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Icelandair Cargo hit by strong currency in 2007
Feb 7, 2008 (newstodate): Icelandair Cargo experienced a moderate growth in 2007, increasing 2.6 percent to a total of 41,963 tonnes.
Imports grew by 13.8 percent, transit volumes grew by 13.2 percent, but exports from Iceland declined by 7.8 percent.
-We experienced a stagnation in the total volumes in 2007, caused by a difficult year for the fresh seafood exports that constitute about 90 percent of the total exports by air from Iceland, says Petur J. Eiriksson, Icelandair Cargo managing director.
-Exports to USA had been steady in 2006 and in the beginning of 2007, but started to slow down considerably in March 2007, he says.
-The strength of the Icelandic Krona has weakened the competitive position for the seafood producers in most markets and especially in USA.
-It is anticipated that exports will continue to decline in 2008, but it is also expected that the Krona will start to decline by mid-2008 and this will lead to a reversal of this negative trend.
-Imports to Iceland remained strong in 2007 and we expect them to be steady until mid-2008 when we are expecting them to decline, says Mr Petursson.
In December, 2007, Icelandair Cargo moved 3,244 tonnes, down 14.1 percent, y-o-y.
Imports to Iceland grew by 7.7 percent, but exports from Iceland declined by 22.4 percent, and transit declined by 25.4 percent.
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