A major shift is taking place in global supply networks, and the air freight industry in particular. There will be a dramatic shift in the post-pandemic landscape as the post-pandemic business reshapes. Airfreight is an essential component of global supply networks, albeit a lesser one, compared to ground and ocean transit. Airfreight is expected to have a greater impact in the future. When it comes to total cargo transport, it will also be increasingly important. Here are five air cargo service trends to expect to transform tomorrow’s air freight industry.
5 air cargo service trends to expect
Before we go on sharing these few air cargo service trends to expect, we need to emphasize that things can change every minute. And while we can’t be certain in any of these, as of the information we at the National Shipping Company of Saudi Arabia have right now, it is most likely to happen.
1. The evolution of e-Commerce
The pandemic has sparked a new wave of e-commerce that is here to stay. e-Commerce is no longer a fad, thanks to new technology and changing customer preferences. e-commerce combines both speed and convenience into a single package. For the benefit of customers, things can be delivered in as little as one or two days. Which our cargo transport company has proved time and time again. And they may shop from the comfort of their own homes. It’s also convenient for consumers to shop at any time of the day or night.
2. Scarce Air Cargo Capacity
Since the commencement of Covid-19, the threat of limited capacity has loomed. Capacity for both ground and ocean cargo has been depleted. And this capacity needs to spill over into aviation cargo.
Apart from consumer behavior changes, manufacturing is at historic levels. The purchasing managers’ index (PMI) increased to 53.4 from 51 the previous month. A value greater than 50 shows an upward trend. This suggests that economic growth may continue for some time as pent-up demand is released.
3. Diversification of the Supply Chain
As the economy improves, we will see a surge in activities connected to supply chain diversification. We can anticipate an increase in activity as a result of on-shoring and near-shoring. Regional air travel should expand as corporations relocate manufacturing from China to countries such as Mexico and Canada.
This is more than a spike. Regional air freight transportation is likely to establish itself as a viable source of transport. Bear in mind that other modes of transport have a finite capacity. As a result, consumer demand and capacity restrictions are unlikely to abate in the near future. However, we expect prices of air freight to Saudi Arabia to stay stable till the end of the year.
4. Air Freight’s Transformation into an Omnichannel
Customer demand is driving a growing trend toward an omnichannel strategy. Airlines are recognizing the need to expand their service beyond typical airport-to-airport connections. Airlines and other stakeholders now see value in offering end-to-end services.
According to Loadstar news, this tendency is gaining traction in Europe. Air Cargo Bahrain has worked with the Saudi Postal Service to optimize delivery. Amazon is extending its Amazon Air Services in the United States and integrating it with its ground transportation services. As with Air Cargo Bahrain, Amazon’s goal is to deliver a seamless end-to-end solution.
5. Inflationary and erratic shipping costs
Another one of air cargo service trends to expect. Since the epidemic struck in March 2020, shipping rates have been everything but constant. Rates will continue to rise as long as demand outstrips supply. International travel is currently 88% lower than it was before the financial crisis. This is noteworthy because 60% of all air freight is transported by passenger jets.