The air cargo industry is at a crossroads, facing disruption at all levels. According to Dr Florian Klein, strategist and head of scenario design at Deloitte’s Centre for the Long View, traditional air freight operators will have to rethink their current business models if they don’t want to be overtaken by their competition. “Not only does this sector need to revise how it does business because of the increasing competition it faces, but there is no longer any predictability in trade patterns,” he said. “The air freight industry needs to take the time now to look at its current market position, its future position, the future operating models, and all of the investing requirements needed to be sustainable in this new world. “e-Commerce is growing fast - and while that will bring higher demand for air freight, it also introduces more competition,” he said. Already the likes of Amazon are investing in their own cargo planes and airports. Klein said 3D printing was another game changer as it would mean more localised manufacturing, while changing customer requirements were affecting trade patterns and ultimately volumes. “Considering the disruption faced by the air cargo sector it becomes near impossible to predict the future,” he said, indicating it was best for companies to look at different scenarios for planning and modernising purposes. He said any scenario planning for the air cargo sector needed to take the booming e-commerce market into consideration - as well as technology developments such as blockchain. “There are several disruptive technology trends that have already emerged such as blockchain, 3D printing and digitilisation. These trends will affect the industry in varying degrees but will require the industry to transform itself and develop new business models within the next ten to 15 years.”
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The likes of Amazon are investing in their own cargo planes and airports. – Dr Florian Klein