The air cargo industry continues to face a multitude of challenges and opportunities. Consignors, who are the driving force behind this demand, provide valuable insights into their current requirements and expectations from air freight services. At a recent panel discussion at ACE Central Europe, several prominent logistics leaders gathered to share their perspectives on the air cargo sector’s present state and future trajectory.
The panel featured insights from József Kossuth, Cargo Director at Budapest Airport; Éva Gerendeli, Vice President at Samsung SDI HU; Martin Polakovic, Head of Global Logistics Procurement at Lenovo; Viktor Török, Director of Logistics at Bosch Hungary; and Yunkyu Han, Professional Manager at SK’s Europe Procurement Unit.
Török observed, “The automotive industry in Europe is not in the best shape, but we’re seeing solid growth overall,” explaining that Bosch’s diversified portfolio has helped maintain stability despite regional challenges.
Similarly, Polakovic highlighted the dual impact of e-commerce and technological advancements: “During COVID, we saw a boom in e-commerce, which has allowed us to thrive. Airfreight is essential for our business, but the industry is still trying to regain its footing.”
Yunkyu Han of SK echoed these sentiments: “Our demand has decreased, especially for electric vehicles. The market is not as robust as we expected, but governments are stepping in with subsidies. We believe the situation will improve.”
The air cargo industry, which serves as a backbone for many of these companies, is grappling with issues related to cost, capacity, and reliability.
“We struggle with forecast accuracy, which impacts our logistics needs. The market is unpredictable, and this forces us to make quick adjustments,” Gerendeli said.
In the face of such unpredictability, companies are focusing on optimising their supply chains for agility and resilience. “Cost is always a major concern, but reliability is even more critical,” Török continued. “If my team is doing its job right, airfreight should be used only when absolutely necessary. But when we do need it, it has to be fast and reliable.”
Polakovic also pointed out that agility has become a crucial aspect of logistics planning, explaining that Lenovo’s strategy revolves around long-term and short-term capacity management: “We’re continuously adjusting our supply chain to handle cost pressures, capacity issues, and unexpected disruptions like the Suez Canal blockage.”
“Logistics is about solving problems as they arise, which is why we embrace change as the new normal.”
The transportation of batteries and other hazardous goods remains a significant issue for many consignors, particularly in the high-tech and automotive sectors.
Gerendeli highlighted the complexities of shipping batteries: “There are restrictions on how much charge a battery can hold during transport. These regulations impact our logistics decisions significantly.”
Han added that airfreight services play a critical role in ensuring these materials reach their destinations safely: “We face numerous regulatory hurdles, and any delays can have a big impact on our operations. Cost and safety are our top priorities when it comes to dangerous goods.”
e-commerce has reshaped the air cargo landscape, increasing the demand for quick, reliable, and affordable transportation solutions. The rise of electric vehicles (EVs) has also influenced logistics strategies, as companies like Samsung and Bosch focus on developing and distributing EV components.
“The growth in e-commerce is putting pressure on capacity. While it’s tempting for carriers to focus on this lucrative segment, there needs to be a balance to accommodate traditional shippers as well,” Polakovic said.
Han expressed optimism about the future of EVs, stating that despite current slowdowns, the market will continue to grow: “We’re confident that EV batteries are the future. However, the lack of charging infrastructure is a bottleneck that needs to be addressed.”
Sustainability has become an essential consideration in logistics, with many companies striving to minimise their carbon footprints.
“CO2 emissions are always taken into account when making logistics decisions,” Török said.
While Martin Polakovic emphasised the importance of transparency and traceability in sustainable logistics: “Digitalisation is crucial for managing disruptions and ensuring that we can quickly adapt to changing conditions. It’s not just about tracking; it’s about making informed decisions that align with our sustainability goals.”
