The logistics needs of the e-commerce industry is evolving rapidly with the changing business requirements. Air cargo is riding high on e-commerce, and the industry is building infrastructure to support it. Last-mile delivery that constitutes 40-50 percent of logistics cost in India is ridden with challenges. However the logistics infrastructure being built by e-commerce companies and 3PLs has allowed 100 percent timely fulfillment of orders in India even during peak sales period.
“Today will be bad, tomorrow will be worse, but the day after tomorrow will be sunshine,” said Jack Ma of Alibaba. This quite succinctly sums up the positive growth e-commerce is delivering in terms of trade growth to the world since last year.
Air cargo industry got back its lost sheen after seven long years owing to e-commerce trade that relies heavily on express delivery. In 2017, airlines returned to freight profitability not seen since 2010. Air freight demand, measured in freight tonne kilometers (FTKs), grew by 9 percent, which was more than double the 3.6 percent annual growth recorded in 2016.
Alexandre de Juniac, director general and CEO, IATA, attributed the growth to buoyant consumer confidence, the growth of international e-commerce and the broad-based global economic upturn. It forecasts the demand growth to continue in 2018.
"We saw improvements in load factors, yields and revenues. Air cargo is still a very tough and competitive business, but the developments in 2017 were the most positive that we have seen in a very long time," said de Juniac.
As per IATA, global industry net profit is expected to rise to $38.4 billion in 2018, an improvement from the $34.5 billion expected net profit in 2017. Interestingly, cargo volumes are estimated to grow by 4.5 percent in 2018, but down from the 9.3 percent growth of 2017. Cross-border e-commerce trade is expected to continue pushing demand ahead of supply in 2018.
China that accounts for one-third of global exports is leading the growth in cross-border trade. The desire of customers for variety of products from across the globe, faster shipping and front-door delivery has put the airlines, airports and logistics service providers in full swing of operations. Add to this, the record sales during sales days like Singles day, Cyber Monday, Black Friday, Big Billion, and the ecommerce logistics potential is put to test.
Denne historien er fra February 2018-utgaven av The STAT Trade Times.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 2018-utgaven av The STAT Trade Times.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
AVIATION INDUSTRY: FUELING THE FUTURE WITH SUSTAINABILITY
Following rising concerns about climate change and the urgent need to reduce greenhouse gas emissions, the aviation industry is building a well-established strategy for sustainability. Thanks to technological advancements, innovative practices, and a strong commitment to environmental stewardship, sustainable aviation is emerging as the path to a greener future.
WHO IS CHANGING THE GAME FOR AIR CARGO?
Up until five years ago, the air cargo industry was considered less digitally mature than other sectors marked by rigid legacy systems. But with the onset of Industry 4.0, innovation is on every business manager’s agenda and exciting changes are transforming this industry. Also, as consumer habits change and customer expectations grow, clients demand end-to-end visibility of their delivery. With emerging technologies like Blockchain, Artificial Intelligence and IATA’s initiatives One Record and Interactive Cargo, technology is definitely making changes to efficiency.
WAITING TO BE FILLED AIR CARGO CONTINUES TO BE IN THE DOLDRUMS
Global air cargo industry continues to suffer across all regions and the demand decline experienced in 2019 is the steepest drop since 2009 during the global financial crisis. Airline association IATA predicts that air cargo demand will increase by two percent in 2020; however there are several ifs and buts for the industry to get back to growth momentum.
TRADE WAR ADDS CANADIAN FLAVOUR INTO CHINESE CUISINE
The surging lobster business in Canada built on the trade war between the US and China shows the capability of Nova Scotia in addressing the supply chain issues of stakeholders, at a time when China demanded more lobster than the province exported earlier. By exporting around 22 tonnes from January-October 2019, one of the three maritime provinces of Canada is confident to face the aftermath if trade war ends, by foraying into new markets.
INDUSTRY RISES AGAINST DANGERS OF ROGUE LITHIUM SHIPMENTS
As the threat of mis-declared or ill-packaged shipments carrying lithium batteries looms large, the aviation industry is joining forces to fight the menace. As e-commerce and demand for cleaner technology grows, the demand for lithium batteries is also seeing an upward trend. It’s time this industry affair got more attention to make aviation safer.
GECAS, IAI Launch The B777 Freighter Conversion Programme, Freighter To Enter Service In 2022
GECAS and Israel Aerospace Industries (IAI) have launched the Boeing 777-300ER freighter conversion programme.
From Booking Middlemen To Strategic Partner
Founded in the united kingdom in 1994, Air Logistics Group (ALG) has developed significantly from the traditional ‘general sales agent’ to a strategic partner offering the highest level of value added services to its airline and forwarding partners. As ALG completes 25 years, Stephen Dawkins, founder & chief executive officer of ALG, speaks to Reji John, about many more exciting years ahead providing airlines and forwarders with a reputable, financially sound partnership that can deliver in terms of revenue, network coverage, digitalisation and manpower. Edited excerpts.
FLA-PLA 2019 Call For Embracing Technology, Sustainability, Better Infrastructure
Sustainability and need for collaboration dominated the narrative of the latest Flower & Perishable Logistics Africa conferences in Nairobi, Kenya. Attendees discussed the importance of infrastructure development, exploring new markets, and looking beyond the traditional avenues.
Raising The Stakes On Perishable Logistics
When dealing with fresh produce and other food items intended for human consumption, there is no wiggle room when it comes to freshness and quality. For the food to reach one’s plate, there is a lot that happens along the way – this includes harvesting crops at the right time, maintaining proper temperatures, and of course, on-time delivery from farm to fork. As consumption patterns change, regulations vary, customer expectations rise, industry players are converging to create a seamless supply chain.
Connecting Intelligently For Cargo Mobility
The air freight industry, which has remained traditional in its processes and business models for a very long time has seen a perceptible shift on the back of advances both in operation and information technology in the last few years. For the industry to work more efficiently, the supply chain needs to generate a constant stream of data that can be collected, analysed and used to optimise productivity.
