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Liberalisation of air cargo industry

October 9, 20190Air CargoTrucking

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Liberalisation of air cargo industry

October 9, 2019 0Air CargoTrucking

Air cargo services have become increasingly important in economic development and world trade. According to corroborating sources, in 2021, the total goods carried worldwide by air represent about 2 per cent of global trade by volume, but around 40 per cent by value. A majority of high-value goods rely on transport by air. Forecasts suggest that over the next 20 years, the global air cargo market will expand at an annual rate of 5.2 per cent, reflecting increased trade through liberalization of markets.

In the past two decades, international air cargo services have benefited from an increasing number of liberalized agreements. For example, as at the end of October 2012, of the 400 plus open skies agreements concluded by States, more than 100 granted Seventh freedom for air cargo or all cargo services, thus providing greater opportunity for the growth of such services. International Civil Aviation Organization WORKING PAPER ATConf/6-WP/14 13/12/12 ATConf/6-WP/14 – 2 – 1.3 Nevertheless, air cargo operators continue to face many constraints, including limited freedoms under a large number of traditional agreements, a regime focused mainly on passenger services and combination services. They also have to contend with operational restrictions, such as night curfews, limited ground-handling rights, and burdensome customs requirements. Given the “one-way” directional nature of air cargo traffic and the emergence of a number of truly global operators in the express delivery sector with hubs in different countries, it has become more evident that the continuation of such restrictions can no longer meet the needs of the air cargo industry and its customers in a globalized market. The industry therefore calls for recognition of the important role and distinct features of air cargo operations, and for more commercial freedom and business oriented treatment.


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