The cost of air freight around the world is falling, but some companies say the world’s shift to worldwide flying cargo will keep the market attractive for years.
“I don’t think it will bring the share to other forms of transportation,” Boeing CEO Dave Calhoun told reporters at an industry conference in Washington, DC, last month. “I think it will go back to the previous pace of development.”
Air freight is a small part of the overall cargo market, but supply chain problems, travel restrictions and excessive consumer spending pushed niche markets to the forefront during the pandemic.
Boeing and Airbus both are for sale cargo versions of their latest wide-body planesMore fuel efficient than older cargo planes, and demand for converting older passenger planes into cargo planes has grown so dramatically that some seats have been reserved for years.
Traditional ocean freight companies like Maersk have recently entered the air freight market. And passenger airlines have reaped the benefits of strong cargo demand during the pandemic to supplement traditional revenue streams.
Inner cargo is unloaded from an American Airlines Boeing 787 Dreamliner at Philadelphia International Airport.
Leslie Josephs | CNBC
The recent drop in air freight costs is a stark contrast from a year ago when companies ramped up around the world pushing air freight rates to record highs ahead of the year-end holiday as they paid in full. money to fly and avoid chaos in shipping like congested ports.
Now, concerns about the economy, the shift in spending habits of the consumer pandemic – the e-commerce boom this summer has given way to a flurry of resort travel – and the Increasing capacity is pushing down air freight rates.
Cargo carried on passenger aircraft has added to the world’s capacity as demand for travel, especially long-distance international, has returned.
FedEx Last month shocked investors by pulled out its instructions and announced massive cost-cutting, including the removal of air capacity. Its CEO forecast a global recession.
“The biggest expected contribution in fiscal year 23 will be the changes we’re making to the network,” FedEx CEO Raj Subramaniam said in a call with analysts last month. our express airline network as we cut global flight hours.
Consumers may have gone shopping frenzy during the height of the pandemic, but they are unlikely to become much less demanding.
Rob Morris, global head of consulting at aeronautical data company Cirium.
