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IMPORT AND EXPORT OF AIR CARGO

19/ 06/ 2023
  Air cargo is a vital component of the logistics sector, as it ensures fast and reliable transportation of goods worldwide. However, in recent years, the global air logistics industry has faced significant obstacles and complex challenges, including the prolonged recovery process from the pandemic, overall economic downturn, high inflation, staff shortages at airports, strikes, and the war in Ukraine, among others. These factors have put international logistics and foreign economic activity in the world to a difficult test. Despite the pessimistic forecasts, the aviation industry has withstood the challenges and is beginning to recover actively, demonstrating a gradual increase in global air cargo turnover already in the first quarter. In the second half of the year, a revitalization of air logistics is expected in the Trans-Pacific direction as China, much faster than anticipated, moves away from its zero-COVID policy and reopens to the world. In Europe, the beginning of 2023 was slightly more challenging due to constant uncertainty caused by the closure of Ukrainian airspace due to the war, flight restrictions in Moldova, reduced flight frequencies in Poland and the Baltic and Scandinavian countries, and the corresponding increase in flight intensity in the southeastern part of Europe due to detours of closed zones. However, there are reasons for optimism and a strong recovery in air cargo transportation. Global demand for air transportation is increasing, tariffs are stabilizing, and by the end of the year, according to preliminary forecasts, they may reach pre-pandemic levels. Obviously, in the short-term perspective, there will still be significant challenges in the supply chain, as reconfiguring schemes and routes requires a reliable foundation, expanded capabilities, and flexibility from air cargo service providers. As for Ukraine, despite the force majeure circumstances, air cargo logistics has reached a new level of service, providing quality service through European airports. The structure of air transportation has not undergone significant changes, with exports accounting for about 20% and imports for 80%, as in pre-war times. However, many logistics companies have reduced their air cargo volumes and do not have sufficient capabilities to transport certain categories of air freight. Only global logistics operators that have direct contracts with airlines, access to an extensive airport network, regular international connections to any destination in the world, European hubs, and representations in destination countries can ensure uninterrupted delivery of both import and export air cargo. Large companies easily adapt to changing conditions by developing additional services, implementing new solutions in logistics processes, and providing red carpet service. Everything for the client and for the sake of the client, says Oleksandr Krasnov, Director of the DSV Air & Sea Department in Ukraine. In 2022, the volume of export air transportation from Ukraine, within the structure of freight transportation by other modes, accounted for approximately 0.2%, while the volume of import air transportation was around 9%, according to the Ministry of Infrastructure. The most actively transported goods include military and dual-use items, pharmaceuticals, machinery and electronics, various E-commerce goods, and urgent shipments, regardless of category. The current situation in the international logistics market favors air transportation, as, perhaps for the first time in recent years, we have business-friendly tariffs and an adequate number of flights to high-demand destinations. Air delivery from Ukraine to the USA on DDP terms is particularly in demand among our exporting clients. Multimodal transportation through airports in Central and Eastern Europe has proven to be more attractive to importers in terms of optimal tariffs, reliability, and timely delivery. In addition, a significant advantage we offer is our own regular service for consolidated import and export trucking, consolidation and deconsolidation at our own hubs in both Ukraine and Europe, says Oleksandr Krasnov, Director of the DSV Air & Sea Department in Ukraine. Barriers to free movement of goods through Europe still exist due to local peculiarities of European airports and customs formalities. Therefore, it is crucial to carefully select a long-term and reliable logistics partner who has highly competent professionals with knowledge of local and international regulations and requirements for air transportation, capable of promptly handling cargo at European airports and taking full responsibility for the delivery of goods.

Air cargo is a vital component of the logistics sector, as it ensures fast and reliable transportation of goods worldwide. However, in recent years, the global air logistics industry has faced significant obstacles and complex challenges, including the prolonged recovery process from the pandemic, overall economic downturn, high inflation, staff shortages at airports, strikes, and the war in Ukraine, among others. These factors have put international logistics and foreign economic activity in the world to a difficult test.

Despite the pessimistic forecasts, the aviation industry has withstood the challenges and is beginning to recover actively, demonstrating a gradual increase in global air cargo turnover already in the first quarter.

In the second half of the year, a revitalization of air logistics is expected in the Trans-Pacific direction as China, much faster than anticipated, moves away from its zero-COVID policy and reopens to the world.

In Europe, the beginning of 2023 was slightly more challenging due to constant uncertainty caused by the closure of Ukrainian airspace due to the war, flight restrictions in Moldova, reduced flight frequencies in Poland and the Baltic and Scandinavian countries, and the corresponding increase in flight intensity in the southeastern part of Europe due to detours of closed zones.

However, there are reasons for optimism and a strong recovery in air cargo transportation. Global demand for air transportation is increasing, tariffs are stabilizing, and by the end of the year, according to preliminary forecasts, they may reach pre-pandemic levels.

Obviously, in the short-term perspective, there will still be significant challenges in the supply chain, as reconfiguring schemes and routes requires a reliable foundation, expanded capabilities, and flexibility from air cargo service providers.

As for Ukraine, despite the force majeure circumstances, air cargo logistics has reached a new level of service, providing quality service through European airports. The structure of air transportation has not undergone significant changes, with exports accounting for about 20% and imports for 80%, as in pre-war times. However, many logistics companies have reduced their air cargo volumes and do not have sufficient capabilities to transport certain categories of air freight.

“Only global logistics operators that have direct contracts with airlines, access to an extensive airport network, regular international connections to any destination in the world, European hubs, and representations in destination countries can ensure uninterrupted delivery of both import and export air cargo. Large companies easily adapt to changing conditions by developing additional services, implementing new solutions in logistics processes, and providing red carpet service. Everything for the client and for the sake of the client,” says Oleksandr Krasnov, Director of the DSV Air & Sea Department in Ukraine.

In 2022, the volume of export air transportation from Ukraine, within the structure of freight transportation by other modes, accounted for approximately 0.2%, while the volume of import air transportation was around 9%, according to the Ministry of Infrastructure. The most actively transported goods include military and dual-use items, pharmaceuticals, machinery and electronics, various E-commerce goods, and urgent shipments, regardless of category.

“The current situation in the international logistics market favors air transportation, as, perhaps for the first time in recent years, we have business-friendly tariffs and an adequate number of flights to high-demand destinations. Air delivery from Ukraine to the USA on DDP terms is particularly in demand among our exporting clients. Multimodal transportation through airports in Central and Eastern Europe has proven to be more attractive to importers in terms of optimal tariffs, reliability, and timely delivery. In addition, a significant advantage we offer is our own regular service for consolidated import and export trucking, consolidation and deconsolidation at our own hubs in both Ukraine and Europe,” says Oleksandr Krasnov, Director of the DSV Air & Sea Department in Ukraine.

Barriers to free movement of goods through Europe still exist due to local peculiarities of European airports and customs formalities. Therefore, it is crucial to carefully select a long-term and reliable logistics partner who has highly competent professionals with knowledge of local and international regulations and requirements for air transportation, capable of promptly handling cargo at European airports and taking full responsibility for the delivery of goods.

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