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

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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.

Exciting News: GP Nauticals is Thrilled to Attend Aviation Festival Americas!

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The aviation industry is constantly evolving, and staying up-to-date with the latest trends and innovations is crucial to success. That’s why we’re more than thrilled to announce our upcoming attendance at the Aviation Festival Americas!

 

The Aviation Festival Americas is one of the most important events in the aviation industry, and it brings together industry leaders from around the world to discuss the latest trends, insights, and innovations shaping the future of aviation. It has quickly become a must-attend for professionals in the aviation industry from all over the world. And this year’s festival promises to be one of the biggest yet!

 

The Aviation Festival Americas isn’t just about innovation. In fact, this is a renowned festival for the exceptional quality of its programming. The festival features a range of keynote speeches, panel discussions, and networking events, all designed to help attendees make valuable connections and gain insights into the most pressing issues facing the industry today.

 

GP Nauticals Takes Flight: An Inside Look at the Aviation Festival Americas

 

As a provider of aviation software and services, we are honored to be part of this event and to have the opportunity to connect with other leaders. At the festival, we’ll be showcasing some of our latest services and progress, always focused on optimizing efficiency and safety for aviation operations, flight planning, with next-generation aeronautical management systems with cloud support, specialized payment platforms, passenger control and facial recognition systems, real-time data analysis with advisory services, and much more.

 

We also aim to learn about the latest trends and insights that are shaping the industry! The Aviation Festival Americas is a must-attend event for everyone in the industry, and we’re excited to be a part of it. If you’re attending the festival, we’d love to connect with you and learn more about your projects. We also have a code for a 50% off for the entry tickets, so if you haven’t got yours yet, click here! 

 

Stop by our booth to say hello! Our team will be more than glad to answer any questions and to provide you with helpful insights into how our products and services can help businesses grow into higher heights. Be sure to ask any questions!

 

We hope to see you there!

Good news for 2023

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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

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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. 

Laser communication has come to revolutionize airborne communications

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Airbus and VDL Group have signed a collaboration agreement for the development and manufacture of a laser communication terminal for the aeronautical industry that will enable the exchange of large amounts of data via a network of ground stations and satellites in geostationary orbit located 36,000 km above the earth.

The new product will be based on a mechatronic optical system with high stability and precision, which could reach several gigabits per second while keeping data secure against interference and with a very low probability of interception.

This new communication system called UltraAir will enable the connection of military aircraft and AUVs (unmanned aerial vehicles) within a multi-domain combat cloud thanks to laser-based satellite constellations such as Airbus’ SpaceDataHighway. 

This patented optical technology from VDL, which Airbus plans to install on one of its aircraft on a trial basis, creates the foundation for the future of data transmission speeds and will be a key differentiator for multi-domain combat collaboration with government and defense customers.

Laser data communication aims to revolutionize the communications industry and is seen as a solution for data traffic in the quantum era as this communication path will be able to support 1,000 times more data than current networks with 10 times the speed.

Additionally, laser communication technologies will be more difficult to interfere with, can be lighter, and consume less energy so this project will surely become the first of many in the aeronautical sector promising an escalation in the issue of data transmission and security.

Technological advances in air terminals

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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

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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

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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. 

Mobile applications in the aviation industry

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In recent times, it’s evident how mobile applications related to air transport have multiplied, and have promoted major changes in the aviation industry. From the improvement of internal processes to cope with any kind of operational disruption, as happened during the pandemic, to those focused on customer satisfaction by transforming the way they travel.

We live in an interconnected world and there is a clear need to have as much information and services as possible on our mobile devices. Thanks to this, more and more airlines and airports are focusing their efforts on developing technology that allows them to be at the forefront of the needs while helping to reduce costs, optimize revenues, improve labor productivity, and above all innovate while making life easier for their passengers.

The use of this type of technology can also become a differentiating branding tool.  Now that many airlines are seeking to build customer loyalty through attractive benefits that play an important role in passengers’ decision to travel.

