A new year has started and new year’s resolutions have been made. They bring many challenges for everyone, especially for the business industry. And, cargo industry is not an exception. The past few years have been challenging for the cargo industry, especially the air cargo industry. Due to the pandemic, increase in demand, and port disruption, the air cargo industry faced many obstacles. In fact, it’s still dealing with them. It’s an unbreakable chain of challenges. The demand is constantly on the rise. So, the industry must focus on overcoming those challenges. This would be possible by making innovative solutions. But, what air cargo challenges in 2022 can we expect? The national shipping company of Saudi Arabia identified some of the challenges the industry may face. In this article, we’ll present the most important ones.
Common air cargo challenges
The Covid pandemic situation changes rapidly, and so do the air cargo challenges. Although air freight is the most common, quickest, and most efficient mode of transportation, it is struggling with many challenges. However, it seems like the air cargo industry is dealing well with all the challenges. Also, it seems that it is ready to meet the new ones, despite still recovering from the crisis. It has demonstrated how efficient it can be in overcoming obstacles. Here are some common challenges the air cargo industry faces:
- Fuel prices: this is the number one challenge of the air freight industry. Fuel prices are increasing all the time due to several factors. Those factors include the increase in demand and insufficient fuel capacity (since it is shipped from long distances). Increased tax levels are also the reason for high oil prices.
- Security issues: Air cargo operations are complex and bring many security challenges. The air cargo system is prone to several security risks. These risks include the explosion of hazardous materials, cargo crime, hijacking, etc.
- Supply chain risks such as implementation risks, supply chain demand, supply chain performance, etc.
- Cold chain issues: the rapidness and efficiency of the air freight industry are subjected to test due to the pandemic and worldwide lockdowns.
Air cargo challenges in 2022: New year, old challenges?
When it comes to air cargo challenges in 2022, the main question is whether the industry will keep facing old challenges. Well, the answer is probably ‘yes’. This is because the common challenges mentioned above are always present. High demand, fast service, and fuel prices will remain the most important challenges to resolve. Also, restrictions and regulations are likely to continue as long as the pandemic situation is changing. Also, the regulations related to security will always be the greatest challenge of the air cargo industry. And, air freight to Saudi Arabia is not an exception.
What to expect in 2022?
Strong demand for air cargo shipping is likely to continue in 2022. So, the industry will continue to face both old and new challenges. In fact, those old challenges will produce some new ones. Here are some of them:
- Capacity challenges
- Logistics and supply chain
- Digital challenges
- Green environment
There has always been an imbalance between passenger and cargo transport. The terminal and cargo capacity have always been overflowed. This is likely to continue in 2022 since the passenger aircraft is now resuming rapidly after being grounded for a considerable period of time. Also, with the high demand and trade imbalance, air cargo shipping will face a capacity challenge. Not to forget to mention the storage capacity, especially in terms of the cold chain. Uneven demand can affect cold chain logistics since there can be an increase in demand for goods that require special storage until air freight.
Air cargo challenges in 2022: Logistics and supply chain challenges
There’s a huge demand for goods being sent by air as fastest possible. However, global supply chain constraints are likely to continue in 2022 and beyond. So, the air cargo industry will have to deal with logistics strategies, and air cargo Jeddah is not an exception. These strategies should include detailed planning and organization. The logistics companies will have to find a suitable way to transport the shipments without delay. So, they will have to improve their supply chain network. Also, one of the greatest challenges logistic companies in Saudi Arabia will face is the further growth in e-commerce.
We live in the age of technology, and it’s constantly improving. So, freight forwarding companies Saudi Arabia should focus on further improvement of their digitalization. It’s essential if they want to provide more transparent services. Since the e-commerce trends are expanding, the companies should establish and implement digitalization plans even further.
The most important challenge the air cargo industry face is the environmental challenge. The air cargo industry should try to reduce carbon emissions. This way, they will lessen the damage they provide to the environment. A possible solution to this can be zero-carbon shipping. Or, at least, carbon-neutral shipping. They can use zero-emission fuels such as biofuels, for example. This is possible with a good supply chain network where all the participants contribute to the environment’s safety. Everyone should be included, from the manufacturers to the air cargo companies.
The air cargo industry must keep up with the Pandemic rules and regulations
Pandemic restrictions such as lockdowns greatly affect the air cargo industry. So, air cargo companies should keep up with the changes and face the challenges. A strong supply chain network may be the solution. To keep up with the good work and to resolve all the challenges the pandemic imposes, it’s essential that a supply chain network works perfectly. That’s why air shipping companies should invest in a strong partnership. Another way to resolve the issues is to make plans based on potential situations. There are many air cargo challenges in 2022. But, with an effective strategy, they can be overcome.