Air Cargo

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.

Three new visibility products — from a hardware provider, a forwarder and a data provider — are evidence of a diverse cargo visibility market that is expanding options for shippers.

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.

The locations were chosen based on their proximity to key rail, airport and port facilities, the partners said.

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 air and ocean shipping sectors have set out their decarbonization agendas, but policy help is urgently required to underpin investment in new fuel technology and production, a global trade group says.

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.

International air express carrier DHL is building out its US footprint to gain greater density and reach in its largest market, its CEO for the Americas says.

There are concerns that the latest requirement could force the price of sustainable aviation fuel higher, which would be felt in the pockets of airline passengers and cargo shippers.

Package volumes at the largest US package carrier by revenue fell farther than expected in the first quarter, especially in March, thanks to shifts in spending, UPS executives said. 

The forwarder’s CFO said ocean freight demand in the second quarter was expected to be much the same as Q1, but there were signs that stockpiling by customers in major markets was nearing an end.

Maersk’s growing air cargo capacity is being used to plug gaps in connectivity in the carrier’s integrated end-to-end logistics offering.

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.

The container shipping industry’s profit margins are easing, but the appetite for acquisitions — from air cargo units to last-mile delivery logistics — isn’t letting up, writes Journal of Commerce Executive Editor Mark Szakonyi.

Freight visibility provider Overhaul has acquired a competitor that doubles its size and gives it deeper cargo monitoring capability in Brazil, Mexico, and Central Europe.

The largest US logistics provider claims “compelling results” from cross-selling surface transportation and air and ocean services, despite weak market conditions.

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.

Technology that connects and automates packages, trucks, and sorting facilities will come to the fore at UPS this year as the largest US logistics provider positions itself for an economic rebound.

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.

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.

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.

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.

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

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