150 countries discuss global cargo future in Kenya

At least 4,000 aviation experts from 150 countries have converged in Nairobi, the capital of Kenya, to discuss the trends, projections, and future of air cargo in the aviation industry globally.

The event, which had its first edition in 2011, also aims to collectively resolve industry-related issues globally and boost the fortunes of the cargo business not just in Africa but across the world.

At the conference, the Divisional Vice President of Emirates Skycargo, Badr Abbas, dismissed any form of disruptions, saying delivering cargo to their destinations remains the company’s top priority.

Identifying the increased cargo demand globally, the airline and cargo giant announced its intention to add 21 more aircraft to its already existing 255 fleet dedicated to cargo globally, by the end of 2026.

He reiterated, “ There is increased cargo demand globally and it will remain relatively so in the near future.  We are increasing our fleet to meet the demand of customers and also serve the upcoming ones.

 We gave wide-body cargo planes on long-haul flights taking cargo to the deserved customers globally.  We are very strategic with our e-commerce division and it is one of our biggest strengths, reshaping the global economy.  E-commerce has increased the demand for a growing fleet and we have B777, B747 and A350.

“We do not fear disruptions as it happened during COVID-19 in 2020. Disruption is part of our DNA. We have been resilient against global disruptions, keeping our supplies moving to all destinations in order to meet the demand of our customers.”

He further stated that Dubai is expanding facilities to become the biggest cargo hub. “We have ordered additional aircraft, which delivery will start in 2026. In Africa, we freight 382, 000 tons of cargo weekly”

At the opening session of the event, the Director-General of the Kenya Civil Aviation Authority, Emile Arao, appreciated the continued efforts deployed by professionals for the industry to continually achieve advancements.

While hailing the contribution of Cargo to the industry, Arao itemised challenges faced by the arm of the aviation business listing; high rate (compared to other forms of transportation), capacity constraint, fuel price volatility, regulatory compliance, and supply chain disruption among others.

The Kenya aviation regulator also stated that cargo demand is expected to increase by 4 to 6 per cent against earlier projected capacity growth.

He said, “Global air cargo demand is expected to increase by approximately 4-6 per cent year-on-year in 2025, outpacing the projected capacity growth of 3-4 per cent. The International Air Transport Association (IATA) anticipates cargo revenues reaching $157bn in 2025, accounting for 15.6 per cent of total airline revenues.

“Recognizing the ongoing geopolitical tensions, such as conflicts affecting the Red Sea, have led to rerouted sea freight, increasing reliance on air cargo. These disruptions have contributed to elevated air freight rates and capacity constraints. Additionally, manufacturers like Airbus are experiencing delays in freighter aircraft production due to supply chain issues, potentially limiting capacity expansion in the near term.

“Regulatory and economic factors which involve potential changes in trade policies, including adjustments to tariffs and de minimise thresholds in key markets like the US and EU, could impact air cargo volumes, especially for e-commerce goods. While jet fuel prices are projected to decrease to an average of $87 per barrel in 2025, economic uncertainties and inflationary pressures remain concerns for operational costs and pricing strategies.”

On his part, the Chairman of the board of Kenya Airport Authority, Caleb Kositany, expressed joy to be part of the event describing the gathering as an avenue not just to solve global issues in the cargo and transport market but also a vital platform for uniting key stakeholders from across the globe.

Further extolling the sitting, he stated that the convergence of multimodal transport solutions across Africa, including air freight, maritime shipping, rail networks, and road transportation, are the main pillars in creating routes-to-market that will make the realisation of the African Continental Free Trade Area possible.

SOURCE :PUNCH

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