Air Cargo

Air Cargo

Demand for air freight through much of 2017 and into the first quarter of 2018 was boosted by stronger economies and trade, with e-commerce growth and a broader inventory restocking cycle keeping space tight and freight rates sky high. Air cargo is now heading into the slower summer months but capacity is expected to tighten into the fourth quarter. Double-digit growth in late 2017 means the year-over-year comparisons may not be as severe, but shippers have been advised to book their space early.

News & Analysis

25 Jun 2019
This year is shaping up to be a tough one for the air cargo business with an unsettled trade environment set to extend the demand slowdown into the third quarter.
Air cargo being loaded.
19 Oct 2018
“I don’t know if the peak this year will look like last year, but we have about 20 freighters and take a lot of volume in our widebody fleet that we expanded quite a bit, so there are a lot more destinations,” Cathay Pacific CEO Rupert Hogg said. “But going into next year the future is unknown.”
Air cargo being loaded at London's Heathrow Airport.
02 Oct 2018
The two main regional markets for air freight — Asia Pacific for international shipments and North America for domestic shipments — may be headed toward slower growth, due to the ongoing trade war between their two largest economies, Airports Council International said.
Air cargo being loaded in Amsterdam, Netherlands.
28 Sep 2018
The International Air Transport Association said this slowing growth was coming against a backdrop of rising trade protectionism measures, and wider momentum in global trade was weakening.
Air cargo at Hartsfield-Jackson Atlanta International Airport.
27 Sep 2018
At Hartsfield-Jackson Atlanta International Airport, the world’s busiest passenger and 42nd busiest cargo airport, congestion and delays in picking up/dropping off loads are adding wait time surcharges, and in some cases storage expenses, on to already high transport bills.
Nippon Cargo Airlines.
26 Sep 2018
Further, trans-Pacific shippers will welcome the additional capacity, especially this peak season, for several reasons.
Air cargo at Los Angeles International Airport, California.
30 Aug 2018
Air cargo freight rates between China and the United States have been rising since July, according to US-based logistics provider C.H. Robinson, and shipper concern about lack of space on the trans-Pacific trade is a factor in that rise.
Nippon Express.
15 Aug 2018
The JOC Top 50 Global Logistics Providers, published on JOC.com on April 13 and in the April 16 Journal of Commerce magazine, misstated the annual revenues for Nippon Express.
Air cargo loading.
08 Aug 2018
“Trade wars never produce winners. Governments must remember that prosperity comes from boosting their trade, not barricading economies,” the International Air Transport Association said.
Schiphol Airport
03 Aug 2018
Schiphol’s management said it expected lower overall freighter air traffic movements in the first half, due to capacity constraints, but its longer-term analysis remains encouraging.
Air cargo being loaded in Poland.
31 Jul 2018
However, shippers should still expect some robust peak season pricing from the airlines that are seeking to extend their profitability, which grew at a strong rate in the first quarter.
Air cargo planes in Germany.
25 Jul 2018
A slight dip in demand for air cargo in the first quarter has quickly reversed, with volume steadily increasing on the east-west trades.
20 Jul 2018
E-commerce and high-speed rail are enabling China-Europe rail services to give the air cargo industry a run for its money.
An Amazon center in Nevada, United States.
30 Jun 2018
Amazon’s new network could help reduce shipper costs, and even aid other transportation providers, as volumes outstrip capacity. But as one might sense, Amazon’s latest play also will affect resources in an already beyond-tight US trucking sector.
A Nippon Express train.
28 Jun 2018
Nippon is expanding cross-border services as Asia-Europe demand increases and as five Mekong subregion countries adopt an agreement that could serve as a trade model for other regions.
Tangier Lobster.
01 Jun 2018
Nova Scotia-based Tangier Lobster does not cut corners nor does it nickel and dime transport providers. “We will pay extra for the very best logistics options because we have extremely valuable cargo and do not want to disappoint our customers,” Owner Stewart Lamont said.
Air cargo being loaded.
30 May 2018
Austin, Texas, may one day be on air cargo operators' “A-List” for cargo pick-up, but until then shippers will continue to adapt, develop creative air transport solutions, and find air service niches to transport products to customers.
