Southwest Cargo cuts standard product on ‘passenger bookings’

Southwest Airlines’ cargo division abruptly stopped accepting bookings for its standard airfreight products last Friday, blaming capacity issues resulting from steep increases in passenger bookings. Until further notice, Southwest Cargo’s Next Flight Guaranteed (NFG) will be the only option available to shippers, according to a note that went out to Southwest Cargo customers on Nov. 18. [caption id="attachment_83744" align="alignright" width="468"] Southwest Cargo ceased offering non-urgent airfreight service options on November 18. Photo courtesy of Southwest Airlines.[/caption] The move caught some freight forwarders and shippers by surprise and left them with little notice to adjust their logistics plans at the onset of one of the busiest shipping periods of the year. Previously, other products complemented NFG, including “Standard,” which was sold on a space-available basis, and “Fresh Fast,” which guaranteed delivery within 24 hours from the time of tender. Some freight forwarders Air Cargo World spoke to pondered whether the embargo reflected a decision to prioritize passengers and simplify Southwest’s operation. In October, Southwest canceled thousands of flights due to weather and staffing issues. Southwest Cargo told Air Cargo World the decision reflects passenger bookings that have returned to pre-pandemic levels before flight volumes have fully caught up. “With fewer flights, less space available for cargo, and very high freight levels, Southwest Cargo has made a difficult decision to limit the amount of cargo onboard to Next Flight Guarantee shipments, allowing the most space for passengers’ checked luggage and the most critical cargo shipments,” said Wally Deveraux, managing director of Southwest Cargo. Throughout the pandemic, long-haul bellyhold capacity has remained severely constrained due to flight frequencies made lighter by travel restrictions and lower demand for international travel. This iteration of capacity tightness on domestic flights reflects air cargo’s role as an auxiliary product for many passenger-focused combination carriers. “While it’s a difficult decision to make, we are ultimately part of a larger team at Southwest,” said Devereaux. “It’s certainly a major decision on their part,” Michelle Halkerston, President & CEO of Hassett Logistics told Air Cargo World . “Fortunately, we have multiple airline partners, which allows us flexibility in routing.” While Hassett Logistics may divert shipments that would have flown on Southwest to other carriers, “we will continue to rely on Southwest to help us move our customers’ freight through peak season,” Halkerston said. While no other major U.S. carriers have embargoed non-express shipments on a wholesale basis, Southwest isn’t unique in the resurgence of passenger demand. “This is a challenging time for all airlines regarding capacity,” said Halkerston. “Planning, flexibility and daily communication will be key.”

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