Current status of global air cargo services and challenges

The share of the air cargo services is increasing in the global exports and imports. In the year 2014, the air cargo services transported more than 35 % of global trade by value. That is equal to the 18 billion worth of cargo every day. The share in revenue of the airlines from cargo services in also increasing.  For some airlines, the revenue from cargo services is more than the first class segment revenue.

Air cargo services are becoming vital for the export of all perishable goods and items.  Pharmaceutical industry, horticulture industry, electronics, depends on air cargo services. Vegetables are being exported by air cargo services only. The role of    air cargo services is the base on which multinational supply chain companies are operating. The likes of Amazon, e bay or Alibaba are International Courier service in Charni Road  doing their business on the solid support provided by air cargo services and daily flights.

The research and studies have suggested that the growth of e commerce companies is driving the growth of international cargo companies operating big air cargo jets.  The growth that is taking place in the Asia economies such as Indian, china, and countries of south East Asia are the second major driving force behind increase in air cargo services. The air cargo services from area have share of 40 percent in the global air cargo services

Challenges before air cargo industry –

Currently the demand is very robust from the customers all over the world. But there is stiff competition.  And volatility in the currency market also affects the revenue of air cargo airlines. The recent slowdown in leading economies is also affect the growth and expansion in major trading area. But the air cargo industry Packers and Movers for International in Kandivali  in Asia pacific region is witnessing expansion both in fleet and business.   The cargo airlines in the region are redrawing network to create new customers initiatives. 

The efforts are also on to curb the expensive and cut costs. The capacity addition will be more than the demand. The study estimated that the increase in capacity will be around 9 percent and the demand will grow by 8 percent. 

        

As the result of less demand than capacity, the airlines operating in cargo domain are facing stagnation. The stiff competition, slow down in major country like china and the cost difficulty in the India market is also part of the problems in front of air cargo service providers.

Future prospects are bright as the major deal in trade and creation of free trade areas in the pacific region will lead to increase in trade between countries and also with other regions like North America. This will automatically create demand for air cargo services.