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2023’s Air Cargo Market Revival and Its Impact on Global Trade

The International Air Transport Association (IATA) has released its report on the global air cargo markets for 2023, revealing a resurgence in demand, particularly in the fourth quarter of the year, despite economic uncertainties.

The IATA report paints a dynamic picture of the air cargo sector in 2023. While the annual total demand, measured in freight tonne kilometers (FTK), decreased by 1.9% compared to 2022, it managed to hover just slightly below the 2019 levels. This slight dip in demand shows the persistent economic challenges faced worldwide.

However, there was a surge in cargo capacity in 2023, with available freight tonne kilometers (AFTK) soaring by 11.3% above 2022 levels and 2.5% above pre-COVID levels from 2019. December 2023, in particular, experienced a boost in global demand, marking an annual growth of 10.8% compared to 2022, representing the biggest growth in the past two years.

Air Cargo Revival from the Global Trade Perspective

One key indicator of the air cargo market’s vitality is its correlation with global trade. The revival of global cross-border trade, which witnessed growth for the third consecutive month in October, marked a turnaround from previous downward trend. This is a positive signal for the aviation industry.

Inflation rates in both the United States and the European Union remained below 3.5% annually in December. However, China experienced deflation for the third consecutive month. Meanwhile, the Purchasing Managers’ Index (PMI) for manufacturing production and new export orders continued to indicate contraction, staying below the 50 mark in December.

Benefits of the Air Cargo Resurgence

The resurgence in air cargo demand carries several benefits for various stakeholders and the global economy as a whole:

1. Accelerated Trade: The revival in air cargo facilitates the swift movement of goods across borders, reducing transit times and ensuring the delivery on time. This stimulates international trade by eliminating bottlenecks caused by extended shipping durations.

2. Economic Recovery: The air cargo sector’s recovery supports economic revitalization by providing a lifeline to industries heavily reliant on timely deliveries, such as manufacturing, electronics, and pharmaceuticals. As these industries flourish, they create jobs and spur economic growth.

3. Supply Chain Stability: The stability and reliability of air cargo help mitigate supply chain disruptions. Having an efficient air cargo network ensures that essential goods, including medical supplies and perishable items, reach their destinations without delay.

4. Enhanced Market Access: For businesses, it offers greater market access and the ability to respond swiftly to changing market conditions. It allows companies to dive into new customer bases and seize emerging opportunities.

5. Global Connectivity: Air cargo connects businesses and consumers worldwide, fostering a global marketplace where goods from every corner of the globe can be exchanged seamlessly. This promotes cultural exchange and cooperation on a global scale.

Consequences of Air Cargo Demand Decline

Conversely, a decrease in air cargo demand can have adverse consequences:

1. Economic Contraction: A sustained decline in air cargo demand can signify economic contraction, as it indicates reduced consumer spending and production. This can lead to job losses and decreased business activity.

2. Supply Chain Disruptions: Reduced demand can lead to supply chain bottlenecks, delayed deliveries, and an inability to meet consumer demand promptly. This can negatively impact businesses and their relationships with customers.

3. Reduced International Trade: Declining demand can also slow down international trade, limiting access to foreign markets and affecting the competitiveness of businesses that rely on global distribution networks.

4. Financial Strain: Airlines and cargo operators may experience financial strain, leading to cutbacks in operations, route cancellations, and layoffs, which, in turn, can have a domino effect on related industries.

The Sky’s the Limit

The resurgence of air cargo demand in 2023 paints a promising picture for global trade and economic recovery. Despite initial challenges, the industry managed to rebound in the fourth quarter, indicating a return to more stable demand patterns.

However, it’s crucial to follow these trends closely, as they provide valuable insights into the state of the global economy. The benefits are far-reaching, contributing to economic growth, supply chain stability, and increased market access.

You can read the complete report here.

For more insights about the aviation industry, visit our blog.

Innovation: Virtual Reality Training Simulator at the Airspace Integration Week 2023

From September 25th to 28th, Madrid was the epicenter for aviation and space navigation, alongside cutting-edge drone technology, during the international event Airspace Integration Week 2023.

ENAIRE, leading air traffic management company in Spain, showcased a range of innovative simulators and state-of-the-art displays, while actively participating in high-level conferences.

Virtual Reality Training Simulator

One of the standout achievements of this event was the unveiling of a virtual reality training simulator for air traffic controllers. This tool empowers future air traffic controllers to gain experience within a virtual environment, preparing them for the complexities that can arise in air traffic management.

The iFOCUCS display proved to be another highlight, demonstrating the capabilities of the groundbreaking air traffic control position. This state-of-the-art technology not only enhances airspace management but also symbolizes the industry’s commitment to progress and efficiency.

