More pain predicted before market recovers

Asia - The Asia air cargo market is likely to undergo more pain in the next 2 months before the upswing comes again, predicts an Emirates executive.

"While there will be a bit more pain in the next one or one and a half months, there should be some stability coming into the air cargo market in the first quarter of the year," Ram Menen, divisional SVP of cargo at Emirates told ProcurementAsia magazine.

Menen said the company had a positive outlook on the air cargo industry in Asia, and maintains that the air cargo industry will come out of its slump, backed by governments' collective effort to alleviate tight credit situations worldwide.

"The reason why we are more confident of the industry is the fact that all the governments are now working together. We now have the best minds working together to find a solution," he says.

In addition, the Asian economy is expected to continue to be the manufacturing base for most global companies, and this will have a positive impact on logistics players here.

"The growing Asia economy will create a new consumer market," Menen said. "We will begin to see a lot more intra-Asia business over the next few years.

Menen however, tips companies looking to bring themselves out of the slump to pay close attention to their time to market.

"As we come out of the deterioating economic situation, demand is going to be sporadic. The question of how quickly you will get to the market will dictate whether you're successful or not."