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January is synonymous with goals, trends, and exuberant anticipation of the coming year. International air freight logistics is no different. Market volatility, Brexit negotiations, trade wars and impending tariff increases may all be highly visible, and despite the looming uncertainty, 2019 is still suggesting industry wide growth. We at CLN Worldwide have compiled a January list of air cargo trends we expect to make noise in 2019.

1. Automation and digitalization

While automated sectors of supply chains have been progressively increasing over the past year, the efficiency and instantaneous effects digitalization has had on the industry has simultaneously generated a necessity for even faster progressive technology implementation.

Digital cooperation has been stereotypically lack-luster in the world of air freight, notorious for extensive paper trails. Nevertheless, 2018 showed promise as airlines and international freight forwarders began investing in new technologies to aid in efficiency, speed, and accuracy. Allowing them to remain highly competitive while concurrently reducing the size of their carbon footprint.

We expect to see a continued industry wide increase in digitalized processes in the coming year.

2. To Increase Tariffs or not to Increase Tariffs. That is the Question.

Amidst the continued speculations regarding market uncertainty, comes more regulatory changes and conjectures for 2019. Freight forwarders and logistics companies alike are warning carriers of impending price increases coupled with complex procedural checklists and extra hoops to jump through. All this tightens the already rigid flow of international trade, exacerbating the ripple effect of volatility and ambiguity. Trade tensions between the United States and China continue to escalate, while Brexit awaits a March 29th deadline. “Despite operators reporting minimal impact to cargo numbers this peak season, industry experts expect continued market uncertainty into the new year and are warning stakeholders to form contingency plans.” [Via Chelsea Toczauer Air Cargo World]

3. Cold-Chain Logistics

The corresponding increase in pharmaceutical demands and cool-chain technology brings paralleled surges in supply chain investments in warehousing, compliance, and comprehensive agreements. These funds are allocated and based on the innovative advances in the technology supporting cold-chain logistics made in 2018. Biopharma cool-chain logistics spending predictions are up 8 to 9 percent by 2020, derived from pharmaceutical sales predictive increase of 4 to 5 percentage points.

Are you losing money with an inefficient logistics partner?

Teaming up with a global third-party logistics provider with a knowledgeable staff is essential to a streamlined and cost-effective supply chain. Partnering with an international freight forwarder who understands market rate instability and how that directly affects your shipments at a certain time can save you unwarranted aggravation, time, and money. If you have any questions regarding your current supply chain, or would like to chat with one of our specialists, please reach out to us HERE.

#airfreight #aircargo #automation #logistics #supplychainmanagement

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