automotive
Air freight keeps the wheels turning
A strong recovery in global automotive manufacturing activity over the last year has fuelled a boom in demand for the air freighting of components to support often rapidly ramped-up vehicle production lines. The big question for the air logistics sector is whether both trends will continue in the longer term. Phillip Hastings investigates
A
s far as worldwide automotive industry activity is concerned, J D Power and Associates, a leading global marketing information services company based in the US, suggests that the recovery in established major vehicle sales
markets like the US and Europe is in fact now slowing. As a result, it says, sales growth in emerging markets such as China will become increasingly important for sustaining the global recovery of that sector (see panel). Meanwhile, views about the future level of automotive
industry demand for air freight services to move production components vary. Some observers suggest that the current extensive requirement will level off once manufacturers stabilise their supply chains. Others believe structural changes in those supply chains, notably an
18 AIR LOGISTICSCHINA
increased automotive manufacturing industry focus on lean inventory, the growth of newer markets and altered sourcing patterns, will provide substantial long-term air freight business. Outlining some of the background
to those issues, Brad Brennan (right), managing director of Evolution Time Critical, an international emergency transport provider based in the UK, considers that while the automotive industry is recovering from the recent global economic recession, the supply chain business model has changed. Several developing trends have become apparent in that context, he said, some of them with direct implications for related air freight business.
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