There has been a notable transformation in market trends in the airfreight sector. This ‘new normal’ reflects a significant departure from pre-Covid business patterns, with a marked increase in online shopping as consumers opt for the convenience of home-based purchases.
As a result, spending behaviours have shifted, leading to a distinct shift in demand patterns that diverge significantly even from those figures observed in the pre-Covid era of 2019.
In light of shifting behaviour, where almost instant delivery is increasingly expected, the industry anticipates that the speed of goods delivery will continue to define the future of the airfreight industry.
“We prioritise flexibility and agility in our cargo operations to effectively navigate supply chain challenges,” Ludovica D’Angelo, MSC Air Cargo’s Head of Marketing & Communications, explained.
“With a fleet of four aircraft, we possess the capability to swiftly adapt schedules and operations, often more rapidly than larger airlines.
“Additionally, our extensive network enables us to efficiently reposition assets, ensuring seamless movement of cargo even amidst evolving logistical complexities.
“Operating on a global scale, we connect the Americas, Europe, and Asia through a robust network.
“Our emphasis on the Asia-Pacific region is significant, where we seamlessly support and handle diverse sectors including high tech, automotive, specialised cargo, aerospace, pharmaceuticals, and e-commerce. This enables us to bridge continents effectively and meet the dynamic demands of the market.”
Shift in demand
The e-commerce market is often tied to seasonal fluctuations in consumer demand. During periods of heightened global spending, cargo clients of MSC Air Cargo tend to favour airfreight for faster deliveries.
External factors such as port strikes or regional disruptions, like the current situation in the Red Sea, prompt customers to seek alternative solutions, including a switch to airfreight. Similarly, when airfreight costs become prohibitive, there is a migration towards sea freight as a cost-effective alternative for clients who cannot absorb those increased costs.
“Our focus remains on maintaining efficiency amidst these dynamics. With our fleet comprising a single type of aircraft, the Boeing 777-200F, we gain invaluable flexibility to swiftly adapt to diverse market conditions and tailor our network accordingly,” D’Angelo highlighted.
“This strategic approach allows us to remain agile and responsive, ensuring that we meet the evolving needs of our customers while navigating the complexities of the airfreight landscape.”
Factors in focus
The China +1 policy has significantly diversified investors’ portfolios, leading to substantial growth. This growth has created new logistics demands, which we are well-prepared to accommodate and support with our air cargo services.
Sustainability is integral to operations at MSC and across the airfreight industry. MSC’s fleet, comprised of four Boeing 777-200F aircraft (soon to be five), reflects the carrier’s commitment to minimising environmental impact. These aircraft are currently the most fuel-efficient in the industry, aligning with the company’s goal of reducing carbon emissions.
Digitalisation is revolutionising operations, as MSC remains dedicated to innovation and the continual evolution of its services. By embracing digital transformation, particularly in the realm of airfreight, the carrier is able to deliver high-level services across the globe.
“Our focus is on streamlining processes and enhancing efficiencies, ensuring swift and seamless operations that meet the demands of our customers in today’s fast-paced world,” D’Angelo outlined.
