During recessions, when the volume of air cargo inevitably drops as businesses cut back on investment and consumers draw down their spending, a proof of condition service can ensure an efficient supply chain that leaves as little room for lost money as possible.
And yet, when the economy recovers, this same services allows carriers to stay one step ahead of the competition as they seek to gather customers and take advantage of increased shipping volumes.
According to a recent report on Financial News, the latter scenario may soon be upon us.
The report found that the global air freight sector is poised to experience a compound annual growth rate of 1.6 percent during the next five years.
"This sector, which saw large declines in the wake of the global financial crisis, will face a slow but steady return to health in the years ahead," the source reported.
Actions taken by industry players support this position. For example, Fraport, which operates Frankfurt Airport, among others, reported to Air Cargo World that it handled 205,119 tonnes of cargo over the past year—a nearly 2 percent increase. Meanwhile, Emirates recently announced that it will expand its freight operations into Eastern Europe beginning in 2014. This will include daily service to Kiev. The carrier told Air Cargo World that the Ukraine's "thriving agricultural sector" offers it excellent potential for growth.
As other carriers expand, CargoSnapshot will help them hold onto customers. This service allows users to take digital pictures of individual pieces of cargo, so that if any freight damage occurs it will be easy to determine who is liable.