Trends and Issues of the Air Cargo Industry

The Air Cargo Industry, over the past two years, has reshaped massively. Due to the pandemic outbreak, the industry faced a downfall, later shifting to the transportation of vaccines and perishable goods. Over the years, the Air Cargo Industry has evolved, and its importance has increased manifold. The effect of COVID-19 also led to the industry's transformation into digital modes. The Air Cargo ecosystem promises to grow in diverse ways and become environmentally conscious in the upcoming years. 

Speaking of the trending shifts, here are the top 4 trends of global Air Cargo in 2022. 

1) The Rise of E-commerce

A trend that fetched the most light during the pandemic is the rise of e-Commerce. To date, this trend has been the most beneficial in terms of speed and efficiency of transportation. The consumer has been satisfied with the quick deliveries. According to a report published by IATA, cargo demands increased in 2021 compared to 2020 and are growing in 2022. The rise of the e-Commerce sector has benefited both the shipper and consumer. With the use of the latest technology, consumers are also able to track their shipments. 

2) Increase in the demand for the Air Cargo Capacity

With the onset of the pandemic, the need for Air Cargo capacity increased. Moreover, there has been a shift in consumers' shopping habits. With the rise of e-Commerce, companies have realised the importance of increasing the number of fleets and capacity. 

Several airlines converted their existing passenger planes to cargo transport planes in the pandemic to increase capacity.

3) Diversification of Supply Chain
With the recovery and growth of the global economy, organisations have shifted toward Air Cargo transportation. The technology and resources have also led to the development of the regional Air Cargo Industry. Supply chain diversification is growing as a long-term trend in the Air Cargo Industry. 

4) Turning Air Freight into an Omnichannel
With the increasing demand and competition, organisations have started providing end-to-end services. This has resulted in the eradication of traditional methods. For instance, Amazon has expanded its services to Amazon Air Services to ensure seamless delivery. Mutual partnerships between shippers and airlines have constantly been booming. 

Now, let us also have a look at the issues in the Air Cargo Industry. 

1) Capacity shortage
With the conversions of aircraft trending, the capacity shortage has also been a significant challenge for the Air Cargo Industry. Due to increased demand during the pandemic and cross-border restrictions, companies could not maximize capacity. 

Several airlines converted passenger planes to cargo planes to cover the capacity shortage. 

2) Testing the efficiency of solutions
With the rapid growth in technology and the expectation of the delivery of goods, it is essential to invest in cost-effective and beneficial solutions. So, another challenge is to invest in efficient solutions. Cargo Flash offers a wide range of cloud-based solutions to increase revenue, reduce manual labour, and simplify the process. 

Moreover, Cargo Flash understands the requirements of both the Airlines and the Ground Handling Agents. Forecasting the market demands, our intelligent solutions lead to easy, error-free management. Cargo Flash solutions let you track bookings, manage resources and gain returns, keeping you ahead of the competitors.

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