Air cargo is a transportation mode of delivering fast-speed shipments through aircrafts for longer distances, generally. Air cargo contributes to development of economy worldwide as the global economy relies on the capability to transport valuable and superior quality products rapidly to consumers across the world. The air cargo industry has changed considerably over the past few decades. Further, innovative logistics and supply chain concepts established on low-fuel costs as well as labor costs emerged together with trends in just-in-time production and end-point manufacturing assembly destination. Moreover, a surge in demand for expeditious shipping and control, as well as, transparency has been noticed with the decreasing new product shelf-life such as consumer electronics.

With the rapid development of connected technologies, comprising of mobile devices consumers’ lives has changed in many aspects, which includes their purchasing process. In the present scenario, consumers are turning to e-commerce that has resulted increased cross-border sales thus, boosting the air cargo market, as the manufacturers or sellers aims to reach the customer as quickly and economically as possible. In addition, the provision of air cargo including faster delivery speed and high investments by the government in favour of air cargo also fuels the global air cargo market. However, presently over-capacity, complexities of temperature-sensitive products and market restraints are some of the key challenges faced by the air cargo industry.

The air cargo industry generally competes with the other transportation modes including rail, road, and maritime. Mode mix optimization as well as modal shift from air to low-priced or observed more eco-friendly maritime or rail transport has been arising for some years. Freight forwarders provide more air/sea, air/rail, or air/road products that integrate to form price and total freight time flexibility. Currently the new railway as well as road-based ‘Silk Road’ network, which connects China with Europe is snatching business from air and sea cargo. In the coming years, Hyperloop One may capture the air cargo market, which is at present being considered for application in the Gulf region. However, in the current market scenario, air cargo has become ever more competitive against other transportation modes.


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