WORLD CARGO SYMPOSIUM
THE CROSS-BORDER E-COMMERCE WAVE IS COMING — ARE YOU READY? By Caryn Livingston
(IPC). The current geographic composition of cross-border ecommerce movements is likely to experience a shake-up, as volumes between Europe and China have declined and traffic between Africa and the United States is on the rise, but overall, e-commerce volumes are headFrom left to right, Liam O’Sullivan, director ed up — and illustrating current of operations with International Post Corp. logistical pain-points. (IPC), Lucas Kuehner, global head of air freight with Panalpina Management Ltd., and Glyn Hughes, global head of cargo with IATA.
During Tuesday’s e-commerce panel at the World Cargo Symposium, ecommerce growth was a foregone conclusion, leaving panelists to discuss the more important question — is the air cargo logistics chain ready for the coming wave? “We expect by 2020 we will see a triplification of cross-border flow,” said Liam O’Sullivan, director of operations with International Post Corporation
“We experienced huge bottlenecks moving freight in Europe last year, particularly in Germany,” as the main European ecommerce cities of Frankfurt, Luxembourg and London all saw delays impact shipments during Europe’s most recent peak season, said Panalpina’s global head of airfreight, Lucas Kuehner. With growth only continuing, Kuehner took a pragmatic view, adding, “No, I don’t think we’re ready, the infrastructure doesn’t allow for it.”
Kuehner, meanwhile, is optimistic that smart application of technology, an area in which air cargo has lagged other industries, can help facilitate delivery speed. “This is also a call to arms — finally — so we have the reason we need to apply technology to this industry,” he said.
WEDNESDAY • MARCH 14, 2018
By Charles Kauffman
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“Handlers, cargo airlines and the post will have to work very closely together,” he said. “If those three groups aren’t working hand in hand, we aren’t going to make it.”
So how best to get ready? O’Sullivan
AIR CARGO MARKET GROWTH: THREE SCENARIOS Industry-wide air cargo traffic growth is once again an invigorating subject. Despite the increase in protectionist rhetoric threatening robust global trade, evidence suggests that “nearterm geopolitical trends will not inhibit air cargo growth,” said Brian Clancy, managing director of Logistics Capital & Strategy (LogCapStrat), during yesterday’s presentation.
has confidence that current postal infrastructure can be repurposed to facilitate the shift to e-commerce, but says business needs to “provide the link between the e-commerce provider and the post or express company,” meaning logistics aside from air transport must become more efficient to meet high customer expectations of short delivery times.
Clancy began by drawing the audience’s attention to a graph on page four of yesterday’s WCS Daily Report that illustrated three different forecast scenarios for freight tonne kilometer (FTK) growth over the next five years. With a baseline in red, a bearish continuation of post-financial-crisis growth in green, and a bull[Continued on p6]
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March 14, 2018
WCS Daily Report
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