ACW Anniversary supplement 2018

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20th ANNIVERSARY SOUVENIR

Volume 1 Issue 1

2 July 2018

Still on trend

20 years of heavyweight

Legacy IT to AI

Airfreight’s who’s who

Fallen flags

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Looking back, Looking forward IN THE LAST 20 years, there have been many events that have impacted the air cargo industry. E-Commerce has changed the way we shop, and is, and has been, a catalyst for change in airfreight because of the requirements to be fast to market. Some products have become a lot smaller, impacting the total weight being transported. However, this also resulted in a higher value density. A ULD with computers or TV screens has a much lower value density than a ULD with smart phones or tablets. Trade lanes somehow have shifted as well. During the last two decades China has emerged as the factory for the rest of the world making use of relative low labour costs. During this period, hundreds of millions of Chinese have been lifted out of poverty, creating more consumption as well. As a result, China’s share of global airfreight has been increasing. Luckily, Boeing and Airbus have been able to manufacture more fuel-efficient aircraft. This cost advantage has been passed on completely to the customers. Unfortunately, there were also

Twenty years ago, there were two American, four European and four Asian, though no Chinese airlines in the top 10. Last year, there were no American, six Asian, of which there are Chinese, two Middle Eastern and two European airlines in the top 10. The only carriers who have been part of the top 10 air cargo carriers for the last 20 years are Lufthansa, Korean Air, Cathay Pacific and Singapore Airlines. other events that have impacted our industry negatively. The horrific attacks of September 11, 2001, changed the airline industry, especially regarding security measures. The price fixing allegations and fines in 2006 had not only a big cost, but also a personal impact for certain individuals. The biggest financial impact was the crisis in 2008, which lingered on longer than any other crisis causing over-capacity for many years. Unfortunately, there has been not enough progress made in digitisation. The air cargo industry is slow to change and is still quite conservative. There has been a shift in the top 10 global air cargo carriers.

Airfreight’s new horizon Technology will change the next 20 years. There will be driverless trucks and pilotless aircraft, resulting in fewer accidents but also in better asset utilisation at lower cost. In the next couple of years, there will be a shortage of drivers and pilots in many countries. If growth continues, capacity might not catch up sufficiently, resulting in higher yields. The air cargo industry finally will be paper-less and fully digital. Forwarders will still play an important role to unburden the shippers of their logistics needs. However, digital freight exchange

l LOOK BACK TO 1998 P2 l DIGITISATION P4

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platforms and control towers based on smart algorithms will play a bigger role. The top 10 cargo airlines in 20 years will certainly be different. Maybe Africa and Latin America carriers will have a place in the top 10. From a demographic point of view these regions will also grow faster than others. Integrators will continue to grow but companies like Amazon and Alibaba will play a bigger role in the air cargo supply chain and potentially become airlines themselves. Despite some nationalistic sentiments in certain countries, globalisation will continue to drive trade and global wealth. There will be at least two crises in the next 20 years, which will have an impact on supply and demand. Therefore, it is so important to invest counter cyclical. It is in our human nature to be positive and always think that we will soon be out of a crisis and never think of a crisis when times are good. This somehow self-fulfilling prophecy will continue to drive investments, consumption and economic growth.

Sebastiaan Scholte TIACA Chairman

Happy birthday to us!

THE 20th ANNIVERSARY of ACW was celebrated at the recent Air Cargo Week World Cargo Awards in Shanghai with the ceremonial cutting of a delicious birthday cake especially decorated with the 20th Anniversary logo. Azura International staff at the glittering event went on the stage at the invitation of Azura International chairman William Carr to help cut the cake. Before inviting staff to the stage, Carr had delivered a stirring address, highlighting the two decades of work that had gone into producing the world’s only global, weekly airfreight newspaper. The delicious confection had been ordered from a local confectioner and was delivered to the stage before the main event of the evening.

l AMERIJET: STAYING AHEAD P7 l MYSTERY OF FLIGHT 111 P16 l

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