Air cargo carriers

Freightos’ public listing on the NASDAQ will be the first test of how public investors value one of the more prominent logistics technology companies to emerge over the past decade.

Whereas a shortage of capacity in major trades was the chief issue for air cargo providers over the past two years, the greatest challenge in 2023 will be a lack of demand.

The weakness in Asia’s air freight export markets continued through the traditionally strong month of November, with little prospect of an end-of-year boost in demand.

The expanding platform provided by shippers seeking green transport has allowed Maersk to ramp up its ocean sustainability efforts, with greening landside logistics the next target.

Growing uncertainty over demand levels and falling rates is making longer-term traditional air freight block space agreements unattractive.

Cementing access to controlled air freight capacity is behind MSC’s move to join peers CMA CGM and Maersk in launching an air cargo division.

China’s rolling COVID-19 lockdowns and significant disruption linked to Russia’s invasion of Ukraine have left the global air freight market to face a difficult second half of the year.

Air cargo capacity is flooding back into the trans-Atlantic market via below deck belly space as travel increases and airlines ramp up their summer schedules.

If the offer by MSC and Lufthansa for ITA is successful, it will provide the ocean carrier with access to significant air freight capacity.

In just 18 months, CMA CGM has gone from providing air cargo as part of its CEVA Logistics suite of services to becoming a major player in the global air freight market.

Shippers of time-sensitive goods on the North Europe-North America trade are increasingly being forced into the air as rising congestion on the US East Coast extends vessel delays.

Bonded trucking services in and out of Shanghai’s Pudong have been suspended and most flights have been canceled, bringing operations at China’s busiest cargo airport to a standstill.

The ever-widening effects of Russia’s war on Ukraine and China’s COVID-19 lockdowns are placing mounting pressure on an already stressed air cargo sector.

Growing demand for e-commerce is behind forwarder moves to lock in controlled air freight capacity on Asia-US routes, with a particular focus on Vietnam.

An update to new COVID-19 quarantine rules in Hong Kong has prompted Cathay Pacific to halted long-haul freight flights, potentially exacerbating a supply crunch ahead of the Lunar New Year peak.

Toughening Hong Kong’s quarantine requirement for air cargo pilots would severely disrupt airfreight operations during peak air cargo season and ahead of China’s Lunar New Year holiday.

An electronic connection between CargoWise and Singapore Airlines is another sign that digital management of bookings and shipment modifications is gaining momentum in the air cargo market.

The bottlenecks that have frustrated ocean shippers all year have spread to air cargo, pushing up rates to stratospheric levels and delaying shipments.

International air freight and last-mile delivery saw the fastest revenue growth in the transportation sector last year, while industrial transportation suffered.

Global air cargo volumes in August and September were up just 1 percent compared to the same months in 2019, but the shortage of capacity has shippers fighting to secure capacity ahead of holiday season.