Monday, September 16, 2024
Dealing with disruption

Dealing with disruption

The surge in online shopping has reshaped consumer habits across the APAC region, fuelling a staggering increase in airfreight demand. With the rapid expansion of  the e-commerce sector driving demand for swift and reliable transportation solutions, charter operations have emerged as a vital cog in the logistics machinery across the Asia Pacific region.

With a reputation as the world’s manufacturing hub that remains unparalleled, Asia, and in particular China, has continued to show economic strength and airfreight dominance despite a shaky period during the pandemic. Even in the face of calls for diversification, its manufacturing prowess continues to attract businesses seeking efficiency and scale, ensuring sustained demand for airfreight services.

“The market in the Asia Pacific region is dominated by e-commerce right now, and that growth will no doubt continue,” Dan Morgan-Evans, Global Director Cargo at Air Charter Service, asserted.

 Recognising the unique dynamics of the Chinese market, ACS undertook a strategic realignment of its operations across the APAC region. 

 “The China region needed its own focus. By separating our regions, we can work more specifically in each region. Joseph Tam, our director of cargo for China, is hugely experienced, and we knew that by leaning on his knowledge and talent, he would help accelerate our growth throughout our Chinese offices,” Morgan-Evans stated.

 This personal, dedicated focus also aids in navigating the diverse economic, cultural, and political landscape of the APAC region demands robust connectivity and cultural fluency. ACS underscores the importance of language proficiency in fostering strong client relationships.

 “Languages are a key part of this region and help us penetrate the different markets,” he added.

Rate resilience

Despite the challenges that Asia has gone through in recent years, charter rates have generally remained high as demand is high.

“We are in the charter business. Disruption has always been part of our world,” Morgan-Evans outlined.

With capacity in the charter market quite tight right now and showing no signs of letting up, the opportunity for those operating in this space remains high.

“I don’t see this letting up,” he explained, adding that “it’s a bit of a different story for general commercial rates, which makes it a very strange market.”

Innovative operations

As Asia embraces technological opportunities, ACS has acknowledged the transformative potential of artificial intelligence and automation in streamlining operations. 

“We are always looking to utilise technology as a tool in our business but only if it benefits the client,” Morgan-Evans added. 

“Too often, technology in our world is smoke and mirrors. We tend to concentrate on efficiency to reduce costs and time to our clients and not fancy headlines.”

Picture of Anastasiya Simsek

Anastasiya Simsek

Anastasiya Simsek started her journalism career in 2016 at Ukrainian TV-Channels: 24 Channel and 1+1 Media. Having worked across a number of different sectors, including news, medicine and lifestyle, she joined the Air Cargo Week editorial team in 2024. To share your news and exclusive insights, contact Anastasiya.Simsek@AirCargoWeek.com

Newsletter

Stay informed. Stay ahead. To get the latest air cargo news and industry trends delivered directly to your inbox, sign up now!

related articles

DSV wins race to takeover DB Schenker

Old uniforms up cycled into 5,000 cups

EU Cross-Border E-Commerce Forum kicks off in Liège