News / We must cut 48 hours off transit times, or air cargo cannot survive – IATA chief

08/10/2014

In a call to arms for the air cargo industry, Glyn Hughes, new global head of cargo at IATA, said cutting 48 hours off transit times was a question of “survival”.

There is “no alternative”, he told a press conference at TIACA’s Air Cargo Forum in Seoul.

“All of the industry owns this situation and problem,” he said, “it’s about the survival of the industry going forward. Without it, modal shift will accelerate. We have no alternative. This industry has survived for ...

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Ricardo V. Pilon
October 08, 2014 at 12:50 pm
A very constructive debate on a more holistic view of the chain. But if flown-as-booked improves and information is more available in real-time, the planning of all other and related activities of logistics partners (including forwarders picking up the cargo) can improve as well. The issue of shared ownership and responsibility remains at the heart of the more fundamental obstacle.
That is to say, there is no single over-riding business model that encompasses all players. The shippers and consignees suffer from this.
The only solution to that is further transformation through chain integration and that means embracing more risk and becoming more exclusive.
Decommoditization involves a relook at purpose and strategic discipline.

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P Balasubramanian
October 08, 2014 at 3:17 pm
In direct response to Oliver’s e mail, many customers use air cargo terminal handler’s warehouse as the ‘holding place’ as a means to avoid hiring storage space. Probably, it is less expensive than hiring storage space in the city!? Secondly, the merits of e-freight is still not that much understood or propagated well. Without these two areas, getting to the magical ’48 hour’ objective would be challenging.

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Andy Robins
October 09, 2014 at 2:49 am
First off the Cargo Agents are well aware of wheels down and goods ready for release time frames in their markets. This is advised to Shipper Consignees and Origin Agents alike. Thus they plan the shipments accordingly. A reduction of 48 hours in the supply chain will boost the the revenue for carriers who can implement as the perishables and time critical cargo etc will be drawn to them.
If planes fly and have bellyhold cargo capacity there will always be a market for cargo.
I don’t agree with Agents being late to collect cargo as the Airline/GHA warehouse charges are the most expensive around. This is actually needed as it would not take long to fill up the import shed on busy trade lanes.
48 hours would be nice, but as carriers usually overbook to counter the no shows add planes going technical, there is always going to be times where there are backlogs.
But air cargo will survive as there will always be a demand for a faster service than sea.
On seafreight many agents are requesting the carriers more than 14 days free time at destination to clear the cargo.

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