Tag: cargo industry

  • Cargo to Africa; Improve Yourself With New Activities

    Cargo to Africa; Improve Yourself With New Activities

    Creation of new horizons for remote corners policy

    The growing tension between China and the US’s two rival countries has given ample space for devastating shipments. The African air cargo market is the main market for perishable exports. It is interesting to know that the African continent is rapidly transforming with digital transformation through a significant increase in infrastructure and liberalism. As a result, it has strengthened air cargo to Africa.

    It is also well suited to the economies of African countries that are resolving themselves by stating the way they work with old infrastructure.

    How much does cargo contribute to Africa?

    Statistically, Africa accounts for 1.7% of air cargo. However, there is a tremendous growth of African carriers. The International Air Transport Association (IATA) has seen rapid growth over the past two years. In addition, efficiency will increase by 17.1% due to healthy trade and investment connections.

    To ensure this, ICAO Council President Dr Olumuyawa Benard Alio warned that only strong air connectivity in Africa could lead to sustainable development of Africa. It is very clear, he stressed, that this is only possible in reasonable and maximum investment.

    How China Promotes Cargo to Africa

    China has taken advantage of this investment gap as the world’s strongest emerging economy and has already spent a significant amount of time in the cargo sector.

    The $ 60 billion investment from China in Africa’s cargo sector is a big plus. And with this investment, African countries are strengthening their infrastructure and fleet. This has contributed greatly to Africa’s cargo industry, seen by major African countries in South Africa, Mauritius, Ghana, Nigeria and Ethiopia as efforts to improve cargo facilities and related services.

    African Air Cargo benefits greatly from this. Africa’s minority share in cargo makes it an excellent place to grow further from cargo in the African region. Being an abundant port, Africa relies heavily on its ports. It is important that one third of African countries occupy land and have exclusive access to the maritime global market.

    What is being communicated?

    African countries such as South Africa export diamond and gold to industrialized countries. It is very important to carry precious metals in high security handbags. Africa’s small share of global trade has been widely debated, and economists have argued that this low share of Africa is due to insufficient income, poor geography, local constraints on international trade, and increased transportation costs and low infrastructure.

    Due to the Experts believe that the shipping delivery period is important because increasing the shipping duration increases the cost of the inventory process. For example, readable materials such as delicate items and newspapers such as ornamental plants and flowers definitely need quick delivery. What’s more, the stock in transit must be in the required amount.

    Ground Reality and Future Projections

    The cargo industry operates in partnership with various stakeholders or is known as a major source of freight services. Certainly, these stakeholders provide the basic and convenient infrastructure to implement cargo services for each and every operation of the cargo company, and without it, the cargo industry means nothing.

    For example, the company plays a major role in this case with airports around the world, providing a basic and expansive platform for the implementation of cargo carriages and deliveries.

  • Corona Virus and its Impact on Cargo Industry

    Corona Virus and its Impact on Cargo Industry

    We are sorry to break this to you, but Corona virus is not done with the world yet. As a matter of fact, in many countries it is yet to peak including USA and United Kingdom. According to the latest figures, Covid-19 has caused over 1.6 million confirmed cases and over 97 thousand confirmed deaths (unofficial figures showing numbers way above the official ones) In united kingdom it has around 65 thousand confirmed cases and around 8 thousand confirmed deaths, and it’s just in the middle of its destructive streak yet. It is affecting the whole world at the moment and disrupting every aspect of normal life.

    Cargo industry is severely affected by the Covid-19 crisis. Almost every country in the world has momentarily blocked the access to its ports and have imposed strict restrictions for berthing of the ships and handling of their crew. Air traffic is facing the difficulties and blockages of its own and is indeed battling to survive financially in those circumstances.

    Cargo industry in many countries is viewed as critical infrastructure and is requested to continue their operations as usual so they are operating round the clock to keep the economy and critical supplies running where there is permission by the respective government.

    Cargo and parcel industry is taking every possible step to keep its employees and its customers safe and is complying with the guidelines issued by the respective authorities and World Health Organization and US centers for diseases control and prevention.

    Cargo Industry
    Cargo Industry

    World Health organization has issued a detailed guidance program to the aviation industry that include the air cargo industry and has requested to comply with it.

    Here are the main points from the circular.

