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Liberalisation of air cargo industry

October 9, 20150Air CargoTrucking


Liberalisation of air cargo industry

October 9, 2015 0Air CargoTrucking

Air cargo services’ importance to expanding global trade and the economy has grown significantly in recent years. According to various sources, the total goods moved throughout the world by air comprise approximately 2 percent of global trade in volume but approximately 40 percent in value in the year 2011. The majority of high-value commodities are transported by air almost exclusively. According to projections made by analysts, the global market for air cargo is expected to develop at an average rate of 5.2% per year during the next 20 years, indicating greater trade as a result of the liberalization of markets.

Over the previous two decades, international air cargo services have reaped the benefits of an increasing number of agreements that have been liberalized. For instance, as of the end of October 2012, out of the more than 400 open skies agreements that states had finalized, more than 100 had granted the Seventh freedom for air freight or all-cargo services, so allowing for a greater number of opportunities for the expansion of such services finalized.

Despite this, air cargo carriers are still subject to many restrictions, such as limited freedoms imposed by a huge number of traditional agreements and a regulatory framework primarily focused on passenger services and combination services. In addition, they are subject to operational constraints such as night curfews, restricted ground-handling privileges, and onerous customs formalities. As a result of the “one-way” directional nature of air cargo traffic and the emergence of several truly global operators in the express delivery sector with hubs in different countries, it has become more evident that the continuation of such restrictions can no longer meet the needs of the air cargo industry and its customers in a globalized market. This is because of the nature of air cargo traffic to move in only one direction. Therefore, the industry advocates for acknowledgment of the significant role that air cargo operations play as well as their unique characteristics and for increased commercial freedom and more business-oriented treatment.

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