The
world's air freight industry is looking forward to more of the same as
they reckon the Elders of Davos will keep the Covid crisis going to
facilitate the Great Reset to reform the world, giving credence if not
reverence for every environmental fear that NGOs can imagine.
That is what emerges from a survey of major air freight
concerns worldwide conducted by London's Air Cargo News. Not that this
is bad news from an air cargo service provider's perspective. Not at
all. Shortages of capacity from the continued reduction of passenger
volume, means less space for cargo in bellyholds and soaring air
freight rates.
Optimists expect there will be new Covid variants to
come, insuring a continuation of this state of perpetual emergency that
will keep travel volume well below pre-Covid areas, thus keeping rates
cruising in the stratosphere.
Some say the futurist visions of the 1960s, when Marshall
McLuhan, the communication guru of yesteryear, predicted that
communications would one day largely supplant transportation in daily
life, will come to pass. Current advances in this direction have
severely reduced business travel whence comes airline profits and
bellyhold cargo spaces.
DSV vice president and head of the DSV Air Charter
Network, Mads Ravn, said he expects Covid to disrupt supply chains with
bellyhold operations slow to return.
“Covid will continue to play a major role in whether
capacity will return, especially on key routes from China and Hong Kong
where they have some severe restrictions," he said.
“Belly carriers are trying to piece a programme together
with multiple new seasonal destinations that will not necessarily
benefit the lack of capacity in the market to and from core
manufacturing sites.”
DSV expects normal supply and demand is a long way off.
“The initial anticipation of 2025 is likely not happening and
destinations serviced will change as business travel will be very slow
to come back,” said Mr Ravn.
“To secure enough people on the ground is perhaps the
most severe challenge in several gateways in North America and Europe,”
he said.
“This combined with outdated US infrastructure and lack of staff returning to work, will also influence and slow recovery.”
Said David Wystrach, Scan Global Logistics air freight
chief: “We expect the market to be pretty much the same as in 2021;
travel-restrictions, no clarity about Omicron and potentially other
variants to follow, and no, or only limited, additional
freighter-aircraft to be supplied to the market.
“Business travellers will not be back to anywhere close
to pre-Covid-times. This will limit number of flights and served port
pairs," said Mr Wystrach.
“Some routes added to the network may be less cargo friendly, eg, leisure destinations on transatlantic routes.
“On top of this, the current variant will as well impact
crews and pilots and with this further reductions on rotations are to
be expected,” he said.
Mr Wystrach also expects ongoing labour issues across the
market to affect ground handlers, forwarders, airlines and trucking
companies.
Crane Worldwide Logistics CEO Keith Winters also expects
labour trouble to add to the mix. “There is no question that we are
still expecting some turbulent times ahead,” he said.
“Currently, new vaccine boosters need to be moved and
there is still the possibility of borders closing as countries cope
with the influx in cases," Mr Winters said.
Herve Bonis, deputy chief executive, Seafrigo Group, says
Omicron and seafreight issues will drive demand in the air: “The
overall global environment remains uncertain due to the high
circulation of the Omicron variant of Covid-19 in most western
countries.
“This is already impacting on air freight capacity,
especially regarding the China/Hong Kong trade lanes where stringent
rules for pilots are in place.
“The biggest challenge is definitely to get back to
normal regarding intercontinental travel, which then brings back the
belly capacity that is not currently available in the market. I expect
belly capacity to increase during the second half of 2022," he said.
“Regarding our overall volumes, I consider that we will
still face seafreight disorganisation, including port congestion, and
this will bring opportunity in terms of air freight volumes,” Mr Bonis
said.
Roger Samways, vice president commercial, American
Airlines Cargo, says that despite some return of passenger flights,
indicators suggest capacity shortages.
“Continued capacity shortages in the market, relative to
demand, as well as infrastructure challenges at airports, will present
ongoing challenges for the air cargo industry,” Mr Samways said.
“We have faced capacity shortages since the start of the
pandemic, but we’ve seen innovative, creative solutions across the
industry as carriers have tried to support the needs of our customers.”
Belly capacity will improve in 2022 compared with last
year but won’t get back to 2019 levels due to changing government
travel restrictions and possible future Covid-19 outbreaks, he said.
“Our current expectations are that widebody capacity
will grow around 20 per cent compared to 2021. The key for our cargo
customers, though, is where that capacity is going to be deployed.
“Unlike in 2021 when many of our widebody aircraft were
operating on short-haul leisure markets, such as the Caribbean and
Mexico, in 2022 our widebody fleet will primarily be deployed on
long-haul international markets which are great news for our cargo
customers,” Mr Samways said.
Charter brokers also braced themselves for a busy year.
Dan Morgan-Evans, group cargo director at Air Charter Service (ACS),
said the disruption experienced over the last couple of years has been
too great to unwind completely during 2022.
“The longer time goes on, the more balanced it will
become but we are still seeing very strong demand in the short term and
long term, with a record number of forward bookings even into 2023.
“The whole supply chain has changed over the past two
years and, unless we suddenly revert to pre-pandemic passenger numbers
and all travel restrictions are lifted, then we will continue to see
strong demand,” Mr Morgan-Evans said.
He said his company was previously used to seeing single
ad hoc flight bookings with the occasional programme for multiple
flights. Now, the company is seeing bookings that are predominantly
programmes.
“The challenges will be similar,” he said. “Covid
restrictions, lack of capacity, bottlenecks at airports – but these are
all the benefits of using a company like ACS."
Said Chapman Freeborn chief commercial officer Neil
Dursley: “What we are seeing is more of the same - a distinct lack of
widebody availability and supply chain challenges impacting the major
ocean ports of the world with new restrictions due to Covid.”
Mr Dursley reported a surge in demand for Covid test
kits. The broker has just completed “an enormous programme of flights”
utilising multiple AN-225 and AN-124 flights.
“Never before in our history, or I believe in the
history of the AN-225, has it ever operated so many back-to-back
missions,” he said.
Freighter operator Magma Aviation, a Chapman Freeborn
unit, continues to operate at full capacity to and from a range of
origins.
Perhaps it is time to consider what's to be done in the case of future
so-called emergencies, with a complete post mortem on how and why
initial expert predictions were so mistaken - and how we might avoid a
repeat performance and be guided by a modicum of rational risk
assessment. |