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The Growth of Air Cargo and the Challenges that Lie Ahead

The Growth of Air Cargo and the Challenges that Lie Ahead

According to the International Air Transport Association,(IATA) the Air Cargo industry experienced some significant growth in 2016. While the first half of the year seemed exceptionally slow, the volumes increased during the last half of 2016 with virtually every world region reporting positive figures except for Latin America. In fact, the figures posted by the IATA show a five-year high for the industry.

According to a recent article in JOC.com, the primary factors affecting the growth in 2016 were:

  1. A strong peak season
  2. Rising shipments of silicon materials
  3. An uptick in new export orders

The uptick in export orders is expected to continue well into 2017 making projections for this year very positive.

Potential Obstacles of the Air Cargo Industry

While projections do look good for 2017, industry leaders are concerned about possible obstacles that could slow things down. First, there is the concern that global trade will see a down-turn particularly as foreign trade negotiations may take a back seat to other priorities here at home and abroad. Trade can be a powerful tool for growth and prosperity and a more protectionist attitude could impact the shipping industry overall.

Second, the industry itself needs to modernize more in order to be more competitive. Industry insiders believe the way forward is to adopt more digital processes that can improve efficiency and customer satisfaction.

While these concerns are certainly important and ones to watch, most air cargo companies are optimistic about business in 2017, including World Cargo International, a division of Alaska Air Forwarding.

World Cargo International

World Cargo International is a founding member of the World Cargo Alliance (WCA) which is a large network of independent shipping companies. The WCA is committed to bringing stability and consistency to international shipping through their vetting system which carefully adheres to a strict set of professional standards thereby limiting its membership to a total of 3,729 global members from 179 different countries and serving 648 cities and ports. This network offers various protections and support to its network of members that global customers have come to appreciate.

We’re proud of our partnership with World Cargo International and the high standards they maintain. They provide the following services:

  • Labeling
  • Palletizing
  • Shrink wrapping
  • Wood crating
  • Manifesting

Contact World Cargo International for more information on how they can help you with your international shipping needs.

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