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International transportation is facing a huge risk factor in this era when global trade wars are being voiced. The transportation sector, which constitutes approximately 12% of the gross domestic product of countries, and the people working in this sector are directly affected by this threat.
In addition, with the logarithmic development of technology, people's desire to access a service quickly, the disappearance of borders in a globalizing world, the shrinking size, and the increasing frequency of shipments are also seen as opportunities.
The threats and opportunities I mentioned above undoubtedly affect the air cargo mode, which constitutes 35% of the global logistics sector in terms of monetary value, in a positive or negative way. It would not be wrong to list the opportunities and threats in the sector as follows.
Opportunities in Air Cargo Transportation
In 2018, the value to be transported by air cargo is expected to be approximately 6.2 trillion dollars. This means that the sector will grow by approximately 5% compared to 2017, and undoubtedly this growth rate is much higher in Turkey.
IATA Cargo Strategy Report
The second main issue is the logarithmic technological growth I mentioned above and the millennial generation's desire to access everything quickly, which puts air cargo several steps ahead of other transportation modes.
Another important opportunity is the increase in frequency; efforts targeting the reduction of warehousing costs undoubtedly lead to smaller shipments and an increase in frequency. Although the advantage generated here is also effective on other modes, it increases air cargo shipments even more.
Threats in Air Cargo Transportation
Economic protectionism and rising tariff barriers stand as the biggest problems confronting the sector. Besides, airline regulations, which increase almost daily, pose challenges for companies.
Another important issue is the dramatic rise in fuel costs (which is also indirectly caused by the tension created by global trade wars).
The capacity problems of airlines and airports, along with increasing ground waiting times and costs, are among the most important problems that need to be solved.
In summary, although there are serious threats ahead for the sector, as Navlungo, we see more opportunities in the air cargo sector. The problems I mentioned above are not issues that companies can solve on their own.
It is a matter of international trade and relations. Therefore, following sector trends and updating their visions must be the most important goal for companies.
