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Air cargo exports growth offsets import declines at Frankfurt Airport

Frankfurt Airport saw cargo volumes increase by 4.5% year on year in October, with an increase in exports offsetting a decrease in imports. The German hub saw exports increase by around 10.2% compared with a year ago to 94,600 tonnes, while imports declined by 1.7% to 88,100 tonnes. Exports to Asia were up by 18.8% on last year's levels, while imports were down 2.2%. Airport operator Fraport said the decline in Asian imports had been driven by a 4.3% fall from China and a 10.1% decrease from Hong Kong. The company added that traffic to Europe from these origins is strongly influenced by e-commerce. In July, the European Union added a €3 charge for low-value items imported into the bloc as part of efforts to tackle the deluge of e-commerce imports. Figures from data provider WorldACD show that overall air cargo volumes from China & Hong Kong to Europe in October were down by 17% year on year as a result of the new fee. In terms of exports to Asia, volumes to India were up by 30.9%, South Korea 22.5% and Japan 14.9%. Meanwhile, North America volumes at Frankfurt were up 10.2% in October, with growth in both imports and exports, which Fraport said reflected a positive air cargo trade environment between Europe and the US. "Goods that are particularly suited to airfreight, such as machinery and high-tech products, have performed positively over the course of the year to date, supported in part for strong US demand for technology and AI-related goods," Fraport explained. Traffic with Latin America was up 9.5%, although there was a decline in Argentinian volumes due to operating restrictions at Buenos Aires airport as a result of runway work that started on 25 October. African volumes improved by 23.4% but there was a 10.1% decline in intra-European volumes and a 13.4% for the Middle East.

Pay more or risk 'an awful lot of cherry juice': the perishables airfreight squeeze

Perishables shippers have limited room to absorb rising airfreight costs, airlines have warned, raising questions over how long some products can remain commercially viable to fly. While booming demand for AI infrastructure supports higher freight spending, flower and fruit exporters face a harder ceiling: what consumers will pay for their products. "Perishables are a very low-margin business, in which there is only so much the consumers will pay," Fred Ruggiero, Cathay Cargo's VP cargo for the Americas, told The Loadstar at TIACA's Air Cargo Forum in Miami. Avianca Cargo CEO Diogo Elias highlighted the difference between customers shipping AI servers and "paying whatever", and flower exporters with much less scope to accommodate higher transport charges. He pointed to WorldACD figures showing Latin American yield increases of around 7% to 8%, against 24% to 25% globally, illustrating the region's difficulty passing on higher fuel costs. Atlas Air chief commercial officer Martin Drew warned that sustained cost increases could eventually push some commodities out of airfreight. "The longer it continues, what you start to worry about is ... price elasticity, where you get to a point where it's just no longer viable to send by air cargo," he said, citing some perishable products as potentially vulnerable to modal shift. Yet sea is not always an option. For seasonal produce, a delayed harvest can eliminate the time available for an ocean journey, leaving exporters needing airfreight precisely when their plans have become harder to execute. "As a result of the weather, the harvest may be delayed. That means it's going to miss the fast boats, so more has to be transported by air," said Mr Ruggiero. For Cathay, getting South American cherries to Asian consumers involves coordinating capacity across several carriers and gateways. "Transporting cherries from Chile through Miami, Los Angeles, or New York and onward to Asia is a complex journey where speed and temperature control are essential," he explained. "The product needs to move quickly, remaining at the optimal temperature throughout the journey. Otherwise, you're left with an awful lot of cherry juice." Those movements are organised well ahead of the harvest, with interline charter capacity feeding Cathay's network. "We have charters lined up with interline carriers from Chile to Miami or Chile to Mexico, so we can get them out to Asia," said Mr Ruggiero. "The problem is, if it's all planned in advance and everybody is ready to go, what happens if the crop gets delayed? There's a lot of communication involved amongst ourselves, the forwarders, the growers, and even down to the farmers." One air cargo executive described the precarious economics of a business in which a year's work could be threatened by rain at the wrong moment, adding: "I don't think I'd ever want to be in that business." Securing lift is another challenge. Cathay reported capacity shortages both from Asia to the US and within Asia. "So we're trying to secure additional capacity within the region," said Mr Ruggiero. Once space is booked, the handling requirements leave little room for improvisation. Treating all fresh produce alike can undermine the value of an expensive air journey. "On the handling side, it takes expertise to handle perishables properly, and every type of perishable is handled slightly differently," he said. "For example: how cold they can be, how much humidity they can withstand, and whether they can be covered or not." For forwarders, that means managing several moving targets - the harvest, connecting flights, handling conditions, and a freight bill the customer can afford. A delayed crop can require a faster journey, but it does not necessarily give the grower more money to pay for one.

LATAM Cargo to benefit from 90 tons of belly capacity on new São Paulo-Geneva route

LATAM Cargo is set to benefit from up to 91 tonnes of belly capacity on LATAM Airlines Brasil's new direct passenger service between São Paulo and Geneva, launching in March next year. Operating three times a week on Boeing 787-9 aircraft, LATAM Airlines Brasil's service will offer 55 tonnes of weekly capacity on the outbound route from São Paulo to Geneva, enabling cargo originating in Chile, Peru, and Colombia to reach Switzerland through passenger flight connections via the Guarulhos hub, said LATAM Cargo. Outbound flights from South America will drive shipments of dry cargo, components, industrial spare parts, and high-value goods. On inbound flights from Switzerland, the operation will provide 36 tonnes of weekly capacity into South America, catering to IATA CEIV Pharma-certified pharmaceutical shipments, including temperature-controlled medicines. Pharmaceuticals transported by LATAM Cargo between Europe and Brazil grew approximately 150% from January to July compared to the same period last year. Claudio Torres, commercial vice president for South America at LATAM Cargo Group, said: "The opening of this direct route between São Paulo and Geneva represents a major milestone for regional foreign trade. "By connecting LATAM's operating hubs in Brazil, Chile, Peru, and Colombia with the Swiss market through Guarulhos, LATAM Cargo can deliver an efficient, robust, and reliable logistics alternative to South American exporters and importers, significantly reducing transit times and supporting more efficient trade flows across the region." LATAM Cargo noted that by offering a direct connection to Geneva, the service will "also help avoid lengthy road feeder journeys from other European hubs, cutting transit times by at least eight hours and enhancing operational reliability for connected markets such as Germany and Italy". Jorge Carretero, cargo sales director for Europe at LATAM Airlines, said: "The new route by LATAM Airlines Brasil allows LATAM Cargo to commercialise belly-hold capacity and strengthen their commercial offering in Europe. "By eliminating the need for long ground transit routes, LATAM Cargo can offer Switzerland's pharmaceutical and high-value industries a reliable logistics solution supported by CEIV Pharma Certification."