WEEKLY NEWS


AIR CARG O WEEK


AGILITY ALLOWS


GSSAS TO THRIVE


BY Anastasiya SIMSEK


THROUGHOUT 2024, while the global sales and service agents (GSSA) and airfreight industry have seen capacity on the rise, demand is still outstripping supply. A key driver of this trend has


been the continued e-commerce boom, combined with disruptions in the container shipping sector, particularly due to the ongoing Red Sea crisis. The e-commerce growth from China and Hong


Kong resulted in more directional imbalances on the EU-Asia and Asia-US trade lanes. On top of that, due to this boom, carriers have allocated


more capacity to Asia and, therefore, capacity to other regions, like, for example, Latin America has been reduced. This again has resulted in yield decline from the US and Europe to Asia and yield increase to/from Latin America. “As WorldACD outlined, the market share of


04


GSSAs in general, has increased from 24 percent in 2021 to 27 percent in July year-to-date. This indicates a trend that airlines are continuing to outsource more sales to GSSA’s,” Sebastiaan Scholte, CEO of Kales Group, stated. “The market volumes have grown and, at Kales we have outgrown the market by double digit percentages.”


Global focus Trade is continuing to grow but at a lesser pace than GDP because of more protectionist policies. Southeast Asia, and especially Vietnam, but also India and Mexico are set to outgrow other regions, making those locations a key area of focus. While


current geopolitical tensions


on the air cargo industry,” Scholte highlighted. “However, as soon as the Red Sea crisis is over, there will be an oversupply in container ships, which would negatively affect air cargo growth and yields.”


Operational approach For both airlines and GSSAs, agility remains


essential in the current climate. Digitalisation is a driving force behind this, streamlining the air cargo supply chain and enhancing efficiency. As the industry continues to digitise, companies that adapt quickly and leverage new technologies will be better positioned to meet shifting demand and capitalise on emerging opportunities. “The secret to our success always has been


could


result in more disruptions, a wider geographical spread reduces risks and minimises directional imbalances. “Unfortunately, except for an economic crisis,


anything bad happening in the world, like wars, Covid-19, etc, has somehow had a positive impact


agility and flexibility,” Scholte explained. “The areas of opportunities are special products, but we also see an increased demand for total cargo management as airlines tend to outsource more. “At Kales we have extensive experience and


knowledge in offering these types of solutions in a cost effective manner to the airlines. “Kales is the first GSSA to be CEIV pharma It


certified. is important to focus on special


products to improve the yields. But not only on pharma but also on perishables.”


ACW 23 SEPTEMBER 2024


www.aircargoweek.com


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