The air freight sector is expected to undergo some uncertainty in 2024. This, in part, is due to various geopolitical issues and market dynamics. A quick look at some of them, as per Maersk Air Freight and Air Cargo News:
Capacity normalisation
In terms of capacity, Asia Pacific continues to see a lower demand compared with pre-pandemic levels. While recovery is expected to be gradual in 2024, downward pressure on rates may persist through the year. However, Asia Pacific continues to be the manufacturing base of the world, with exports remaining resilient. This enables the region to generate a higher yield than the rest of the world.
Evolving customer requirements
The needs of the customer are getting more complex, and tailor-made solutions are the ask of the day. While cost competitiveness has always been a key factor in air freight, reliability has become a trend that is likely to continue in 2024 due to global supply chain disruptions.
As the industry normalises and pre-pandemic buying behaviour takes over, the market will be governed by longer term contracts between shippers and cargo agents, ranging from monthly to quarterly and up to one-year deals. Spot bookings are likely to take a back seat this year.
Multisourcing
The biggest priority for manufacturers today is mitigating risks due to the uncertain operating climate. Manufacturers are looking to move sourcing of raw materials closer to their destination markets and are in search of resilient logistics partners.
This search for resilience has also driven manufacturers to regionalise their production capacity and look for low-cost economies for their manufacturing needs.
Sustainability
Sustainability has become an important conversation as ESG guidelines continue to be in the forefront of corporate action. Regulatory changes in Europe and North America require companies to achieve carbon-neutral sustainability by 2050.
Maersk manages to offset its carbon emissions by using its multimodal transport options effectively. By ensuring a part of the journey through land or sea, customers can take advantage of Maersk ECO Delivery solutions to achieve carbon savings.