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Viewpoint: China's air cargo should be transferred to express logistics industry as soon as possibl

Befrom:FITTO LOGISTICS(THAILAND) CO.,LTD  Newstime:2017-04-24 15:04:38

In June 2015, the reform of state-owned enterprises with favorable policies frequent, the three major domestic freight integration news again came and was hot. Although the official denied, but this again reflects the reality of domestic air cargo industry urgently needs to be reformed. In fact, in recent years, the air cargo industry has been transferred, the merger of the news, but also reflects the plight of the development of air cargo industry for many years and the urgency of the reform.

The rapid development of express industry and the difficult air cargo industry

With the rapid development of the domestic aviation industry situation, the development of the air cargo industry has many years before faltering, the rapid development of benign development and civil aviation passenger transport industry and domestic express logistics industry formed a huge contrast.

On the one hand, the air freight business is difficult, the development strategy is not clear, although the voice of reform and transformation, but always a little thunder and rain。 Over the years, the air freight industry operators linger, freight revenue continued to decline。 The annual report data of three aircraft in recent 5 years showed that air freight revenue in 2010 accounted for 13% of group revenues fell to 9% in 2014, China Eastern Airlines Cargo revenues accounted for to fall from about 12。5% to about 8。5%, Southern freight income share declined from 7。5% to less than 7%。 Cargo aircraft operating losses continue, the international airlines and the three largest international express courier market continues to erode the Chinese market, but also to the international business of domestic airlines into a quagmire。

pk10抓7码方法On the other hand, the rapid development of domestic express industry, but showing a thriving scene. Courier companies have set up a cargo airline, counter attack air cargo industry. As of 2014, China's express industry grew 4 over the same period last year, more than 50%. Private courier companies eager for a fight from the ground to the air, development, have set up a full cargo fleet. Currently, SF has set up an airline, operates nearly 40 cargo aircraft, and identified the 2021 operation of the grand goal of all 196 cargo aircraft. Have their own airlines and operate their own cargo aircraft fleet, the company has become a large courier company and the gap between the key elements of competition.

The three major domestic freight development difficult and private express industry thriving contrast。 Therefore, the industry has been on air freight business model, China Cargo Airlines, China Eastern Airlines Dongyuan logistics reorganization to Eastern logistics company, the logistics industry transformation of the air cargo industry news had to attract attention, but ultimately failed to get rid of the traditional air freight company shadow。

Poor environment, the concept of the old air transport industry into trouble

What is the reason for today's air cargo industry into trouble? Of course, there are many reasons, there are external factors, there are internal causes.

In terms of external factors, from an international point of view, the air freight industry due to the financial crisis, the economic downturn in Europe and the United States, the high price of aviation fuel and other factors, the decline in benefits for many years, the entire cargo airline business difficult。 From the domestic point of view, consumer behavior has undergone great changes, online shopping has become a way of life, the electricity supplier online shopping mode led the development of domestic express delivery industry。 Due to the need to provide door-to-door online shopping services, private courier companies to master the first-hand sources, and the right to choose the right way to transport the middle of these courier companies。 Due to the domestic online shopping customers are sensitive to the price, the cost of transport is not high, the majority of domestic customers online shopping package is transported by road。 This is the rapid rise in the domestic electricity supplier online shopping, private courier companies at the same time, the airline is difficult to get a share of the reasons。

In terms of internal factors, first of all, the concept of airlines is quite old. At present, the air cargo industry has not adapted to the changes in the market, business chain is not extended, too far away from the customer. At the same time, the internal chain are separated for a long time, the operation service can not provide stable, long-term information in the data in a backward state, the goods in a long-term "invisible" state, and the customer's distance, interactive poor, do not keep up with the pace of market development, ground and air transport are not integration, unable to provide value-added services. Secondly, the airline discipline, from active to passive. 10 years ago, airlines were at the center of the freight. Because at that time the supply of relatively small capacity, airlines and logistics companies, agents in the game has a relatively large right. However, more than a decade later, whether it is the integration of logistics or freight forwarding agent scale has been expanded, and airlines in the freight business is basically a stepping stone. Airline capacity increased with the increase of large aircraft, the market has taken place in the transfer of rights, the airline has become a party B from the original party, lost the pricing power.

Of course, the deeper reason for this phenomenon is that airlines are not familiar with the logistics business, the long-term freight as a sideline, resulting in no freight strategy or the strategy is not clear to maintain state, lack of investment, not timely transition of traditional air freight business is difficult to have a big development. The airline's passenger transport belongs to the category of the transportation industry, and the freight transportation develops to a certain period, which is more obvious than the transportation industry. In this regard, airlines are generally lack of psychological preparation, lost the opportunity for development. Over the years, the airline did not meet the needs of the market, although the introduction of aircraft into many, but basically is based on the market demand of passenger traffic, freight of small investment and little investment in ground transportation network in addition to the airport to the airport outside, the customer needs the last mile into basic zero. It is because there is no psychological preparation, the airline's cargo products are not upgraded, nor reflect the potential value of freight assets.

