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Cathay Pacific Cargo Sees Strong Growth, But IT Outage Looms Large

The Logistic News by The Logistic News
July 22, 2024
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Reading Time: 1 min read
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Cathay Pacific Cargo Sees Strong Growth, But IT Outage Looms Large

FILE PHOTO: A Cathay Pacific Cargo Boeing 747-8F plane descends before landing at Hong Kong Airport in Hong Kong, China April 4, 2018. REUTERS/Bobby Yip

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Cathay Pacific Cargo, the air freight arm of Hong Kong’s Cathay Pacific Airways, is celebrating a 12% year-on-year rise in cargo volumes for June 2024 [Air Cargo News]. This positive trend is attributed in part to a surge in pharmaceutical shipments, a sector that has remained resilient throughout recent economic fluctuations.

However, the good news is tempered by concerns surrounding a recent global IT outage that crippled airline and airport operations worldwide [Air Cargo News]. While the full impact is still being assessed, industry experts warn that it could take weeks to fully recover, potentially causing significant delays in cargo shipments.

“The IT failure presents a major challenge for the air cargo industry,” said an industry analyst. “With peak season approaching, even minor disruptions can have a domino effect, leading to backlogs and frustrated customers.”

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Cathay Pacific has not yet commented on how the IT outage might affect their operations. However, they are likely taking steps to mitigate the impact and prioritize essential cargo shipments, such as pharmaceuticals.

Despite the looming IT threat, Cathay Pacific Cargo’s strong performance in June highlights the continued demand for air cargo services. As the global economy recovers and consumer spending picks up, air cargo volumes are expected to remain healthy in the coming months. However, the industry’s ability to navigate potential disruptions caused by IT failures will be a key factor in maintaining this momentum.

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