Air Cargo: Is 2012 the Turnaround Year?

While analysts say this should be a growth year for air cargo, pressing challenges such as increasing EU regulation, the pent-up demand in Asia Pacific, and the cost of global security still weigh heavy on the sector.

By ·
Download Article PDF

Industry analysts are predicting that 2012 will be a significant year for air cargo recovery, but not without a new set of challenges that seem to be facing shippers and carriers on all hemispheric fronts.

For example, the troubled European Union (EU) is making life difficult for all airlines by imposing a unilateral carbon-trading scheme. Meanwhile, aircraft manufacturers and shippers agree that biofuels must be gradually introduced across the board.

The Asia Pacific, which is still the most vibrant market for U.S. shippers, may be ceding some of its influence to Latin America. Shippers say that fuel and energy costs associated with onerous environmental laws will make “near shoring” more attractive over the next year. (Exhibit 1 on page 56 shows the growing fuel imact on air carrier operating costs over the past decade.)

And don’t forget the security issue that is ongoing for global shippers or carriers. However, with a more harmonized security system in place, global shippers may finally get a break on compliance expenses.

So, with a slowly improving global economy juxtaposed against this growing list of challenges, is the air cargo industry poised for a comeback? The Boeing Company certainly thinks so. Having ended 2011 with a solid earnings report, the company says it reflects continued strong core performance across its businesses.

“Strong fourth quarter operating performance, record revenue and backlog, and expanded earnings and cash flow capped a year of substantial progress for Boeing in 2011,” said Jim McNerney, Boeing chairman, president, and CEO.

SUBSCRIBERS: Click here to download PDF of the full article.

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Air Cargo · March 2012 · Transportation · All Topics
Latest Whitepaper
Revisiting Supplier Relationship Management to Boost Real Value in the Supply Chain
Supplier relationship management (SRM) initiatives are on the rise, and companies who successfully implement these programs can realize a significant return on their technology investments.
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Cross Border 2017: Managing Your Supply Chain for Efficient and Secure Crossings
In this webinar, we'll unveil best practices to establish a world class logistics operation that improves safety, security, efficiency, and customer service levels at a lower cost.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...

LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...