Cargo Facts

No products in the cart.

SUBSCRIBE
  • NEWS
  • DATA & FLEETS
  • MAGAZINE
    • Latest Issue
    • Features
    • Top News
    • Freighter Aircraft Transactions
    • Shorts
    • View From The Cockpit
    • Parting Shot
    • Issue Archive
  • PODCAST
  • EVENTS
  • CONSULTING
Thursday, March 30, 2023
Log In
No Result
View All Result
  • Leasing
  • Capacity & Demand
  • Carriers
  • Drones
  • Engines
  • Express
  • Conversions
Cargo Facts
  • NEWS
  • DATA & FLEETS
  • MAGAZINE
    • Latest Issue
    • Features
    • Top News
    • Freighter Aircraft Transactions
    • Shorts
    • View From The Cockpit
    • Parting Shot
    • Issue Archive
  • PODCAST
  • EVENTS
  • CONSULTING
Log In
No Result
View All Result
Cargo Facts
No Result
View All Result

Has pricing power been disconnected from main-deck capacity?

David Harris by David Harris
June 1, 2012
in News Archives
0
Share on FacebookShare on LinkedIn

Today’s blog comes from Cargo Facts‘ European Editor, Alex Lennane. It is excerpted from the “European Perspective” column that will appear in the June issue of Cargo Facts. Those of you who do not already subscribe to the the monthly printed Cargo Facts newsletter, and its companion the weekly emailed Cargo Facts Update,  can click here for more information.

Air freight carriers have cut main-deck capacity between Europe and Asia but this has failed to increase rates.

European carriers are slashing capacity to Asia in a bid to stem losses and tighten rates. Air France-KLM revealed that it is implementing “capacity discipline” with “overcapacity particularly true concerning Asia.” Some services are said to have been cut altogether from Hong Kong, where rates have been “tough” for some time, according to IAG Cargo’s MD Steve Gunning.

Nikolas Dombrowski, Product Director Airfreight for Geodis Wilson in Germany confirmed that “some carriers have reduced their freighter frequencies, but at the same time new belly capacity is coming into the market. Not on all, but on many trades capacity is still not an issue and in particular from Hong Kong and Shanghai rates are still at a very low level.”

Rates out of Europe, where Germany continues to enjoy a strong export market to Asia, are stable. “Demand ex-Europe to Asia is constantly high, but surprisingly airlines are still not able to significantly increase their rates after reducing capacity.”

Dombrowski explains that despite tightened capacity, the market remains “extremely competitive” and that it’s not yet “tight enough to get rate adjustments through”.

Exports from the UK, meanwhile, have “definitely tailed off” reports a UK forwarder. “The market will be all about capacity rather than volumes,” he says. “Retail is down significantly, and no one is replenishing stock by air. Maybe in the last quarter, something will happen. Or perhaps this is the new norm.”

Industry predictions that the market will pick up in the second half seem unlikely to come to fruition, although the market has stabilized. Carriers are said to have redeployed aircraft to Brazil, which has put downward pressure on rates on those trade lanes to Europe.

 

Previous Post

Another one bites the dust

Next Post

The bloodshed continues

Related Posts

Twin widebody freighters take off
Freighter Conversions

NIAR to provide touch labor for Precision conversions

May 25, 2022
Calm Air adds first ATR 72-500F
Carriers

Calm Air adds first ATR 72-500F

May 3, 2022
EU Sanctions Tweak Allows Some Plane Owners to Sell to Russia
Aircraft Leasing

EU Sanctions Tweak Allows Some Plane Owners to Sell to Russia

April 15, 2022
Next Post

The bloodshed continues

Comments 4

  1. stanwraight says:
    11 years ago

    That David is the new reality for freighter operators. Massive cargo capacity in aircraft like the 777 will drive pricing from now on, and with the air freight commodity mix requiring less and less main deck unique characteristics, we better get used to it and adapt

  2. davidharris says:
    11 years ago

    Agreed. Think about how many 777-300ERs are now flying, and how many more on order — each one of which can carry over thirty tonnes of freight, even with a max passenger load.

