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Strike Aviation Group

Strike Aviation Group

 

Ai Logistics Network

 

Strike Aviation insights The global air cargo market has rebounded to pre-COVID levels in terms of aviation capacities, signaling a robust recovery.

Both global trade indicators and the dynamics of the global supply chain herald further expansion. "Overall, global trends are positive. The surge in e-commerce is a significant driver of air cargo services growth. However, it's important to recognize that market conditions vary, necessitating a nuanced approach for sustainable growth. We must consider both big trends and the details of each market," observes Andrius Antanaitis, Director of Business Development for Europe at Strike Aviation.

He shares his insights after attending The Nordic Air Cargo Symposium in Stockholm, which brought together the players of the North European air cargo market, including cargo operators, forwarders, integrators, shippers, airlines, airports, investors, and many more. The event‘s sessions were focused on current trends in the Nordic air cargo market, global trends, latest updates on Norwegian seafood exports, sustainability, why air cargo matters for the local economies.

Antanaitis highlights the North European air cargo sector as an important barometer for global and country-specific trends. "Scandinavia's strong ties to the global market ensure realistic expectations aligned with global economic trends. However, market dynamics vary within Scandinavia. Our company directly observes these distinctions through our operations in Norway, where we facilitate the export of Norwegian salmon to China in partnership with China's Hongyuan Group. We are also proactively exploring diverse cargo opportunities to mitigate reliance solely on seafood exports from Norway," he emphasized.

Strike Aviation is actively pursuing a broader array of goods, both within Norway and across other markets, as it aims to diversify its service offerings.

"These endeavors have been particularly focused recently, as there is an anticipation for a wider variety of goods in China, signaled by our partners, the Hongyuan Group. Our partner airlines transport our cargo from both Oslo and Brussels. These flights primarily carry fresh and chilled goods, perishables, flowers, and various other commodities. However, it is crucial to prioritize diversity in both partnerships and the types of cargo transported," notes Antanaitis.

Despite the generally optimistic outlook for the air cargo market, Antanaitis also highlights certain risks and disruptions. For instance, restrictions on flying over Russian airspace have elevated flight costs for European companies and extended flight durations. "This poses a competitive challenge for European carriers, as their Chinese and Middle Eastern counterparts, unaffected by the need to circumvent Russian airspace, are gaining a competitive edge," observes Antanaitis.

Moreover, the expansion of global trade volumes, although beneficial in essence, presents challenges for participants in the air cargo industry. As cargo volumes increase, there is a shortage of available aircraft capacities.

"Planes are not elastic, and particularly with the surge in global trade volumes, it's becoming increasingly challenging for air cargo companies to capitalize on all opportunities. That's why Strike Aviation continuously expands its network of airline partnerships, actively seeking new collaborators. It's an ongoing endeavor in which we're highly engaged," explains Antanaitis.

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