In almost all sectors, the Chinese economy is growing in double-digit
figures. This is also true of global air freight volumes – in 2006 the figure
was 27 million tonnes. In Asia in particular airlines are having to invest in
more, newer and bigger aircraft. For reasons of cost and efficiency, the
airlines are now cooperating with competitors and logistics services providers.
Western companies are investing considerably in China as ‘integrators’, in the form of company take-overs, an extended services portfolio and in expanded network structures. The major international air logistics companies will be revealing further details at transport logistic China which takes place from 17 to 19 June 2008 at the Shanghai New International Expo Centre. Next year this 3rd International Exhibition for Logistics, Telematics and Transportation will again feature the trade conference ‘Air Cargo China’.
Growing market in courier, parcel and express delivery services is boosting the air cargo business
The biggest expansion in air traffic is expected to come in Asia, because
this region has lagged behind the rest of the world previously. The growth in
air cargo is one factor in this expansion and so, too, is the booming tourism
industry. The world´s largest aircraft manufacturer, Boeing, expects that in the
next twenty years global air traffic will triple, and the commercial air fleet
will double to over 36,000 aircraft. German logistics experts reckon that by
2010 at least, air cargo business to and from China will have expanded by
between 15 and 20 percent.
The ever faster innovations cycles, for example in the IT sector, and the trend on the part of producers to send high-value consumer goods by express post, is also having an effect on air freight. For China this means it has to expand its airports and infrastructure and also create new facilities. Also, the logistics connections for transporting goods into the hinterland has to be organised efficiently. Part of the solution is to build new regional air hubs, in order to reach the many medium-sized centres in inland China, where increasingly the inhabitants have higher incomes and wish to satisfy their consumer desires with western products.
However, it is a fact that more products travel from the Far East to the western industrialised nations than vice versa. So the challenge is to manage this uneven flow of goods. In air freight the ratio is 90 to 10, and the value of these goods is also unequal. The things that China exports are cheap, the things it imports are expensive. For this reason alliances, cooperation and joint ventures in various areas of logistics are a key factor in competitive success, on both sides. Their potential has been recognised, because 57 percent of the manufacturing companies and 38 percent of the trading companies in China are looking for logistics partners. At transport logistic China from 17 to 19 June 2008 in Shanghai, the key players in this industry will be presenting their innovations and services in an international atmosphere.