The North American air cargo market is gradually finding its footing as it recovers from the significant disruptions caused by the Covid-19 pandemic. While signs of recovery are visible, the industry continues to navigate an array of challenges, including overcapacity, fluctuating yields, and persistent imbalances in import and export volumes.
Simultaneously, the industry is undergoing transformative changes driven by technological advancements, an increased focus on sustainability, and evolving roles within the supply chain. General Sales and Service Agents (GSSAs), for example, have expanded their scope to offer comprehensive support, helping airlines and freight forwarders tap into new markets and respond to complex logistics needs.
“We are starting to see a slow recovery post-Covid, but overcapacity, especially during the summer months, remains a concern,” Charlie Storcks, HAE Vice President Americas, explained.
“Both legacy carriers, and seasonal carriers add multiple passenger flights during the summer months. While much of the capacity is to/from US/EU, it has a massive effect on the yields beyond EU, particularly to the Middle East and Africa. One trend that does not seem to change is the imbalance of imports vs exports, both in tonnes and yields.”
Growth opportunity
Currently HAE Group sells to all six continents with a large programme of capacity to EU, Middle East, and Africa. Serviced by both freighter and passenger flights. This allows it to offer competitive pricing and transit.
In addition to general cargo, HAE Group are still seen as a “go-to” company for mail, dangerous goods, pharmaceuticals, perishables, and project cargo for hard-to-do places.
“Our ability to offer network and network plus services, part charters. with our established airline partners means we will never be a ‘normal’ GSA. US exporters are looking for solutions on a global basis,” Storcks said.
“HAE’s experience, plus options into Europe, Africa, and the Middle East, and destinations that are perceived as “hard to reach” allow us to be the go-to GSSA for all air cargo solutions. We also often have our own offices in most countries to provide local knowledge. Our US team are known as “our product”. The teams know-how, experience and network knowledge of our carriers is a key critical factor to our success.”
US-Africa
In the US, HAE has represented Ethiopian Airlines Cargo for over 18+ years. Ethiopian Airlines is the country’s national airline and is based in Addis Ababa. It is the largest airline brand in Africa and one of the fastest-growing airlines globally.
Continuing to focus on the growing demand for e-commerce, mail, and courier business, in early 2024, Ethiopian Airlines opened the first of its kind e-commerce Logistics Facility at Bole International Airport. This dedicated facility offers e-commerce, mail, and courier logistics service.
Additionally to this, HAE Group has its own operations in South Africa, Kenya and Egypt, and a strong partnership in Morrocco, with three more African locations under review.
“Based on the latest IATA data, there has been a year over year increase of 5 percent from the USA to Africa,” Storcks added. “Of the total tonnes from the USA to Africa, destination Johannesburg is far and away the number one trade lane, accounting for approximately 41 percent of the total market to Africa. We anticipate this trend to continue, with additional growth markets to Nigeria and Kenya.”
Priority approach
At HAE, the team aims to offer partner airlines and mutual customer freight forwarders a one stop shop. In addition to managing the day-to-day sales of the airlines, the GSSA offers all aspects of customer service, offering global marketing and local Ground Handling Agents (GHA) supervision.
“This allows airlines to enter new markets without significant upfront investment, while providing the freight forwarders access to specialized local knowledge and streamlined solutions,” Storcks outlined.
“HAE is the only GSSA in the world with its own self developed Quote Management System (QMS). This self-developed tool allows us to support our airline partners and customers 24/7, which is supported by our centralised offshore team.
“We can manage and measure our quotes, offer dynamic pricing, interface to other airlines system via FSU, and offer full visibility of track and trace.”
