🕒 Article read time: 2 minutes
Global shippers look to diversify into air cargo
Disruption across global supply chains since the pandemic has led to an increased need for some goods and services to be air freighted, and some major players in the container shipping sector have been buying up air cargo capacity as a result.
ONE-STOP-SHOP SOLUTION
The ability to move goods by sea or air helps ocean freight companies create a ‘one-stop-shop’ for cargo, according to Danish shipping giant Maersk, and enables it to deliver an end-to-end logistics solution for its customers.
Maersk, which launched its air cargo division in April, now has a fleet of 15 aircraft. And it is not alone. Competitor shipper CMA CGM started its air division last year and will have 12 airplanes in operation by 2026.
AIR FREIGHT OFFERS SPEED AND RELIABILITY
So what is prompting container shipping firms to enter the air cargo business now? Supply chain disruption is one of the chief reasons, according to Michel Pozas Lucic, Maersk’s Global Head of Air Freight. He argues that the speed with which his customers need specific products has made air freight an essential part of the logistics puzzle.
These figures are borne out by the latest figures from the International Air Transport Association, which show a small but significant increase in air freight – 2.2% – for the first half of the year compared to pre-pandemic (2019) half-year demand.
With the pandemic throwing the importance of supply chains into sharp relief, the issue is now frequently discussed at board level by many corporates, whereas previously it may have been considered more of a niche or specialist topic.
DIFFERENT SHIPPERS, DIFFERENT APPROACHES
Different shipping lines are adopting different approaches to diversifying into air freight, however. While Maersk is buying or leasing nine Boeing aircraft this year, CMA CGM has agreed a long-term strategic partnership with Air France-KLM, where both parties will jointly sell their air freight capacity and CMA CGM will become a reference shareholder in Air France-KLM.
Alexandra Herdman, Public Policy Manager, Logistics UK, said: “Business has been brisk and profitable for many of the ocean freight companies over the last few years, and now they are looking to invest their earnings in expanding their offer to customers. Buying up air freight capacity is a great way for ocean freight companies to complement their traditional container shipping service with a fast and frequent air cargo service. This will be particularly attractive to customers wary of delays caused by the ongoing disruption to global supply chains.”
*www.logistics.org.uk/campaigns/maritime-logistics
Published On: 22/09/2022 16:00:30
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