Airfreight industry to benefit from perishables growth despite modal shift

The airfreight industry will continue to benefit from growth in the perishables market despite the threat of ocean transport grabbing marketshare.
Speaking at the Cool Chain Association (CCA) Perishables Summit in Barcelona, CAA member Janet Coldebella, who is also Air France-KLM-Martinair Cargo business development manager – fresh, Americas, said that although ocean freight providers were taking market share, several shippers who had made the move had tried once and moved back.
“Transit times are still too long to guarantee the quality and shelf life that retailers demand,” she said.
“Cost is important, with retailers focused on shelf life, but there is a new generation of consumers who want fresh, seasonal produce and they are prepared to pay more.”
Ken de Witt Hamer, director at analyst WorldACD, said that perishable volumes were growing faster than the general air cargo market.
“PER products by air showed much higher growth than the overall cargo market in 2015, and we see this trend continuing in 2016"
“Future food demand may increase food sourcing outside Asia for Asian countries, given more competition for land use, increased demand and challenges for water,” he said.
He added that food outsourcing, water stress, and climate change are also trends to watch.
“South Korea is the leading country leasing agricultural land in other countries for own food sourcing, “he said.
“But it is likely that India and China will increase food outsourcing in the future.”
Elsewhere at the event, CCA chairman and chief executive of road feeder service provider Jan de Rijk Logistics Sebastiaan Scholte called on closer collaboration with shippers to help reduce waste in the industry.
“Food wastage is a major issue and one which we must focus on as an industry,” he said.
“Working together, we can find ways to fight back and make a difference, whilst at the same time adding value to the supply chain.”
Delegates at the event agreed to reach out to all stakeholders to find collaborative ways of achieving a common goal of reducing waste by at least 10% by the year 2025.
This would represent 250,000 tons of savings, or about $1bn in value and 1m fewer tons of emissions, including CO2 and other greenhouse gasses.