Iindustry recovery to fire up air cargo rebound

Though airfreight volumes in the third quarter are up 10 per cent compared to December 2008, the real recovery will start only when the automotive industry begins recovering, said a senior airline executive.
"We rely a lot on the automotive industry," said Ram C Menen, Divisional Senior Vice-President, Cargo, Emirates.
In an interview with Emirates Business, he said: "It is good to see that some of the big US automotive companies have started to recall the people they had retrenched. That is a good sign for us.
"At the end of the day, we keep an eye on the financial markets and their effect on the consumer industry," he said.
What are the new trends in the airfreight business?
The entire air cargo industry has changed in the past seven to eight months, as the cost of inventory management has shifted to vendors. Inventory management has evolved in such a way that shippers do not want to hold inventory on their books. So they are opting for vendor-managed inventory, which helps them shift the cost of the inventory on the vendor. They can then draw on it when they require.
09/09/09 Nina Varghese/Emirates Business 24/7, UAE

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Categories: Cargo Sep 2009, Foreign Sep 2009