With a major population base, robust economic growth and global manufacturing centers, the Asia Pacific (Apac) region has incredible and more attractive.
There are various factors that drive this strong growth: it is mainly the continued development of the global e-commerce demand, for which China is the most important source of goods, followed by emerging economies such as Vietnam. But there is also strong growth intra-assia due to increasing wealth and industrialization that drives the demand for consumers to Western goods. The recovery of manufacturing in China and India has also driven an increase in international air freight as businesses transfer to air freight amid shipping interruptions.
“With the purchase power in the region that has also increased, trade in and out of the region has grown tremendously,” said Chaminda Perera, head of cargo at Srilankan Airlines.
The growth in the demand for air freight is mainly driven by a combination of passenger demand and the full recovery of activities postpandemics. The recovery improved the compound and capacity in the air freight sector, with the available cargo capacity. Growth is also driven by a greater appetite in the market for speed in this region – and through the air is the fastest way to move things throughout the region.
Francis Antony, head of Cargo Commercial at Teleport, is becoming increasingly attractive to technical manufacturers, further increasing the demand for air freight services. “We see increased logistics needs from the pharmaceutical industry due to the increasing global demand for medical supplies and medication.”
e-commerce
E-commerce in all its different forms is supporting the market. In the Apac region alone, it captured a third of the global air freight market, the highest of any region worldwide.
“The bleeding e-commerce market was an important factor in restoring the global air freight industry during and post-pandemics,” Igor Kwiatkowski, executive manager of Qantas Freight, continued.
“While consumer habits have shifted to online shopping, demand for efficient air cargo services has increased. This revival not only contributed to increased air freight volumes, but also gave a way to operators to rebuild and adjust. “
The initial surge in demand for PPE of the pandemic was replaced by general e-commerce, and it was in turn linked by general freight growth as global economies recovered.
‘There were changes in air freight: initially we lost almost all the abdominal cavity to be replaced by Maindeck; Thereafter, this capacity was gradually switched from PPE charges to provide resilience in large supply chains through program charges, which tends to continue today; And now, on most routes, we have recovered from the abdominal cavities to pre-flown levels, offering the frequency and choice that some commodities need, such as Pharma, “said Wilson Kwong, Hactl CEO Wilson Kwong.
“E-commerce benefits the air freight and shows no sign of dismantling yet, so there is good reason to remain optimistic-under -est on any unique factors that do not disrupt the trend.”
Challenges
The air freight industry in the Apac region is confronted with several important challenges that can disrupt the operations. One primary concern is the ongoing economic uncertainty, which includes fluctuations in world demand, inflationary pressure and volatility in the exchange rate; Factors that can adversely affect export volumes and profitability.
‘Many of the world’s production power stations, including China, are located in the East, leading to heavy air freight traffic that usually moves from east to west. However, carriers have challenges with cargo movements from the west to eastern due to a directional imbalance, ”Perera explained.
In addition, capacity management poses a critical challenge; An oversupply of cargo space can lead to reduced rates and increased competition.
Geopolitical tension and trade interruptions, including conflicts, sanctions and policy changes, further threaten the most important trade routes and supply chains. For example, due to the China-American trade tension, the dependence on Chinese manufacturing decreased, which moved to Hubs in Vietnam, India and Mexico.
“Global trade, e-commerce volumes and the health of US and European economies are all important. But we should note that the success of Airfreight is often the result of extraordinary factors mentioned above, ”Kwong said. ‘It is unpredictable in itself, so the only predictability is unpredictability! And we have to welcome it. “
In addition, the increasing emphasis on sustainability puts its own challenges in the industry, as companies must navigate stricter environmental regulations, while the costs are managed effectively.
“We are optimistic, at the same time careful about how economic and geopolitical shifts can affect this growth,” Anthony explained.
Target areas
The Apac region offers several promising opportunities for air freight growth. Singapore in particular has a significant potential as a strategic pivot. The advanced infrastructure, connectivity and focus on innovation make it an ideal location for industries such as pharmaceutical products, electronics and semiconductors. The healthcare and pharmaceutical sectors also provide significant potential, especially for temperature sensitive consignments as demand for advanced health care solutions increases throughout the region.
“We see unused growth opportunities for cargo on popular passenger courses (but unpopular cargo roads) about, among other things, destinations such as Maldive, Bali and Phuket,” Anthony continued.
Geographically see emerging markets in Southeast Asia, especially Vietnam, Thailand, Malaysia and the Philippines, strong manufacturing growth and offer new trade courses and export opportunities.
The strategic location of Sri Lanka between the East and the West, along with its highly connected port (worldwide 24th place), positions it as an important pivot for air, air air and air sea logistics.
‘It makes it a key player in the Silk route and the belt and road initiatives. Therefore, if we do not limit our airlines partnerships, we see ship lines and road feeding networks as potential partners, which are essential to maintaining important trade connections, ”Perera added.
Network developments
The prospects for global air freight capacity in 2024 are cautiously optimistic. Factors such as continued growth in e-commerce, international trade and possible disruptions in supply chains will play crucial roles.
In addition, fluctuations in fuel prices, regulatory changes and progress in logistics technology will also affect capacity dynamics as the industry continues to adapt and develop.
In the midst of that environment, carriers cannot limit themselves to their own networks. Products and brands are globalized, and the question can extend to the world’s overlines.
‘Simplistically, global trading shows long -term growth as population growth grows, and it must logically correspond to the underlying demand in logistical growth. Any other growth has more to do with modal shift, which has benefited Airfreight several times over the past year, ”Kwong said.
“Srilankan cargo has set up direct activities that cover Europe, the Middle East, South Asia, Southeast Asia, the Far East, China and Australia. To improve our services and provide better solutions to our customers, Srilankan Cargo uses its interline partners and road feeding network. ”Perera set out.
“Our partnerships include more than 130 special disabled agreements (spas) and six road feeding. This has enabled us to reach the farthest corners of the world, while Road Feeder Services (RFS) expands our land range in Europe, Australia, China and India, where larger land masses must be covered. “
Air transport suppliers should be able to provide extensive solutions to meet these claims; Otherwise, they run the risk of becoming insignificant. Therefore, they must strive to be competitive and leave no stone unturned in their efforts to succeed.
“The key to building our linked network was our partnerships and collaboration with local transiters, freight exhibitors and logistics suppliers across the region. The use of the significant and growing passenger network over Qantas and Jetstar, giving us access to key markets across the region, ”Kwiatkowski said.
