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.