CREATING SMOOTH CONNECTIONS ACROSS THE GLOBE

WITH 300 destinations across 120 countries, Air France KLM Martinair Cargo (AFKLMP) operates one of the most extensive flight networks in the world. Alongside an expansive network, as an experienced carrier, AFKLMP Cargo understands the importance of working to tailor services to the specific logistical needs of their customers.

With hubs at Paris Charles de Gaulle (CDG) and Amsterdam Airport Schiphol (AMS), AFKLMP offers two prime locations in Europe to connect customers to the destinations their network, combined with strong partnerships, serves globally, whether what needs to be handled is general or specialised cargo. Through these sites and the combination of full freighter aircraft, prepared to move a variety of cargo, with belly capacity on their fleet of long and medium haul aircraft, AFKLMP guarantees widespread and reliable coverage, ensuring seamless connections and extensive shipping solutions.

Overcoming international hurdles

Unfortunately, as is the case for the entire airfreight sector, and other industries around the globe, AFKLMP has been impacted by the economic slowdown that has been seen since Q4 2022. The situation has been driven by changes in distribution strategies that resulted in higher inventory levels, affecting historical distribution patterns. Additionally, geopolitical events in Ukraine and consequent inflation and interest rate increases have also impacted demand.

The ramp-up of China, after a long period of Covid-19 restrictions, is relatively slow as well. These factors have resulted in an overall decrease in demand compared to last year. At this stage AFKLMP does see global impact. Although, there are still a few regions like Africa and specific commodities where we still see relatively positive developments.

“Our product mix helps mitigate supply and demand changes. Based on market intelligence and customer feedback, we expect that demand will show a more positive dynamic in the fourth quarter of this year. Therefore, it’s essential to stay close to our customers, be agile, and continuously adapt to market dynamics,” GertJan Roelands, AFKLMP’s Senior Vice President Commercial, said.

“We are observing various supply and demand dynamics driven by factors such as the geopolitical situation, high inflation in some parts of the world affecting consumer demand, high inventory levels, and slow production ramp-up in China after lifting most of the covid restrictions. However, we also see some positive indications of increased demand from Summer towards Q4. Additionally, segments such as Pharma and Healthcare and the Perishable industry continue to perform strongly, making them crucial parts of AFKLMP’s overall mix. Given the market’s relative uncertainty, it’s crucial for us to remain agile and maintain close customer relationships.”

Bolstering their offering

With the global economic situation presenting unavoidable challenges for companies, it has never been more important for carriers to ensure the services they provide are top tier. That’s why AFKLMP has been placing a clear emphasis on specialised products that demand extra attention and a high level of expertise.

AFKLMP’s Product & Verticals organisation consists of dedicated teams covering specific products, such as pharma, fresh, express and more. These teams work diligently to enhance their offerings and meet the expectations of their customers, recognising that continuous dialogue with clients, forwarders, shippers and key stakeholders in the supply chain is crucial to understand their needs and co-create products.

“We have identified five key products within our Verticals division: Fresh, Pharma, Express, Live, and Secure. For Fresh and Pharma, we have further subdivided them into four segments based on the required temperature range, including an option for active temperature control,” Roeland explained.

In addition to these five main products, AFKLMP also has other offerings available for niche markets, such as Art, Aircraft on Ground (AOG), Big, and Wheels, among others. Another crucially growing sector is dangerous goods, which can be booked as general cargo or