Air cargo forwarding

Peak season has begun for air travel between Europe and North America, but forwarders making use of belly cargo capacity on passenger planes do not expect the below-deck boon to last.

An ongoing shortage of capacity on the main trade lanes out of Asia and growing signs of declining demand are clouding the air cargo outlook for the remainder of the year.

The air freight industry is seeing a welcome increase in the urgently needed long-haul belly cargo capacity available to the market as international travel starts picking up.

CMA CGM Air Cargo will use its parent company’s extensive ocean forwarder network to drive new business as the airline readies for a rapid global expansion under its Air France-KLM partnership.

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.

Shippers converting ocean consignments into air freight to avoid port bottlenecks along the US East Coast are filling all available air cargo capacity on the trans-Atlantic trade lane.

Winding down operations in Russia, Belarus, and Ukraine has come with a hefty price tag, but transport providers are mostly playing down the impact.

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.

The creativity of service providers is being tested as COVID-19 infections continue to spread around Asia and disrupt regional supply lines.

San Francisco-based Passport said it will use $39 million in new funding to expand its outbound parcel platform for US e-commerce sellers looking to manage logistics and trade compliance on international orders.

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.

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

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.

There is little clarity in Shanghai airport’s evolving COVID-19 lockdown situation, with forwarders in China asked not to deliver export cargo to the terminals and airlines suspending inbound shipments.

The acquisition of parcel consolidator Access Worldwide by startup cross-border shipping platform Passport is likely targeted at cost-conscious shippers needing to fulfill small package orders.

Air cargo peak surcharges are increasing on the Asia-US trade as business-to-business (B2B) parcel shippers opt for quicker delivery times to replenish inventories.

AIT Worldwide Logistics expands its e-commerce capabilities and geographical footprint through the acquisition of Fiege Freight Forwarding.

UPS and Amazon are expanding capabilities at smaller airports in Kansas City and Tampa, respectively, to speed up last-mile deliveries.

As e-commerce booms on both sides of the US-Canadian border, Purolator International expands northbound next-day air service between the countries.

The three largest express providers reported improving signs in the sector in their most recent earnings reports, as COVID-hit volumes recovered gradually as the second quarter progressed.

As freight volumes rise, expedited LTL operator Forward Air is expanding capacity by 30 percent at the heart of its airport-to-airport network in Columbus, Ohio.

By launching a door-to-door, less-than-truckload business in Savannah, Forward Air is adding more freight and building density in its airport-to-airport network.

Freighters and converted passenger craft are taking longer to unload than belly freight and some ground handlers are understaffed after furloughs and layoffs in the early days of the COVID-19 pandemic.

The acquisition of ScanData gives Transplace broader supply chain reach as the COVID-19 pandemic accelerates e-commerce demand.

Traditionally low air freight margins are being further depressed by fierce competition among forwarders to secure limited capacity, with travel bans grounding most of the passenger fleet on east-west trades.

Even when air cargo demand for urgent medical supplies drops off, there is no certainty that recession-hit consumers will resume spending, and if they do, capacity will still be tight as passenger fleets remain grounded.

FedEx expands use of its US ground unit to deliver more air express packages, as e-commerce volumes swell and Amazon ups the competitive ante.

The travails of crab shippers underscore the larger impact COVID-19 is having on North American exporters that face higher outbound air cargo rates because of the removal of belly cargo capacity on passenger jets due to cancellations tied to the disease.

The sudden US travel ban imposed on 12 European countries will hurt an air freight industry still battling to overcome the loss of belly cargo capacity from the suspension of passenger flights to China.

A survey of delivery drivers projects that missed deliveries and time wasted due to outdated and incorrect maps and navigation aids results in $2.5 billion in added costs.

Long-term contracted volume is crucial for airlines setting budgets and forecasts, but in the face of weak demand and a bleak 2020 outlook, forwarders are reluctant to commit.

A worsening political situation and escalating protests have forced the cancelation of an important airline gathering in Hong Kong.

The shortage of slots for all-cargo flights cost Amsterdam Schiphol airport heavily in the first nine months of the year.

Canadian forwarder Manitoulin adds to its US holdings, expanding its global logistics network.

Shippers worry “unreasonable” air freight fees, tighter cargo screening regulations, and the region’s dependence on transshipment could cause Hong Kong to cede more cargo to air and sea ports in southern China.

UPS is targeting cross-border e-commerce sellers with a deferred-delivery shipping product that would cost less than tighter delivery windows, a sign of integrators wanting to tap into forecast growth in international online sales.

The outlook for air cargo is turning negative as carriers face headwinds in the form of trade upheaval and falling demand.

The escalating trade dispute between the US and China is driving keen interest in air freight on the busy trans-Pacific trade routes.