A movement of change is taking place in the air cargo industry after a long decline in profits

According to a latest analysis by investment firm Stifel, Nicolaus & Co. and U.K. research firm Transport Intelligence Ltd., more than 80 percent of transporters and freight forwarders think to transfer from air cargo to marine. The shift of more than 80 percent shippers and freight forwarders is an alarming situation for the air cargo industry. This shift from air cargo to marine is determined by the cost conscious shippers trading down to lower cost marine services from common airport-to-airport cargo. John Slosar the CEO of Cathay Pacific confirmed this shift during an interview. He said that there are many believed that the shifts in air cargo may be structural, may be an interminable drive to sea cargo.

What could the Reasons be?

• The demand of the goods decreased around the world as compared to the past. While the U.S. is showing the recovery and the EU continues to struggle.
• An additional concern is price. If there is no issue of time, then shipment by oceanic will cost you a fraction, so as a transporter why wouldn’t you want to adopt a different profitable way?
• If valued things like the iPhone 5 want to be sent by air cargo, the delivery services are planned vigorously, with a first wave of air and succeeding waves by sea. It is understood that shipping service is faster now a days and cool container technology has also available to make it possible for even perishables to be transported by marine cargo, although over smaller distances.

So, as an air cargo carrier, what are your options?
Strategically a few points to study:

• Set your capacity, according to the new demand levels to decrease loss and prices. There is no option of having further capacity than can be supported.
• Build a strong and trustable cooperation and partnership with your freight forwarders and become improved at estimating your freights because, in times of fickle, going with your emotional sensation or just trusting on past performance can be costly.
• Make sure you offer the best service plans for your customers and charge the precise amount because it is easier to do restart business with a cheerful, trustworthy customer than to create new business.

The air cargo industry is disreputably traditional and impervious to change, but the industry team leader needs to challenge themselves and drive the air cargo industry into this new age.