Having been at the helm of Airline Services International for over 30 years, Joe Lawrence has seen the development of the GSSA model, swinging from one extreme to the other and focus to focus. 

Initially, having operated with considerable freedom, moving cargo anywhere without strict regulations, the introduction of regulations and in-depth security measures completely altered the operational landscape. 

“Having been in the industry for decades, the challenge is ‘How do we create the right opportunities?” Lawrence explained. 

“The rules and regulations keep us contained, not being able to generate the volumes that you’d like to see from our marketing, so the big challenge is navigating more controls than ever before.

“Planning has become crucial, considering the need for balance. While there may be excellent prospects in one direction, the lack of opportunities in the opposite direction necessitates strategic decisions. 

This dynamic is not unique to one region. For instance, the e-commerce sector highlights this challenge. It’s relatively easy to fill a plane leaving China with e-commerce goods. However, the reverse journey faces market dynamics, emphasising the importance of a comprehensive approach to navigating such imbalances effectively.

Navigating uncertainty

Geopolitical concerns are often front and centre nowadays, with conflicts breaking out globally and supply chain disruptions unfortunately increasingly common.

From a North American perspective, the geopolitical issues seem distant and often have minimal perceived impact. The physical distance from where these events unfold contributes to this sense of detachment. However, in regions like India, where recent geopolitical tensions, such as those in the Red Sea area, directly affect trade routes, the demand for capacity has surged significantly.

While India grapples with capacity shortages due to geopolitical factors, Canada remains relatively unaffected. The desire for increased capacity and exports in Canada contrasts sharply with the situation in India, where capacity is abundant but insufficient cargo.

“Yields are experiencing a reversal due to differing capacity situations. Overcapacity has driven yields down significantly, while capacity restrictions elsewhere have led to premium rates,” Lawrence highlighted. 

“In our market, where there is more capacity than cargo, the customer is in the driver’s seat.

“He can dictate what he’s looking for, and, unfortunately, airlines who have the capacity are willing to take the cargo at any cost. So, that becomes a challenge, a major challenge. 

“This creates a contrasting scenario between regions like Canada, where capacity remains relatively unaffected, and India, where capacity shortages are common. There’s a substantial opportunity for exports from India to North America, particularly given the demand. However, from a freighter perspective, challenges arise. 

“While it’s feasible to fill an aircraft from Mumbai to Toronto, the return leg presents difficulties in finding cargo. This imbalance complicates operations as the yield may not justify the costs. Airlines grapple with this dilemma, seeking a balance between maximising capacity and ensuring profitability.”

Fresh approach

Technology now plays a crucial role in facilitating planning and decision-making processes in ways that were not feasible decades ago. Today, advancements in technology, such as cargo booking platforms, enable greater efficiency in operations. Additionally, datasets allow for detailed analysis of cargo segments, routes, and fluctuations, which can be leveraged through artificial intelligence examination. This integration of technology empowers businesses to make more informed decisions and optimise their operations for maximum efficiency.

“Our business strategy has been centred around identifying and capitalising on opportunities in various markets. However, we recognise that simply focusing on market opportunities is insufficient,” Lawrence stated. 

“We acknowledge the need for our business to evolve beyond being just a GSSA and expand our service offerings. This involves not only looking at international markets but also growing our presence globally.

“We’re looking at what other services we can offer customers. We’ve begun exploring additional services to offer our customers, such as e-commerce, and identifying a niche in time-critical cargo transportation, particularly in handling urgent shipments for airlines.

Environmental efficiency

The concept of sustainability is increasingly emphasised in discussions and debates throughout the airfreight industry, prompting people and companies to consider how they can make operations more efficient and environmentally friendly. 

“Over the past 25 years, the industry has continually discussed the need to reduce paper usage, driven by the desire to minimise environmental impact, for example,” Lawrence said.

“Despite these discussions, the transition away from paper documentation has been slow. While some airlines have made progress in implementing electronic systems, others have yet to fully adopt paperless processes.

“The enforcement of paperless initiatives remains inconsistent, with estimates suggesting that overall compliance may be as low as 20-25 percent. This indicates that there is still much work to be done to promote and enforce paperless practices across the industry.

“Customers are increasingly seeking paperless options for their shipments, but challenges persist, particularly regarding warehouse acceptance of shipments without physical documentation. 

“As a result, achieving widespread adoption of paperless processes requires concerted efforts to address logistical and operational hurdles.”

As a service-oriented industry, the focus of GSSAs on sustainability largely revolves around their airline partners, laying the groundwork and establishing sustainable practices in their operations. 

“Our capacity to directly impact sustainability is somewhat limited,” Lawrence accepted. 

“Unlike companies that operate warehouses or factories, our operations primarily involve facilitating air cargo transportation. However, we recognise the importance of aligning with our airline partners’ sustainability efforts and contributing to initiatives that promote eco-friendly practices within our sphere of influence.”