An air cargo alliance made in heaven?

As we noted in our news section, an intriguing new alliance has been forged by the Air Forwarders Association – a powerful Washington DC lobbying group – and The Geneva-base International Air Cargo Association.

The announcement comes on the eve of AirCargo 2018 in Austin, Texas, where both trade groups will be out in force.

Charles W. (Chuck) Clowdis, Jr. Managing Director, Trans-Logistics Group, Inc., observes in our annual “Rate Forecast”  that after being sluggish for almost the past decade, air cargo will grow driven by ecommerce and speed-to-market requirements to meet consumer demands.

“Of course there will be pressure on rates driven by capacity issues and a rising price of jet fuel,” he allows. “Shippers will face rate increases and their negotiating skills must be sharp….supported by collaboration to aid the air cargo service providers with efficiencies that can help control their costs, too.”

Here are Bullet Points that Clowdis feels certain will hold true into next year, with only a few unlikely caveats:

*Given strong rebound in Consumer confidence, translating into  robust Consumer spending, air cargo enjoyed a very fine Holiday Season again in 2017.

*As unemployment numbers have fallen, a return to higher value goods, despite some refinement of the definition of “high-value and Luxury items” from the 2005-2006 days, the need to increase speed-to-market has played well for Air Cargo operators.

*The mix of consumer goods and High-tech products has been strong and compliment the usual mix of pharmaceuticals and critical parts air shipments.

“As predicted last year, with the stock market soaring and continued economic growth, Air Cargo Providers will enjoy another good year,” he says. “And of course, for the Air Cargo Buyer, sharper negotiating skills, volume commitments, and closer collaboration with Service Providers is highly recommended.”