In an increasingly competitive air transport market, major carriers are turning to direct cargo sales as a strategy to improve profitability. As cost pressures mount, airlines including Air China, China Southern, China Eastern, and Hainan Airlines are actively exploring this business model, which industry observers identify as a key future direction for air freight—though its immediate impact on traditional freight forwarders appears limited.
The aviation sector faces severe profit challenges, with cargo operations generating razor-thin margins. In some cases, air freight costs have fallen below those of road and rail transport. This price erosion stems from intense competition, where carriers slash rates to attract customers—a practice that has triggered widespread price wars across the industry.
Okai Airlines' cargo division head revealed that current market conditions have driven freight profits to historic lows, compelling carriers to pivot toward direct sales models. By establishing direct client relationships, airlines aim to capture greater revenue while bypassing intermediary costs.
However, industry experts note that freight forwarders remain largely insulated from immediate disruption. Decades of reliance on third-party logistics providers have left airlines with limited direct customer access, as forwarders control the majority of client relationships.
The competitive landscape presents dual challenges for carriers: they must contend with rival airlines while simultaneously vying against established forwarders. Smaller freight forwarders—whose client bases prove more volatile—face particular vulnerability to customer poaching by airlines implementing direct sales strategies.
Wang, Secretary-General of a major logistics association, observed that large forwarders maintain strong market influence through protected client networks, rendering them relatively immune to direct sales encroachment. Conversely, smaller operators must forge alliances with industry leaders to secure favorable pricing and operational stability in this evolving marketplace.
This industry-wide shift toward direct cargo sales signals profound transformation in air freight dynamics. Forwarders must proactively adapt through innovation and strategic partnerships to maintain competitiveness. As the sector continues to evolve, market participants and observers alike will monitor how these changes reshape global air cargo distribution.
