Air Cargo: Is 2012 the Turnaround Year?
March 06, 2012
Industry analysts are predicting that 2012 will be a significant year for air cargo recovery, but not without a new set of challenges that seem to be facing shippers and carriers on all hemispheric fronts.
For example, the troubled European Union (EU) is making life difficult for all airlines by imposing a unilateral carbon-trading scheme. Meanwhile, aircraft manufacturers and shippers agree that biofuels must be gradually introduced across the board.
The Asia Pacific, which is still the most vibrant market for U.S. shippers, may be ceding some of its influence to Latin America. Shippers say that fuel and energy costs associated with onerous environmental laws will make “near shoring” more attractive over the next year. (Exhibit 1 on page 56 shows the growing fuel imact on air carrier operating costs over the past decade.)
And don’t forget the security issue that is ongoing for global shippers or carriers. However, with a more harmonized security system in place, global shippers may finally get a break on compliance expenses.
So, with a slowly improving global economy juxtaposed against this growing list of challenges, is the air cargo industry poised for a comeback? The Boeing Company certainly thinks so. Having ended 2011 with a solid earnings report, the company says it reflects continued strong core performance across its businesses.
“Strong fourth quarter operating performance, record revenue and backlog, and expanded earnings and cash flow capped a year of substantial progress for Boeing in 2011,” said Jim McNerney, Boeing chairman, president, and CEO.
 |
This complete article is available to subscribers
only. Click on Log In Now at the top of this article for full access. Or, Start your PLUS+ subscription for instant access. |
Not ready to subscribe, but need this article?
Buy the complete article now. Only $20.00. Instant PDF Download.
Access the complete issue of Supply Chain Management Review magazine featuring
this article including every word, chart and table exactly as it appeared in the magazine.
|
|
Download Article PDF |
Industry analysts are predicting that 2012 will be a significant year for air cargo recovery, but not without a new set of challenges that seem to be facing shippers and carriers on all hemispheric fronts.
For example, the troubled European Union (EU) is making life difficult for all airlines by imposing a unilateral carbon-trading scheme. Meanwhile, aircraft manufacturers and shippers agree that biofuels must be gradually introduced across the board.
The Asia Pacific, which is still the most vibrant market for U.S. shippers, may be ceding some of its influence to Latin America. Shippers say that fuel and energy costs associated with onerous environmental laws will make “near shoring” more attractive over the next year. (Exhibit 1 on page 56 shows the growing fuel imact on air carrier operating costs over the past decade.)
And don’t forget the security issue that is ongoing for global shippers or carriers. However, with a more harmonized security system in place, global shippers may finally get a break on compliance expenses.
So, with a slowly improving global economy juxtaposed against this growing list of challenges, is the air cargo industry poised for a comeback? The Boeing Company certainly thinks so. Having ended 2011 with a solid earnings report, the company says it reflects continued strong core performance across its businesses.
“Strong fourth quarter operating performance, record revenue and backlog, and expanded earnings and cash flow capped a year of substantial progress for Boeing in 2011,” said Jim McNerney, Boeing chairman, president, and CEO.
|
|
SUBSCRIBERS: Click here to download PDF of the full article. |
About the Author
Executive Editor
Subscribe to Supply Chain Management Review magazine
Subscribe today. Don't miss out!
Get in-depth coverage from industry experts with proven techniques forcutting supply chain costs and case studies in supply chain best practices. Start Your Subscription Today!
Recent Entries
Post a comment
Commenting is not available in this channel entry.