Our global freight forwarding network keeps our customers freight moving across the world.

Air cargo executives call for new midsize freighter, with eyes on 787F

Air cargo executives are concerned with what aircraft will replace the Boeing 767 freighters that now compose a hefty chunk of the midsize cargo aircraft fleet, and at this year's Cargo Facts Symposium in Nashville, they called on Airbus, Boeing and conversion shops to get busy on such a project. Many executives view the 787 - either a Boeing-produced dedicated freighter or a passenger-to-cargo conversion - as the most-logical answer to the 767-replacement riddle, though interest also exists for a cargo variant of Airbus' A330neo. Basically, airlines are desperate for a new midsize freighter with modern engines. "Hopefully, Airbus or Boeing come up with something that we can fly, because we're starting to get nervous about what comes next," LATAM Cargo Group chief executive Andres Bianchi said on 22 October. "They should have started already... I think both of them are late." LATAM now operates 20 767Fs and can add nine more, taking those from LATAM's passenger operation and converting them into freighters. But the 767Fs "cannot carry us into the second half of the 2030s", Bianchi said. LATAM is one of many airlines globally that depend heavily on 767Fs. The jets can carry roughly 50t of payload - less than half as much as the largest widebody freighters - making them ideal for operating medium-haul, medium-demand routes. So popular is the type that Boeing continues assembling them, but not for long. Its backlog is dwindling and a production halt is in sight. The problem is that a one-to-one replacement with a new-generation widebody is not available. Airbus and Boeing are largely focused on developing much-larger widebody freighters, Boeing with its 777-8F, which is several years from service entry, and Airbus with its A350F, which it aims to have certificated in the second half of 2027. That is where the 787 could come in. Yes, Boeing's flagship is larger, costlier and more complex than the 767. Still, the idea has backers. Those include aircraft conversion shops, whose executives see a chance to develop such an aircraft, likely in partnership with Boeing. "The right answer will be for [Boeing] to build a passenger-freighter conversion of the 787," Air Transport Services Group chief executive Greg Mays said on 22 October. "I'd cut a hole in one today," he added, referring to a cargo door. Asked to comment, Boeing offered a previously issued statement. "As we look ahead to future medium-widebody freighter options, the 787 is a natural place for us to look," the company said. "We continue to evaluate our options in this space and are listening to our customers." Israel Aerospace Industries is also interested. The conversion company's vice-president Yaacov Berkovitz posted on LinkedIn last week: "The Boeing 787 is the next chapter in passenger-to-freighter conversions." Speaking in Nashville on 22 October, Berkovitz added: "This is a more-complex conversion. It has to be done with the OEM." Jim Gibbs, chief executive of conversion firm Kansas Modification Center (KMC), agreed that any shop seeking to convert a 787 had best partner with Boeing, citing the aircraft's composite fuselage and advanced systems. "You have external loads based on carbon fibres, and carbon-fibre stringers. You have common core-technology. There's a bunch of stuff in there that could easily cost hundreds of millions of dollars," Gibbs said. "If you had an OEM partner on the deal, it could actually cut the conversion timeframe and cost in half," he added. The idea has momentum, but do not expect to see 787Fs taking to the skies anytime soon. Such projects take years to reach fruition. Also, demand is roaring for passenger-configured 787s. Boeing already cannot meet demand, and airlines are not yet offering up the number of second-hand 787s required to support widespread conversions.

