Cathay Cargo enjoys strong first half as it adapts to new trade patterns
Cathay Pacific Cargo posted strong first-half results in a period also marked by adapting to new trade patterns resulting from the conflict in the Middle East.
In the latest edition of the Hong Kong-based carrier's Cargo Pulse, today, head of cargo Chinese mainland Wendy Ge says that, in H1, Cathay Cargo tonnage carried increased 9% year on year.
"In addition, in recent weeks, Europe has introduced new customs duties on e-commerce, (the impact of) which is something we are monitoring."
The unresolved conflict in the Gulf has led to a further deferment in Cathay re-starting services to the Middle East. Its daily passenger flights to Dubai and four-times-weekly flights to Riyadh have been postponed until late October, while a freighter service to Riyadh is also postponed, with a resumption date under review.
"It has also meant that, due to the subsequent increase in oil prices, we have had to raise fuel surcharges from 1 August. This was the first increase since April. Using a new fortnightly review process, surcharges had previously been reduced multiple times since May," Ms Ge explained.
With the Middle East market currently constrained, India in particular has become something of "a trade hotspot", she underlined.
In June, Rajesh Menon, regional head of cargo for South Asia-Middle East-Africa, and his team attended the India International Cargo Show (IICS) in New Delhi. Feedback pointed to growing demand for air cargo services that can connect Indian businesses to major international markets, he said.
"India's direction of travel remains positive, supported by continued growth in manufacturing, exports, infrastructure development, and demand from key sectors, such as pharmaceuticals, perishables, automotive, electronics, and e-commerce," he added. "For Cathay Cargo, this presents an opportunity to support customers who need dependable connectivity between emerging manufacturing centres in SAMEA, Hong Kong, the Chinese mainland and other global markets."
Looking ahead, Cathay Pacific Cargo anticipated "continued healthy flows across its network, still led by the urgent demand for server racks and chips to fuel AI," noted Ms Ge.
"At the same time, we will keep an eye on the potential impact on e-commerce flows following the introduction of new customs duties on low-value imports into Europe that could affect volumes from the Chinese mainland."
