News / Flexible airfreight must find balanced traffic flows to keep networks in tact

© Frédéric Legrand |

The flexibility of airfreight is both a blessing and a curse for shippers: it can easily switch capacity to distressed – and therefore profitable  – markets, but consequently leave existing customers in a bind. 

Last week, data-driven consultancy Rotate noted how air cargo had “come to the rescue of supply chains” amid the brief ILA strike that sent ocean-shipping supply chains into a spin. Its data showed that Europe-North America freighter capacity went up by 11% (equivalent to six Boeing 777 freighters) in the first 48 hours of the strike. 

And in September it noted: “We’ve been hearing about carriers re-deploying freighter capacity to Asia and we can clearly see the impact.” 

But carriers’ abilities to shift to higher paying markets, in combination with the large amounts of capacity taken up by ecommerce, has left some customers short of options, notably in perishable markets.  

One major deterrent for carriers, particularly in serving the fresh produce markets in the global south, is the trade imbalance.

However, one flower shipper told The Loadstar that in fact, the ecommerce boom should help airlines continue to offer services to markets such as Africa. 

Managing director of Florius International, Willum Van den Hoogen, told The Loadstar that Liège, despite its focus on ecommerce, was also a good airport for carriers to bring in flowers (although there have been some concerns over Liege’s handling of perishables). 

“I believe they can actually complement each other. Air cargo is a global business, and you need both inbound and outbound shipments. If you want to ship automotive, machinery, and/or ecommerce goods from Europe to South Africa, you will bring flowers back as return cargo.  

“Because there is growth and more carriers are choosing Liège, there is also an incentive to bring these carriers in.  

“A carrier could perform an African loop from and to Liège and then continue on to Asia for an ecommerce loop. Same aircraft, same hub, same ground handling agent.” 

Cathay Cargo meanwhile said today that it was expecting a peak in perishables for Christmas and Chinese new year – which would give it good backhaul traffic. 

“We anticipate a surge in bookings during the peak Christmas and Chinese New Year peak seasons when berry and cherry shipments from South America to Asia, via the Interline network and from the Southwest Pacific region, are very popular.” 

However, it warned: “Although our capacity has recovered further and we are able to operate up to 100 freighter flights per week during peak periods, I recommend that you book space as early as possible to ensure that your cargo is delivered in a timely manner.” 

Mr Van den Hoogen added that well-connected airports or networks help with the imbalance – including Liège, despite its ecommerce focus. 

“What’s great is its almost exclusive focus on cargo. If the community continues to focus on how they can effectively cater to various verticals and connect incoming and outgoing streams, much will be possible, and more carriers may come and even relocate to a hub like Liège. Hubs benefit when supply and demand become more concentrated. Liège certainly has the space to expand.” 

He warned though that both the airport ground handling agents though must “take care of [flower] cargo in the most optimal way”. 

While some carriers have been accused of jilting customers in weaker markets to profit from stronger yields elsewhere, it is also a case of killing the thing you love: if all the carriers put capacity into profitable markets, rates will go down. 

The trick, then, is to ensure there is a profitable backhaul – and be more creative in achieving it.