Air Cargo

The PPE filling all available air cargo capacity is manufactured by the millions of units in China, and even though the cost of producing the protective equipment has increased sharply, that cost can still be measured in cents and fractions of cents.

Global demand for medical supplies has not let up, but stricter customs rules are leading to lengthy delays at Chinese hub airports.

The lack of available belly capacity on the major east-west trades amid sustained and heavy demand continues to ramp up rates for essential cargo shipments.

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.

The largest US logistics provider is prioritizing technology spending as the COVID-19 pandemic demonstrates why more automation and digitization is needed.

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.

The COVID-19 pandemic has flipped UPS’s business, with nearly 70 percent of package volume now residential. That means more mileage, more stops, and more costs.

Air freight capacity is struggling to keep up with soaring demand for medical equipment from coronavirus-hit Europe and the US that will keep China factories open through the Labor Day holidays.

There is no sign yet of falling demand for essential medical equipment that is behind the steep rise in air cargo rates, but the revenue-crushing loss of passenger traffic has airlines fighting for survival.

Air freight forwarders are attempting to navigate the pandemic-driven economy, but the lack of business has resulted in sharp revenue declines and layoffs, and may cause widespread consolidation in the sector.

A shortage of protective medical equipment and limited air cargo capacity to supply hospitals is ramping up China-Europe air freight prices.

Tightness in air cargo capacity is unlikely to ease as the global spread of the coronavirus disease 2019 (COVID-19) increases demand for medical supplies and perishables.

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.

Airlines are using their empty passenger aircraft as cargo planes amid widening COVID-19 travel bans across the globe that have cut huge amounts of belly cargo from service.

The logistics software provider Freightos is the latest to react to an uncertain freight market by cutting staff, a move the company attributes to the effect the coronavirus disease is having on supply chains and the financial ecosystem.

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.

International air cargo rates are rising fast on the trans-Atlantic trade ahead of the 30-day US travel ban affecting 26 of Europe's largest economies, which will severely constrain belly cargo space on the busy trade lane.

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.

The financial hit to airlines in their battle to withstand a rapid drop in cargo and passenger revenue will be enormous, according to the industry trade association IATA.

Difficulties transporting cargo in and out of China and fast-rising air charter rates are pushing shippers and their forwarders towards multimodal services.

The freight rate marketplace provider Freightos will include an option for shippers to add FedEx customs brokerage services on-demand as part of a broader deal between the two companies that also includes FedEx’s use of Freightos’ air cargo pricing and booking tools.

Lufthansa Cargo will offer instant air freight quotes via an application programming interface with digital forwarder Fleet, a company in which the German airline invested in 2018.

With no belly cargo available for flights to China, demand for chartered freighter capacity has risen sharply, along with air freight rates, as relief aid and medical supplies move to the country amid the coronavirus outbreak.

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.

The air cargo business has just reported its worst performance in a decade, and now hopes for a possible recovery in 2020 are in doubt due to China’s coronavirus outbreak.

The first real estimate of the impact the coronavirus will have on China’s container supply chain has been made, and it is significant.

Measures being applied to limit the spread of the coronavirus have led to several global carriers making significant cuts to their China flight schedules.

Space constraints at Amsterdam Schiphol continue to hold back cargo volume growth crucial to the airport’s role as a European gateway.

The congested hub airports in Europe are struggling with rapid growth in flight traffic and a slot allocation system that was devised a quarter of a century ago.

Air cargo may have had a year to forget in 2019, but in Europe it will be remembered as the year seafood exports to Asian markets, especially Norway to China, started to really take off.

Chronic cross-border trucking delays serve as a reminder of how fragile the freight connection between the United States and its largest trading partner continues to be.

After a disappointing peak season in 2019, the outlook for international air freight in 2020 will depend on an acceleration in global trade demand and an easing of tensions between the United States and its trading partners, particularly China.

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.

No one is expecting much from the air cargo peak shipping period this year, but persistent weakness in the market means any hopes of an upturn before the end of the year are fading fast.

Airlines are beginning to offer the first- and last-mile services that have more commonly been handled by integrators and e-commerce providers.

Adding value to both carrier and shipper will be a key criteria of the forwarding business model over the next decade.

With the traditional peak season period for air cargo already under way, there is still no sign of an increase in demand.

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.

There are no indications that the turbulence in global air freight markets will end anytime soon amid a continued downturn in trade and an uncertain economic environment.