Shortening of product
cycles and expansions
of product line-ups have
stimulated the use of
airfreight, including charters,
to move vehicles. One car
maker went through a large
expansion of its portfolio,
which brought a marked
increase in charters to take
cars to test sites, he says.
The proliferation of more
sophisticated, high-value
technology in cars is another
driver for a more prominent
role for air cargo in this sector,
notes Tony Fondevilla, Senior
Vice-President, Automotive
Logistics, at CEVA Logistics.
Change on the way
This is going to increase as
the industry shifts from the
Although carriers are benefitting from the
automotive vehicle segment, the car sector
itself is struggling
internal combustion engine to the production of electric cars,
Fondevilla believes. For the car industry, this marks a tectonic
transformation, with equally far-reaching repercussions for the
supply chain.
“Over the next five years we are going to see more changes
in automotive supply chains than in the past 100 years,” he
predicts.
Further impetus for change is coming from the evolution of
autonomous vehicles, which raises questions of how to manage
and handle the logistics of the technology involved.
Already, the industry’s approach to the supply chain is
changing. It is getting closer to high-tech supply chains and
showing more of an e-commerce mentality, Fondevilla finds.
One manifestation of this is a stronger push for better supply
chain visibility. Reupert sees interest on all sides in improved
track and trace. “Customers want more transparency and speed
at cut-overs,” he avers.
“Customers set high level requirements in terms of service
quality, given that cars are becoming more sophisticated and
incorporate various high-tech solutions, parts, and equipment,”
remarks Lazarev. “We will further improve our digital solutions
to guarantee enhanced digital customer experience in terms of
cargo traceability, with 100% of cargo shipment data at their
fingertips.”
Demands on forwarders are also shifting. “Exception
management has gone to new levels. Nowadays it’s a must. You
have to give them an alternative, not just report the problem,”
states Franco, adding that this hinges on forwarders’ and
carriers’ automation. “Some
carriers are not so much up to
speed,” she notes.
Airlines have to be more
reactive, quicker and provide
better visibility, Fondevilla
comments, adding that it
is vital to link up systems
to give customers real-time
visibility of the flow of auto
parts. “CEVA is investing in
technology, in IT, becoming
more flexible and quicker to
react. We are now setting up
a group of people to focus
on new companies that are
getting into the game,” he
says. More automation is also
needed in the warehouse to
deal with the heightened
emphasis on speed, he adds.
DB Schenker is also
exploring new avenues
with emerging technology.
A year ago, management
announced that it would
expand its service spectrum
“Customers are asking
for more capacity,” declares
Shawn McWhorter, President
the Americas of Nippon
Cargo Airlines. “Forwarders
tell us they expect 2019 to
be as strong as 2018. Auto
manufacturers recognise the
value of air cargo for their
supply chain. They recognise
(that) every week they need
some.”
The irony here is that
many car makers have
displayed an aversion to
using airfreight. Volkswagen
famously claimed that it was
not part of its planning, that
it was purely for ad hoc needs.
Engelhard observes that
car manufacturers have
actually become more
frequent users of airfreight,
though. Increasingly, they are
moving away from the classic
consolidation model of three
flights a week towards daily
secured capacity, he notes.
www.airlogisticsinternational.com February 2019 9
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