With capacity increasing and rates softening, the market has shifted from the high-demand, low-supply conditions of recent years to a more balanced environment.
This change has brought a need for strategic pricing, optimisation of capacity, and fostering stronger relationships between airlines, freight forwarders, and General Sales and Service Agents (GSSAs).
“For Group Concorde, this has meant a focus on agility—leveraging our global presence to deliver efficiently,” Prithviraj Singh Chug, Group Concorde’s CEO, stated.
“We’ve adapted by sharpening our operational focus on efficiency and value-added services. We’ve streamlined our processes to respond faster to market shifts, and our digital initiatives have enabled better forecasting and allocation of space.
“With rates decreasing, airlines are looking for more effective partnerships, and we’ve been proactive in offering tailored solutions that maximise profitability without sacrificing service quality.”
Strategy for growth
In today’s environment, success hinges on a multi-faceted approach. Digitalisation is at the core, enabling data-driven decision-making and real-time visibility, which has become a must for both GSSAs and airlines. Sustainability is no longer optional—airlines and GSSAs need to invest in greener operations, reducing emissions through better planning.
Specialisation is also crucial, with sectors like e-commerce and pharmaceuticals requiring dedicated solutions. Our strategy at Group Concorde integrates these priorities, ensuring that we not only keep pace with the evolving demands but also lead in key areas.
“e-commerce continues to be a major driver of the air cargo industry, with the demand for fast, reliable delivery growing globally,” Chug explained. “In addition, the cool chain segment—particularly for pharmaceuticals, perishables, and healthcare products—has seen significant growth, with more focus on precision and compliance in handling temperature-sensitive cargo. Group Concorde has been investing in expertise required to serve these critical segments.”
Potential and pitfalls
Opportunity for GSSAs lies in the growth of emerging markets and the increasing demand for specialised services. Regions like Southeast Asia, Africa, and Latin America present untapped potential for air cargo growth. Additionally, the ongoing digitisation of supply chains presents a chance to further streamline operations and offer enhanced customer experiences.
“We are ready to capitalise on these opportunities by expanding our footprint in high-growth regions and continuing to invest in digital platforms that allow us to better serve our airline partners and clients,” Chug outlined.
Conversely, one of the key challenges facing the industry is economic uncertainty, which can affect demand for airfreight services. Geopolitical tensions, fluctuating fuel prices, and regulatory changes also present potential risks.
“At Group Concorde, we mitigate these risks through diversification—both in terms of geography and services. We operate across multiple regions and offer a wide range of solutions, from general cargo to specialised segments. This diversified approach enables us to remain resilient in the face of market volatility,” Chug added.
“For the remainder of 2024, our focus will remain on strengthening our digital capabilities, enhancing our sustainability initiatives, and expanding in key growth markets.
“We are targeting regions such as Southeast Asia, India, and the Middle East as they present significant growth opportunities in both general cargo and specialised sectors.
“By aligning our strategy with these trends, we aim to continue delivering value to our airline partners and customers while driving sustainable growth.”
