AirCargo 2021: Nearby airports reap benefits of 2020 Chicago international cargo surge

An increase in air cargo imports and exports at Chicago O’Hare International Airport (ORD) during 2020 also contributed to growth at nearby “alternative gateways” like Chicago Rockford (RFD), Rickenbacker International Airport (LCK) and Pittsburgh International Airport (PIT) that should continue in the future. [caption id="attachment_93499" align="alignright" width="450"] Freighter aircraft parked at an ORD cargo terminal. Photo/O'Hare International Airport[/caption] Among major U.S. gateway airports, ORD reported the strongest year-over-year growth in international cargo volumes by far, recording a 22.5% increase, according to a presentation from Brian Clancy, co-founder and managing director of Logistics Capital & Strategy, during today’s AirCargo 2021 webinar. The increase at ORD contributed to spillover at nearby airports that have positioned themselves as cargo-friendly alternatives to the busy Chicago airport, said Clancy during the webinar. The Chicago-area airports also benefitted from an increased willingness from freight forwarders to truck volumes from Illinois and Ohio into regions like the northeast, as east coast gateways like Newark (EWR) and New York’s JFK saw available capacity decline due to the drop in passenger aviation, according to Clancy. “Alternative gateways that have popped up like Rockford are doing extremely well because of the overflow situation in Chicago,” Clancy said. “It’s the same at Rickenbacker and Pittsburgh, due to the extreme growth in Chicago. That was the case in 2020 and that will continue into the future.” RFD has focused recently on growing its international freight operations — particularly with Illinois’ largest European trade partner Germany, director of cargo Ken Ryan recently told Air Cargo World . The airport this month announced a new partnership with Cologne/Bonn Airport (CDG) , under which the airports hope to launch a new direct freighter service later this year. Despite the importance of airfreight for personal protective equipment and medical shipments amid the pandemic, not all major gateways performed well for international airfreight. The most significant declines for airfreight imports and exports were reported for Seattle/Tacoma International Airport (SEA), with declines of 40.5% and 36.3%, respectively. Clancy forecasts growth in the U.S. international airfreight market of 6.7% per year from 2020 to 2025, which will lead to recovery across all gateways; however, he added that “smaller gateways [will grow] fastest because they had the largest declines in 2020.” An audience poll during the webinar suggested industry leaders expect recovery to be a slow process. At 36%, the largest share expect “a bumpy road back with lots of ups and downs,” while another 35% see definite recovery but anticipate a “long, slow slog” back to a more normal market. Slightly over a quarter of respondents expect full recovery by this fall, with only 2% not anticipating improvement anytime soon. The recovery period ahead may present headaches for many freight forwarders but should keep airfreight rates high, which will continue to benefit airlines with large cargo operations. “The next two-to-three years will see a lot of price spikes for air and expedited ground networks,” Clancy added.

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