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What’s in for Air cargo industry in 2018?

The air cargo industry is set to have another solid year in 2018. Even though there might be some potential challenges in the path of growth, the surge in e-commerce will be a key success driver.

Current vs Previous Year
2017 saw a combination of progress in world trade, e-commerce and inventory restocking which supported growth for air cargo. However, in 2018 the growth pace will follow the momentum from the previous year but might face a gentle slow down attributing to a waning inventory restock cycle.

E-Commerce
Cross-border trade has seen a relative growth recently. With the advent of e-commerce, the retailing scenario has wholly transformed, and air cargo is in fact at its peak demand. Traffic has been growing faster than the actual capacity in the last year.

Air Silk Route
The air cargo industry has seen the most robust year in a decade in 2017. This year, however, the global air cargo demand shall surpass that of the previous year, mainly due to the rise of new players. China, in particular, is expected to support a few start-up cargo carriers in the coming year, which is viewed by many as the upcoming air ‘silk route’.

Growth Trend
There is a stable growth in the export orders component of Global PMI (Purchase Manager’s Index), signalling that freight volumes will continue to soar in 2018. There has also been a notable drop in unemployment and a consequential rise in demand for high-value goods. This trend has impacted the air cargo industry in particular because the need to increase speed-to-market has brought in cash.

The forecast for 2018 is expected to be overwhelming, which demands air cargo shippers to get well equipped beforehand to commit to higher volumes and close collaborations with fellow providers.

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