increase is the cost of rent for warehouses that the carrier has leased in many

Increase is the cost of rent for warehouses that the

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increase is the cost of rent for warehouses that the carrier has leased in many of its destinations. Cathay Pacific Cargo has been deriving much of its business opportunities from the Pearl River Delta in China. However, there has been a shift of this labour-intensive production region to mid-west China. Also, other manufacturing plants in China are moving to countries in the Association of South East Asian Nations like Indonesia. Consequently, export volumes are declining hence the demand for cargo carriers is shrinking. Companies are opting to produce locally rather than offshore. Domestic production reduces business for cargo carriers since only the finished product is flown while before there was the business to fly raw materials (Cathay Pacific Airline, 2017). Cathay Pacific Cargo has been on the frontline in the cargo industry ranking top five globally in 2016. Despite this, the carrier has been facing intense competition from arch rivals mostly the Chinese and Middle East carriers. A rise in the number of carriers who significantly increased capacity in the industry has adversely affected the company's performance (Cathay Pacific Airline, 2017).
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CATHAY PACIFIC CARGO 7 Conclusion Cathay Pacific Cargo Limited is no doubt a leading cargo carrier in Asia operating in over 46 destinations. The carrier has embraced technology by designing a variety of products to meet the demand for its various clients in the newly constructed state of the art cargo terminal. Its business partnerships have opened new markets and increased its customer base. The challenges the carrier is facing can be solved by reviewing its strategies on hedging, increasing its efficiency and value added services, expanding current networks, fleet modernisation and continuous rewarding of staff. To maintain the quality of products the carrier requires to continue making long-term investments strategically.
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CATHAY PACIFIC CARGO 8 References Airlines box. (2017). Top 10 cargo airlines in the world. Retrieved from Cathay Pacific Airline. (2017). History of Cathay Pacific Airways. Retrieved from Cathay Pacific Cargo. (2017). Products and services. Retrieved from Cathy Pacific. (2017). Cathy Pacific Airways Limited 2016 annual results. Retrieved from Morrell, P. S. (2011). Moving boxes by air: the economics of international air cargo . New York: Routledge Taylor & Francis Group. Plunkett, J. W. (2009). Plunkett transportation, supply chain & logistics industry . Houston: Plunkett Researchers Limited. Zellan, J. (2003). Aviation security: current issues and developments . New York: Nova Science Publishers.
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  • Spring '14
  • Carro,DanJ.
  • Cathay Pacific, Cathay Pacific Airline, Cathay Pacific Cargo

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