Air Freight Outlook

Air Cargo Logistics plays a vital role in the economic development of our nation. After continued good prospects on their seaborne business, Ocean carriers are now flying high. The top 3 container shipping lines in the world accounting to 58% of global ocean capacity are also going to compete in the skies. The year 2022 has seen the world’s largest shipping lines invest in air cargo operations.

MSC Air Cargo has partnered with Atlas Air for movements to and fro European hub. Their routes for flying are between China, US, Mexico and Europe. The aircraft operates with four rotations per week via Liege, connecting Mexico City and US airport Indianapolis with the Belgian hub. Additionally, an around-the-world services will be operated via Liege.

These routes are dedicated to pharmaceutical products, perishable goods and high-value cargo. Three additional aircrafts (B777-200Fs) are due to be delivered in 2023.

Maersk Air Cargo is in the process of launching freighter operations and has ordered two new Freighters(B777) to be delivered in 2024 and leased three Freighters (B767-300 ) which will be operational in 2024 through Cargo Aircraft Management, the leasing arm of ATSG (Air Transport Services Group Inc.) B767 Freighters will be operated for the Danish shipping by Ameri jet.

CMA CGM is also entering air cargo and has ordered a series of freighters, and has also formed a partnership with Air France KLM.

Challenging Market Ahead

A few interesting factors have been occurring in the Air cargo industry as volumes have been decreasing since the first half of 2022, while capacity continues to evolve, and rates have remained above pre-Covid levels despite recent declines.

The fall in volumes reflects high inflation that is affecting consumer spending, the ongoing war in Ukraine’s effect on trade flows, uncertainties around China’s re-opening and the situation around Russia.

Looking ahead, IATA has predicted a 4.3% decline in air cargo volumes this year to 57.7m tonnes and yields are expected to decline by around 22%.

There might be nuances in some markets, but at least for the first half of 2023, Air Cargo Industry does not expect an upswing in demand.

Record-setting inflation, the Russian invasion of Ukraine, sporadic Covid lockdowns and high fuel prices as factors that will affect the market.

Source: Air Cargo News