There is no sign of any slow-down in the world of e-commerce, in fact quite the opposite. With so many consumers forced to adapt their shopping habits in response to the restrictions imposed as a result of Covid-19, it is likely that the changes that have been made will be long lasting.
While the world remains optimistic that the traditional retailers will be able to resume normal trading, the fact is that consumers will have become accustomed to revising their approach to purchasing and will be loathed to turn their back on the speedy digital shopping experience.
In response to this, more and more aircraft are being reconfigured to carry cargo, rather than passengers and there has been a spike in the number of aircraft retrofit businesses able to undertake these specialist works. Since the production of the Boeing 747 has stopped in favour of the more fuel efficient, newer 777, so interest in the procurement of 777s to lease or buy has increased and while some of these may already be converted for cargo, we are likely to see more of these passenger aircraft configured to accommodate the exclusive handling of cargo.
The world of e-commerce traditionally focuses on a high proportion of goods being transported out of China into major European hubs. As a result, there is likely to be a predicted growth in the number of chartered air freight services transferring consignments out of these hubs and delivering them to local European markets. This means that once again, the pressure for space will be intensified on these flights.
Given the world’s growing mandate to address the need to slow down climate change, it is also likely that the future will bring new break throughs in fuel efficient engines which represent an improved carbon emissions proposition. For companies who trade on their ‘green’ credentials, this will enable them to potentially reconsider the use of chartered aircraft, which will in turn create further demand for space.
Impact of Brexit
Brexit has effectively provided a massive boost to the chartered air freight industry. Companies which specialise in perishable goods cannot risk being caught up in cross-border delays, delays which can have a devastating impact on time-sensitive produce. UK supermarkets and independents demand quality fresh produce, with a good shelf life. Goods which have been kept in transit when they should have been on the shelves will have a reduced shelf life triggering substantial losses to the producer.
For Perishable Movements Limited, the speed of transit associated with chartered aircraft services, supported by the company’s ability to handle product with an unbroken cold chain thanks to its unique relationship with Heathrow’s only dedicated chilled airside facility, has dictated an even stronger interest in chartered air freight in the wake of Brexit. Such is the demand that Perishable Movements Limited, has seized the initiative to charter its own aircraft to ensure the seamless and timely transfer of fresh produce.
The impact of the global pandemic continues to be felt in all sectors of industry and the chartered air freight sector is certainly not exempt. As countries begin to prepare for massive vaccination programmes the priority for many airlines is to captialise on the opportunity to carry the vaccines and as a result the race for space on chartered flights continues to heat up.
Competition for space in turn brings with it spiraling prices. Not only are logistics companies having to contend with the traditional seasonal variation in prices due to the influx of electronic products to satisfy the Christmas market, now the charters are becoming even more expensive due to the potential to charge a premium price for the transportation of PPE and vaccines.
As the biggest independent perishable goods importer, Perishable Movements Limited continues to work hard to stay ahead of the curve. In addition to chartering its own twice-weekly flight from Nairobi to Heathrow, the company is watching the market to identify new opportunities to increase the number of flight rotations operated by Perishable Movements Limited and its partner network.
Having an in-house air charter service division, headed up by someone who has acted on both sides of the fence, working for an airline as well as an independent charter broker means that the company is well placed to access the very best air trade lanes. But as anyone in the logistics business will testify, these will be challenging times for the industry
Source: Fresh Talk Daily