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FOREWORD
LOGISTICS BUSINESS MAGAZINE
3
Logistics Business Magazine | February 2016
Is the world of air cargo in transition
for good? Or are we seeing a
temporary change in behaviour by
exporters, importers and forwarders
solely due to current straitened
circumstances? The question struck
me because it came up twice in
interviews with industry figures I
carried out for this, the first printed
edition of
Logistics
Business
of 2016.
In the first case, I was eager to find out
via the expert testimony of Agility’s
Franziska Inman (see page 8) how
the oil and gas logistics sector is
responding to the challenge of that
industry’s very well publicised cold bath.
Not unsurprisingly, Ms Inman described
how one among several efficiency
measures has included switching former
air cargo shipments via sea. Therefore,
speed of delivery is being trumped by
lower costs, so that all sides can keep
the numbers adding up as satisfactorily
as possible. That seems pretty
straightforward.
In an unrelated discussion, Henk Volmer
of Prologis (p36) expanded on a similar
theme. My eye had been caught by a
point rather hidden in Prologis’ own
report, issued in February, in which it
identified the top logistics locations in
Europe. This indicated that while CEE
is growing, at the expense of markets
in Western Europe, air cargo hubs
such as Frankfurt and Amsterdam have
lost ground. Mr Volmer’s point is that
we have seen the boom years of air
cargo, to be replaced by multimodal
solutions. If I take him correctly – and
my apologies if not – his view is that,
as manufacturing went to Asia and
Africa 20 years ago in pursuit of lower
labour costs, so the supply chain
methodology that followed was not
necessarily the most professionally or
carefully thought out. Air cargo was the
emergency option – the demand for
it was not created by good planning,
but by necessity. As supply chain
planning then improved, the air freight
option has now gone back to where it
really should be focused – to transport
high-value, high-cost items that can
absorb the heavy carriage costs. If a
new iPhone needs to be on the shelves
in London, Amsterdam or Berlin today,
then speed is of the essence, and only
air will answer. Low-value clothing items
made in Bangladesh and headed for
those same destinations can take the
slower route. If that logic is borne out by
events, then it follows that we will see
the air cargo market contract.
If you have your own views on this
or any other subject in the global
logistics spectrum, please feel free to
use
Logistics
Business
as a forum to
express them. We are keen to make
both the print editions and
tbeds of
debate for the industry’s wisest heads
to discuss the topics that matter.
Whether it is outside the shed, inside
the shed or perhaps a sustainability or
legal issue affecting all sectors, this is
the place to come for objective news
and pithy opinion. Get in touch with me
at
Enjoy the magazine.
Paul Hamblin
Editor
Air cargo: where next?