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How Air Cargo Carriers Can Boost Profitability
01 Jul, 2019

Industry experts have agreed that air cargo capacity will likely continue to outgrow the market. Higher fuel prices, on the other hand, can help limit increases in supply. Rather than just hoping that load factors will eventually improve, air cargo carriers have to start taking new steps and strategies to improve their takings, according to this IATA Air Cargo Symposium.

Speaking at the event, Carl-Stefan Neumann, a senior adviser at Rothschild Global Advisory had discussed three distinct ways through which air cargo carriers can try to boost growth and profitability. Here at BYEXPRESS Worldwide, this post discusses these three ways


Proper adherence to contracts

Carl had opined that cargo carriers should do more to improve adherence to contracts, provide the environment for cargo to fly as booked while also providing the opportunity to seek recompense should they fail in their duty.

According to Carl, creating a sort of cargo exchange, something similar to the NYSE, as an online portal can help. Such portals can provide standardized freight contracts while carriers are able to provide forwarders and shippers with details of pricing, availability, and on-time performance.


These contracts on the exchange would spell out the terms of volume, place of receipt, departure date, destination date, and prices.

Contracts are enforceable and there will be penalties for non-fulfillment. The contract can also be resold should the forwarder or shipper fail to fulfill their own part of the deal.

Carl-Stefan Neumann, however, opined that such a development may be met with some resistance from shippers who may feel like the balance in an improved supply chain stability and corresponding prices may not turn out to be in their favor.


Transparent Pricing

Another suggestion at the symposium was that the air cargo industry needs to imbibe more transparency into its pricing strategies. Carl felt the solution to this may be by developing a booking platform that is industry-owned which he believes will help deal with the threat of price aggregation online. As a result, this will allow members superior value and gain critical mass.

But then, it was also noted that it would be very challenging to get cargo carriers to agree on a single standard system because each already has its own system, with the back office automation for many of these carriers being very slow.


Collaborations for global solutions

Rounding off his speech, Neumann suggested that carriers may also find solutions to age-long global logistics challenges through joint collaboration. This is out of his belief that customers will be able to get something like a ‘plug and play’ shipping service which will improve transparency, tracking, and monitoring, as well as cost-effectiveness. 

Nik Delmeire, the Secretary-General of European’s Shipper’s Council does not share in that sentiment. He referred to the problem with a global alliance with the example of Hanjin’s bankruptcy after freight rates became lower as well as the major service disruption that followed.


Other points raised at the symposium include carriers adopting a more modern commercial business model. By allowing customers to be in control and incorporating machine planning, using algorithms in their selling decisions, air cargo carriers will be more likely to offer better shipping experiences with dynamic and transparent pricing and personalized services that will be far better than standard services.



BYEXPRESS Worldwide is one of the world’s largest marketplace connecting businesses, individuals, and organizations with some of the world’s most reputable carriers for air and ocean transportation.

Value, efficiency, and transparency are the hallmark of these services. With simple details of your shipment, you can easily log on to our website for free quotes at some of the most competitive rates around.

You can as well contact us at for additional information. We’ll be more than happy to help.