Question

The COVID-19 pandemic has resulted in falling global gross domestic product (GDP) levels, mass unemployment and air freight volume plunging by almost 28% year on year in April 2020 according to the International Air Transport Association (IATA).

While lockdowns and travel restrictions due to COVID-19 have resulted in the loss of passengers from the skies, air cargo demand,particularly for personal protective equipment (PPE), has been racing ahead of capacity. The absence of passenger aircraft, that carries half of all cargo in the belly hold of passenger aircraft, has fuelled demand for freighter aircraft to meet this capacity.

1. Discuss the prospects for air cargo growth post COVID-19 when passenger aircraft are once again flying high volumes of passengers internationally. Include examples of products that are likely to remain unaffected by external environmental factors such as an economic downturn and the reasons why this might be the case

Please provide some referenes also

Answer 1

1. The air cargo growth post-COVID-19 would rise but gradually. Initially, the products that are much needed would be transferred. For example, during the pandemic, face masks saw a surge of 235,000 tonnes as compared to last year. The same is for medical gowns and gloves. However, automotive, raw material, fashion goods saw around 30% and more dip.
Thus, it can be seen that post-pandemic, the essentials like medical equipment would still stay in relevance and may also include chemicals or vaccines for COVID-19.
Other than that, specialized disinfectants for factories, hospitals, offices may see a surge post-pandemic.
On the other hand, for some time, the demand for luxury clothes or goods would remain low and so would be its transfer but automotive parts transfer may see an increase as it has been suppressed to great limits. With most parts and assembling still outsourced to different parts of the world, there would be an increase post the lockdown.
Thus, once passengers start to fly internationally, the surge in air cargo can be observed.
The products initially would be related to medical, hygiene equipment, and later we can parts and cars assembling can also be seen in work.
This would also remain unaffected from the economic downturn, as they are the essentials and would help protect against the virus.

Source - COVID-19: Impact on air cargo capacity (2020), Accenture