In addition, the ICARO Maps and Flow Tools screens, sophisticated traffic flow management tools, aim to provide real-time critical information for air traffic control, further streamlining operations and ensuring safety. This includes real-time data on flights, weather conditions, and more.

Airspace Integration Week 2023

The significance of technology and innovation in the aviation industry was the main focus during Airspace Integration Week 2023. Such advancements not only enhance safety but also redefine the learning curve, ensuring a new generation of controllers is well-prepared to navigate the evolving airspace landscape.

Furthermore, the discussions held at the event delved into key industry topics, ranging from cutting-edge air navigation systems to harnessing the potential of artificial intelligence and satellite navigation. Collectively, these advancements propel the aviation and space navigation industry forward, offering unprecedented opportunities for efficiency, safety, and sustainability. The event exemplified how technology and innovation continue to be the driving forces behind the industry’s progress, shaping the future of air travel and navigation on a global scale.

Airspace Integration Week 2023 relies on three foundational pillars: the advancement of air traffic management, the evolution of drone operations management (U-Space), and the space traffic management.

Airspace Integration Week 2023 not only was a transformative event in the realm of air and space navigation but also underscored the potential of advanced technology within the industry, setting new standards for the future.

For more new, visit our blog.

Source: Enaire.es

Digital Credentials at Aruba Airport

The Government of Aruba, along with aviation technology company SITA and digital identity verification company IndicioTech, has introduced a new way to simplify the travel process for passengers arriving on the island.

The use of Digital Travel credentials (DTC) technology has made it possible for travelers to meet immigration requirements before reaching their destination.

This DTC technology has eliminated the need for passengers to manually enter their travel document information by hand, optimizing the travel authorization process.

Thanks to this, passengers can share their data through digital wallets and from their mobile devices at checkpoints such as immigration or other points of contact such as hotels or car rental companies.

The DTC technology is reliable and complies with International Civil Aviation Organization (ICAO) standards. This means that passengers can create their digital credentials with their physical passports, and the data will be stored in the digital wallet.

A Success Story…

Due to the pandemic that occurred in 2020, tests were carried out on DTC technology for the health management of travelers regarding COVID vaccines and tests.

The Minister of Tourism and Public Health of Aruba, Dangui Oduber, highlighted that “innovation within the tourism industry has always been a focal point in our strategic vision and policy formulation. We are pleased that Aruba is part of this innovative progress, which ensures quality and excellence for all our visitors.”

This makes it clear that innovation and new technologies are also present in Aruba as part of the strategic and visionary expansion of tourism on the island.

Finally, simplification is also part of the aviation industry, which increasingly seeks automation in its processes, recognizing that there are more benefits to optimizing controls.

 

Aeronautical technology investments in 2023

Digitalization is imminent and wrapped in the artificial intelligence boom, the road to 100% automation is getting closer and closer.

And it is that, during 2021 and 2022, the growth and the boom in the mobilization of all economic sectors, produced the acceleration of a factor that seemed to be seen in the distance, but that undoubtedly, has come to stay.

In this way, we see that artificial intelligence covers each of the main economic environments, where the aeronautical and maritime sectors are not left out.

After two years of imminent growth, the aeronautical industry did not foresee the challenges it could face, and it is now where it is on the move to invest in new resources during recovery.

Automated processes…

“Digitalization is seen as the key to meeting these challenges, as it offers greater scalability and flexibility,” said David Lavorel, CEO of SITA.

In this sense, the same report collected by SITA, states that airlines and airports worldwide will put in place the investment of IT resources, seeking to improve each of the processes in airport development.

As a result, airlines and airports are looking to reduce waiting times and improve the travel experience for passengers at every stage of their journey. This technology investment will also serve to create a key staffing mechanism, so that staff can be placed in higher attention assignments.

Today, we can see the speed with which airline and airport transit resources are increasingly relying on technological means to support their development.

Strengthening the technological foundations will therefore be the main focus for this year, which is undoubtedly the key to completing the digital transformation.

Good news for 2023

During a new moment, where many are studying the strengths and threats of 2023, air terminals are trying to weigh the new challenges, hoping for a new era and great opportunities for the aviation sector. 

As we have discussed in previous articles, there are many projects in the air, new technologies for transportation and air traffic control. There are also new experiences for passengers, such as in-flight connectivity, the opening of new routes, and the improvement of airport infrastructure worldwide. 

At this point, we can see how airports are already preparing for funding and new work to expand and improve the structures of airport spaces at a time when challenges are at the door. 

New projects are on the way…

In the last few days we have talked about El Dorado Airport as the most punctual airport in Latin America, and today we can see that a new project has been approved for the construction of a new terminal at the airport of Cartagena, a tourist destination in the Latin country that receives countless world-class tourists year after year. 

