Some of the challenges we see for 2024 are the same we’ve already experienced in the past: overcapacity in the major markets, sluggish demand and falling rates that will result in a drop in profitability on both sides — airlines and forwarders — to name just a few.
Unfortunately, there is now one additional element and that is the fact that we have a big uncertainty in the market due to the situations in Israel and Ukraine, among others.
Add to that inflation, and we have the perfect storm. We’re expecting only moderate growth globally on the cargo side during 2024 versus previous years, with the possibility that we face zero growth.
However, on a more positive note, we also believe that specific trade lanes — e.g., the Intra–Asia trade — will still show positive growth during 2024.
To address the challenges, our industry needs to focus on some fundamentals: cost savings in all areas, not only in operations but also on the administration side.
Continue investing in digitalization that will automatically result in cost savings and improved visibility, allowing to improve consolidation effects and consequently utilization of available capacity.
Most important is communication with our customers and a clear focus on improving overall quality and reducing transit time. Just one area that comes to mind is the coordination of all processes that are related to transfer at the airports. We’re still losing too much time on the ground and that makes our product not only expensive but also less competitive.