Only after 20 days of the year 2021, FedEx and DHL have planned to make a power move against their airline competitors. After DHL dropped the update of acquiring 8 freighters last week; on the 18th, FedEx announced the acquisition of 7 freighters (Boeing 777) from Etihad. The reason provided by both the companies was more or less the same - the spike in #eCommerce trend. This addition will bring FedEx’s total aircraft count to 679 - largest freighter field in the world.
Although this update is capable of skewing one’s opinion in favour of #FedEx and #DHL, it is not completely fair to overlook the advancements made by other carriers in cargo sector. It is interesting how quickly these decisions have passed the test of time.
#Freight #ecommerce #Boeing #DHL #FedEx
AIR CANADA’S NEW YEAR RESOLUTION
After recording the surge in cargo sector in 2020, Air Canada has taken a decision to convert 2 of their passenger aircrafts into Cargo Aircrafts. As a result of COVID-19, Air Canada saw the dip in passenger demand as compared to increased revenue in cargo sector. The plan of action involves selling the aircrafts to Air Transport Service Group (ATSG) for a leaseback deal after the conversion is modelled by Israel Aerospace Industries in Tel Aviv, Israel.
This process will also enable the airlines to effectively deal with suppliers in handling the future vaccine demand.
#AirCanada #AirFreightDevelopment #IATA #ATSG
Without wasting any more days, DHL has placed order for 8 more freighters from Boeing for their fleet as a result of Q4 performance. But that is not all! These B777 freighters possess the world’s largest twin-engine with a payload capacity of just over 100 tonnes which will reduce C02 emissions by 18% compared with the B747-400F. Sustainability is the name of the game!
Although DHL calls e-Commerce a ‘megatrend’ and this informed decision is based on whopping 40% growth in Q4, I feel that these aircrafts may be left under-utilised in distant future. It is true that e-Commerce is the fastest growing market today but a significant portion of that is due to the strain of pandemic. This decision is perfect for short run but will the market promise similar figures even in the future? Will the consumers get completely dependant on e-Commerce?
#Freight #eCommerce #Boeing #FreightDiscussion #DHL
The increased air freight rates didn’t come as a shock during the pandemic. However, for this trend to continue for at least next 6 months of 2021; it will pose as a real test of patience for small businesses. This outlook will remain unchanged till the passenger traffic returns back to normal. This does not mean that that the airlines must start investing more on freighters, because eventually the passengers will return back to long haul flying which will influence the airlines to stop pulling in revenue from cargo alone. With vaccinations picking up, it will be interesting to see how true this expected timeline stands.
#AirFreight #IATA #AirFreighRates #2021
The sun has set on 2020, and the new year has kicked-off with some great news for aviation. For past few days, the news of various airlines launching new services and acquiring new aircrafts have certainly boosted the market sentiment. From #CathayPacific launching their new service to #QatarAirwaysCargo securing 3 additional #Boeing B777 to #AntonovAirlines bringing back the commercial operation of AN-225 for oversized cargo market; every development has brought a smile to the faces of industry professionals.
Aviation itself is huge, and when positive headlines from carriers break the news, every associated business linked to the industry finds a purpose to work harder.
#Aviation #Logistics #FreightForwarding #IATA #FIATA #Development #2021