BY AMBAFLEX | WWW.AMBAFLEX.COM
As the market leader in spiral conveyors
in the logistic industry we think of solutions
for handling cases & SKU’s. It’s what
we do. At AmbaFlex it’s not just about
building the right equipment, it’s about
developing a special solution for you.
Here’s to spiral conveying.
Spiral elevators for goods-to-man systems,
picking modules and sorting systems.
Spiral conveying. Straight up!
AmbaFlex_ad_LSI_logistics_102x284.indd 2 22/03/18 12: 12www.dcvelocity.com FEBRUARY 2020 DC VELOCITY 47
ing off a slide of 5% in 2019, will decline another 3% in 2020,
stabilizing at around $101.2 billion.
The past year saw air freight suffer from “the effects of
the trade war between the U.S. and China, the deterioration
in global trade, and a broad-based slowing in economic
growth,” Matters says. “While airlines have been reducing
capacity growth in response … it’s clear that there exists an
overcapacity situation for air cargo.”
On the bright side, Matters says that “looking to 2020,
world trade growth is expected to rebound to 3.3% from
0.9% in 2019, as election year pressures in the U.S. contribute
to reduced trade tensions.”
Brandon Fried, executive director of the Airforwarders
Association, also believes things are looking up. While 2019
was a difficult year, “I’m more optimistic [about 2020] for a
couple of reasons,” he says.
Fried believes that “the tariff thing” between the U.S. and
China will be resolved. “Trump is up for re-election, and he’ll
want to get some points on the board beforehand.” Also, as
offshore sourcing and manufacturing has shifted from China
to other countries in Southeast Asia, “those countries are
providing avenues of opportunity for airfreight forwarders,”
he says.
NEW OPPORTUNITIES
In fact, Fried sees a number of market opportunities opening up for forwarders. He cites as examples the market for
specialized services, such as cold chain, pharmaceuticals and
perishables, and project cargo, all of which could be “a shot
in the arm” for forwarders, who excel at freight with special
handling or expediting needs.
Other opportunities are emerging thanks to the likes
of Amazon, FedEx, UPS, and other operators breathing
life into once-shuttered civilian/military airports. Those
include Ohio’s Wilmington Air Park, where in June last year,
Amazon Air started daily dedicated flights with Amazon-logoed aircraft; and Rickenbacker International Airport in
Columbus, Ohio, which has been reborn as a thriving international aircargo hub. Airlines serving Rickenbacker include
AirBridgeCargo, Asiana Cargo, Cargolux, Cathay Pacific
Cargo, China Airlines, Emirates SkyCargo, and Etihad Cargo,
all offering weekly scheduled service for U.S. importers and
exporters. “Freight forwarders are co-loading on these
flights,” Fried says.
And lastly, with Amazon spinning up its own fleet of aircraft, that could present an interesting capacity opportunity
for forwarders. “If Amazon has 100 airplanes a year from
now, chances are they may have some empty [backhaul]
space” that could be offered to forwarders, Fried says.
Which could indeed be another interesting development
for a business that’s once again adapting to new realities.
Through it all, some things are everlasting. “We get paid to
move boxes for a living,” Fried says, adding “One common
thread is that we are atypical. Forwarders do everything. There
is no such word as ‘no’—or ‘fail’—in our vocabulary.” ;
