CONTRACT MANAGEMENT
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T
he effect that technology has had on industries all over the world cannot be understated . Its influence is prevalent and has transformed the way in which companies operate , as artificial intelligence ( AI ), automation and Big Data begin to take hold . The air freight industry is certainly no exception .
However , despite the influx of technology , the air freight space has felt demand for its services weaken over the past year , following the International Air Transport Association ’ s ( IATA ) findings which examined 2019 ’ s full year data . The research showed that demand fell by 3.3 % in comparison to 2018 , while capacity increased by 2.1 %. It is the first year of declining freight volumes since 2012 , and the worst performance since 2009 , where figures were significantly affected by the global financial crisis in 2008 . These findings contrast with McKinsey & Company ’ s analysis in 2018 which anticipated that air freight volumes would continue to increase by around 3 % every year until 2025 , and likely 2030 thereafter . Although land and ship cargo transportation remain the most
MARCH 2020