Trendspotting, the air charter edition

Strong demand for faster delivery of goods by shippers worldwide is creating numerous challenges for the air cargo industry, in particular the air charter business. Overall, air cargo is expected to grow steadily and strong for the next decade. This increase significantly outpaces any other modes of transportation. Yet air cargo continues to be challenging and ever-evolving.

Sujit Subramanian, Regional Manager, Middle East & India Lufthansa Cargo Charter Agency

The near future will see a transition in the air cargo industry. Air carriers, charter operators and forwarders alike will realize the benefit of their collective strength. We are already witnessing the formulations of such partnerships, which means that combined services for shippers and consignees will become unmatched.

The Middle East and Indian sub-continent offer tremendous opportunities in the air charter business. They comprise the fastest growing region for cargo this year, recording double-digit growth. This expansion, coupled with dynamic support from regional governments, is a positive indicator for the air charter business. It gives Lufthansa Cargo Charter an opportunity to position itself as a preferred air charter service provider to meet excess capacity and specific air transportation demands from customers in the region.

Airfreight flows from USA and Europe into Iraq and Afghanistan are facing high demand. Commodities range from relief items to medical supplies to telecommunications equipment to perishables. Our parent company Lufthansa Cargo brings these shipments into Dubai or Sharjah and we arrange charter flights from the UAE into into the war-torn regions. We offer customers shipping to Iraq and Afghanistan unique benefits like single airway bills and single source billing, as well as on-line shipment tracking. Being part of an airline, the access we offer to Lufthansa Cargo’s as well as Swiss WorldCargo’s worldwide capabilities is something no other charter brokers can provide!

We see various commodities like electronics, perishables, equipment and garments as key products to the region, as we have transported a large quantity of these goods over the past few years. Traditionally, trade flows between Asia and Europe and the United States have been strong, but the past few years have also seen an increase in trade flows between Asia and the Middle East. This expansion can help the Gulf countries gain access to the fast developing and emerging Asian markets.

The Middle East, no doubt, has geographic advantage. With proximity to the exporting Indian subcontinent and importing European and African markets, the area is a multi-modal logistics hub. It is, therefore, no surprise that the region has evolved to be one of the most efficient sea-air hubs in the world, bringing with it ample opportunities for air charter services.

We often face challenging cargo situations in this region. Recently, for example, a large automobile manufacturer in India entrusted us to organise two B747 charter flights from China into India. These flights were so time critical that any delay meant our customer’s production unit would come to a halt and millions of dollars would be lost. Our entire charter team was on its toes to ensure that the components arrived as planned and the customer could breathe easy and meeting the requirements of his production team.

The aviation market in India is maturing with an increasing number of cargo aircraft operators. The environment seems upbeat with optimism. We foresee demand for charter flights in this market. And our regional office in the UAE is ready to serve the needs of its large customer base in the Indian sub-continent as well.

As we say, “Uplift – no limit in time and space.”

Sujit Subramanian, Regional Manager, Middle East & India Lufthansa Cargo Charter Agency Aircharter.