More good news on the air cargo statistics front. Global air freight markets exhibited a third consecutive month of signifi cant demand growth in September as collective volumes rose 5.2 per cent year-on-year, according to IATA’s air freight market analysis. In particular the modest but encouraging comeback of Asia-Pacifi c and North American air freight markets appears to be signaling an accelerating air cargo demand.
Th e only downside is the 1.6 per cent year-on-year drop in European carriers’ air freight traffi c which represents a signifi cant 25.8 per cent of the overall market share. A number of key factors – from general uncertainty in the European economy, pilot strikes to the downward economic and trade pressure as a result of the ongoing Ukraine-Russia confl ict – all threaten to continue curtailing cargo growth going forward.
Overall the air cargo market recovery is probably a healthier version than what the industry experienced in 2010 when the market pretty much burst lose like a bull at rodeo. Slower more measured growth allows the industry to approach it with a more measured, circumspect approach. But while most of the industry – save quite a number of European carriers – are quietly, cautiously lauding the evolving market recovery, it is still quite unclear where exactly the market is going.
A recent cargo executive commented that he had just completed his budget for next year and his board of directors was asking for a view on 2016. “I don’t even know where the market will be next year, let alone 2016!” was his comment – although likely not to his board.
And adding to the problem of market visibility are a number of other issues that increasingly cannot be avoided – like the increasing modal shift, although there appears to be no consensus on exactly how much and what impact it’s having; shifting business sourcing and consumer shopping trends; rising competition from within the air cargo industry from the integrators; and ongoing struggles to even fi x one of the most fundamental issues – shifting from paper to e-AWBs.
All of these issues and more were discussed by the delegates attending Th e International Air Cargo Association (TIACA) Air Cargo Forum recently in Seoul. Speaking at the opening, TIACA chairman Oliver Evans noted: “Th e industry is facing unprecedented challenges and unprecedented opportunities, we must face them together. Collaboration is key. It is a long road, but it is an exciting one and one we can be proud of.”
Indeed the word ‘collaboration’ has become a recurring theme at air cargo conferences around the world over the past year as one key fundamental point comes up, again and again and again – that all players in the supply chain need to better share information that would improve visibility and effi ciency.
But one fears of course that it ends up just being a buzzword and nothing more. At least the industry – across its whole spectrum – is recognising the crucial need to collectively get its house in order. Now lets see some more action. And while clear movement has been made on the e-AWB front, its still a long, long way off from industry-wide e-freight. Clearly without this, greater visibility, transparency and the effi ciency gains therein – that customers are demanding – simply won’t happen.
Another oft-repeated statement in these very same venues where ‘collaboration’ is bandied around like the air cargo Holly Grail, is Albert Einstein’s defi nition of insanity. While it’s very nearly over-used already, I will repeat it one more time because it truly does apply as an important caveat to the air cargo sector as it soul searches its way to a better, brighter future. Defi nition of insanity: Doing the same thing over and over again and expecting diff erent results.
And with that, I bid you adieu until next month
