This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
As 2019 drew to a close, we looked back with mixed emotions.
The general slowdown in international trade, the trade disputes between the US and China, as well as between South Korea and Japan and the US and the EU, the slowdown in the automotive sector, and the growing influence of sustainability criteria all remind us of the global relevance of air cargo and the ever-changing environment in which we operate.
On the positive side, cross-­border e-commerce continues to drive increasing air cargo volumes, as do special cargos such as pharmaceuticals, perishables, and live animals.
Collectively, the opportunities and challenges reinforce the need for this industry to be agile and reactive to changing situations. Technology and innovation are critical in this respect. The industry has heard this message loud and clear and is focusing on how it can share data in a much faster and more effective fashion.
Historically, air cargo waited until all a shipment’s information was available, then shared that data with the next partner in the supply chain.
As the demands for data speed and transparency have increased, the industry has started to adopt new approaches to information sharing. Recognizing that speed and relevance is key, solutions are being put in place that enable partners to share pieces of information when they are available, rather than waiting for the totality. Smart data sharing is critical for future industry success.
The business environment will remain challenging for some time, so optimization of asset utilization and fluidity of capacity deployment will also be key. The global economy will continue to develop and find new locations to produce goods. The air cargo industry has committed to support this by deploying capacity where it is needed and working collaboratively to develop new solutions.
Collectively, we see this as moving from the idea of supply chains to the concept of supply communities.