Responding to rapidly evolving markets
Strong air exports from Asia, buoyed by e-commerce and disruptions to ocean freight supply chains, have for several months been driving up rates and pushing carrier and handling capacity to their limits, as highlighted in this issue’s Asia Report (p4). Many markets, for example in South Asia, Southeast Asia and the Middle East, have faced surges in air cargo and multimodal demand. And Bangladesh has faced additional challenges, with political upheavals adding to strong demand and capacity limitations. Longer transit times and high rates have priced out some parts of the air freight market such as perishables, and threatened the viability of key textiles supply chains, underlining the vital role of functioning and efficient air logistics systems.
E-commerce continues to be a major theme. Although south China’s ‘Greater Bay Area’ is China’s main source of e-commerce exports, the rapid growth has driven e-commerce cargo to other airports, such as Shanghai Pudong – for example, pushing Pactl’s e-commerce terminal there to its capacity limit, until new space and capabilities can be developed in the next two to three years.
Despite an ongoing debate about whether it makes sense to create dedicated e-commerce handling capacity within cargo handling facilities, many carriers and cargo handlers are moving forward with developments – including Etihad Cargo, its cargo VP Stanislas Brun notes (p22). And the discussion on p48 explores e-commerce air logistics in some depth, highlighting how intelligent use of new technology and deeper collaboration can improve the quality and efficiency of services.
Technology and digitalisation remain major themes, and the article on p38 highlights how digital forms an increasingly key part of discussions about ULD management solutions, with interest growing in integration with One Record and GHAs’ CMS systems. And Awery’s Vitaly Smilianets highlights (p42) the value of competitions such as hackathons, and how the collaborative spirit within teams, and the pressure to produce results lead to creative breakthroughs that might not emerge in a traditional development setting.
The People Focus article on p16 highlights how technology is changing the human resources landscape for air cargo stakeholders, including the ability to use online methods to update staff with information and skills, and the need for personnel to be able to work effectively in an increasingly digital era.
And a unique contribution from Yevhen Marinov (p48) highlights how air freight stakeholders in Ukraine have had to adapt to a war-time environment, in response to Russia’s brutal and inexcusable military invasion, facing unprecedented challenges that have disrupted operations and reshaped the entire logistics landscape – and life throughout the country. My thoughts are with anyone working amid or living with the senseless brutality of war.
