Consultant Insight: Amazon brings higher volumes to US airports in 2021

In terms of total landed weight in pounds, U.S. air cargo increased 86.2% in 2021 from 2020, according to the U.S. Federal Aviation Administration (FAA), and regional airports credited Amazon Air for the increase. The year-over-year comparison was easy to account for, considering the COVID-19 pandemic grounded passenger airlines and created a shortage of air capacity. [caption id="attachment_76185" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo World columnist[/caption] Most all cargo airports were the recipients of increased volumes during this period. Louisville Muhammad Ali International (SDF), UPS Air’s central hub, noted a YoY volume increase of 4.47%. In comparison, Amazon Air’s central hub, located at Cincinnati/Northern Kentucky International Airport (CVG), noted a 3.27% YoY increase. However, FedEx Express’ hub, Memphis International (MEM), noted a 1.15% decline in throughput from 2020, perhaps due to the decrease in cargo carried by passenger airlines and FedEx Express opting to fly direct to various U.S. cities to deliver COVID-19-related personal protective equipment (PPE). While PPE was a significant air cargo commodity, e-commerce was too, due to Amazon Air’s network expansion. Boosting numbers The Eugene F. Kranz Toledo Express (TOL) airport had the most significant YoY increase of any airport, up 483.2%. Joe Cappel, vice president of business development for the Toledo-Lucas County Port Authority, credited Amazon for the growth , telling a local news outlet, the carrier “has two flights a day, and that really boosted our numbers for 2021.” In Florida, Lakeland Linder International (LAL) also benefited from Amazon’s impact, with a 263.29% YoY increase in total landed weight. Amazon Air began operating out of the airport in 2020. In 2021, LAL announced plans to build a 64,600-square-foot cargo sorting facility with additional parking for three jets, a 370-slot truck bay and a large employee parking lot. These facilities will allow the airport to double its number of flights per day to 44 from 22 by 2027. Meanwhile, San Bernardino airport (SBD) noted an 86.76% increase in volumes. FedEx, UPS and Amazon expanded operations at the airport before the pandemic and utilized it for Asian imports. However, the 2021 air cargo total landed weight was considerably lower than in 2019, likely due to shifts toward ocean freight as available air cargo capacity remained constrained. Returning capacity Capacity has slowly returned to the market and, for this year, appears to be nearing 2019 levels. As measured by cargo tonne-kilometers, “air cargo is tracking at near 2019 levels although it has taken a step back compared to the extraordinary performance of 2020-2021,” IATA’s Director General Willie Walsh noted . “Volatility resulting from supply chain constraints and evolving economic conditions has seen cargo markets essentially move sideways since April,” he added. Indeed, the market remains volatile. Air carriers are reporting softening demand due to a decrease in consumer spending driven by rising inflation, interest rates and other economic factors. U.S. airlines have reported a 0.9% decline in domestic cargo revenue tonne miles and a 4.83% decline in international cargo revenue tonne miles year to date through July. The likelihood of a strong peak season is dimming as the season draws closer. High inventory levels will perhaps keep retailers from needing rapid replenishment and darkening economic clouds will keep retailers and other shippers mindful of costs.

Consultant Insight: Amazon brings higher volumes to US airports in 2021

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