Rise in eCommerce Driving US Cargo Growth

The cultural shift to eCommerce has been phenomenal all over the world. In the US, it is driving strong growth in the cargo sector, showing no signs of slowing. As we approach one of the busiest times of the year for freight, we take a look at how carriers and ground handlers are preparing for it.

A time of opportunity for US cargo and freight

The cargo sector has been enjoying a period of growth and this is beginning to accelerate. With new horizons opening up and rising opportunities, expansion is inevitable for many carriers, large and small.

Just last month, Etihad Cargo announced it was adding 50 tons of belly capacity at JFK International, a significant increase for the major New York hub. Starting in November, the four new weekly passenger flights take the total to 11 between Abu Dhabi and New York. Add this to other Etihad US freight routes to Chicago and Washington and it brings the in- and out-going cargo capacity to more than 1,000 tons per week.

Handling capacity, however, has long been a hurdle for US cargo operators, especially during the approach to the traditionally busy holiday shopping season. Now the global energy situation is adding to the pressure with rising operating costs, and the price of fuel having a serious knock-on effect. To fully embrace the opportunities and compete economically, many operators are rethinking their approach to future-proofing.

Increasing efficiency and flexibility is key to future-proofing

Increasing overall efficiency and creating a flexible, scalable approach are central to future-proofing for many carriers and operators. Yet with operational costs rising, making better use of existing resources is also key.

It isn’t just happening in the US. All over the world, carriers are making changes to meet some of the challenges head-ons. For instance, recently Qantas Freight announced a fleet expansion, a decision driven by the rise in eCommerce in Australia. It has selected six Airbus A321 aircraft, which have nine tons more capacity than the older fleet models (737’s) and are around 30% more fuel efficient.

Making better use of resources on the ground is another solution, and this is where technology can come into its own as eCommerce continues to drive growth.

Meeting demand with technology

By automating key, time-consuming routine processes, efficiency can be enhanced immediately. Technology can automate and enhance a wide range of processes, including, but not limited to:

• Regulatory compliance
• Weight and Balance
• Baggage reconciliation
• Data accessibility and sharing
• Fees and billing

To meet demand and harness the opportunities, freight, cargo, and passenger flights cannot afford to be delayed on the ground. This means that turnaround, security, compliance, and reconciliation processes must be seamless. Ground handling technology , when fully integrated, can enable enhanced operational productivity and reduce the need for additional resources.

Addressing the economic model

When systems and technologies are cloud-hosted, further opportunities to address the economic model are presented. Cloud technology can open up new horizons in terms of flexibility, scalability, and reducing costs. The need for dedicated infrastructure and the associated energy consumption is dramatically reduced.

Smart technologies also communicate differently and use data to offer a different perspective on managing operations. This can mean the ability to predict ground delays and other potential issues in advance, allowing a proactive response and improving resource management.

Perhaps one of the most significant advantages to addressing economics with new technology is the introduction of off-the-shelf solutions. Some of these technologies for airports and handlers operate on a pay-per-use model, which offers further opportunities to better manage costs. Today, the historically expensive fixed-price, long-term contracts are fading fast in favor of a scalable, more flexible approach to economics.

Can we help?

A-ICE understands both the opportunities on the horizon and the challenges teams face every day. We believe in solutions that truly enhance operations and we work with handling teams of all sizes to find the right approach for them.

As we work towards future-proofing across the aviation industry, it is clear that a new approach to both economics and operations is needed. At A-ICE, we know that the key lies in technology. Talk to us.