Global issues are affecting air cargo but Stephen Dawkins sees opportunities in the market, the CEO of Air Logistics Group tells Air Cargo Week.
He admits that the first half of 2019 has been challenging with unpredictability continuing with factors such as Brexit, trade wars, currency volatility and economic tensions.
While Dawkins does not see these factors being resolved in the short term, the current market situation offers opportunities for GSSAs.
Dawkins says: “Airlines see outsourcing of cargo as a sensible option in terms of cost saving and incremental revenue – they are looking for partners that are reputable, financially sound and can deliver in terms of revenue, network coverage and business intelligence.”
Air Logistics Group has an extensive network, with a presence in most European markets. Dawkins says Germany and Italy remain the strongest European markets but they have seen considerable drops in the first six months of 2019.
He adds that France, the Netherlands and United Kingdom are stable while the Nordics, Spain and CEER are good when online stations are slow.
The network covers 88 offices and 48 countries globally, and is open to expansion into new markets where its services are required.
Dawkins says: “If a current airline partner opened a new route or a new partner needed our services in a different territory, ALG would definitely consider it. However the majority of airlines operate from the key hubs across Europe where our offices are already located.”
With 25 years of experience behind it, Air Logistics Group has a well-respected network of air cargo professionals in Europe.
Dawkins says: “ALG professionals provide airlines with a variety of solutions, across the spectrum of cargo that will improve airline cargo revenues whilst keeping costs under control.”
The team are helped by Europe being a strong area for logistics. Dawkins says: “It is clear that Europe is the world’s most dynamic continent in terms of logistics. Major motorways, major warehouse infrastructure, large trucking companies and thousands of intra-European flights ensure cargo moves swiftly and freely 24/7.”
Dawkins sees continued consolidation and customers demanding additional services such as business intelligence, fiscal or IT solutions.
The booming e-commerce market is likely to cause airlines to ask their GSSAs for more digital solutions.
He says: “Airlines and their suppliers will need to continue to evolve to deliver on the demands of the large e-commerce companies that bring huge influence into the airline cargo industry. The airlines that have invested into e-commerce will be the ones that are the market leaders over the coming years.”
GSSAs also need to answer some important questions, such as how to optimise airline networks and capacity, managing cargo demand on passenger routes, digitalising the business, and how to provide airlines with the best business intelligence.
Dawkins says: “These are all opportunities to be seized upon and we are making significant investments in these innovations.”
Air Logistics Group is embracing the challenge of digitalisation head on.
Dawkins says: “ALG has invested significantly in IT and back office functions over the last ten years to offer a cost effective solution to airlines in a multitude of cargo fields such as sales, revenue accounting, trucking management and business intelligence.”