IATA – The International Air Transport Association, made a demand for continued transition in the industry of air cargo freight, focusing upon an improvement in its offering quality, in Berlin at the tenth yearly WCS – World Cargo Symposium’s opening.
The air cargo service sector is facing a difficult environment of business continuously all over the world. The weak growth seen since 2010 still continues, with a volume expansion of 1.9% in 2015; and since 2012, every year contraction has occurred in yields. IATA predicts a 3.0% increase in volume growth in 2016; whereas a 5.5% fall in yields for the year.
Tony Tyler, CEO & Director General, IATA, market the challenges brought by air freight to airlines for keeping revenues ahead to costs, adding that the air cargo business is of enormous value with around one-third goods of all are traded internationally and delivered by air freight services and to meet the challenges, the sector has to transform.
Tyler also mentioned that shippers rate the air cargo industry by 7 from 10, which is not satisfying and thus the industry needs to improve the air cargo service quality by providing a better personalized service to customers.
There has to be an accelerated adoption of paperless processes like the e-AWB – e-Air Waybill. In 2015, e-AWB’s adoption was 36%. IATA is now engaging airports and governments to achieve target initiatives aiming at speeding up its adoption.
Another concern is quality of the service for temperature- as well as time-controlled shipments, mainly pharmaceuticals. Programs like the initiative of CEIV Pharma are good examples.
However, in any service, an important factor is teamwork and effort. Tyler said that air freight value is great due to team effort and the industry will thrive only if different participants of the value chain come together; adding the necessity of reliable and high-quality delivery service at competitive rates, flexibility and speed, for a prosperity of the business.
Tyler added that teamwork and effort will also help resolve issues surrounding shipment of batteries of lithium-ion saying that their top priority is safety but banning these batteries out of air freight is not a helping solution for the issue of non-declared or counterfeit goods.