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Long-term chartered air freight capacity depressing market
来源：shippingazette 编辑：编辑部 发布：2023/08/09 08:13:42
A CONTRIBUTING factor to the supply and demand dynamics of air cargo out of Asia is the lingering effect of contracted chartered freighter capacity that forwarders secured during the frantic scramble for space in late 2021 and 2022, reports London's Air Cargo News.
DSV air freight volume experienced a 21 per cent decline in the first half of the year, significantly underperforming the market.
DSV chief executive Jens Andersen attributed this drop partly to DSV's focus on higher-yielding cargo and the practice of discounting to fill charter aircraft.
During the forwarder's first-half earnings call, Mr Andersen revealed that the industry had committed to long-term chartered capacity, leading to situations where planes were stationed at different airports with little to no cargo.
In an effort to maximize utilization, any available cargo was loaded onto these planes, even if it meant flying with less than full capacity.
However, Mr Andersen expects this situation to improve as some of the lease agreements come to an end, gradually normalizing the market. He views it as a temporary phenomenon.
In late December 2021, restricted air cargo capacity and an unexpectedly robust peak season on trade lanes out of Asia drove average spot rates to record highs.
The overwhelming demand led time-sensitive shippers to rely heavily on air transportation.
To meet this demand, global forwarders secured numerous chartered freighters on the major routes out of Asia.
Many of these long-term charter deals remain in effect, even as demand has decreased. Despite the increase in below-deck belly cargo space due to the resumption of passenger travel after pandemic restrictions were lifted, the chartered capacity continues to be utilized.
"When the market normalizes, and we get a better match between capacity that has been committed for the longer term but not necessarily sold, we will then start to gain market share," said DSV chief operations officer Jens Lund.
DSV air freight volume experienced a 21 per cent decline in the first half of the year, significantly underperforming the market.
DSV chief executive Jens Andersen attributed this drop partly to DSV's focus on higher-yielding cargo and the practice of discounting to fill charter aircraft.
During the forwarder's first-half earnings call, Mr Andersen revealed that the industry had committed to long-term chartered capacity, leading to situations where planes were stationed at different airports with little to no cargo.
In an effort to maximize utilization, any available cargo was loaded onto these planes, even if it meant flying with less than full capacity.
However, Mr Andersen expects this situation to improve as some of the lease agreements come to an end, gradually normalizing the market. He views it as a temporary phenomenon.
In late December 2021, restricted air cargo capacity and an unexpectedly robust peak season on trade lanes out of Asia drove average spot rates to record highs.
The overwhelming demand led time-sensitive shippers to rely heavily on air transportation.
To meet this demand, global forwarders secured numerous chartered freighters on the major routes out of Asia.
Many of these long-term charter deals remain in effect, even as demand has decreased. Despite the increase in below-deck belly cargo space due to the resumption of passenger travel after pandemic restrictions were lifted, the chartered capacity continues to be utilized.
"When the market normalizes, and we get a better match between capacity that has been committed for the longer term but not necessarily sold, we will then start to gain market share," said DSV chief operations officer Jens Lund.