Regional Pulse: Canadian airfreight catches up, expands amid COVID-19

Several recent expansions in Canada in support of the country’s airfreight operations indicate that the nation’s growing e-commerce market, which has experienced slower growth than in the neighboring U.S., has surged amid the COVID-19 pandemic and is on track for more growth in the years ahead. [caption id="attachment_94786" align="alignright" width="450"] Airport terminal and runway birds-eye view facing west. Photo/Edmonton International Airport[/caption] Among the airfreight growth projects across Canada this year are the opening of three new air cargo warehouses from ground handler Swissport, groundbreaking on construction of an expanded cargo apron and cold storage at Edmonton International Airport (YEG) that began this summer, and several initiatives from Air Canada Cargo. The airline’s projects include an upgrade of its cold-chain facilities , the introduction of e-booking through cargo.one , the launch of e-commerce service Rivo and the upcoming launch of 767 freighter operations. The influx of airfreight growth projects during 2021 shows that “Canada is essentially catching up to its place in global supply chains and the overall air cargo market,” Mammen Tharakan, director for e-commerce, cargo and aviation real estate at YEG, told Air Cargo World . “In the past it was perhaps lagging and wasn’t really performing to its full potential.” That is changing during the pandemic, and in 2021 in particular. YEG is on track to surpass its 2019 cargo tonnage this year, Tharakan said, and while cargo performance has been mixed at airports globally this year, major airports in Canada have seen volume growth in 2021. For its part, handler Swissport reported a 35% increase in cargo volumes in Canada from 2019, despite a drop in its global volumes . Tharakan attributed most of the increase at YEG to e-commerce, which “is overshadowing all other commodities in terms of movement.” Air Canada Cargo, meanwhile, is seeking to diversify its customer base as it expands its fleet with the converted freighters, as demonstrated by its partnership with cargo.one and its Rivo launch. “It’s a typical story, 80% of our business comes from 20 customers and we need to diversify,” Jason Berry, vice president, cargo at Air Canada, recently told Air Cargo World . “COVID taught us one thing and that is, we need to make sure that we have our assets available to as many partners as possible. We don’t want to give up on all the current partners and the people we built with over time, but getting access to forwarders that may not know us today as well in the market, that’s been huge for us. And we’ve seen the small to medium-sized businesses start to use us and search on us [through cargo.one] that we maybe haven’t had the ability to get out and meet them yet.” Despite the growth, the lower volumes moving through Canadian hubs compared to major U.S. cargo airports makes for an attractive market for avoiding some of the lengthy delays common at airports like Los Angeles (LAX) and Chicago (ORD). “I know there are airports that would challenge me on this, but in Edmonton our experience has been very positive with CBSA [the Canada Border Services Agency],” Tharakan said. “They’ve been extremely supportive of cargo movements and it’s been a very closely coordinated effort with hardly any delays with clearing cargo,” which he said is usually possible within the same day. While Edmonton has not completely avoided the labor issues plaguing handlers, airports and ports in the U.S., “the fundamentals are still good,” he said. Beyond those projects that have already been announced or entered the construction phase, more growth is likely to follow soon. Swissport is in discussion with YEG to expand beyond its recently opened facility, Tharakan said, and Canadian carrier Cargojet Airways should be able to expand its international operations in the U.S. thanks to its investment in 21 Air, as reported by our sister publication Cargo Facts . With Air Canada Cargo set to begin operating its first 767F this quarter, more facilities expansions are likely to follow.

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