Don't underestimate the air freight forwarder: carrier digitisation is not market disruption

24/05/2017

Digitisation of the air cargo industry will eat into the market share of traditional freight forwarders, according to two recent articles.

Consultancy McKinsey states in one article that by 2025, 15-20% of air freight shipments will be booked directly by the shipper with the airline.

Flexport, a freight forwarder, highlights in a blog that “airlines are poised to bring freight consolidation in-house”.

However, in my view, the reasoning in both articles is flawed and provides no real fundament for their claims.

The McKinsey article reasons that: “A ...

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Nick Coverdale
May 24, 2017 at 4:31 pm
Good article, and let’s be really honest – these people at Flexport simply don’t have the experience of being an air cargo agent or booking freight directly with airlines. They are not even IATA so their opinion is pretty meaningless.

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- Ricardo Pinhal
  May 25, 2017 at 11:22 am
  It’s what happens when you develop an app-based logistics player with techy, IT people, but few logistics-savvy operatives.
  
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Walter Dsuza
May 25, 2017 at 4:03 pm
Yes! I totally agree with this concept. Many Thanks for this crucial information. I am a CUSTOM HOUSE AGENT in Mumbai, India. Digitisation will definitely happen for the benefit of Airline and Shipper. Why because there is lot of corruption in sales team. For personal benefit they are ruining Airlines. Regards Walter Dsuza

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