Air cargo continues to be a challenging market 

Dirk Goovaerts, Head of Continental Europe, Middle East & Africa / Global Cargo Chair, Swissport International 

The volume decline trend that began in 2022 continues to be the main challenge for the air cargo  industry, primarily since only a year earlier, in 2021, many, including Swissport, handled a record  number of cargo tons. 

Armed conflict in Ukraine, ongoing recession, reduced demand for manufactured and consumable  goods, and the limited need for COVID-related products, such as testing and protection kits, PPE, vaccines, and other pharmaceuticals, are the main contributors to softer cargo volumes. 

In addition, with the abolition of travel limitations caused by the pandemic, airlines have restored  passenger flights, and with them, they have increased belly capacity. Such a situation creates more  pressure and competitiveness on the air cargo market as the carriers look to fill capacity. 

The post-pandemic comeback of ocean freight availability and reliability also contributes to lower  demand for air cargo. The competitive prices balance out longer delivery times, making ocean freight  an important challenger to the air cargo industry. 

Whilst the market continues to be uncertain, Swissport concentrates on opportunities created by  adverse conditions and early mitigation. We pursue the drive to digitalization to improve processes  and maximize efficiency. Swissport launched the Cargo mobile app and provided cargo teams with  handheld mobile devices that eliminate manual data input and, thus, human error. Implementation  of cargo kiosks led to reduced wait times for the delivery truck drivers thanks to efficient scheduling and door management, creating substantial cost savings for freight forwarders. In the US, we  launched the Security Portal – a tool that digitizes cargo security acceptance and screening process  and ensures compliance with the applicable TSA regulations.  

Investments in innovation are essential to maintain the position of an air cargo industry leader,  despite market fluctuations. In addition, they are necessary to build safe and comfortable working  conditions and attract new talents – elements required to be an employer and partner of choice. 

At Swissport, however, we understand innovation in the broader context. Therefore, apart from  digitalized solutions, the company pushes for implementing innovative processes, products, and  services. Thanks to the cargo communities established by Swissport in several locations worldwide,  air cargo stakeholders can work together on futureproof, joint initiatives that can be implemented  along the entire supply chain to benefit all parties and, most importantly – the end customer.  

An example of such an initiative is a Fresh Flower Corridor launched by Swissport between Nairobi in  Kenya and several European countries. This door-to-door solution allows us to extend the shelf life of  the product, and master the packing and packaging techniques, adding value for all involved, from  growers to airlines and fresh flowers distributors, all because of the united approach and close  cooperation avoiding any temperature fluctuation along the entire supply chain. 

Some countries in Africa experience growth in volumes of perishable products. For example, our  teams in Tanzania have been handling record tonnages of meat exported mainly to the Middle East.

Despite currently adverse market conditions, Swissport remains very optimistic about the future of  air cargo. The company anticipated market trends early and was able to build the right commercial  and operational momentum. We see the current environment as an excellent opportunity to  demonstrate our ability to right-size our business and adapt to the changing needs of our partners  and clients. It is our mission to continue delivering excellent services tailored to these needs – by  focusing on innovation, cross-fertilization throughout our global network, and continuous growth.

In 2022, Swissport International AG provided best-in-class airport ground services for some 186 million airline passengers (2021: 97  million) and handled roughly 4.8 million tons of air freight (2021: 5.1 million) at 117 air cargo centers worldwide. Several of its  warehouses have been certified for pharmaceutical logistics by IATA’s CEIV Pharma and by the British MHRA. The world’s leader in  airport ground services and air cargo handling, with currently around 50,000 employees, was active at 292 airports in 45 countries  on six continents.