Boeing Forecasts World Air Cargo Traffic to Double in Next 20 Years
Boeing (NYSE: BA) projects air cargo traffic will grow at an annual rate of 4.7 percent over the next 20 years, with global air freight traffic expected to more than double by 2033.
The company released its biennial World Air Cargo Forecast at the International Air Cargo Forum and Exhibition.
Randy Tinseth, Vice President of Marketing, Boeing Commercial Airplanes, said: "We see strong signs of a recovery as air freight traffic levels continue to strengthen after several years of stagnation and the air cargo market is now growing at nearly the long-term rates."
World air cargo traffic began to grow again in second quarter of 2013 with growth reaching 4.4 percent for the first seven months of 2014, compared to the same period a year earlier. If this trend continues, 2014 will be the highest growth year for the air freight industry since 2010.
Much of the weak air cargo growth in the previous years can be attributed to two principal causes; an underperforming world economy and lacklustre trade growth, particularly in those traditional commodities served by the air cargo industry.
The new Boeing forecast shows Asia-North America and Europe-Asia will continue to be the dominant world air cargo markets with the most traffic volume. Intra-Asia, domestic China and Asia-North America markets are expected to have the fastest rates of growth over the next 20 years.
With increased air cargo traffic, the world freighter fleet is also expected to grow with deliveries of 840 new factory-built airplanes and 1,330 passenger to freighter conversion airplanes. More than 52 percent of those deliveries are expected to replace retiring aeroplanes and the remainder used for growth.
More than 70 percent of the new factory-built aeroplanes scheduled to deliver between 2014 and 2033 are forecast to be large freighters, such as the 747-8 and 777.
"Boeing is committed to the cargo industry like no other company," said Tinseth. "Our complete line-up of efficient, highly capable freighters are well positioned to continue to carry more than half of the world's air cargo traffic as the market continues to strengthen."
The World Air Cargo Forecast 2014/2015 is available at http://www.boeing.com/boeing/commercial/cargo and the full text is downloadable in PDF format. Boeing has published the biennial World Air Cargo Forecast as an individual report since 1986.
Pandora and IBM digitise jewellery supply chain
Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery.
The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales.
A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.
Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs.
Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption.
"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added.
Pandora’s pivot to digital
The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand.
“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”
Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”.