Air cargo boosted by online retail sales growth

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Thai cargo warehouse

Online retail stores are propelling the growth of the global air cargo market according to a just released ‘Global Air Cargo Market 2015-2019’ report from TechNavio which predicts there will be steady growth of six per cent in the five years to the end of 2019.

It reveals online retail stores, especially those selling fashion items, are a major source of revenue for the airfreight market, but warns that other methods of transportation, such as bullet trains, will provide significant challenges and competition.

A major emerging trend in the air cargo market is an increase in airline research, which is resulting in the identification of new transportation routes and strategies in the market.

ECS Group chief operating officer, Adrien Thominet (pictured), tells Air Cargo Week that the ‘one model fits all approach’ is no longer relevant to meeting the needs of airlines in today’s world.

“ECS is witnessing a shift in focus to products like pharma, horses, special freight requirements and project cargo,” he says. “These are the growth niche markets of air cargo in general and we are using our expertise to focus on them.

“We recognise fundamental changes are taking place in the airfreight industry, especially in emerging markets, and we are witnessing the rapid emergence of low cost airlines as ‘agents of change’.”

As a significant global logistics player and general sales and service agent, ECS has been able to weather tough market conditions and says it is continuing to maintain growth.

“Markets react differently and there are shifts and differences in the developments in and between Asia, South America and the European market, as well as vast differences in individual market conditions,” Thominet states.

“Emerging markets have been an important area for us for a few years and we are continuing to expand in them, particularly in India and Africa,” he says.

“Though Asia is constantly growing, we are pleased that business in Europe has been stable, especially as the largest sector of our business lies within the continent.

“In general ECS sees itself as a partner working alongside clients, through both good and bad times. We see our role as a close and seamlessly integrated partner one can always rely on – tailor-made to each individual client yet scalable to global service, which helps both, the client and us to grow with each other.

“For us global deals with selected airlines are key to meeting the latest trends and developments in the airfreight markets,” says Thominet. “Luckily we show growth in all markets and, whilst obviously holding up a good market shares, it needs as much of a detailed focus to fully satisfy loyal clients as it takes to build up a new market.

“In a digital world, we have understood that offering great services is very important and we are working with IATA [International Air Transport Association] to implement eAWB in France and Germany first and then all over Europe.”