It would be fair to say that the air cargo market has experienced some turbulence in recent years, as airlines had to keep pharmaceutical products moving at the height of the Covid19 pandemic, and then as it continues through the post-covid recovery period to adapt to a new updated reality. After a particularly challenging start to 2023, the latter parts of the year have started to show promising growth, with IATA (International Air Transport Association) reporting in October 2023 the first air cargo demand growth in 19 months.
As we spoke to our airline partners, they highlighted some of the key drivers for the market in 2023 including capacity challenges, increased pressure from shippers to drive costs down, the need for greater data transparency and regulatory changes.
But while the industry recovers, our key partners have tackled the challenges that they face by finding new ways of working and new opportunities to support our joint customers.
Hear more about what our partners had to say in our interviews:
Some of the opportunities that our partners have adopted include increased investment in digital technologies to optimize operations and enhance the customer experience, as well as ensuring a customer centric approach to their product offerings, including developing innovative new solutions to support customers further and to support the safe transportation of the new advanced pharmaceutical products that are being developed.
As we look ahead to 2024 together with our airline partners, we foresee several trends shaping the air cargo market:
Sustainability
The industry is expected to continue to prioritize sustainability, with a focus on reducing carbon emissions and adopting more eco-friendly practices. Airlines are likely to continue to invest in sustainable aviation fuels (SAF) and explore innovative new solutions to minimize their environmental impact.
Data and Digitalization
Continued development of digital services including real-time shipment monitoring and more accessible data sharing between all stakeholders is expected, which will work towards enhancing operational efficiencies, reducing costs, and supporting our joint customers further in ensuring that pharmaceutical products are transported safely.
Resilience in Supply Chains
Supply chain resilience will remain a top priority, with lessons learned from recent years playing a pivotal role in building resilient supply chains that can withstand unforeseen disruptions and offer fast and flexible solutions to mitigate risks.
We’d like to thank our partners who participated in the discussion:
Indy Bolina – American Airlines Cargo
Manu Jacobs – United Cargo
Miguel Rodriguez Moreno – Qatar Airways Cargo
Laurent Stolt – Air France KLM Martinair Cargo