Smooth routes in turbulent times

The airfreight industry faces a wide range of growth opportunities in several key regions, with opportunities in both established and emerging regions. The Asia Pacific (APAC) market is particularly dynamic, largely due to rapid economic growth in countries such as China and India. The growth of e-commerce is driving demand for fast delivery. In addition, countries such as South Korea and Japan are major players in the technology and automotive industries, exporting high-value components by airfreight.

The market in the United States and Canada remains strong, with a robust domestic economy and strong trade links with Europe and Asia. Advanced logistics infrastructure and high technology use are also driving airfreight growth.

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Despite some economic uncertainty in some parts of Europe, the continent remains a significant market for airfreight, particularly in the pharmaceutical and luxury goods sectors. Well-managed airfreight routes and strong demand for fast and reliable shipping options are sustaining growth. The strategic location as a global hub and investments in world-class air cargo infrastructures, such as Dubai Airport, make the Middle East a growing player in international air cargo transport.

In addition, the region’s drive for economic diversification is driving growth in the air cargo sector. Latin America and Africa offer long-term growth opportunities due to increasing industrial activities and improving infrastructure. In countries such as Brazil, Mexico, Nigeria and South Africa, the air cargo market is developing, driven by increasing exports of agricultural products and other raw materials, as well as imports of consumer goods. “All of the regions mentioned benefit from global trade trends, technological advances and increasing integration into the global economy, which in turn increases the demand for fast and efficient air cargo services,” Alexander Leirich, Key Account Manager, Euroasia Cargo, outlined.

“Nevertheless, the growth potential in each specific market depends heavily on local economic conditions, political stability and infrastructure development.

“The Red Sea crisis, typically associated with geopolitical tensions or events such as the blockade of the Suez Canal, has far-reaching implications for the logistics industry and the organisation of freight transport worldwide.

“The diversion of shipping routes leads to longer delivery times and higher transport costs, which often results in a shift in freight volumes to airfreight. This step is being taken to transport time-critical goods more quickly and to ensure the stability of supply chains. “Furthermore, companies are expected to expand their warehousing at lead locations to mitigate disruptions. Road transport is playing an increasingly important role in ensuring the maintenance of supply chains.

“An escalation of conflicts in the Middle East that spreads to other parts of the region could have serious consequences for the air cargo industry. This region is a central hub for global air cargo routes due to its geographical location and any instability can have far-reaching effects. “First and foremost, it will lead to an increase in operating costs due to higher insurance premiums and security measures. Costs will also rise due to the diversion of flight routes. Access to important air cargo hubs and logistics centres would be made far more difficult.”

Dealing with disruption

The current situation highlights the high sensitivity of international supply chains to geopolitical events. Disruptions such as geopolitical tensions can have a significant impact on transport routes and the reliability of supply chains. This requires the development of strategies that strengthen the resilience of supply chains and protect freight operations.

These strategies include diversification of suppliers and transport routes; building strategic inventories: maintaining strategic warehouses in different locations to enable rapid response to sudden fluctuations in demand or supply bottlenecks; regionalisation of suppliers and production sites; relocating suppliers and production sites to more regional areas can reduce dependence on global supply chains and thus reduce vulnerability to global disruptions; and collaboration and information sharing.

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“The combination of technology, networks and expertise is crucial to effectively support customers. This includes real-time monitoring using advanced tracking systems that enable continuous monitoring of freight shipments,” Leirich highlighted.

“Flexible route planning is also essential; this is achieved through an extensive in-house network or through partnerships that enable switching between different transport modes. “By working with a broad network of partners worldwide, logistics solutions can draw on local resources and expertise necessary to overcome specific challenges. Open and regular communication with customers about the status of the freight is also crucial. Proactive action enables problems to be identified quickly and resolved efficiently.”