Greetings!!
This blog is all about air freights in the logistics sector - its current state and impact of digitalisation. I'm Suriya kumar, pursuing MBA specializing in operations management.
Air Freight
The cargo goods that are transported from its source to its destination by means of air travel in planes. This is the quickest means of transportation for goods internationally.
The effect of technology has had on all industries and companies have started to work with AI, automation, blockchain, Bigdata etc. And air freight industry is no exception to it. Though land, rail, water freight are common means of transportation air freight is on the costlier side and its determined by the weight and size of the cargo.
The air freight forwarders are made to digitize based on
- Solutions for one or more value chain improvising
- Wide range of transportation service and better customer experience
- Improving digital channel to serve more customers
Current scenario
The International Air Transport Association (IATA) has released full-year 2019 data for global air freight markets which shows that demand, measured in freight tonne kilometers, fell by 3.3% compared to 2018 while capacity rose by 2.1%. This was the first year of declining freight volumes since 2012, and the weakest performance since the global financial crisis in 2009.
Source: https://www.iata.org/en/pressroom/pr/2020-02-05-01/
Challenges for air freight
- Covid pandemic situation
- Inflated prices
- Additional transit time
- High carbon footprint
- Halfempty cargo space
Solutions offered for digitalization involve
- Real time capacity
- Real time rates
- e-Booking
- Digital payments
With 2020 being a very challenging year for air freight there are few positive signs for the air freight company to get benefits and bounce over the existing global financial crisis.
If you could keep it in a non-academic style, it will be more appealing.
ReplyDeleteAlso try more specific topics.