Air Cargo and Supply Chain Management

Due to the COVID-19 pandemic, geopolitical tensions, and global supply chain disruptions and also due to the boom in e-commerce, air cargo has gained in importance and visibility in supply chain planning and management. Typically, as a by-product of combination carriers, it has been the forgotten child in the aviation industry and not been managed well in many supply chains. Record high yields and profit margins have not just resulted in air cargo being taken more seriously but have also created an opportunity for the sector to set itself up for the future, including new business models, as well as horizontal and vertical supply chain integration. Questions around fleet renewal or reinvestment of the unprecedented cash flows into digitization and transformation of air cargo firms are shaping the future of international but also domestic supply chains. Sustainability concerns, a looming recession, physical and online disruptions to global supply chains, and the drone revolution all add to the changing environment where only one thing is certain, an increase of uncertainty and that needs to be managed well for supply chains to function.