• Demand for air cargo up 8.2 percent y/y in October

    Air freight demand, measured in freight tonne kilometers (FTKs), rose 8.2 percent year-on-year in October, according to data released by The International Air Transport Association (IATA).

  • Another record breaking year for Budapest Airport as cargo volume exceeds 100,000 tonnes

    Hungarian gateway Budapest Airport expects to break annual record of cargo volume this year with more than 100,000 tonnes already handled between January and November.

  • LATAM Airlines to launch its longest non-stop flight ever between Santiago and Melbourne, Australia

    Latin America based carrier LATAM Airlines will operate a new, non-stop service between Santiago and Melbourne, Australia, from October 5, 2017.

  • India gives a strong start to IAG’s performance in the peak season

    IAG Cargo’s e-commerce prioritise from India has given it a very good start into the peak season.

  • IAG Cargo launches new Paris to New York route through OpenSkies

    IAG Cargo has launched the start of a new Paris Orly to Newark New Jersey route, its first ever direct cargo route between France and the USA.
Showing posts with label Flexport. Show all posts
Showing posts with label Flexport. Show all posts

Friday, July 16, 2021

Get ready for big supply chain overhaul in North America

  6:47:00 PM   , ,   No comments   Edit

 Get ready for big supply chain overhaul in North America



After completing just one month in the White House, the United States president Joe Biden on February 24, 2021, signed an executive order requiring a review of supply chains within 100 days triggered by pandemic-led disruptions.  On June 8, the White House released the report identifying the fragility of the US supply chains on four critical products: semiconductor manufacturing; large capacity batteries; critical minerals and materials; and pharmaceuticals and APIs. This pointed at underinvestment in domestic production, private sector prioritization of low-cost, unregulated labour markets and unfair trade practices by competitor countries.

The report is perceived as the completion of its first step towards significantly, if not completely, overhauling the global supply chains connected to the US and North America with wide-ranging reforms and geopolitical strategies.  So in the coming months and years, supply chain executives and companies not just in air cargo but across all modes should expect a significant shift in commodity flows.  

As a result of the capacity cut and surge in demand the North American markets has brought many changes in the air cargo operations including the increased demand for freighters, as belly capacity is down, and the increased activities in cargo gateway airports which caused several operational challenges to airports as well as airlines. 

North American domestic air cargo 

Despite the cargo surge and congestions reported in many North American Airports, the data released by the US Census Bureau in June 2021 shows that the ratio between inventory sizes and sales of US retailers dropped to a new historical low in April 2021. It shows the sheer size of supply-demand imbalance in the North American market.  

Jannie Davel, managing director commercial, Delta Cargo, informed that the airline has seen a strong increase in US domestic and cross-border e-commerce movements as well as high demand for pharma shipments, especially the Covid-19 vaccines.

Davel has identified a couple of trends in the air cargo industry as well.

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