Now, let’s take a look at the latest technologies that have been used in the airline industry and are being tested around the world. 

For example, contactless self-check-in and baggage handling technology are being tested in many airports, as well as mobile applications that allow airlines to scan travelers’ passports and visas at different checkpoints, thus speeding up long waiting lines and reducing waiting times, which is a huge benefit for passengers.

On the other hand, airlines are looking for ways to integrate into their mobile applications options that allow passengers to manage their services without the need for a cabin crew member anywhere in the travel chain and especially without contact. So if a passenger wants to use the entertainment systems of the aircraft, he can do it just by scanning a QR code from his mobile device and thus choose what he wants to see while interacting with the crew to buy products or services such as food or duty-free items. 

These types of technology platforms not only serve to meet the needs of passengers, but also provide airlines and airports with the opportunity to understand passenger behavior and purchasing patterns. This allows companies to segment the market and personalize their offers.

Similarly, facial recognition technology continues to make inroads in the industry, and biometric identification options are expected to become common in the coming year, as their benefits are not only focused on passengers but also help to reduce costs, optimize resources, and speed up boarding times. 

Even now, facial recognition payment technologies and contactless fingerprint scanning are being tested. 

 Similarly, another area that is being impacted by mobile technology platforms is the administrative sector of the airline industry where they are beginning to implement port management systems that allow airports to manage data in real-time with cloud support. That helps the organizations involved to be more efficient in managing information, concessions, contracts, billing, and payment of services. 

Today there are many development companies specialized in the aviation industry that continually offer solutions that improve processes, encouraging a market that has been greatly affected in recent years by the pandemic of COVID-19 as is GP Nautical. who have focused their efforts on creating innovative technology platforms for the aviation sector that allows any port to have a management system of the last generation with minimal investment.

 

Airports incorporate high-tech

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Airports incorporate high-tech. If we are talking about technological innovations, airports worldwide already enjoy the installation of technological devices that have been designed to improve the airport experience, from the moment you arrive at the terminal until you reach your destination. 

That’s right, in the past we could mention biometric structures, changes, and new trends in air terminals. 

However, today we will talk about security screening at Leonardo Da Vinci Airport in Rome and, about the implementation of autonomous capsules for people with limited mobility at Hartsfield-Jackson Atlanta International Airport, United States. 

Secure carry-on baggage screening…

At Leonardo Da Vinci International Airport in Rome, the installation of high-tech scanners capable of detecting explosives and narcotics began. Conducted under the Smiths Detection organization, 30 inspection systems will be set up at Leonardo Da Vinci at different checkpoints. 

Smiths Detection’s HI-SCAN 6040 CTiX X-ray technology is capable of producing high-resolution volumetric 3D images to visualize the contents of carry-on baggage. This raises efficiency standards and will help reduce false alarms. 

In addition, with this technology, it will not be necessary to remove electronic items and liquids from baggage, which makes passenger screening optimal and less time-consuming. 

Autonomy for passengers with reduced mobility…

To enable users with reduced mobility to move around the airport with peace of mind, A&K Robotics and Southwest Airlines carried out tests of robotic capsules to assist passengers with limited mobility. 

The tests were conducted in Concourse C at Hartsfield-Jackson Atlanta International Airport (ATL), USA. This is undoubtedly a great improvement in the travel experience for passengers, where now, thanks to these autonomous electric modules, they will be able to move safely through the airport, reach boarding gates or move around the facilities.

These are just some of the technological innovations that are taken into account worldwide. That is why, to keep pace with the new era, it is necessary to improve and optimize the user experience in air terminals.

Likewise, the administrative infrastructure is also considered fundamental for the development of airports. To this effect, GP NAUTICALS has developed software that can be integrated to meet the needs of air terminals. 

If you want to know more just go to the products section and get to know the AIMS SUITE.