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Air cargo market conditions becoming increasingly localised

Air cargo market conditions are becoming increasingly localised as demand surges from certain origins and verticals while it eases from others, according to freight forwarder CH Robinson. The US company said that traditionally, demand cycles are broad-based as companies move goods for retail inventory replenishment, seasonal product launches, or post-disruption recoveries. However, the current dynamic is more concentrated around a "relatively narrow set of products, manufacturers, and export markets". CH Robinson explained that equipment tied to next-generation AI server platforms is fuelling airfreight demand from Japan, South Korea, Taiwan, Thailand, and Vietnam into the US. As these shipments are high-value, time-sensitive, and tied to deployment schedules, airfreight is expected to remain a preferred option for some shipments, even where ocean capacity is available. The surging AI demand is also putting pressure on capacity for other types of goods moving from, or through, these locations. "Shippers outside of the AI server sector may feel the effects if their freight moves through the same origin airports, uses the same carrier capacity, or ships during the same periods as AI-related cargo," CH Robinson said. However, other markets, such as Asia-Europe, are seeing demand levels ease. "In both Shanghai and Hong Kong, carriers continue to compete for available volumes [to Europe] as demand eases and capacity comfortably meets current needs. Rates have continued to soften, and neither market is showing significant peak-season pressure. "Across Southeast Asia, export demand [to Europe] remains stable but has moderated compared with earlier expectations. Capacity is sufficient across most origins, resulting in a favourable pricing environment and improved booking flexibility." Many are suggesting the easing of demand on the Asia-Europe trade is linked to new European Union rules for e-commerce, while it is also the quieter summer period. Meanwhile, capacity is "generally available" on the transatlantic market and import demand into Oceania "remains stronger than would typically be expected". South America remains supported by e-commerce, perishables exports, and recovering demand in several markets. Explaining why the localisation of airfreight trends matters to shippers, the forwarder explained that the overall picture may not reflect conditions at individual airports or on certain origins. "For shippers, the distinction matters because local conditions can be harder to separate from regional market averages," CH Robinson said. "Asia may appear balanced overall while individual origins experience tighter capacity, firmer pricing, or longer booking lead times. "As demand becomes more concentrated, origin-level conditions may matter more than regional averages when planning airfreight. "Even modest increases in technology-related exports can influence conditions at individual airports and within specific carrier networks, creating sharper effects than broader economic growth would normally produce. "Seasonal typhoon activity across Asia could add further volatility if weather-related disruptions coincide with periods of concentrated demand." The forwarder said that to combat the market conditions, shippers should separate time-sensitive shipments from freight with more flexible delivery requirements; watch a market's cargo mix, not just capacity; take advantage of competitive Asia-Europe rates; plan earlier for constrained lanes; and build flexibility into routing decisions where possible.

Cathay Pacific expects six month delay to A350 freighter order

Cathay Pacific is expecting a six-month delay to the delivery of its Airbus A350 freighter aircraft, the company revealed yesterday. Speaking at the airline's half-year results briefing, Cathay chief operations and service delivery officer Alex McGowan said that the airline is facing delays on its Airbus A350 freighter aircraft, of which it has eight on order, reports sister publication FlightGlobal. McGowan says the airline expects delivery to be delayed by around six months, but does not reveal when this might take place. Nonetheless, he says the airline is confident that the delays are on the "first few aircraft", and that the airframers "will catch up as the order book progresses". Cathay Pacific ordered six Airbus A350 freighters in December 2023 before adding two more aircraft earlier this year. At the time the first order was placed, the carrier said it expected delivery to take place between 2027 and 2029. Meanwhile, Airbus chief executive Guillaume Faury recently gave a short update on the next-generation freighter programme during its second-quarter results call. Faury confirmed that the airline was expecting test flights to start before the end of the year and deliveries to start next year. "We expect the first flight before the end of this year, which means the start of flight tests immediately and a very dense flight test programme, targeting certification and first delivery, ideally by the end of next year. The ramp-up, so delivery of aircraft in rather significant numbers, as soon as 2028." In February last year, Airbus pushed back the entry-into-service date for the A350F to the second half of 2027, from its earlier expectation of 2026. Meanwhile, testing continues to progress. Earlier this week, Airbus said that it is preparing to carry out flight vibration tests, known as "flutter tests" on its A350 freighter prototype as it works towards clearing the newbuild model for flight tests and service entry. Meanwhile, its rival Boeing 777-8F freighter has also faced delays. The 777-8F was originally anticipated to come to market in 2027 but this was pushed back into 2028 due to flight-testing delays with the baseline 777-9 passenger aircraft. Cargolux recently commented that it is not expecting to start taking delivery of the aircarft until 2029.

Hong Kong Air Cargo launches Hong Kong-Mumbai freighter service

Hong Kong Air Cargo has launched a dedicated freighter service between Hong Kong and Mumbai as part of its global expansion plans. Data from Flightradar24 shows that Hong Kong Air Cargo operated a flight from Chhatrapati Shivaji Maharaj International Airport in Mumbai to Hong International Airport on 6 August. Hong Kong Air Cargo's charter programme for the period of 1 August to 31 August includes a Hong Kong - Chhatrapati Shivaji Maharaj International service. However, Air Cargo News (ACN) reported last month that Hong Kong Air Cargo planned to launch charter flights between Hong Kong International and Navi Mumbai International from August. ACN has requested clarification from Hong Kong Air Cargo on its route(s) between Hong Kong and Mumbai. The launch of flights between Hong Kong and Mumbai comes within two months of Aeroprime Group's appointment as Hong Kong Air Cargo's cargo General Sales & Service Agent (GSSA) in India. Raymond Chen, vice president, commercial spokesperson for Hong Kong Air Cargo said: "The launch of our freighter service from Mumbai marks an important step in our India growth strategy. "Mumbai is a key export hub, and we are pleased with the rapid progress achieved alongside Aeroprime Group. Their support have played a vital role in expanding our footprint, and we look forward to strengthening our network and delivering greater value to customers." Abhishek Goyal, executive director, Aeroprime Group, said: "Launching Hong Kong Air Cargo's freighter service from Mumbai within just two months of our partnership reflects the shared commitment and agility of both teams. "Mumbai is one of India's most strategic cargo gateways, and this expansion enables us to offer customers greater capacity, enhanced connectivity, and reliable cargo solutions. "We thank Hong Kong Air Cargo and our partners for their continued trust and look forward to further expanding the airline's presence in India."