Air Cargo Forwarder News

But rising air cargo rates on the major Asian export trade lanes do not portend a peak season this year with analysts pointing to poor economic conditions exerting strong downward pressure on consumers in the US and Europe.

A month ago, no one was predicting a peak season for air cargo on the trans-Pacific, but finding space from China to the US has become difficult as e-commerce demand heats up.

Shipments are getting smaller over time, driven in part by e-commerce growth, but also by a market that is disentangling cargo previously handled through air or ocean consolidation.

Rising airline costs and increasing air cargo demand over the last three months have largely insulated rate levels against a steady and significant increase in available air freight capacity.

Richard White said in an interview with the Journal of Commerce the logistics industry is stuck in a pattern of tackling small problems instead of viewing international trade as a large, connected system.

A widening imbalance between available air freight capacity and demand has dragged global rates to their lowest level since the start of the pandemic, with no signs of volumes improving on key outbound routes from Asia.

A difference of opinion over Flexport’s strategic shift toward fulfillment aimed at small businesses has prompted CEO Dave Clark to depart the company only a year after he came aboard.

The German-based forwarder remains the largest and most attractive takeover target in a cash-rich industry where the main players are all looking for opportunities to consolidate.

Two weeks after Forward Air acquired forwarder Omni Logistics, a private investment fund has taken over expedited third-party logistics provider Ascent Global Logistics.

Shippers and forwarders recently surveyed by Freightos believe artificial intelligence will reduce headcounts in the logistics industry, even if they have yet to figure out how best to use the still-emerging technology.

Air cargo capacity continues to grow through the summer, outpacing weak demand from major destination markets with no sign yet of any turnaround.

A challenging operating environment pulled down revenue and earnings at DHL, but the Germany-based integrator remains in a highly profitable position ahead of an uncertain second half.

Forwarders in 2021 signed long-term air cargo charters to meet rising demand for air freight resulting from an overheated ocean market, and some of those charter deals are still in place despite a widespread demand slowdown.

The decision by DSV and Kuehne + Nagel to protect yields at the expense of volume is allowing the forwarders to move into an uncertain second half in a solidly profitable position.

The CEOs of DSV and Kuehne + Nagel, shrugging off heavily distorted year-over-year comparisons, described their second-quarter results as “solid” and reflective of the evolving normalization of the air and ocean markets.

The 123,000-square-foot warehouse will also serve as a forward staging area for the carrier’s South Carolina-based flight operations that link the southeast US to Germany, China and South Korea.

Weak demand from key regions in an air freight industry awash with excess capacity is forcing forwarders with block space agreements to fend off aggressive pricing policies by rivals.

There is little demand to be seen in air cargo routes out of Asia, but the aggressive expansion of Maersk Air Cargo connections to the US and Europe points to strong interest from the carrier’s existing customers.

The airline industry has performed better than expected so far this year, with the International Air Transport Association providing a surprisingly sunny financial outlook for an industry with a forecasted profit margin of just 1.2%.

Air cargo carriers are set for a bleak few months, with high inventory levels and economic issues in destination markets further dampening the traditionally slow summer season.

There are few signs of improvement in demand for air freight on major trade lanes out of Asia, while a steady increase in below-deck belly capacity is adding to the downward pressure on rate levels.

Steadily increasing volume on trans-Atlantic air freight routes ended in March as demand growth slowed for the first time in two years.

The 10-year partnership between Air France-KLM and CMA CGM will dramatically expand the available air cargo capacity and global network of the France-based fleet.

Historic highs in global freight volumes and rates in the first half of last year helped insulate third-party logistics providers (3PLs) from a market collapse in the second half.

Forwarders that experimented with new software during the days of robust freight demand now face a dilemma over what technology produces actual returns on investment as volumes and margin shrink.

German unions demanding inflation-busting wage increases walked off the job Monday, bringing the country’s transport system to a halt.

In addition to long-haul passenger aircraft with significant belly freight capacity coming back into service to capture growing travel business, several airlines are adding freighters to the major trade lanes.

Freight rate booking marketplace Freightos said its unprofitable business is seeing improving margins and that scale will help it past the breakeven point.

The post-pandemic recovery of China’s economy following the lifting of restrictions late last year is sparking increasingly optimistic expectations for the air cargo market in 2023 despite a challenging start to the year.

Denmark’s DSV collected record profits for 2022, but the forwarder says a return to a more “normal” market has begun.

The traditional air cargo market slowdown has been exaggerated by an early start to the Lunar New Year and an unfavorable comparison with last year’s robust peak season.

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.

The need for forwarders to tether quoting and tracking in international freight modes to US surface modes has been highlighted by new offerings from ECU Worldwide and Freightos.

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.

Dismal November air cargo data has all but assured a weak end to 2022 with no sign of a seasonal uplift in demand or rate levels from an oversupplied market.

Forwarder Kuehne + Nagel is receiving new freighter capacity as global demand wanes and rate levels tumble through a non-existent peak season.

Soaring online orders for electronics and mobility devices are flooding the US postal services with undeclared lithium-ion batteries, posing a growing threat to the transport supply chain.

The global air cargo industry is flying into bracing headwinds, but airline CEOs remain largely positive that demand will return early next year.

There is no sign of an air cargo peak season this year and few signals that 2023 will see any improvement as global economic conditions worsen.

The world’s long-haul airlines are celebrating a steady return of passenger traffic, but as planes fill with travelers, weakening freight demand means carriers are struggling to fill the surplus cargo capacity below their feet.