Future of Air Cargo 2025 EN

(SOUND OF AIRPLANE) It's 2015.

The FR8 segment is a core component of the logistics world.

But is it going to stay that way?

Even in 10 years time, the industry could look quite different.

What will be carried by air

and where will the world economy's hotspots be?

Will the traditional operators be overrun by the competition?

Let's take a plunge into the future. (MUSIC)

2025 driven by the inherently low price of crude oil.

The global economy is purring along.

Air freight is in great demand,

especially in the fast developing economies in the east and south.

These countries have deliberately pushed ahead with the integration of their

economic blocks and the expansion of their high tech sectors.

The Indian pharmaceutical hubs are a good example, where personalized

drugs are manufactured and sent overnight all over the world.

In comparison, Europe is stagnating at a high level.

The air freight sector has taken advantage of this situation

and is able to reorganize.

Growth

market players have opened new routes and invested heavily in their fleets.

Others have diversified the product range or found

interesting takeover targets in local road transport operators.

Even though local business is stable,

European players have to invest heavily in order to keep up internationally. (SOUND OF KEYBOARD TATTLING)

10 years on e-commerce is far and away air freight's biggest customer.

Customers all over the world naturally expect their goods

to be available everywhere and as soon as possible.

But even though this has a positive effect for air freight

and the crude oil price remains low,

the sector has problems to struggle with.

Integrators with their efficient processes and the

widespread network have put the wind up

the other transport companies.

They move goods ordered online quicker than others,

even into the developing markets now growing a pace.

But the logistics sector's

traditional business model is also suffering from

the fast maturing 3D printing sector.

Now, only none-printable are being transported over long distances.

Only a few pure air cargo players have survived.

In other words, those who have succeeded in increasing their efficiency.

A major role in this is being played

by small freight airplanes serving point to point routes

and by increasingly large alliances of air cargo providers.

Less successful players are facing the end.

They will be taken over by integrators.

Globalization of the world economy has passed its peak.

The freight industry is characterized by a resurgence of protectionism,

regional conflicts,

and concerns about the safety of aviation.

The recovery of the crude oil price is

curbing the development of many regions of the world.

while the OPEC countries are flourishing again,

freight companies in the oil producing regions have cornered the global market.

Meanwhile, established air cargo players have to cut costs

and specialize in the needs of local customers in order to survive.

In order to meet the further increased demands on

just in time and the safety of the goods,

major investment is being made in new infrastructure in

Europe and in beach huts in key markets.

Although the situation is anything but simple,

the air freight sector has succeeded in renewing itself,

introduced efficient processes,

and even positioned itself in the high price segment.

Less successful,

traditional firms are being taken over as

specialist suppliers by the larger logistics groups.

It's 2025 and the volume of global air freight has been falling for 10 years.

The economy is suffering under the weight of a renewed rise in the price of crude oil,

a new cold war,

and the return of trade barriers following the collapse of the TTIP talks.

E-commerce has become the standard for many people.

However,

customers prefer to buy local products in

some countries as a result of environmental awareness.

In others,

owing to a resurgence of patriotism,

most goods are moved by road and rail.

The remaining air cargo is carried on passenger flights.

Several air cargo operators seized business when they were

unable to find parties interested in a takeover.

Other companies recognize the signs of the times at an early stage,

developed flexible strategies, and diversified their product portfolio.

At the end of the day, the question remains:

"How is the air cargo sector preparing itself for an uncertain future?" (MUSIC)