Global trade depends on air transport. Jet fuel costs have a direct impact on the air freight costs. Wars, lockdowns have been affecting trade and oil pricing. Focusing on operational efficiency can help reduce expenses and encourage growth in aviation—a vital component of complex global trade system.
Air cargo is changing the face of global freight trends by emphasising efficiency and speed, which makes it perfect for high-value and time-sensitive goods. It facilitates just-in-time inventory strategies, supports the growth of e-commerce, and improves global connectivity. Technological innovations such as automation and real-time tracking increase efficacy, but the sector is also emphasising sustainability through greener operations. Furthermore, air cargo is essential for keeping supply chains resilient, particularly in the event of major world disruptions. WIZ has been actively working in the segment, to provide real time data, sustainable route options, and saving time. The conflict between Russia and Ukraine, starting in 2022, brought along the imposition of various sanctions and the creation of a few no-fly zones, which hampered the aviation sector.
The impact of the conflict was especially felt by specific trading partners and across key markets. The start of the war prompted a surge in global oil prices. However, the opportunity to find alternative sources of fuel and destination markets will help to offset some of these potential impacts over the next few years. IATA and ICAO are working together to find a way out to reduce the challenge that the industry is facing for smoother operation across borders, which helps in fuel optimisation and reduction of carbon footprint.
International trade in manufactured goods depends heavily on-air transport as part of its global supply networks. Furthermore, Jet fuel costs always have a direct impact on the air freight costs. Wars and, earlier, the Covid-19 lockdowns have been affecting the trade and oil pricing. In the next few days, the volumes will continue to increase. Focusing on operational efficiency could help reduce expenses and promote additional growth in aviation—a vital component of the global trade system.
Through joint initiatives that boost productivity and reduce expenses, industry alliances can be helpful in easing the effects of growing fuel prices on airlines. Airlines, for example, may pool their purchasing power to negotiate and hedge favourable fuel prices because of their larger volume of purchases. A few African airlines banded up in 2022 to stop the fuel price problem.
The recovery from Covid-19 has brought potential issues and necessary adaptations, including changes in airline operations and consumer behaviour. We can observe that business is expanding more quickly, particularly in India, and that customers are finding it challenging to ship their goods by air because of frequent disruptions and capacity limitations.
Thankfully, there are some airlines placing large orders to increase belly space, and there is a increase in the number of people wanting to travel to, from, and within India. Last year, nearly 50 new domestic and international air routes were announced starting August 2023 by airlines such as Air Canada, Atlantic Airways, IndiGo, Air India, Air Kerala, and others to meet a rising demand from consumers.
The Union Ministry of Aviation has been working constantly on the development of the air freight market in the country to achieve 10 MMT by 2030 with many factors, including the Open Sky policy and the National Logistics Policy. In addition to this, introducing the sea air policy and making India a gateway for this will help the growth of Indian carriers.
