Spot pricing will dominate air cargo bookings as digitisation continues to drive market change, says the boss of an industry software company.
Awery Aviation Software chief executive Vitaly Smilianets (pictured, right, with chief commercial officer, Tristan Koch) told delegates at the CNS Partnership Conference in Phoenix, Arizona that fixed rate booking would not make a comeback in the short term.
He said that fundamental change in the air cargo booking process accelerated by Covid is here to stay due to the uptake of digitisation.
He said: “A side effect of the COVID pandemic was a fundamental shift away from long term contracted rates over to spot booking as capacity shrunk and demand increased,” said Smilianets.
“At the same time, the uptake of digitisation by airlines introduced huge efficiencies making pricing quicker and more responsive. Because of this, we anticipate that even as air cargo capacity increases, either through increased passenger flights or investment in freighters, the airlines won’t return to fixed rates.”
He added: “The airlines have done a fantastic job in adapting to new processes, embracing digitisation to adapt to the changing business landscape. By adopting digitisation, the industry is building business resilience and future proofing against the next challenge.”