Having recently returned from Europe – well twice that is – once for Air Cargo Europe (ACE) in Munich and the second time from Paris after attending a media event for Air France KLM Martinair’s new express facility at Paris CDG – I can honestly say the air cargo sector is still alive and well.
Indeed at the Munich ACE show there was a very palpable sense that the air cargo patient is not only, unlikely to succumb to a dreaded terminal illness, but the patient is indeed recovering and alive and well. Clearly its not all celebration, as economic uncertainty in Europe and a ‘still being reigned in’ economy in China have created some flatness in the cargo markets (for more on that see the ‘By the numbers’ page which analyses the current industry data). And of course the issue of massive wide-body injection into the global market is still in full swing.
But having said that, the crowd in Munich was a fairly upbeat one – and while there was a substantial amount of alcohol available at nearly every second stand, that was not I believe, the main reason for the upward mood swing unless you’re talking about 5PM onwards! There is clearly adaptation to the new environment going on, some trade lanes are doing well, new markets are being tapped and the industry is getting on with business. Some stories remain the same – e-AWB and e-freight continue to move but not fast enough, freighters continue to bask in the desert sun – and new stories – cargo drones and new joint ventures and partnerships – continue to fascinate.
One thing that did become abundantly clear from Munich was the benefit of being smaller (than larger) and being lean and nimble during these troublesome days of a changing cargo environment. There is nothing particularly new in this observation, but it is of course always intriguing to see the picture painted before you. In the cover story this issue, Virgin Atlantic – no stranger to the struggle involved in making money out of this business – has a unique perspective on how they are approaching the market, particularly since the airline has returned to the black.
And then there is the much-maligned Air France KLM Martinair. After at least a good year plus of grim headlines detailing an almost sordid divorce tale over the divestment of its freighters with commentary after commentary detailing how the carrier has self-neutered its cargo ability, things suddenly look a bit different. In a special news piece, the carrier’s new ramped up focus on the express business of e-commerce should be an interesting read. Taking a couple pages straight out of the integrators’ book, the Franco-Dutch carrier group is head-long plunging into airport-to-airport and airport-to-door delivery of the booty of online shopping. And make no mistake, this certainly appears to have been a well thought out and implemented strategy. Certainly it will be something worth watching as it develops.
We also focus on the important role air cargo plays in times of natural disaster, with coverage of the massive relief effort after the devastating earthquakes that paralysed the impoverished nation of Nepal. This story has certainly not concluded and indeed as logistics efforts struggle, time is running out before the monsoon season turns misery into an even worse situation. We will continue to update on the relief logistics situation there both online and in the ebook version.
We hope you enjoy this latest issue!