Europe were down 25%. Yet, travel industry analysts cautioned against assuming this signals a long-term shift. "While there is evidence of a temporary slowdown at this stage, the combination of price adjustments and strong interest in iconic US destinations suggests the market is poised to recover momentum," said Smith of Thomas Cook. Hosuk Lee-Makiyama, director of the European Centre for International Political Economy, told BI that politics isn't the only factor deterring travelers. "Some of it is a genuine disinclination against spending your holidays in the US," he said, "but much of it is the fear of harassment at the border."
&w=3840&q=100)
Business Standard
29-05-2025
- Business
- Business Standard
Asia leads air cargo recovery with 10% growth as global demand soars
Air cargo is flying high again, with Asia leading the charge. According to data from the International Air Transport Association (IATA), global air freight demand surged 5.8 per cent year-on-year in April 2025, with Asia-Pacific carriers delivering a standout performance at 10 per cent growth. The rise was driven by seasonal shipping of fashion and consumer goods — some of it front-loaded ahead of US tariff changes — and a 21.2 per cent drop in jet fuel prices over the past year. Asia-Pacific leads recovery Asia-Pacific carriers posted a 10 per cent year-on-year increase in demand, with capacity up 9.4 per cent. This reflects strong intra-regional trade and continued resilience on Europe-Asia routes, which grew 11.3 per cent in April — marking 26 consecutive months of expansion. India's exporters could benefit from this momentum. In April, India's Flash Purchasing Managers' Index (PMI) climbed to 60.0, up from 59.5 in March, the strongest pace of growth in eight months. The uptick was driven by strong international demand for services and manufactured goods, with new export orders growing at their fastest pace since September 2014. Regional trends in air cargo Latin American airlines saw the highest growth at 10.1 per cent, while North American carriers posted a 4.2 per cent increase. European carriers recorded a more modest 2.9 per cent rise, while West Asian airlines saw the slowest growth at 2.3 per cent. 'Air cargo demand grew strongly in April, building on March's solid performance,' said Willie Walsh, IATA's Director General. 'While the outlook is encouraging, global trade stresses and shifting policies, especially in the US, will require airlines to stay flexible in the coming months.' Mixed trends in trade lanes IATA noted that all international trade routes except for West Asia-Europe, Africa-Asia, and intra-European routes recorded growth. Europe-Asia routes saw an 11.3 per cent surge, continuing the 26-month growth streak. In contrast, Africa-Asia traffic fell by 7.9 per cent, and intra-European cargo declined by 8.8 per cent. Industry outlook: Cautious optimism Air cargo capacity rose 6.3 per cent from last year, while freight rates showed signs of improvement. Jet fuel prices have declined for three straight months, with a 4.1 per cent drop in April alone. The global manufacturing PMI ticked up to 50.5, signalling modest expansion, though the new export orders index slipped to 47.2, below the threshold for growth.
Malaysian Reserve
29-05-2025
- Business
- Malaysian Reserve
IATA: Global air cargo demand up by 5.8% y-o-y in April
KUALA LUMPUR — The International Air Transport Association (IATA) has reported a year-on-year (y-o-y) increase in global air cargo demand for April 2025. Total demand, measured in cargo tonne-kilometres (CTK), rose by 5.8 per cent in volume, building on March's solid performance, IATA said in a statement today. International operations saw an even stronger increase of 6.5 per cent, while in terms of capacity, measured in available cargo tonne-kilometres (ACTK), ticked up by 6.3 per cent globally and 6.9 per cent for international routes. In April 2024, the total demand for international operations was 6.5 per cent higher. In terms of capacity, measured in ACTK, increased by 6.3 per cent, compared with April 2024 of 6.9 per cent for international operations. IATA director general Willie Walsh said seasonal demand for fashion and consumer goods, front-loading ahead of the United States tariff changes, and lower jet fuel prices have combined to boost air cargo. 'With available capacity at record levels and yields improving, the outlook for air cargo is encouraging. While April brought good news, stresses in world trade are no secret. 'Shifts in trade policy, particularly in the US, are already reshaping demand and export dynamics. Airlines will need to remain flexible as the situation develops over the coming months,' he said. Several economic indicators supported the uptick in air cargo performance, including the increase in global industrial production, which rose 3.2 per cent y-o-y in March. It also noted that jet fuel prices declined by 21.2 per cent from the previous year and 4.1 per cent compared with March, marking the third consecutive month of falling fuel costs. Besides, global manufacturing Purchasing Managers' Index (PMI) rose to 50.5 in April, signalling continued expansion for the fourth month in a row. 'However, there are also signs of caution. The Purchasing Managers' Index (PMI) for new export orders dropped 2.8 points to 47.2, remaining below the 50-point benchmark that indicates growth,' it said. In terms of regional performance in April, Asia-Pacific airlines saw 10.0 per cent y-o-y demand growth for air cargo, while capacity increased by 9.4 per cent y-o-y. On trade lane growth, IATA said all international routes experienced growth in April, except for Middle East-Europe, Africa-Asia, and intra-European routes. Overall, the data reflect a robust air cargo sector buoyed by economic and seasonal tailwinds, though the potential for policy-driven shifts remains a key risk in the months ahead. The IATA represents some 350 airlines comprising over 80 per cent of global air traffic. In terms of total cargo traffic measured by CTK, the Asia-Pacific region holds the largest market share at 34.2 per cent. North America follows with 25.8 per cent, while Europe accounts for 21.5 per cent of the global share. The Middle East contributes 13.6 per cent to the total cargo traffic, whereas Latin America and Africa represent smaller portions, with 2.9 per cent and 2.0 per cent, respectively. These figures highlight the dominant role of Asia-Pacific, North America, and Europe in global air cargo movement. — BERNAMA
