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Suman Sourav

FSOCIETY Prashant Kumar Singh


IIM Shillong
CURRENT SCENARIO
Air Commodities represent less than 1%
of the commodities, but involves 35% of
the world trade.
Shipping industry represent more than
bulk of the trade but lacks the competitive
advantage of speed and time.
Drewry, a consultancy, calculates that
container lines will lose up to $10 billion
this year.
With growth of e-commerce and other
industry that requires speed and time, Air
Cargo industry has grown big time.
Of the biggest 12 container lines that
have published results for the past
quarter, 11 have revealed huge losses.
STRATEGY
Challenges faced by shipping industry today is
that the freight rates have continued to fall.
Air Cargo industry have different segmentation of industry for their
A serious programme of scrapping in the industry profits which includes high value items.
would be needed for profits to improve, If enough
Shipping industry can not cut into those segments but in recent years
lines scrapped their ships, the amount of spare
with economic slowdown, both air and shipping industry had been
capacity in the industry would fall, and freight taken aback.
rates would rise to a point where firms in it would
Shipping industry can take advantage of the factors like airport
break even. curfews, lack of airport access, environmental regulations, air and
surface labour stoppages, and industry relocation to gain advantage
Major players and small players of shipping over air cargo industry.
industry need to collaborate and make a uniform
Technical development of ports can help shipping industry to be more
rate for the freight efficient.
Sharing of single vessel to improve capacity Merging of Shipping companies will also attract investors as right now
utilisation among different players for different no investor is willing to invest in shipping industry.
players.
Marketing the fact that shipping is the most
carbon-efficient mode of transportation.

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