Air cargo industry has great prospects

In the future, air cargo industry also has the development prospects? The answer is yes. From the domestic point of view, the reality of the electricity supplier online shopping and private express industry continued rapid development tells us that express logistics industry is a very potential industry, the market is very large. Air freight is the key to improve its efficiency. The bottleneck of electronic commerce lies in logistics, which is the reason for Alibaba to invest in logistics industry.

For airlines, trucking is a natural revenue industry. As long as there is a plane, it will naturally get freight revenue. Abdominal cargo freight revenue accounted for about 3% of the domestic routes in the business is relatively good long-distance international routes can account for about 15%. After the aircraft is put into use as a passenger vehicle, the cost of the freight business is very low, and even can be ignored. Then, the 3%~15%'s revenue is marginal revenue, and even can be regarded as profit. The airline industry's profits have been low, essentially 2%~5%. Therefore, the freight revenue for the airline's profit and loss, especially the international long-distance routes of profit and loss plays a very important role. However, the operation of all cargo aircraft is another concept, all of its costs are required to share the goods. This is for the operation of all cargo aircraft companies, freight is no longer an additional product, must have a higher income to support its operation of all cargo aircraft.

For a region, the operation of the whole cargo aircraft will greatly improve the local logistics conditions, so that industrial upgrading possible. Just think, if Apple, Samsung, HUAWEI and other international companies of high value electronic products without the support of all cargo aircraft, how to ensure that the same time in the world market? The high-end fashion goods listed in the world can not lack the support of all cargo aircraft, so as to ensure that the listing of the largest profit margins in the quarter. Therefore, the upgrading of a regional industry often requires the support of all cargo aircraft. And for the development of the industry, our company to excellence in the price war in the low-end market, there must be decided according to the cargo express parcel time departure time, in order to launch the day next morning "and other high-end products, and competitors can widen the gap, and this is why the development of SF, tact to a certain extent on investment freighters. On the national level, China will become the second largest economy after the United States, the logistics industry will be very important for economic support. 1 ~3 as the United States UPS (Federal package company) and FedEx (FedEx Corp) express logistics business integration so that the international competitiveness, not only can greatly promote the development of the domestic industry, and can help domestic enterprises to compete with their counterparts in the U.S. and europe.

China's air cargo industry as soon as possible to express logistics industry transformation and upgrading

There is a huge gap between the difficulty and the ideal of the freight forwarding business, which explains the necessity of the transformation of the air cargo industry. So, where to turn? From the international experience, the direct logistics related to the aviation industry is a natural extension of the development of the air cargo industry, or courier is an upgraded form of air cargo.

From an international point of view, the development of air cargo industry is always closely linked with the size and quality of a country's economy. Air freight industry in the economic development to a certain extent and express logistics industry will be closely integrated, integrated express logistics providers. For example, the United States as the world's largest economy, there are FedEx, UPS two integrated express logistics providers. All integrated express logistics providers have been a strong support for all cargo aircraft. China as the world's second largest economy, but also a manufacturing powerhouse, domestic consumption has started, the development of express logistics industry is the right time. However, the domestic courier providers such as EMS, SF, tact, and its body size has a huge gap between Europe and the u.s.. Therefore, the domestic air express logistics business is still far from the formation of scale, is still in the early stages of development, brand awareness and management is still far from mature, the expansion of the international market has just started. The three major domestic airlines have high brand awareness, good credit, effective safety management and international network of mature advantages in the Internet era, and even catch up from behind the corner overtaking possibilities for Airlines Express Logistics Market space.

Air freight to express the development will be the most natural extension, FedEx is an extension of air freight to express, and UPS is from the courier company to the airline's counter attack". Domestic private courier companies basically go from the courier company to the airline's road, which is mainly due to the high threshold of the establishment of airlines. The courier company after the expansion of the scale, it will seek to transition to the airline, and in order to open the gap with peers. Express company in the country to carry out business, especially in international business can not do without the support of airlines. Therefore, the courier industry and air cargo industry is a natural twin brothers, can be extended to each other, there is no threshold can not be crossed.

From the practical point of view, express is the main form of the air cargo industry, more than 60% for the express carrier express, ranking second in the mail (about 20%), the sum of the two, it accounted for 80% of the express。 China is also undergoing such changes, express logistics industry in the proportion of air cargo industry will be growing, China's air cargo industry to adapt to this development, as soon as possible to express logistics industry transformation and upgrading


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