The European Shippers Council asks for a major change in the air cargo industry to remain weighty for its customers

Air freight policy advisor for the European Shippers Council Joost van Doesburg stated that  a major change is required to air cargo industry in its model of business if the industry wants to remain significant for its customers.

European Shippers Council Claim

Mr van Doesburg claimed that the existing business model was not supportable and that the industry required a fundamental re-think. Looking towards the other sources of freight transportation and the present condition of the air cargo industry, it can said that air freight industry is in a structural crisis.

The current situation is very cheap like the congestion. The marine is cheaper than the air cargo and as well as the rail service between the Asia and Europe. It is very wretched that the industry is not paying attention on the improvement, but on the expansion of current systems. It is very essential for air cargo industry to change the conditions more deeply.

A Unified Supply Chain Required

He stated that  the customer is always right at his point, but what they are doing is in fact simple, it’s a whole attention on price. But they will pay four times as much for a door-to-door integrator service. Transporters need the air cargo industry, but the only part they have is as a customer. Mr Van Doesburg requested the management to be involved in the debate.

Mr van Doesburg stated that one possible answer would be a right cargo corporation on certain major trade lanes for specific goods whereby a forwarder, airline, and trucking service companion offer a unified supply for a certain product, something that is on the edge of looking for pharmaceuticals.

It is very much essential for everyone to work together as an active team, with triple agreements, for perhaps a year, which would get more solidity to the air cargo industry. He further added  that transporters were not in the habit with traditional air cargo.

Major Problem

It’s still common practice to reserve one consignment with three different airlines. It is problematic for airlines and also makes the service volatile.

Proposed Solution

He advised that to work on a whole new business model for the air cargo industry. He also proposed IATA should instigate the procedure with a White Paper. TIACA would be perfect, but it absences economic power and it’s too small and IATA is the one with the money. Otherwise, air cargo will develop, and it will continue to drop volumes to the integrators and other modes.