Top 5 Challenges Facing Air Cargo Carriers

November 8, 2006 by Splatty  
Filed under Air Cargo, Seafreight

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There are a number of excellent articles in the October ‘06 Inbound Logistics magazine including one entitled, “High 5, Air Cargo’s Top Challenges”.

In the article Lisa Harrington discusses the most pressing challenges facing the air cargo industry. Her top five:

1. Skyrocketing Fuel Prices

2. Looming Security Threats

3. Revised Inventory Policies

4. Mode Shifting

5. Consolidating Power

One area above that has been of particular interest to me has been the concept of mode shifting. I posted earlier on a new service offered by APL in conjunction with Conway that is something of an expedited ocean offering. This service while not as fast as traditional air freight service, it is also not as slow as regular ocean freight service. With more companies moving away from just-in-time inventories to having safety stock on-hand, companies may be able to use this mid-tier service to alleviate the urgency of getting stock in inventory thus decreasing the need for airfreight service.

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