In the last forty years, the air transport industry has gradually improved in terms of commercial flights and freight traffic. In the last few years, air transport has grown at a steady rate of two per cent. But as compared to land and maritime transport, air freight services have widely suffered in terms of growth. This is usually because this particular sector is heavily reliant on several intermediaries and coordinated operations.
With increasing globalization and an overall increase in aggregate demand, the need to revolutionize air freight services have become pertinent. Transport companies now seek developments and advancements that help improve efficiency in services. With huge technological advancements, the need to seek assistance and reliability has enormously increased. Especially in storage, tracking of consignments and freight management.
However, air freight services are highly dependent upon cyclical economic patterns. Indicators usually include gross domestic product, demand and primary influence of world air freight development. But then again the real challenge lies in analyzing air freight markets. Usually, because there are various economic and physical hindrances present during the operations. Airfreight services require various line haul operators, express operators and integrated supply chain employees. Airfreight usually involves long distances to cover thus, the need to ensure reliability is an utmost priority. Linehaul operators are hired in order to ensure that larger volumes of goods are easily delivered without any disturbances in pursuit.
Historically, the transport industry was dominated by air freight services. By the mid-1980s, the whole industry was run by air freight services with due credit to deregulations. Even the influx of passenger and commercial flights improved in the midst of the 1980s. However, the industry faced pertinent issues related to traffic flow. Things took a toll once distinctions became challenging to differentiate in terms of passengers and carriers. The trend, however, took a downward turn when pricing became a huge issue. Airfreight services are relatively more expensive than land or maritime services.
Also in the 90s tariffs significantly increased, making it challenging to ensure economical cargo rates. Many airline operators planned to introduce certain characteristics of the freight to determine rates and charges. Including volume, density, commodity type, navigation, routes and priority basis. This overall led to an increase in expenses as beared by the consumers. Thus, air freight service demand comparatively decreased. Also, to ensure reliability the need for integrated operators increased. Many airline companies would use integrated operators to provide a range of services including processing, physical transactions and after-sales services.
Pertaining to the shifting dynamics of the air freight service companies are readily employing services from freight forwarding companies. Such companies have professionals that can provide secondary support and critical information regarding economic factors, deregulation and development programs. However, business dynamics have significantly improved in the Middle East. Especially in Dubai, United Arab Emirates. Freight forwarding companies in Dubai provide flexible services and customization. Usually, because freight services in UAE constitute, as a major source of economic prosperity. Thus freight forwarding companies are always in demand. Usually, the services provided are also versatile, cost-effective and hassle-free.
However, freight forwarding companies may ensue significance in the evolving trade environment. But the future of air freight services is bleak. Mostly because airline services are deemed expensive and are also subject to a higher probability of complications. Airline companies are also directly in the line of fire-related to increasing environmental degradation. Aeroplanes alike produce harmful carbon emissions that negatively impact air quality. Also, fuel consumption is another major deterrent in terms of pricing as well as its adverse impact on resource allocation. The problem is coming up with viable green solutions isn’t easy in the air freight services.