Top 6 Challenges of Air Cargo in Canada

Air cargo is a major transportation mode for goods around the world, and it’s also a key part of Canada’s economy. However, air cargo can pose a number of challenges that businesses must be aware of.

Despite the challenges that air cargo faces in Canada, there are plenty of opportunities for businesses to succeed. By understanding these challenges and seizing the opportunities, businesses can achieve success in Canada’s air cargo market. Although Canada is known for its stunning landscapes and friendly people, it is also home to some of the world’s most challenging air cargo environments.

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Today, I will be discussing the Top 6 Challenges of Air Cargo in Canada that you should know about. We can then use this knowledge to help us understand where we need to focus our efforts and create strategies to overcome any obstacles that may arise.

Lack of Infrastructure

• There is very limited infrastructure available for air cargo in Canada. This limits the number of flights that can take off and land at an airport. The limited availability of space at airports can make it hard for airlines to expand their operations. This can limit the amount of cargo that can be moved through Canada’s airports. It can also increase the time needed to get your goods to their destination.
• Air cargo in Canada is heavily reliant on the country’s limited infrastructure. This is due to the fact that Canada is a sparsely populated country, which makes it difficult to build new airports or expansions existing ones. Canada’s air cargo infrastructure is aging, and as the country’s economy grows, there is not enough room to expand the capacity of existing airports. This can lead to delays and higher costs.
• Due to the fact that Canada has a smaller population than many other countries, there are simply not as many airports as there are in countries such as the United States. This has resulted in increased fees and longer wait times at the busiest airports.
• Canada’s road network is relatively limited, which has made it difficult for air cargo carriers to move goods between different parts of the country.
• There is a limited capacity due to limited infrastructure, which means that there’s often not enough capacity to transport your goods. This can lead to long delays and increased costs.
• The transportation infrastructure in Canada can also be a challenge for air cargo. This is especially true in rural areas, where there are often limited options for transporting goods.
• Canada has a limited amount of space to store temperature-controlled cargo, which can lead to delays and higher costs. For example, cargo that needs to be refrigerated can be difficult to store.

Limited Capacity

• One of the challenges facing air cargo in Canada is the limited capacity for processing and handling air cargo. This means that the facilities available are often not able to handle the large volumes of air cargo that are required. This includes the time it takes offloading cargo from plans and delivery to customers in a timely manner.
• Another challenge facing the air cargo industry in Canada is the limited capacity. This means that there are not a lot of airports available to store and transport air cargo, and the available facilities are often very congested.
• There isn’t enough air cargo capacity in Canada because not enough flights go to every airport in Canada. Most of the flights operate between Toronto, Montreal, Calgary and Edmonton, and Vancouver. The industry is struggling to meet the increasing demands for air freight service. Many airports don’t have enough air cargo space to handle large shipments of goods, which creates challenges for companies that want to ship large amounts of products between cities. Air cargo demand has continued to grow rapidly. This growth is driven by several factors including population growth, economic development, globalization, and technological advancements. Due to limited air capacity and unreliable trucking services in Canada, cargo transportation has become difficult for companies.

Increased Competition

• Air cargo operators face challenges turning a reasonable return on investment into profits due to increased competition. Many companies lose money because of high fixed costs (such as equipment depreciation) and low variable costs (like fuel). Operating in the air cargo industry requires significant investment. Companies need to invest in their infra­structure, which includes equipment, warehouses, and loading dock facilities. They must also train their staff well, but because their profits are so low, they cannot afford to invest in infrastructure and staff development.
• Although Canada’s air cargo rates are higher than those in many other countries, they are still well below those in developed countries. This means that air cargo carriers must charge more to cover the costs of operating their businesses.
• Despite this limitation, the increased competition has forced businesses to find new and innovative ways to move goods. This has led to challenges for goods transportation, as goods that would traditionally be shipped by air are now being transported by land or sea.
• Another constraint on air cargo in Canada is competition from road transport within Canada, the USA, and Mexico. While air cargo is important for moving goods between cities, it is not always the most cost-effective option.

Weather Conditions

• Air cargo industry in Canada faces many challenges when transporting goods across the country. Weather conditions in Canada can be quite unpredictable and cause significant delays and cancellations during bad weather. Weather conditions play a huge role in determining whether or not air cargo shipments can be made safely and on time. Transportation routes also affect during bad and freezing weather, which can lead to delays and damaged goods. This can have a negative impact on air cargo shipments and cause a loss of revenue for the air cargo industry, which includes carriers, customers, and the general public. The weather affects everything from aircraft performance to fuel consumption to visibility.
• This cold climate makes it very important for air cargo companies to be prepared for extreme weather conditions. When shipping goods through Canada, air cargo companies take precautions against extreme temperature fluctuations. These include making sure your goods arrive at their destination without damage, storing them properly, preparing them correctly for shipping, and making sure they get there safely. These additional precautions are time-consuming and add to the costs of shipping goods into and out of Canada.
• When shipping air cargo, weather conditions include temperature, humidity, precipitation, wind speed, and visibility. These factors affect the safety of the flight, the fuel efficiency of the aircraft, and the cargo payload. Less cargo payload means loss of revenue to the airline and service failure due to cargo offloads.
• Another challenge is that Canadian cities tend to be spread out. The lack of infrastructure and smaller planes on domestic routes means that it’s harder for airlines to move shipments to and from their offline points quickly between different locations. To overcome this problem, air cargo companies often use large trucks. However, trucking isn’t cheap due to costs associated with fuel, maintenance, insurance, and drivers’ salaries. This causes the shipping time to increase and the cost of the shipment to rise.

