Intra-Asia growth altering networks: AAPA
Intra-Asia cargo flows of which Asia is the end-market are growing to the extent that it is causing a shift in the structure of networks, as well as fueling growing investment in ground-based logistics across the region, according to Andrew Herdman, director general of the Association of Asia Pacific Airlines (AAPA). Donald Urquhart reports from Tokyo.
December 15, 2014
As the global air cargo market continues to make a slow recovery marked by uneven demand around the world, one bright spot is the growing intra-Asia trade. “The pattern is, US demand is relatively robust while European demand is not so good, but intra-Asia inflows both for component manufacturing, assembly, production purposes are quite robust. But the thing people tend to overlook is a lot of consumers live in Asia,” Herdman emphasised, speaking at a press briefing at the conclusion of AAPA’s 58th Assembly of Presidents, in Tokyo.
“The volume of the intra-Asia cargo flows are not just on the way to Europe or America, they are now to the endmarkets in Asia and that’s causing some shift in the structure of the networks and particularly what’s happening on the ground we’re seeing massive investments in logistics to get products to the market and the markets are now here, as well as traditional importers in North America and Europe.”
He added that in the developed countries across Asia, such as Japan, Taiwan, South Korea, Hong Kong, Singapore, a well-developed logistics industry has been in place for quite some time, “but if you look at China compared to 10 years ago, there has been a rapid transformation of road networks, warehousing and overall logistics sophistication across the country and that needs to be repeated in other countries elsewhere in Asia because the consumers of there,” he says.