  3. galanolucien says:
    11 years ago

    Well well , so basically you guys are saying that the 777-300 is bringing down market rates on the classical routes its being operated and for which the 777 has been basically designed for ? well well !

    air cargo business for only freighter operators like the formers TMA/MP/CV has always been just playing around with Capacity; what triggers the air cargo rate is the available capacity , frequencies and service levels. But if now pulling out capacities out of critical markets is not driving up the air cargo rates than reasons must be somewhere else. 

    still today i wonder why TSA programs and all the after 9/11 maths and security issues have not considered a segregation in carrying cargo in the bellies of passenger airlines. We also dont see Trucks carrying mix loads of Passengers and cargo on the roads (if you do you may land in jail), same as we dont see a Bus carrying passengers and cargo on the roads. Nor do we see cruise lines loading 20ft containers on their decks or inside their bellies. Neither the US nor the EU dare to touch that subject same as all industry participant doesnt question the costs of 100bucks and more to ship by express a 1kg envelope to Hongkong or to NewYork. Good old economical rules are still ruling the world economies but still lots of wrong thinking is being done in the cargo industry by not applying common sense and most important by not knowing the exact costs of transporting a kg of freight from a to z.

  4. davidharris says:
    11 years ago

    Lucien, one interesting point in your note is the question of security issues. I do think that right now the availability of belly space is making it tough for freighter operators, but just one incident of belly cargo being used to bring down an airplane may trigger a massive reaction by TSA and other authorities — pushing all that belly cargo back onto freighters.

Leave a Reply

Your email address will not be published. Required fields are marked *

STAY INFORMED WITH OUR NEWS ALERTS

  • About Us
  • Contact Us
  • Privacy Terms
  • ADA Compliance
  • Advertise

 Manage Cookie Consent

Follow Us

twitter linkedin podcast
© 2023 Royal Media
No Result
View All Result
  • News
    • All News
    • Aircraft Leasing
    • Capacity & Demand
    • Carriers
    • E-Commerce
    • Engines
    • Express
    • Freighter Aircraft
    • Freighter Conversions
  • Data & Fleets
  • Magazine
    • Latest Issue
    • Features
    • Top News
    • Freighter Aircraft Transactions
    • Shorts
    • View From The Cockpit
    • Parting Shot
    • Issue Archive
  • Podcast
  • Events
  • Consulting
  • Subscribe
  • Log In / Account

© 2022 Royal Media & Cargo Facts

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
AWSALBCORS7 daysThis cookie is managed by Amazon Web Services and is used for load balancing.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
PHPSESSIDsessionThis cookie is native to PHP applications. The cookie is used to store and identify a users' unique session ID for the purpose of managing user session on the website. The cookie is a session cookies and is deleted when all the browser windows are closed.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
bcookie2 yearsLinkedIn sets this cookie from LinkedIn share buttons and ad tags to recognize browser ID.
bscookie2 yearsLinkedIn sets this cookie to store performed actions on the website.
cbCookieAcceptedsessionThis cookie is used by Caspio (FAT Database) has not yet been given a description. Our team is working to provide more information.
cbParamListsessionThis cookie is used by Caspio (FAT Database) has not yet been given a description. Our team is working to provide more information.
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
langsessionLinkedIn sets this cookie to remember a user's language setting.
li_gc2 yearsLinkedIn uses to store consent of guests regarding the use of cookies for non-essential purposes
lidc1 dayLinkedIn sets the lidc cookie to facilitate data center selection.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
CookieDurationDescription
AWSALB7 daysAWSALB is an application load balancer cookie set by Amazon Web Services to map the session to the target.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid1 yearVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
__Host-GAPS2 yearsThis cookie allows the website to identify a user and provide enhanced functionality and personalisation.
_dc_gtm_UA-1038974-71 minuteUsed to help identify the visitors by either age, gender, or interests by DoubleClick - Google Tag Manager.
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
xn_uuid1 monthThis cookie is set by NING during sign-in, and serves as your identity on the network, and indicates that you are signed in.
Save & Accept
Powered by CookieYes Logo