Low growth rate and Lack of Customers

• Cargo industry often struggles to grow their business because they’re faced with many challenges. One challenge is that air cargo companies often lack customers. This means there isn’t enough demand for space on specific days for example Mondays and Tuesdays are the lightest for cargo exports or times of the day when the flights depart in the mornings or afternoons. Therefore, not enough revenue to invest in growing the business. Another challenge is that freight rates are highly volatile, which makes it difficult to predict future revenue. Air cargo companies are also often seen as slow-moving and unable to adapt to changing market conditions. These perceptions limit their ability to attract investors.
• Due to Canada’s lack of population, there is a lack of demand for air cargo services. This means carriers must compete with other modes of transportation, such as sea, road, and rail, to attract customers.
• Canada’s limited supply chains have made it difficult for air cargo carriers to find the materials they need to operate their businesses.

High Costs

• Canada’s airports are among the world’s busiest, and this high demand and limited infrastructure available for air cargo have resulted in some of the world’s most expensive air cargo facilities. This can limit the amount of cargo that can be moved through Canada’s airports. It can also increase transportation costs and increase transit times between shipping and delivery of products.
• The high transportation costs associated with moving goods between Canada’s airports and its major cities have been a major challenge for air cargo carriers.
• Canada has some of the highest tariffs in the world, which makes importing and exporting goods expensive. This also makes businesses compete with other countries. This can lead to missed opportunities and increased costs.
• Canada’s high costs of doing business can be a major challenge for air cargo carriers. This includes not only the cost of fuel but also the cost of labor and other expenses.
• Another major challenge air cargo faces in Canada is its geographical limitations. Canada is a large country, but it is relatively sparsely populated. This means that air cargo must rely on limited transport links to get goods to and from the airport. This can lead to congestion. long delays and a higher cost.

Conclusion

Air cargo in Canada is a challenging business, but with the right planning and strategies, carriers can overcome these challenges and better serve their customers. These are just a few of the top air cargo challenges in Canada that you should be aware of. By being aware of these challenges, you can ensure that your business can successfully transport goods to and from Canada.

Mohammad Z

Read moreAir Freight and Cargo Market Size Forecast to 2030

I am an air cargo professional with over 35 years of experience in the air cargo industry. My major experience lies in strategizing and leading cross-functional teams to bring about fundamental change and improvement in strategy, process, and profitability using my high-level IT skills. The following are the key areas where I can contribute:
• Sales Management and Business Development: Lead generation, lead nurturing, pipeline management, identifying potential business partners and prospects, generating and building strong relationships, account planning, contract negotiation, proposal writing, presentation skills, follow-up, closing new accounts, and maintaining existing partnerships.
• Customer Service: Provide excellent customer service by listening to clients’ concerns, understanding their pain points, and then providing solutions to help them achieve their desired outcomes.
• Marketing: Develop and implement effective advertising, marketing, and promotional programs to generate interest in products/services to drive revenue growth.
• Training and Development: Designing coaching and educational strategies for internal and external customers.
• Technology: Having vast technical knowledge including computer skills, and experience using various desktop and online software as services, I can use these skills to improve the user experience and meet the needs of both employees and clients.
• Project management: Plan and manage projects from concept to completion, coordinate, deliver projects effectively, and develop opportunities that further establish organizational goals.
• Management: Work closely with the senior management team to develop and execute strategic plans and initiatives to ensure the success of the team and organization.
My experience has been working with the following airlines:
• Working directly with: British Airways, Kuwait Airways, Lufthansa Cargo and FedEx
• Working as their Cargo General Sales Agent for a country, multi countries and at a worldwide representation level with Aeroflot Russian Airlines, Aerosovit Ukrainian Airlines, AeroUnion Cargo Airlines, Air Asia, Air Bridge Cargo, Air Cargo Germany, Air Jamaica Cargo, Air New Zealand, Air Serbia, Allied Air Cargo, Asiana Airlines, Avianca Cargo, Cargoitalia, Continental Airlines, Coyne Airways, Das Air Cargo, Etihad Airways, Finnair, Hainan Airlines, Jet Airways, Martinair, Norwegian Air, Olympic Airways, Philippine Airlines, Polar Air, Singapore Airlines, Skyservice Airlines, Sunwing Airlines, Thai Airways, Thomas Cooks, Tunisair, United Airlines Cargo and Zoom Airlines.