News / Airfreight update: where to invest and to deploy capacity as markets shift

Airfreight markets are adapting, and carriers are looking for new under-served regions and alternative airports. 

Magma Aviation, which added a 747F into its fleet in August, said it was seeing “demand shifts”.  

CEO Peter Kerins said the carrier’s focus was now to “penetrate new, under-served destinations instead of competing in saturated markets”.  

“This strategy helps Magma establish strategic partnerships and a more balanced, resilient network, especially in markets that demand reliable service yet currently have limited options.” 

It’s not just airlines eyeing new possibilities for growth, investment is going into regional hubs. The UK’s Bournemouth Airport today unveiled “major” new cargo handling facilities, including three ICAO Code E (widebody) aircraft stands and a larger Customs-bonded centre, as well as landside improvements for truck access and services. The project doubles the airport’s cargo infrastructure capacity. 

Noting the airport’s “fast-growing cargo business”, MD Steve Gill said the improvements would “reinforce our position as a highly attractive alternative to congested London hubs”.

“With record volumes passing through the airport last year, this investment underlines our ambitions as the UK’s newest import/export air hub.” 

Bournemouth-based carrier European Cargo described it as a “huge advantage”. 

COO Iain Edwards said: “The new facilities are a real boost to our business. Bournemouth Airport offers us the flexibility and speed that are critical in air cargo, and the expansion means we can look forward to handling even more volumes efficiently.

“It’s a huge advantage to operate away from the congestion of the London hubs, while still being able to deliver consignments into the London market faster than if we flew there directly.” 

And it’s not just in Europe: last week, Kuehne + Nagel opened a new air logistics gateway in Bengaluru, India, as part of its “gateway expansion” in emerging markets, a strategy that will roll out through next year, it said. 

“Volatility from trade dynamics, geopolitical tensions, and supply chain imbalances will continue to drive demand over the long term. Demand will exceed capacity in specific regions and tradelanes, with only minimal net new capacity expected. We adapt quickly to shifting market conditions, geopolitical changes, and customer requirements,” it told investors at a presentation earlier this year. 

With continued uncertainty over the transpacific, as shippers navigate new trade rules, the air cargo market is looking for alternatives, especially as ecommerce faces new challenges which will likely be replicated outside of the US.

Chinese ecommerce platform Temu, for example, has found itself again under the spotlight in Europe. It recently announced it had doubled its EU profits to some $120m – but paid just $18m in corporation tax and employed only eight staff. The EU has already pledged to end de minimis exemptions: in the US, this has led to systemic changes in freighter capacity and the way ecommerce operates, and this is likely to happen elsewhere. 

Airlines continue to take on capacity: Turkish Airlines today announced it had added its ninth 777F to its fleet, with a further three arriving next year, to operate primarily on services to the Americas and Asia, it said; and Malaysia’s Raya Airways is awaiting delivery of South-east Asia’s first production 767-300F. 

Meanwhile, the breakdown of traditional lanes is underscored by airfreight rate moves. The TAC Index said today that, despite a 1.2% fall in global rates in the past week, “the overall picture is mixed”. 

More than ever, it is a question of where to invest, and where to deploy capacity as markets shift.