The revolution and contribution of Air and Maritime freight in today’s economy | Kairos Institute

The revolution and contribution of Air and Maritime freight in today’s economy

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The airline industry, being among the most crucial industries interconnecting the world, leading to progression of modern economic development and technological advances (Nwaogbe et al., 2013). Technical and innovative evolvement in the aviation sector has termed the airfreight industry as an economic investment by contributing to trade efficiency while connecting different geographical areas (Nwaogbe et al., 2013). FedEx Express, UPS Airlines, DHL Aviation, Lufthansa and Emirates Sky-Cargo are some major players in the airfreight industry (SupplyChainDigital 2014). The airfreight industry employees 10.8 million people only in the procurement and supply chain department impacting on the world gross domestic product where 25% of all organization transaction depends on air-freight (ATAG 2005; IATA 2018).

The revolution in the Maritime freight industry, is greatly promoted by the creation of Suez and Panama Canal leading to affordable pricing and quicker transit time as the waterway in Panama located in the Caribbean Ocean interconnects the Atlantic Ocean and the Pacific Ocean and with the recent expansion in 2016 has promoted the trading facilities between Asia-Pacific and North American trade while the Suez Canal is a gateway connecting Indian and Pacific ocean to Europe (Amadeo 2019; Daphne 2019; Mehmood 2019; DB Schenker 2019).

The pharmaceutical supply chain is taking a boom in the air cargo industry where consistent increase has been observed in the industry till 2017 and spending would amount to $93 billion by 2020 (Aircargo news 2017). With an expected increase of USD 4.7 billion in cold chain biopharma logistics in 2020 continuous growth is expected (Muir 2017). The increasing demand for pharmaceuticals products from the African countries, China and India has made are being managed by Emirates Sky-Cargo, growth in the Asian region is managed by Finnair cargo and India and China the homeland where generic pharmaceuticals are being produced is managed by the group of Lufthansa (Muir 2017). The US-China trade war, the air-cargo sector is influenced as a decrease of 3.9 % have been recorded in 2019 compared to 2018 (IATA 2019). The trade war and Brexit caused a decline in electronic air-freight but the fresh produce sector where the middle class is willing to spend more on varieties of fresh produce are increasing air-freight as more import are being conducted from the African countries (Gosai 2019).

Evolution in the sea freight industry, investment is being made in India by the DP World an organization liking Dubai Ports to the Asian countries as UEA is their biggest trading partner (Wingrove 2019). Sea freight is more connected to sectors such as cars and car parts as these equal rank in the list of imports and account for more than 7000 metric tons of cargo costing more than $8 million (Industry Today 2018). The importation via the oceans also comprises industries such as Furniture, Electronics, Mineral Fuel and clothes (IndustryToday 2018). Due to the US trade war, as almost all electronic is assemble in china at Foxconn this has created a decrease in Sea freight (Zhou 2019).

Kairos Institute, the top aviation and logistics academy in Ernakulam/Cochin, Thodupuzha – Kerala is always committed to provide the highest quality of training and education. Whether your choice of career is Aviation or Logistics, Our Diploma/Degree/Pg Diploma in aviation and logistics can deliver an inspiring training course – designed to suit students from a wide range of educational backgrounds. Kairos Institute has made its own space and we pride our self as one of the top BBA aviation / BBA Logistics College in Ernakulam/Kochi and Thodupuzha. Our ability to design Logistics and Airline Courses for students after 12th makes us one of the best aviation / logistics colleges in Kerala.

   2019-10-20 22:22:00
   Kairos Institute

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