A Crucial Role of Airfreight in International Trade - Case Study Example

Airfreight plays a crucial role in international trade and is significant in the global economy. Airfreight facilitates thirty-five percent of all international transportation based on value. Aviation logistics have, therefore, become an important part of the global logistics system and have even been established in the production chain of transport firms. On the other hand, airfreight is a fiercely contested field by airlines and other modes of transportation. The situation is complicated further by high fuel costs and customer demand.

Airfreight companies are forced to come up with new strategies to lower costs, expand the client base and improve efficiency. Many of these airfreight firms are turning to specialization, i.e. transporting heavy and oversized cargo. The pioneer and leader of specialized air freight operations are Volga-Dnepr, a Russian airfreight company (Europeanbusinessreview.com, 2012). One of the strategies that the company has employed to lead in this field is a thorough marketing campaign on the international market.

They have also come up with a system of transporting different goods, and this has given the market a unique market product. Some of the unique products include; eighty-one-ton coca-cola bottling equipment, heavy chemical reactors, oil and gas equipment, and concert equipment for music artists. The unique opportunity enabled the company to obtain many international clients who provide Volga-Dnepr with ninety percent of its income (Europeanbusinessreview.com, 2012). The specialization strategy is the primary factor that has led the company to grow.

Volga-Dnepr saw a problem and they came up with strategies to solve it. They have also embraced technology with the acquisition of new aircraft and adding more to their freight. These are commendable policies and it is clear that Volga-Dnepr will continue to grow.