Page 23 - STAT November 2022 for Magzter

(+13%), and outbound Europe and North
America (both +9%).” As a result of the Covid-19 pandemic, the world
All this, however, had led to global prices stopped travelling. Closed borders and strict travel
declining way below last year’s levels.
“Worldwide rates are currently -17% below requirements meant that actual flight movements were
their level this time last year at an average severely impacted, which caused a knock-on effect on air
of US$3.36 per kilo, despite the effects of cargo logistics and global trade. But whilst the world returns to
higher fuel surcharges, but significantly
above pre-Covid levels,” the WorldACD the skies once again, air cargo industry players are adapting
report stated. to a very different landscape.
According to the report, a combination Accenture report
of weaker consumer confidence in certain The current state of air cargo capacity
key markets and earlier-than-normal
shipping of stock by retailers and other al economic recovery from the Covid-19 damage to cargo. Blockchain technology
customers has led to relatively subdued pandemic, at least in the short term. The allows air cargo companies to digitally
airfreight demand this quarter, so far – and war between these two countries has led track and record the change of custody
lowered expectations of any major winter to economic sanctions on multiple coun- for airline cargo containers, or Unit Load
peak season. tries, the surge in commodity prices, and Devices (ULDs), as they journey between
supply chain disruptions, affecting many destinations. For instance, the blockchain
A strong argument markets across the globe.” in Transport Alliance (BiTA) is pushing for a
However, there is still hope. In the October However, the research firm said the air car- standardised implementation in the logistics
2022 report published by The Business go services market is still expected to grow to industry. Large industry players such as UPS,
Research Company, the global air cargo $75.15 billion in 2026 at a CAGR of 5.2%. FedEx, DHL, and Union Pacific have signed
services market grew from $57.21 billion in As to how air cargo companies could cir- on with BiTA. Sita, an air transport com-
2021 to $61.44 billion in 2022 at a com- cumvent losses, the market intelligence firm munications and information technology
pound annual growth rate (CAGR) of 7.4%. said, “Air cargo companies are increasingly company, estimates the possibility of using
The firm went on to say, “The Russia- using blockchain technology to improve blockchain technology to save $400 million
Ukraine war disrupted the chances of glob- efficiency, minimise losses, and prevent a year for the air cargo industry.” 

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