CARGOCONNECT-JANUARY2025 - Flipbook - Page 46
COVER STORY
Ashwin Bhat
Chief Executive Officer, Lufthansa Cargo
“With rising volumes, need for
long-term capacity commitments, such as charters or
allotments, will grow”
The Shifting Landscape of Air
Cargo: Demand, Disruptions, and
Emerging Markets
Firstly, the dynamic global environment is expected to
signi昀椀cantly impact air cargo demand, exacerbated by
prevailing disruptions. We have seen the e昀昀ect of the
Red Sea crisis and recent typhoons on the industry. It
can be expected that supply chains will remain under
pressure from unforeseen political, economic, and natural
events. As disruptions become more frequent, demand
for reliable, fast, 昀氀exible, and secure air transport will
continue to grow.
Secondly, e-commerce will remain a driving force
behind the current growth in global air cargo. Especially
on the routes from China to Europe and the US, this
new commodity is creating an additional need for air
cargo capacity.
Thirdly, we observe that the global economy, especially trade, is still adjusting to post-pandemic realities
and geopolitical tensions. Trade diversi昀椀cation is evident,
with emerging markets such as Vietnam and India
bene昀椀ting from this shift. As these trends continue, air
cargo growth is expected to remain strong, especially
is these new and emerging markets.
Ashwin Bhat discusses the evolving air cargo
landscape amidst global disruptions and demand
growth. He highlights how geopolitical tensions,
natural disasters, and e-commerce are shaping
industry trends, with emerging markets like
Vietnam and India gaining traction. Bhat emphasises
the need for flexible capacity, smart technology, and
data-driven strategies, while indicating Lufthansa
Cargo’s commitment to innovation and digitalisation
through initiatives like IATA ONE Record. With new
routes and direct connections, such as its recent
link between Ho Chi Minh City and Los Angeles,
Bhat says, Lufthansa Cargo is poised to lead in a
dynamic market, driving global business forward.
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