Instant delivery and gratification has become the cornerstone of e-commerce and with it, the global air cargo industry has been a great facilitator in ensuring that the supply meets demand. Whilst e-commerce is a more recent commodity, the like of global air cargo has helped with the demands and supply of perishable cargo logistics every day.
If you were to take statistics of global air trade, the IATA forecasts that the global air cargo will represent approximately 1% of global trade in terms of volume with over 35% value margins. Timely deliveries are now a way of life, what was once a luxury has now intertwined itself into what is now a necessity. Like we said before, air logistics is an integral part of perishable cargo but that is not the only industry that relies on it. The pharmaceutical companies and medical aid find this mode of transport relies on global air cargo for its benefits of speed and efficiency. This is especially so when you take into consideration the sensitivity of the cargo in question, the value and timeliness of the deliveries.
With the likes of e-commerce and the electronics/gadgets industry, you are looking at a global air cargo strategy set in place where express delivery of samples or parts play a crucial part in the numbers game. With global retail sales alongside express delivery, 7.6% was represented as online sales in 2016. It is slated to rise in the coming years, proving that instant gratification is a reality and global air cargo volumes will rise.
Global air cargo started to show a growing trend in mid 2016 and with the upward momentum has taken hold and this shows promise for the future. Whilst there is a promise for growth, being aware of the industry’s strengths, weaknesses, opportunities, and threats is always recommended. The following features a SWOT analysis carried out on the global air cargo sector by IATA.
By facilitating better means of improving global air cargo strategies, there will be further growth. The IATA has formulated a new strategy that looks at the following to make global air cargo easier, smarter, and better. Another one such means is with electronic air waybills in order to not only improve efficiency but also reducing chance of human error and not to mention increasing quality of service. These goals will take steps toward the right direction ensuring that industry moves with the times, provides transparency whilst meeting its mission milestones.
