First Maersk and MSC, and then CMA-CGM. Who is next as shipping giants are looking to the skies?
Steamship lines have been making moves to enter the air cargo market in recent years. From the looks of it, these companies are trying to diversify their services and seek a larger share of the global logistics market.
We already know the air cargo market is growing rapidly. According to the International Air Transport Association, global air freight volumes are expected to double by 2030. It is only natural for steamship lines to look for new opportunities to be more involved with their customers’ demand for end-to-end supply chain solutions that can move goods efficiently and quickly by benefiting from multimodal transport services since the global logistics market is becoming increasingly integrated day-by-day. By entering the air cargo market, steamship lines can now offer their customers a more comprehensive range of services. That is where air cargo comes in to the rescue.
However, entering this highly competitive market comes with its challenges.
New air shipping services need to establish new partnerships with airlines and invest significant resources to build a competitive offering and face industry giants such as DHL, FedEx and UPS who already hold a large share of the market in the palm of their hands. It will be interesting to see how they and existing players will adapt.
In conclusion, it is possible that the entry of steamship lines into air cargo will help the industry to grow and force existing shippers to be more innovative in the years ahead. While this move may disrupt existing industry leaders by creating additional competition in the market, it may also lead them to improve service quality and lower costs for their customers. Who would say no to that?