This project will allow the expansion and modernization of the structure of the Rafael Núñez International Airport in Cartagena. Thanks to these works, the airport will be able to increase its air capacity and be prepared to receive approximately 7.5 million passengers per year. 

The authorities in charge of the project have also stated that these modernization and construction works will be completed in two and a half years. 

In this sense, tourism in Colombia is getting stronger and getting recognized on an international level.

We talk about sustainability…

From airplanes with recycled materials and paper savings to the digital world, the aviation sector is looking for new horizons in terms of sustainability and environmental friendliness.

For several years now, there has been talking about introducing an environmentally friendly fuel to minimize the damage caused by CO2 in the air. Today, new mechanisms are already being presented to achieve zero emissions by 2035. 

Not only is there talk of green fuel, but also hydrogen and ethanol to produce a friendly and safe fuel for aviation. We see that there are still some years to go, but behind all this, big companies are working to achieve the expected results.

 

This and other news about the maritime and aeronautical sectors are in our blog

 

Airport recovery in Latin America

We are starting a new year, after stumbles, pandemics, and a new adaptation, airports presented their balance sheets for 2022. For the most part, the recovery was evident, which translates into new challenges and improvements. 

In the case of Latin America, El Dorado Airport, which serves Bogota, was the most punctual airport in Latin America in 2022. 

This result was announced by Cirium, a specialist in the analysis of the aeronautical sector, which presented the annual balance of the punctuality performance of airports worldwide. 

In the case of El Dorado International Airport, it was the most punctual with 80.72%, which places it in the top 10 and as the most punctual in Latin America. 

Recovery at Tocumen Airport 

In the case of Central America, specifically at Tocumen International Airport, the annual report of airport activities was presented. 

In this report, the recovery of the airport in the year 2022 stands out, which recovered the airport traffic concerning 2021, new flight routes were opened, and also, the recovery of the structure and operation of the new Terminal 2. 

In general, it can be said that although the year just ended was a year of challenges, the return of airlines and the lifting of restrictions was positive for the recovery of the sector. 

In terms of numbers, Tocumen Airport closed 2022 with more than 15 million passengers, a little more than 6 million more than in 2021. 

This is only a small part of what happened in Latin America, but the recovery of air traffic worldwide was very satisfying for the recovery of the aviation sector after years of uncertainty and new challenges. 

But 2023 is just beginning, what will it hold for the aviation sector? 

 

Read more news about the aviation and maritime sectors in our blog

Green Aviation 

The aviation industry plays an important role worldwide, in principle, it is cataloged as the safest means of transportation in the world and it is also responsible for connecting infinite routes worldwide, making a long distance become a short trip. 

Since its beginnings, the aeronautical world has given a lot to talk about, but today it joins the same trend that all economic and social sectors worldwide are talking about, we are talking about “sustainability”. 

For some years now, leaders around the world have been working to minimize the polluting effects on the environment, and the aeronautical sector together with fuel developers are already working on a green mechanism to minimize the climate threat. 

By 2050, CO2 emissions are expected to have decreased by 50%. 

Change comes from within…

When we talk about sustainability, we are not only talking about new fuel formulations but also about the use of materials for the construction of environmentally friendly propellants or aircraft. 

The use of efficient materials throughout the design and assembly process of an aircraft is also a factor to take into account when considering the use of more environmentally friendly products and processes. 

Such is the case of the European continent, which has launched the Clean Sky or Clean Aviation project, which works on improving the sector with a positive impact on the ecosystem. 

Technology as a green ally… 

While technology is still new to many sectors, it is also part of the positive change for the environment. 

Biometric technology, big data, and the leap to digital have resulted not only in benefits for the passenger or the industry itself but also for the environment. 

The leap to digital has decreased the use of paper in air terminals, which means a positive impact on the regeneration of a greener world.

These are just some of the changes we see so far in the aviation sector, what will be waiting for us in 2023? We are ready for surprises. 

 

Technological advances in air terminals

2022 is almost over, a year that was undoubtedly a great source of technological advances and a year of palpable recovery for the aeronautical sector. 

But, it was an eye-opener of the benefits that new technologies have brought to one of the main economic sectors worldwide. 

From artificial intelligence to biometric technology, these are just some of the new technology uses implemented in airports around the world, having as a first need, to improve the passenger’s experience. To make their stay in air terminals as comfortable and pleasant as possible. 

That’s why with a view to full automation, we leave you a small tour of the technological innovations that serve firsthand to improve and configure new moments in airports around the world. 

Seoul Airport…

Incheon Airport in Seoul launched the big data platform Airport Data Sandbox, which facilitates the collection of data to analyze information such as congestion in the terminal, weather, traffic, or transport forecasts. 

