2024 has been a year of change for the GSSA and airfreight industry. The market has shifted significantly from the high demand and limited capacity seen during the pandemic, to a scenario with increased capacity and lower yields.

This transition has presented both opportunities and challenges, with focus on improving services to adapt to these changes. Strong relationships with airlines and cargo partners have been crucial in navigating this evolving market.

“In response to the current market conditions, AviationPlus has made several adjustments. As part of the Kales Group, we’ve adapted to the evolving climate by optimising cargo space and leveraging the group’s investments in technology to streamline our operations,” Marcus Ingvarsson, Managing Director – Norway and Sweden at AviationPlus, stated.

“Our state-of-the-art IT systems have played a crucial role in enhancing efficiency and service quality. This strategy has enabled us to remain efficient and cost-effective, always prioritising the needs of our airline partners and freight forwarder customers.

“By focusing on these relationships, we ensure that we provide tailored solutions that meet the specific requirements of both our airline and forwarder clients. AviationPlus’ customer-centric approach ensures that we remain agile and responsive to their needs. Our professional and dedicated staff are key to our success, ensuring that we deliver high-quality service consistently.

“Leveraging the resilience and flexibility developed during the last four years, we continue to provide reliable and efficient services to our clients. AviationPlus’ strong customer base, covering global destinations, has also been a key factor in maintaining our market position,” Ingvarsson outlined.

Economically strong

Europe is a key market for airfreight because of its strong infrastructure, strategic location, and diverse economy. The region’s well-developed logistics networks and access to important international markets make it very attractive for GSSA operations.

Additionally, Europe’s strong regulatory framework and focus on sustainability align with our commitment to providing reliable and responsible services. AviationPlus’ global reach and ability to serve various international markets make Europe an ideal region for GSSA operations.

“Success today requires a blend of adaptability, innovation, and strong relationships. Cutting-edge IT systems and agile operations significantly boost AviationPlus’ capacity to adapt to our clients’ evolving needs,” Ingvarsson highlighted.

“While digitalisation is important for improving transparency, efficiency, and customer service, it’s not the only factor. I believe that the airfreight industry is still very much a people’s business. Our team’s deep understanding of the local market allows us to offer tailored solutions that truly meet our clients’ needs.

“By combining digital tools with our hands-on approach, we ensure that our operations are not only efficient but also highly responsive and customer focused. Personal relationships are at the heart of our business, allowing us to build trust and deliver exceptional service.”

Driving segments

The airfreight industry is being significantly shaped by the e-commerce boom, particularly with the surge in online shopping from China. This has created a demand for faster and more flexible logistics solutions to handle the high volume of goods moving across borders. The growth in e-commerce has transformed the logistics landscape, requiring us to adapt quickly to meet these new demands.

Pharmaceuticals and perishable goods require special handling to ensure they reach their destinations in optimal condition. While this is a smaller segment compared to e-commerce, it is nonetheless crucial. This has strengthened capabilities to handle such sensitive shipments, providing reliable and efficient services for all types of cargo.

“The industry faces challenges like fluctuating market rates, geopolitical uncertainties, and strict environmental regulations. To navigate these challenges, we focus on careful planning, diversifying our services, and maintaining strong relationships with our clients,” Ingvarsson stated.

“By staying agile and responsive to market conditions, we can effectively manage risks and ensure our operations remain robust. Our advanced IT systems and strong customer base further support our ability to handle potential disruptions. This proactive approach allows us to continue delivering exceptional service to our airline partners and freight forwarder customers, even in the face of potential disruptions.”

Seize the moment

In the airfreight industry, staying attuned to global patterns and macro trends is essential. Opportunities often arise from shifts in global trade routes, emerging markets, and changes in consumer behaviour. Additionally, being agile and responsive to global events allows companies to meet evolving market demands effectively.

By leveraging expertise and closely monitoring industry shifts, AviationPlus is well-positioned to seize new opportunities and continue to deliver exceptional service to airline partners and freight forwarder customers.

“For the rest of the year, our focus will be on supporting both our airline partners and freight forwarder customers,” Ingvarsson explained.

“We aim to enhance our service offerings and strengthen our capabilities to meet the diverse needs of our clients. By concentrating on providing exceptional service and staying agile in our operations, we can effectively respond to industry changes and continue to deliver value to our customers.

“The outlook for global airfreight capacity in 2024 is cautiously optimistic. While the return of passenger flights is expected to increase overall capacity, the aging fleet of freighters may pose challenges. However, these challenges are not likely to significantly impact the market in the short term but could become more pressing in the long term as older aircraft are retired without sufficient replacements.

“AviationPlus is prepared to adapt swiftly to these changes, leveraging our expertise and robust network to ensure consistent, high-quality service. Our 24/7/365 availability ensures that we are always ready to meet our clients’ needs, no matter the time or place.”