[EN-AIR] Aifreight Can Recover Faster Than Other Transport Modes, Says "TIACA"

As the global economy shows signs of recover, air cargo could well emerge from the crisis in a stronger position than other transport modes, as manufacturers rethink their production and supply chain strategies.

According to Ulrich Ogiermann, chairman of The International Air Cargo Association (TIACA), manufacturers and other businesses will be more reluctant than ever to tie up vast investment in inventories, preferring to operate on a just-in-time basis that demands the speed, security and reliability of transportation that only air cargo can provide.

Despite suggestions that cost conscious companies in the manufacturing sector will go for near-sourcing - buying materials and products closer to their final production points in Europe and North America and eliminating the logistics costs of imports from Asia - Ogiermann believes the business case for such a strategy will not be sustainable in the majority of cases.

He said that recent studies prove that the reduction in logistics costs are outweighed by the increased cost of local production, where infrastructure and employment investment in greater.

Although there are early signs of improvement in cargo volumes, he said it will take several months of increasing business before companies truly believe the economic recovery is properly under way, and it will be 2011 before the industry sees a sustainable improvement.

TIACA has shifted its focus to concentrate on issues that could, if ignored, present a new wave of economic challenges to the industry.

The Association's Industry Affairs Committee is working to advance the interests of members in a variety of areas ranging from improving aviation security and safeguarding the industry to ensuring comprehensive and cost-efficient cargo screening programs are achieved with as little disruption as possible to air cargo operators and customers.

In terms of customs, it is addressing urgently-needed changes it says are essential in both developing countries and developed economies to reduce origin/destination timings and capitalize on aviation's core speed-through-the-air commercial advantage.

TIACA will also continue to address customs processes, new air traffic management systems and environmental issues - including dispelling some of the myths about aviation's impact on it.

Source : EFT, 18.02.10.