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Air Cargo Sector! New Cargo King Between Trans-Pacific

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Posted on 15 Aug 15

In spite of the increasing popularity of rail services that link Asia and Europe, air cargo services are secure and rapid source of carrying freight from continent to continent

Hong Kong-based Cathay Pacific Airways’ general manager for cargo sales and marketing, Mark Sutch believes, softer demand between Transpacific and Asia, Europe is merged with a rise in capacity between China and North America.

It has affected revenues but, still, the trans-Pacific region is in better health than the Asia-Europe markets. He further said that the traffic stoppage from Asia to Europe has been provoked by increasing capacity in that region, typically in the systems of huge passenger carriers.

Li Wenjun senior vice president of air freight at DHL Global Forwarding Asia Pacific stated, that we have experienced in the past that the passenger aircrafts changed the outdated freighters, so the main area merged into lower area capacity.

Train services, which connects Asia with Europe are spreading day by day. This rail service is a matter of great anxiety for passenger carriers. In June, DHL Global Forwarding started a train service which connects Zhengzhou and Germany through Poland and has twice in a week service.

This is the third regular train service of the company which connects China to Europe. Li Wenjun vice president of air freight at DHL Global Forwarding said that DHL Global experienced a modal shift of freight from the air to train services from China to Europe previous year.

DHL believes this drive to continue as the rail infrastructure between China and Europe to become endless. But what will happen in future? Is still a mystery.  Li Wenjun said that he is thinking to boost the cargo volume again to elevate the traditional season in August or in September.

In an instance, he stated that the company have again studied the model shift from air to sea cargo in the previous years, air cargo deliveries increased than before with the support of e-commerce industries which is continuing to increase by the goods like perishables and sensitive electronic products.

Executives of different companies have different opinions about the air cargo future. According to few managers, the strength of the air freight market is just for peak season.

President of cargo at United Airlines Jan Krems commented that only main companies have shown confidence about the peak season. Titus Diu, COO of China Cargo Airlines remarked that the invention of new goods in the third quarter increased the demand of air cargo. For example, Cathay Pacific has boosted its North American freighter services and considering more growth.

In spite of all, growth in Transpacific capacity, DHL Global Forwarding is still looking to heighten the peak season. Li Wenjun said that DHL Global Forwarding will continue to work together with his agreement partners for the sake of development in peak season and to save the selective charters for our deliberate clients.

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