Global supply chains are currently changing and evolving at a rapid rate globally, and across all industries. While all elements of logistics are critical, air freight plays a huge role in the growth and evolution of these supply chains, directly impacting businesses and the way they operate. Many companies require logistic services to simplify and consolidate their supply chains, which often is dependent on air freight. Since the very beginning of air travel, air freight logistics have served as a vital part of countless supply chains, and air freight is only becoming a more and more popular option for businesses as they themselves adapt and expand, many requiring specific items, components and parts as a matter of urgency.
The Covid-19 pandemic has had a significant impact on international supply chains, and this is one of the main reasons why said supply chains have had to modernise and become more flexible, agile and streamlined. While the majority of the world is recovering from the pandemic, and entering a ‘new normal’ way of working, there is no denying that, going into the future, the logistics industry is going to be vastly different to what it was several years ago, pre-pandemic.
Moving forward, and in the years to come, air freight logistics show signs of becoming the leader in terms of global transportation of goods for businesses across a huge number of industries and sectors. As such, we have compiled a list of trends that are actively affecting and impacting – and thus reshaping – the future of the air freight logistics space.
1. Air Cargo Capacity
The pandemic affected supply chain logistics in a way that was unprecedented. Due to border closures and many other issues, air travel ground to a halt. This increased pressure on land and ocean transportation, which became overwhelmed and unable to keep pace with the demand. With supply chains around the world falling apart, it became clear that air travel was essential to keep things moving forward. While all passenger flights were grounded, shipments were able to come through and ease the pressure on supply chains by providing air freight logistics.
Despite this, however, air freight logistics similarly became overcome, driving the prices up. There was a shortage of air freight capacity, leading to companies retrofitting and manufacturing more cargo planes to meet the demand for air freight logistics. All of this points towards this becoming a long-lasting trend within logistics, with air freight becoming the preferred option.
2. Diversification of Supply Chains
With economic recovery following on from the pandemic and the disruption it caused, comes the diversification of supply chains. There is much activity from businesses looking to streamline and simplify their supply chain, with a focus on diversification. On a global scale, businesses are starting to rely more on air freight logistics; air cargo has become a common option in a wide variety of sectors and industries, with most logistics companies offering it as standard.
From all of this, it can be concluded that supply chain diversification is a growing trend which will be important moving forward into the future. As gradual as its growth may be, the trend is already well established on a global scale.
3. Volatile Shipping Costs
Another impact of the pandemic is the lack of stability in the cost of shipping; air freight has a situation of demand exceeding supply. As such, prices are rising for the valuable space that there is. While international travel is recovering well from Covid-19, the number of passengers travelling is still well below the number pre-pandemic.
To help improve the capacity issues, manufacturers are building more planes that are designed to carry air freight. This is of course a huge improvement on the strain experienced during Covid, however demand is still high. The trend of volatile cost for shipping services is likely to continue, and have an impact on the future of air freight logistics.
Once you understand the trends and how they will shape the future of air freight logistics, it is important to ensure your business works with a logistics provider that keeps up with the latest technology in air freight. The right partner company will understand the shift that occurs in your supply chain, as well as ensuring that your business gets the service needed. Having a logistics plan that’s tailored specifically for your business is something that only the best logistics partner can provide.
Royale International is one such company, who provide unparalleled logistics services that focus on the changes that are impacting the industry and affecting your business. With more than 25 years’ experience in air freight logistics, and strong relationships with many airlines and logistics integrators. Royale International is well placed to provide nothing but the best service. There is no denying that the future of air freight logistics is changing and evolving with the times. What is important is that you partner with a company, like Royale, who can evolve and adapt themselves to keep on top of whatever trends impact the air freight logistics of tomorrow.
To find out more about how Royale International can help you streamline your business’ air freight logistics: https://www.royaleinternational.com/services/express-freight/