Positive developments in China’s export space are raising expectations that the recent strong performance of air and ocean cargo volumes will extend into a solid peak season.
TNT Express today posted improved second-quarter results, driven by an ongoing restructuring program, cost cuts and a continued recovery at its previously loss-making Brazilian business.
The International Longshore and Warehouse Union and the Pacific Maritime Association met for three days this past week without concluding negotiations; at the weekend, the parties announced a week-long recess in the talks. German carrier Hamburg Süd announced plans to acquire the container operations of Chile’s CCNI, in a move resembling the deal between larger competitor Hapag-Lloyd and Chile’s CSAV, and Crowley is reported to be in talks to acquire Horizon Lines’ Puerto Rico assets. Earnings reports by U.S. truckload carriers are pointing to a stronger freight recovery in the United States, though rail service continues to be held back. And on Friday, Anne S. Ferro announced her departure from the Federal Motor Carrier Safety Administration after five years leading the agency.
Inadequate airspace capacity for civil air traffic, rapid growth of the Chinese aviation industry, capacity constraints at airports, and rigid operating regulations add up to congestion and delays for carriers serving the mainland’s busy cargo gateways, according to the International Air Transport Association (IATA).
Air France-KLM today said it is weighing a partnership or restructuring of its freighter business after booking cargo losses and charges of $205 million in the second quarter, but stressed it will remain a major player in the air freight market.
Airline CFOs and heads of cargo are broadly positive about the outlook for the air freight industry and expect profitability to improve, according to IATA’s latest quarterly business confidence.
The recent recovery in China’s air cargo exports could stall this month as flight cancellations and lengthy delays hit airports across China’s eastern seaboard where suspected military drills are wreaking havoc on commercial air space that is already in short supply.
The air freight market out of Asia is taking off, with solid figures reported by terminals, carriers, forwarders and the semiconductor industry, which plays a significant role in driving air cargo growth.
Air France-KLM, Europe’s largest cargo airline by revenue, is about to reveal whether it plans to shed its dedicated freighter fleet.
The U.S. government “could add meaningful costs and delays to an already overburdened U.S. transportation network” if FedEx and other carriers are forced to stringently examine or refuse packages on the grounds they may contain illegal goods, a Wall Street analyst warns.