air freight

Photo: Beyond Supply Chains

 

2024 is shaping up to be a better year than expected for the air freight industry, according to many industry stakeholders. The growth of e-commerce and the demand for sea-to-air transport related to the Red Sea region contributed to the increase in cargo volumes, despite challenges throughout the year.

As expected, the DB Schenker sale, the landmark e-commerce flight, and the demand for air freight arising from the Red Sea shipping crisis were among the top stories on Air Cargo News last year.

12. Air Canada Cargo Strike

Air Canada Cargo faced the threat of a pilot strike in September, after negotiations over pay and working conditions failed to reach an agreement in late August. That month, the airline warned that its cargo operations could be threatened and was finalizing contingency plans that would halt most operations. However, in October, Air Canada received relief when pilots ratified a new agreement between the airline and the ALPA pilots union.

11. Hong Kong International Airport to Lead the World in Cargo

According to preliminary figures released by the Airports Council International (ACI) in April, Hong Kong International Airport (HKIA) has retained its position as the world’s busiest cargo airport in 2023, while US cargo hubs saw the sharpest declines in the top 10. HKIA saw a 3.3% year-on-year increase in cargo to 4.3 million tonnes. This is the 13th time since 2010 that HKIA has led the world in cargo traffic.

10. Prepare for peak season

In August, Xeneta and TIACA urged shippers to book early and prepare contingency plans, as the air freight market warned of a capacity shortage on routes from Asia during the peak season. Capacity is expected to tighten due to the usual surge in general cargo, the surge in e-commerce, and ongoing disruptions in ocean shipping. In response, shippers have been signing long-term contracts, booking slots, using index-linked contracts, and planning for a variety of scenarios.

9. Amazon Sells Shipping Capacity

In October, Amazon Air made headlines when it confirmed it would begin selling cargo capacity on its aircraft to third parties. The airline will serve domestic routes in North America, Europe, the Middle East, Africa, and Asia, with the ability to carry general cargo, pharmaceuticals, perishables, dangerous goods, and parcels using its fleet of Boeing 737s, 767s, and Airbus A330s. Amazon claims to provide capacity on more than 100 aircraft with more than 250 daily flights, including partner carriers, and offers non-scheduled, charter, or fixed-book services.

8. Stricter regulations for goods from Europe

Canada and the United States have imposed stricter security requirements on air cargo shipments from Europe and the CIS, taking many businesses by surprise. Regulations from the TSA and CBP in the United States, along with the Canadian government, require all cargo from 55 countries, mostly in Europe, to be transported by parties with an established business relationship with the carrier or agent involved. Air Canada Cargo warns that non-compliant shipments may be rejected.

7. Red Sea crisis drives up demand for air freight

In late 2023, shipping companies diverted ships away from the Suez Canal in Egypt following attacks by Houthi forces on container ships in the Red Sea. Longer transit times, rising prices and the risk of supply chain delays have boosted demand for air freight, creating opportunities for charter flights as shippers look for safe alternatives.

6. Top 25 Air Freight Carriers in 2023

Air freight demand in 2023 is expected to recover slowly from the previous year, with global demand from the top 25 carriers falling 1.7%. FedEx maintained its lead, despite volumes falling 8.3% to 17.9 billion CTK (Cargo Ton-Kilometers).

5. FedEx Pilot Pay Dispute

FedEx pilots began 2023 frustrated by the lack of progress in contract negotiations. While the ALPA union accepted a provisional proposal, pilots rejected it during the ratification process.

4. Top 25 Airfreight Forwarders 2023

Kuehne+Nagel continues to lead the list of the world's largest airfreight forwarders in 2023, despite a 11.2% decline in volumes to 2 million tonnes.

3. First e-commerce flight

The first e-commerce flight to Glasgow Prestwick Airport (PIK) in December attracted a lot of attention. The flight was operated by Silk Way West Airlines Cargo, carrying 90 tonnes of cargo from platforms such as Temu and TikTok.

2. Nabil Sultan moves to passenger

Nabil Sultan's decision to leave his role at Emirates SkyCargo to move to passenger has attracted attention. Sultan has led Emirates SkyCargo to strong growth over the past decade.

1. DB Schenker sale

The sale of DB Schenker was the most-read story, as DSV agreed to buy it for €14.3 billion. The deal made DSV the world's largest freight forwarder.

 

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Source: Phaata.com (via AirCargoNews)

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