Page 11 - Demo
P. 11
globallevel–oneoftheseistheongoingissueofcapacitygrowthoutstrippingdemandleadingtodownwardpressureonfreightratesInfactairfreightcapacityincreasedby9%in2024whiledemandstruggledtokeeppacecreatingacompetitiveinternationalmarketwherecarriersvieforlimitedcargopoolsForSingaporesairfreightbusinessesnavigatingthischallengewillrequiregreateroperationalefficiencyandafocusondifferentiationthroughservicessuchasspecialisedcargohandlingandadvanceddigitalsolutionsTheindustryisalsoaffectedbybroadergeopoliticalissuessuchas theconflictsinUkraineandGaza whichhaveled toled todisruptionsinairspaceroutes–resultinginreroutedflightsincreasedcostsdelaysandotherconstraintsTomitigate suchrisksair freightbusinessesneed toinvestinmore flexible supplychainsandcontingencyplanning–andSingapore withits strongnetworkofinternationaltradeagreementsandstrategiclocationiswell-placedtohelpbusinessesadapttotheseshiftsLong-termGrowthProjectionsAsiaPacificandtheWorldLookingaheadtheIATAprojectsthattheglobalairfreightindustrywillgrowbyamodest33%annuallyoverthenext20yearsreflectingsomeofthechallengesandinfrastructureconstraintstheindustryhasbeenseeinginrecentyearsOnapositivenotetheIATAexpectstheAsiaPacificregiontogrowbyamoreambitious45%annuallyoverthesameperiodAsaleadingairfreighthubintheregionSingaporeispoisedtobenefitfromthisuptrend–andthenationsinvestmentsininfrastructuresuchastheongoingChangiEastDevelopmentwillbecrucialinpositioningSingaporetomeetfuturedemandOneofthemostsignificantdriversoffuturegrowthfortheairfreightindustryisthee-commerceboomWith80%ofcross-bordere-commerceshipmentsflownbyairthesectorissetforfurtherexpansionasonlineshoppingcontinuestogrow–bothgloballyandregionallyForbusinessesinSingaporefocusingone-commercelogisticscanprovideacompetitiveadvantageparticularlyasSoutheastAsiase-commercemarketisexpectedtogrowatacompoundgrowthrateof22%reachingreacharound$230billioningrossmerchandisevolumein2026Future-proofingSingaporesAirFreightIndustryAPathForwardAsSingaporeentersaneweraofairfreightgrowththeindustryfacesbothchallengesandexcitingopportunitiesFromsustainabilityinitiativestodigitaltransformationthefutureisbrightforbusinessesthatcanadaptandinnovateWithstronggovernmentsupportadvancedinfrastructureandafocusonbuildingaskilledandadaptableworkforceSingaporesairfreightindustryiswell-positionedtothriveinthedecadeaheadThekeytosuccesswillbeembracingsustainabilityenhancingoperationalefficiencyandinvestingintechnologicalinnovationBusinessesthatleadintheseareaswillbewell-placedtocapitaliseonthegrowingdemandforaircargoservicesnotonlyinSoutheastAsiabutgloballyAsSingaporecontinuestoexpanditsroleasalogisticspowerhousethecountryissettoremainacrucialplayerintheglobalairfreightindustry9
