Consultant Olivier Bijaoui of OB Invest recently stated at the Aviation Connect event in Athens that the continued consolidation of the air cargo handling market, which has seen many independent handlers merge or be acquired between 2000 and 2020, could eventually harm airlines. While carriers have benefited from this trend in the short term, the reduced number of players in the handling sector may lead to less competitive pricing and service options.
For freight forwarders and operations managers, this trend could translate into fewer choices for ground handling services at key airports, potentially leading to increased costs or reduced flexibility in handling cargo. As handlers gain more market power, airlines might face less favorable contract terms, which could then be passed on to shippers through higher airfreight rates or slower service levels. Monitoring handler performance and negotiating service level agreements will become increasingly important.