TAP Air Portugal eyes cargo demand for Orlando flight

TAP Air Portugal and sales agent America Cargo GSA are hoping that the airline's new direct flight to Orlando will prove valuable for their cargo customers. The service is due to launch on 29 October and is the only direct connection between Lisbon and Orlando. The service will operate three times per week using an Airbus A330 aircraft. Flights will depart on Monday, Thursday and Sunday and the service will offer between 45 and 60 tons of capacity each week. One of the main selling points of the service is the two-hour time saving it offers comapred with non-direct flights. "TAP Air Portugal is making history this winter by becoming the first airline ever to offer a direct connection between Orlando, home to leading American aerospace, tech and industrial manufacturers, and Lisbon, a well-situated, less crowded gateway into Europe and an excellent bridge to South America," said Jean Ceccaldi, chief executive of ECS Group. "TAP's new service shaves hours off existing two-leg connections and is therefore a highly attractive alternative, particularly for shippers of high-value, time-sensitive goods such as aerospace parts, electronics, medical technology and industrial machinery, alongside other specialised exports such as seafood and vegetables. "America Cargo GSA is working in close collaboration with major forwarders and reports keen interest in TAP Air Portugal's latest routing." Rúben da Silva Jorge, head of sales North America at TAP Air Cargo, added: "Market feedback has been extremely encouraging. Customers have responded positively to the new non-stop service, and we are optimistic about developing Orlando as both a strong local market and an important gateway within our network. "Together with our GSSA partner, America Cargo GSA, we look forward to serving our freight forwarding customers." The new service launch comes shortly after the Portuguese government selected Lufthansa's bid for a stake in TAP Air Portugal ahead of the Air France-KLM Group. The deal will allow Lufthansa Cargo to expand its offering between Europe and South America - in particular Brazil - and Africa from TAP's Lisbon and Porto hubs. Meanwhile, TAP will gain access to Lufthansa's strong network heading east and its fleet of freighters, allowing it to expand the types of cargo it can carry.

TAC reports another surge in airfreight rates

The latest data from TAC Index, the price reporting agency on airfreight markets and the calculating agent for the Baltic Air Freight indices, show that rates have surged again of late. The global Baltic Air Freight Index gained 4.7% over the seven days up to 19 October, reaching a figure 26.4% up year on year - and above the highest points of the last two peak seasons, which typically occur in the run-up to Thanksgiving in the US and Christmas in Europe. This year, TAC noted, rates were already starting from elevated levels resulting from disruption to markets caused by the conflict in the Middle East and the war between Russia and Ukraine. These same conflicts have also caused a surge in jet fuel prices - up by 113.7% year on year to 16 October according to the latest IATA Jet Fuel Price Monitor. This will, TAC said, "put a hard floor under rates at which airlines will carry cargo". Geographical variations The surge in global airfreight market rates was led by a strong week-on-week increase in rates on the busiest lanes out of China to the US - as well as to a lesser extent to Europe, where rates have been lagging somewhat since July following a fall in volumes following the end of the old de minimis exemption from customs duty for small parcels coming into the EU. Spot rates out of Hong Kong and Shanghai have also been rising lately. Rates from Europe were by contrast a little softer week on week compared to recent increases - with falls overall on transatlantic lanes to the US as well as to India, Japan, Australia and South Africa, although there were further gains on lanes to China, Mexico, Brazil and the UAE. The index of outbound routes from Frankfurt fell by 6.6% week on week, although they remained well up year on year at 33.7%. Outbound London Heathrow rates also slipped a little, by 2.3% week on week, though they remained well above last year, up by 35.2% year on year. Rates were mostly firmer week on week out of North America on lanes to China and elsewhere in Asia as well as to South America, led by further gains on the busiest routes southbound from Miami. However, rates were also a little lower from the US on transatlantic lanes to Europe and the UK. There was also a further big gain week on week in rates from Mexico to Europe, leaving them well up year on year. Up on last week The previous set of week-on-week comparison figures from TAC Index, as reported by ACN, showed that there had been a slight drop in airfreight rates then as a result of the Golden Week celebrations in China, but overall the market remained firm heading towards the peak season. The figures for the week up to 12 October from the Baltic Air Freight Index showed that rates edged 2.1% lower that week, which "was not unusual for the Golden Week holiday period in China when factories often shut down and volumes decrease", according to TAC Index. However, TAC also highlighted that the market remained firm as the industry heads into the peak season and there was potential for rates to rise further - as has clearly been the case, judging by this week's latest data.