Get ready for the air cargo stock exchange

THE reality of an airfreight stock exchange is much closer than many realise. “We are ready to go in a month… are you?” was the direct challenge to forwarders issued by Ram Menen, Emirates divisional senior vice-president cargo, at the World Air Cargo Event in Bahrain.

Menen was responding to the views of CEVA Logistics’ EMEA president Bruno Sidler, who called upon airlines to create a workable stock exchange for future airfreight capacity trading.

“Airfreight capacity is a commodity and airlines have to become low-cost smart traders of their space. You can have all the partnership programmes in the world, but at the end of the day it is about supply and demand. Be prepared to accept volatility in price – it’s a question of seasonality and volume and nothing else,” said Sidler.

“Airlines have to become leaner. There is no space for huge sales forces out there and it is not necessary.

“Airfreight is probably the most perishable commodity there is and my vision is to build up a common trading platform. I hope the guys in Dubai, who are dynamic and have the capital, will develop a capacity futures trading platform,” added Sidler.

Emirates has been working on the concept since 2004. “We are heavily involved in developing an exchange with a company in Hong Kong.” Menen added that theoretically it would be possible to trade in future capacity within a month.

“Air Cargo is ready to go out into futures trading and we are prepared to lead the pack.”

Menen emphasised that it is the forwarders and general transport industry that needs to open its mind and look at an exchange in a positive light.

To read the full story see Air Cargo news 29th February.