It also provides information on passenger flow and allows for easy allocation of personnel management to improve airport operations. Each of the aforementioned data is handled in real-time. 

Barcelona Airport… 

And speaking of biometric technology, the Vueling Barcelona-Malaga route has a biometric program that covers the passenger’s entire transit from home to the boarding terminal. 

This is AENA’s third biometric project at Barcelona airport, where through the Spanish airport holding company’s app, passengers can register for baggage check-in, optimizing waiting times and security controls. 

All of the above while complying with the security of each passenger’s data. 

Qatar Airport… 

Hamad International Airport in Qatar is one of the airports considered a worldwide efficient airport, in terms of decision-making and technological improvements for the administration of the air terminal. 

It uses the necessary technological tools not only for administration but also to ensure an optimal stay for users. That is why they are about to implement digital twin programs, to plan and visualize different scenarios based on the collection and study of data. 

These are just some of the new scenarios that are being presented in air terminals around the world, but we are undoubtedly eager to see what 2023 will bring.

 

Keep reading more aviation news in our blog.

Airline staff deficit generates a new crisis in the industry

After two years of the pandemic, the cancellation of thousands of flights, and massive layoffs in the aviation sector, finally in 2022 flights worldwide began to increase rapidly. 

This has enabled the recovery of the industry and it could even be said that they are already beginning to generate profits. However, now a new crisis is coming.

We are at a stage where airline offers are falling short of passenger demands, which has caused flight cancellations, thousands of stranded travelers, or even lost luggage, and the industry is now facing a severe crisis of qualified personnel.

The crisis not only refers to the shortage of pilots. It also includes maintenance personnel, technicians, and ground staff, which potentially leads to fewer aircraft in circulation and delays in services as they are unable to handle all the processes related to flight preparation, passenger and baggage control, and everything else involved in the operation. 

The main problem is that it is not easy to replace or substitute these qualified personnel who require special certifications to be eligible for a position in this category, which would imply a considerable investment of time rather than solving this difficulty.

However, nowadays there are many devices, software, and technological tools that can serve as support to facilitate and optimize airport processes. This would also accelerate the evolution of the industry aiming at the technological transformation that is so necessary in these times.

According to the Commercial Market Outlook study conducted by Boeing annually, it is expected that by 2041 the world fleet will increase by 80%. 

In addition to the development of some market segments such as digital solutions that increase efficiency and reduce costs. But above all comprehensive training allows having qualified pilots and technicians.

The way of facing the crisis generated by the COVID-19 pandemic showed that the aviation industry has a great capacity to adapt and serves as a reference to demonstrate that this current crisis will not greatly affect the development of the sector.

Now they will be focused on offering better incentives to attract that personnel that migrated to other sectors due to the massive layoffs. 

But undoubtedly they will also have to work on creating new opportunities for digitalization, without neglecting the most important thing; attracting that 2.1 million new personnel, including pilots, mechanics, and crew members that will make every trip a better travel experience.

 

New challenges after COVID

Now that everything seems to be back to normal, the whole world is preparing to overcome the impact of Covid-19. 

In many countries, routine activities are already taking place as normal, without the need to wear masks. Others are enjoying festivals and concerts, but better yet, travel restrictions have been put aside to embrace the summer. 

Airports around the world are preparing to reach pre-pandemic traffic levels. However, they have faced unexpected challenges such as staff shortages and high passenger demand that have led to delays, cancellations and long queues. 

But this was not an impediment for people to enjoy their vacations after two years of confinement. 

Goodbye to controls… 

Thanks to the leveling of contagions and the good sanitary management in airport structures, countries such as Spain have announced the lifting of COVID controls, it will no longer be necessary to present the COVID passport or the traveler’s form, both at airports and those arriving in the country by cruise ships. 

However, requirements such as PCR tests performed 48 hours in advance and vaccination cards are still required. This is to ensure the safety and welfare of each passenger. Likewise, masks will still be used during flights.

In spite of this, the lifting of the controls is a great step to restructure international schedules and reopen the operation of routes that were still stopped. 

In addition, passengers are guaranteed safety and confidence during flights and stays at the air terminals.

This is why good times are ahead for the aeronautical and port sector. Where challenges will cease to have a negative connotation, to carry out new projects and improve the travel experience of each passenger. 

A reliable alternative… 

In order to accompany the challenges that may arise, GP Nauticals has developed within the SUITE, a specialized software called PAX AIMS, which is ideal to avoid long waiting lines.  In addition, it is capable of auditing the number of passengers passing through the airport facilities, in order to automate processes and optimize check-in and collection times. 

All this thanks to the checkpoints that will be deployed at the airports, which will improve the travel experience from the moment they set foot in the facilities. 

PAX AIMS can be integrated with other SUITE software according to the needs of each customer. If you want to know more information about our products, click here