American opportunity

American opportunity

Current trends in the Americas are very much reflected in the fact that the US presently has the strongest economy of all developed countries and is on target for two percent inflation very soon. Regional demand is being driven by strong sectors, such as e-commerce traffic, while also witnessing a good level of general cargo.

Additionally, the country is heading towards a presidential election, which often affect trade generally, as companies wait on the results and how they may be impacted.

“Aviacargo operates in a niche market where year-on-year demand is growing at a steady rate,” Michael Cox, President, Aviacargo Inc, explained.

“In July this year trade between Africa and the US was growing at around 7.4 percent, so that provides an idea of the uptick we are seeing.

“The countries we serve are definitely developing both their hubs and services to meet the changing demands of the industry and expectations of customers.

“So, in addition to the General Cargo and pharma, about seven percent of our business is in fact courier.

“Key routes would currently include Nairobi, Dar-es-Salaam, Entebbe and Lusaka, however we do serve 41 destination across Africa.”

Driving deliveries

e-commerce is certainly resilient and that is the main booming sector alongside general cargo. The mix of businesses remains steady with clothing and electronics being among the key verticals.

“In terms of business adaptations, you must remember that many of our flights are very long in both distance and time, which means cargo is generally limited between four to five tonnes per flight,” Cox stated.

“But that doesn’t preclude us from providing specialist services such as pharma to countries including Kenya and Tanzania. This can include general pharma freight, medical devices ambient, 2-8°C and other temperature-controlled ranges of goods.

“Growth does of course depend on the global economy to a great extent but with US GDP growing at a three percent annual rate in Q2 we are optimistic about the prospects for the remainder of 2024.

“At Aviacargo our specialist knowledge of the African market is a key component of everything we do and we believe this is what has made us a widely respected company over the last 23 years.”

Innovation and initiatives

Just last month for example, Kenya Airways marked World Ozone Day with a Nairobi – New York, John F. Kennedy flight, which it meticulously planned every aspect to maximise efficiency and minimise environmental impact.

Advanced weather monitoring systems allowed for real-time route adjustments, ensured the most fuel-efficient journey possible.

“This approach not only reduced fuel consumption but also minimised the emission of substances that could potentially harm the ozone layer,” Cox explained.

Technology is not universal in some of the destinations Aviacargo serves in terms of IT infrastructure but the one thing everyone has is a mobile phone so the company conducts a fair amount of business with the help of WhatsApp, which means they are still able to provide customers with instant answers where required.

As a General Sales and Service Agent (GSSA), Aviacargo is on a number of the eBooking platforms and provides customers with full visibility and online tracking.

“Interestingly, and this is something we have built our reputation on, forwarders are delighted when they still have a human interface with our team,” Cox continued.

“It’s something many have been crying out for because technology only goes so far especially if they are shipping something out of the ordinary or to a more challenging end destination.”

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

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