    • Awareness to aviation personnel about the recognition of signs and symptoms of COVID-19
    • Aviation personnel should take preventative measures including social distancing, hand hygiene, environmental cleaning, waste disposal, use of mask, and avoidance of contact with people presenting respiratory symptoms.
    • Avoidance of public transport as private transport will be arranged by the company.
    • Carrying universal precaution kits that contain dry powder, germicidal disinfectant/wipes, face/eye mask full-length long-sleeved gown and Biohazard disposable waste bag.
    • Immediate reporting of any potential suspect case and disembarkation of the suspect.
    • Identification and management of contacts that were in contact with the suspect.

    As far as the cargo is concerned, World Health organization has confirmed that there are very less likely chances that any virus would survive once the cargo is reached at its destination. Following are a few reasons why it says so.

    • Every government has set out very stringent rules about the cargo prevention and it is compulsory to spray with strong disinfectants before the cargo is loaded aboard.
    • Each parcel is packaged in water tight and air tight packaging so it is not likely to be contaminated during the transportation.
    • Corona virus can only live on such surface for only few hours and since these packages takes several days to be transported and delivered to their destination. Chances are slim that there would be any contamination left on them.
    • Cargo goes through different extreme atmospheres for several days and that makes it impossible for any virus to survive.
    • At every port and airport, it is compulsory that every incoming cargo lot need to be sprayed by strong germicidal disinfectant so again it’s unlikely for the virus to survive.

    It is important to remember that while every government and health organization is doing its utmost to keep us safe from any effects of this deadly virus, we should also take protective measures while receiving the parcels.

    • Although chances are virtually zero that your package that has reached you after 7 days have any traces of virus left on it, but if you would like to be absolutely sure then pick up the package with a tissue, leave it aside in open air for tree days spray it with disinfectant and wash your hands immediately.
    • Normal approach should be to practice social distancing, bring the parcel in open it up and then wash your hands with soap for 20 seconds and then use a sanitizer.
    • Make sure you do not touch your mouth, nose or eyes immediately after you touch the parcel and clean up before you can relax and touch your face.

    In the end, best advice is to stay at home, practice social distancing and minimize all your activities. By staying at home, you not only save yourself but also save many other lives by not burdening the frontline health services that are busy treating the critically ill. Stay safe, stay inside.

  • International Problem of Fuel Prices Affects Cargo to Africa Industry Too

    Impacts of costly fuel

    It is a well-known fact that fossil fuel is at the center of every economic activity. The prices of fuel determine the prices of all the commodities since the movement of every commodity depends on oil.

    In fact, fuel prices affect each and every individual’s life in some ways to some extent.

    The Cargo Industry

    A cargo industry is the first and foremost that is affected by the fuel price fluctuations. The higher fuel prices mean higher shipment charges. The rise in fuel prices affects the cargo to Africa services as well including trucks, railways ships and airways all and customers try to avoid shipments.

    Similarly, low fuel prices bring the cargo charges down and thus boost the growth of the industry owing to the maximum use of its services. The increase in the fuel prices affects the cargo industry in many ways.

    Chain Reaction by Fuel Price

    The rise in fuel prices actually brings about a chain reaction. When the fuel prices surge, the cargo charges also increase. This increase in the cargo charges means the shipper is going to be charged more to make up for this.

    In the similar fashion, when the shipper will be charged more it will make the receiver pay more amount. Therefore, this cycle will end up causing inflation. We can see how a minor change in fuel price affects each and every individual.

    Setback to the Cargo to Africa industry

    When the fuel price rises, the cargo prices also rise which makes people hesitate to use cargo to Africa services. This hesitation leads to a lesser use of cargo services which reduces the revenue of the cargo industry and thus the industry suffers a setback.

    A firm fuel price ensures a steady revenue generated by the cargo industry.

    Competition

    This effect is actually a positive effect. When the fuel price rises, the cargo companies try to mitigate the effect by providing services at a discounted rate so that the cargo to Africa companies are not disrupted.

    This thing promotes competition among the cargo companies and in turn, the service rates are decreased. However, these effects remain active for a short and limited amount of time.

     Effects on Economy

    We know that economy of all the countries is largely dependent at fuel. More fuel prices bring less cargo activity which affects the economy in the longer run.

    Even though the effect is not immediate, yet it plays a significant part in the destabilization of the economy. It largely influences the imports and exports of the countries.

    Uncertain Future

    Since the logistics company run entirely at the expense of fuel, they are at higher stakes regarding oil prices. If the fuel prices keep on rising and rising, many companies would go down and many would be forced to take loans.

    So higher prices of fuel increase the risk for the cargo companies manifolds. Similarly, on the lower level, less shipping activity will be noted.