29 May 2018
Rising confidence in the air cargo market is good news for air cargo providers, as shippers and their forwarders move to lock in space and avoid the capacity constraints that characterized peak 2017.
09 May 2018
A series of factors has lined up to ensure European shippers importing air cargo from Asia will be stuck with services to the congested hub airports.
Toronto Pearson International.
07 May 2018
Air cargo is changing — no longer is tonnage the sole, ultimate metric. Air cargo companies and the airports that serve them must be entrepreneurial-minded to meet the needs of transit-time, cost-sensitive shippers with their high-value cargo, and so far, three key Canadian hubs are meeting the bill.
FedEx trucks.
01 May 2018
FedEx Corp. has tapped John A. Smith to run its FedEx Freight division as president effective Aug. 16, succeeding the retiring Michael Ducker. Smith, 56, has been with FedEx since 2000 but is unrelated to the company’s founder Fred Smith.
KLM in Moscow, Russia
27 Apr 2018
The rate hike may be just the beginning of additional, larger Federal Anti-Monopoly Service fee increases, as part of Russia's response to the West’s latest package of sanctions, imposed by the United States, and supported by many European allies.
05 Apr 2018
The year is off to a good start in terms of air cargo volume, but the trade dispute between the United States and China is making confident predictions for 2018 difficult.
Air cargo loading.
28 Mar 2018
Capacity problems abound on land and in the air, and experts say many of the solutions are the same, including earlier planning and sharing of forecasts by shippers.
And Antonov plane.
28 Mar 2018
Life has been good for heavy-lift air cargo operator Antonov after the breakup with its partner, with the company notching job wins in oil and gas, energy, aerospace, agriculture, telecommunications, and other industries. But that, in a sense, was not surprising, given its advantage — seven AN-124-100 freighters with payloads capable of transporting 150 metric tons.
19 Mar 2018
E-commerce and pharmaceuticals are driving up air cargo volume and leading the industry into a period of sustainable growth.
15 Mar 2018
Air cargo is in catch up mode as it slowly drags itself into the digital world.
12 Mar 2018
Aligning capacity with fluctuating demand and sticker-shock pricing is always a tough dance in the air cargo spot market, and it is getting more difficult.
09 Mar 2018
The scheduled Hong Kong-LAX freighter service to be launched by Flexport is aimed at locking in space on the busy route.
A UPS air cargo flight.
07 Mar 2018
Tight space in air cargo will keep rates up and keep shippers under pressure, especially during peak periods.
Dungeness crabs in Seattle, Washington.
23 Feb 2018
Because of its perishable status, long-distance seafood export has always been a challenging task — even when all operational factors are in one's favor. Add an air cargo space squeeze, uneven consumer demand, and foul weather and the task can approximate a varying obstacle course.
SeaCube Container Leasing.
22 Feb 2018
The emerging digital supply chain is offering shippers improved reefer container tracking, as well as better control / management of the cargo's condition. But a decade of reefer underinvestment and an accelerating global economy has led to a shortage of reefer containers.
A worker repositions refrigeration containers.
22 Feb 2018
Strong demand for fresh foods and other perishables that require refrigerated transportation is encouraging news for the global reefer market in 2018. However, logistics challenges threaten to drive up prices and, in some cases, prevent in-time delivery for these limited-shelf-life products.
FedEx - one of the world's leading air freight companies.
13 Feb 2018
Driven by rising e-commerce sales, last year saw a 9.5 percent surge in global air freight tonnage for the 12 months ended Nov. 2017 — the industry’s strongest performance since the global financial crisis of 2010; and the uptrend is expected to continue in 2018.
UPS's advanced package scanning and sortation equipment at the facility will speed the delivery of manufactured goods in both directions across the border.
06 Feb 2018
The new facility near the El Paso International Airport will serve shippers in what is called “the Borderplex” — a manufacturing region stretching out from the cities of El Paso, Texas and Ciudad Juarez, Mexico.
05 Feb 2018
Amsterdam Airport Schiphol has received its first air cargo shipment from China under a World Customs Organization pilot program that uses data sharing to speed up customs clearance.