CARGOCONNECT-JANUARY2025 - Flipbook - Page 32
COVER STORY
M Afzal Malbarwala
Founder and Managing Director, Galaxy Freight
“Diversifying supplier networks, increasing inventory
buffers, and using digital twins to simulate various
scenarios are no longer optional”
From Crisis to Opportunity:
Diversi昀椀cation and Digital Solutions
Shaping the Future
Market analysts predict that disruptions such as the Red Sea
Crisis, Panama Canal congestion, and US-China trade tensions
will persist into 2025. So, how can we navigate this uncertainty?
The key lesson we’ve learned is the importance of continuing
operations in the face of disruption, no matter the challenges.
This is the true essence of innovation and resilience, and it is
resilience that gives companies a competitive edge.
We are optimistic that the industry will only grow stronger
over time, with innovative solutions emerging to address
these challenges. Diversifying supplier networks, increasing
inventory bu昀昀ers, and using digital twins to simulate various
scenarios are no longer optional; they are becoming essential.
Data is a tremendous asset in these turbulent times. These
challenges push us to re昀椀ne processes and integrate them
more seamlessly through collaborative platforms. As a result,
supply chain visibility and coordination are steadily improving,
transforming challenges into valuable opportunities.
Forecasting 2025: Uneven Growth and
Capacity Strain, Pricing Pressures
and Regional Disparities
Current market trends indicate a rising demand for air cargo
that is outpacing supply across all regions, particularly along
the Transpaci昀椀c Eastbound (TPEB) and Far East Westbound
In the face of ongoing disruptions like the Red Sea
Crisis, Panama Canal congestion, and US-China trade
tensions, M Afzal Malbarwala shines the light on how
resilience and innovation is the key to navigating
uncertainty. According to Malbarwala, the time
is here for the air cargo industry stakeholders to
adapt through diversification, digital solutions, and
proactive strategies. While speaking exclusively
to us, he highlights the growing importance of
e-commerce, real-time tracking, and ‘time-critical’
services, showcasing how Galaxy Freight is at the
forefront of these innovations. Emphasising the need
for businesses to adapt and prioritise customer
satisfaction for sustainable growth, Malbarwala
underscores the company’s strategic expansion
in India, with new offices in Goa and Navi Mumbai,
reflecting the company’s commitment to meeting the
evolving demands of its customers and strengthening
its service capabilities in key regions.
32 | CARGOCONNECT JANUARY 2025
(FEWB) trade lanes. Key regions to watch include China,
the Indian subcontinent, the Middle East, and Vietnam.
While the Atlantic market is expected to remain stable
next year, demand growth may be uneven, with the
US economy showing stronger indicators compared
to the EU.
Capacity imbalances are likely to worsen due to the
retirement of older freighters, delays in new freighter
deliveries, and airlines prioritising passenger 昀氀ights,
which o昀昀er limited cargo space. Additionally, there is
a trend of shifting capacity from the US to Asia.
Geopolitical issues, including the Red Sea crisis,
continue to impact air freight rates, resulting in backlogs
and higher prices in the Middle East and South Asia.
Consequently, we anticipate ongoing pricing pressure
in 2025, as capacity remains constrained.
