Views: 2 Author: Site Editor Publish Time: 2022-09-19 Origin: Site
The main issue confronting landlocked developing countries is transportation to attract frequent and competitively priced air freight services. Allowing free competition in air cargo services is important, but it is insufficient if the majority of cargo is transported on small passenger planes.
The challenge of expanding passenger services to include the fifth freedom is greater, particularly in countries with state-owned airlines and limited passenger traffic. Equally important is the expanded role of consolidators, particularly large integrators like UPS, as well as international freight forwarders specializing in air cargo like Kelly Logistics and local freight forwarders with international connections.
Higher fuel prices are projected to impede, if not halt, growth in air cargo volume in the immediate term. Long-term traffic should increase, but air freight will increasingly be integrated into the multi-modal supply chain, giving a better cost-time balance.
By providing speedy and dependable service, air freight will also open up new markets. Air freight will continue to support manufacturing activities, particularly sample exchange and delivery of vital spare parts and high-value inputs. Finally, air freight will play a larger role in reverse logistics, such as repair and warranty services for electronics and other high-end consumer products.
Air freight, on the other hand, is predicted to fall as a means of reducing inventory and supporting just-in-time production. The benefits of reducing supply chain inventory are outweighed by increasing transportation costs for these activities. While potential exporters must have access to air cargo services, they must also manage their supply chains to provide a competitive balance of cost, speed, and transportation reliability.