Air Cargo Forwarder News

More than 70% of air cargo space controlled by Kuehne + Nagel subsidiary Apex has been presold for the third and fourth quarters.

Jens Lund believes the supply and demand balance on the major trade lanes is being restored as front-loaded shipments make their way through the supply chain.

Kuehne + Nagel’s Stefan Paul presented a sunny outlook for the rest of the year, saying he expects strengthening air and ocean yields to turn around declines reported across most of the forwarder’s financial metrics in the first half.

The carrier wants a third of its air cargo volume to be handled within an owned and controlled network as part of its integrated logistics strategy.

Shippers that have not yet arranged air freight capacity out of Asia for the fourth quarter could be in for an expensive ride, according to Xeneta.

Chinese online platforms were not specifically mentioned in an open letter to the European Commission, but the groups noted that government subsidies made competition with Asia-based e-commerce platforms difficult.

With more than 80% of e-commerce transported as air cargo, there are growing safety and transparency issues given the minimal view provided of what is actually inside the parcels.

The state-owned rail operator believes it can leverage soaring demand for China-Europe rail freight to develop a multimodal service offering underpinned by a strong air cargo network.

Cargo owners battling to find space on ships filled by an unseasonal demand surge are taking all available air freight capacity out of Asia, the Middle East and India, with rate levels rising accordingly.

The forwarder says it has been “conditionally” restored to CBP’s so-called Type 86 program and has filed a complaint against the agency to get reinstated without conditions.

Growth in the use of a low-value shipment rule has attracted critics, who say the de minimis program provides a loophole for e-commerce companies abroad to evade duties.

Underpinning strong volume growth is booming demand for Chinese e-commerce in the US and modal shift from ocean to air in South Asian countries to mitigate Red Sea disruptions.

Group CFO Melanie Kreis would not comment on the near-term freight rate outlook or the likelihood of a modal shift from ocean to air or sea-air caused by supply chain disruptions, including the ongoing vessel diversions to avoid the Red Sea.

Given the huge volumes involved in ocean freight, even a small percentage shift in transport mode from South Asia shippers is enough to keep air cargo demand and rates buoyant.

Chinese e-commerce marketplaces are rapidly expanding their global reach as strong demand from online shoppers in the US and Europe drives up air freight volumes and keeps transport capacity tight.

The top end of the global 3PL sector is populated by companies that see a down market as a chance to focus on higher-yield customers and those that see a chance to build market share.

The acquisition will add significant volume of air and ocean cargo to the MSC subsidiary and extend its reach into European markets.

Dubai continues to be one of the more popular destinations for European importers with time-sensitive cargo, with the airport able to covert ocean freight to air cargo in 24 hours.

Maersk’s integrator strategy has encompassed more access to air freight capacity, including a new tool for shippers in India to digitally price and book specific flights.

A seasonal push to get shipments out of Asia before factories close for the Lunar New Year may be masking a switch to air from disrupted ocean networks.

With an amended merger agreement, months of contentious litigation are behind the companies, clearing the way for their combined forwarding and LTL operations. 

Online shopping in North America and Europe has generated huge air freight volume out of China, with demand expected to continue past the Lunar New Year in February.

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.