By Tim Hepher, Lisa Baertlein, Allison Lampert and Valerie Insinna (Reuters) - Air cargo enjoyed record demand when COVID-19 closed borders and snarled ...
STORY CONTINUES BELOW THESE SALTWIRE VIDEOSBy Tim Hepher, Lisa Baertlein, Allison Lampert and Valerie Insinna
The switch in demand from goods back to services and the abrupt expansion in belly capacity on passenger planes have sliced about a third off cargo rates in the last year.And shipping is flowing again after congestion sent goods as mundane as jeans and bathtubs into the air during the pandemic. " are in for a rough ride. Shippers are spoiled with capacity, but they're not really utilising it because demand is not really there," Xeneta Chief Analyst Peter Sand told Reuters.
The airline expanded as contract customers including Japan Airlines, once a dominant power in air cargo, stopped operating freighters following its own bankruptcy in 2010 - though it has since announced a limited return to cargo. Cargo rates from China or southeast Asia to the United States have risen 5%-7% since mid-July, according to Xeneta. Yet that may in part be due to China's difficulties in rebooting its internal economy, which tipped into deflation in July.
Since May 2019 the active freighter fleet has grown by 22%, said Eddy Pieniazek, head of advisory at consultants Ishka. But the proportion of stored or idle freighters is rising again.
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