AIR Cargo rates are feeling more upward pressure than usual due to reduced passenger jet capacity and congestion, reports Massachusetts' Supply Chain Management Review.
Strict quarantine restrictions are also complicating operations for many air cargo providers.
CLIVE Data Services managing director Niall van de Wouw declared the air cargo market remains very demanding and constantly changing due to the Covid crisis, outbreaks of new variants, and escalated vaccine distribution needs.
'And that means higher rates across the board. Matching capacity to need is going to be the key concern for shippers in 2022, almost regardless of price,' said Mr Wouw.
Said International Air Transport Association (IATA) global head of cargo Brendan Sullivan: 'We succeeded in what was the most sophisticated global logistics operation ever undertaken but there were and continue to be challenges that need to be resolved,'
'Despite this, air cargo emerged from the pandemic even stronger and more agile than before. And as a result, is well-positioned to support the global economic recovery and overcome future challenges.'
Mr Sullivan pointed to a trend of re-fleeting by airlines.
'We are already seeing some great examples by Atlas Air, DHL, and Lufthansa,' said Mr Sullivan.
'All of which signed new aircraft contracts recently. And there has been some interest in electric aircraft too, with UPS planning to purchase up to 150 electric cargo carriers. DHL Express is also ordering their first-ever all-electric cargo planes.'
Mr Sullivan declared logistics managers may also mitigate rate hikes by agreeing to pay a premium for airline purchase of sustainable aviation fuel.
'And FedEx and DHL Express have committed to getting 30 per cent of their jet fuel from alternative fuels by 2030,' said Mr Sullivan.
'The biggest growth areas are in cross-border e-commerce and special handling items like time and temperature-sensitive payloads.'
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Strict quarantine restrictions are also complicating operations for many air cargo providers.
CLIVE Data Services managing director Niall van de Wouw declared the air cargo market remains very demanding and constantly changing due to the Covid crisis, outbreaks of new variants, and escalated vaccine distribution needs.
'And that means higher rates across the board. Matching capacity to need is going to be the key concern for shippers in 2022, almost regardless of price,' said Mr Wouw.
Said International Air Transport Association (IATA) global head of cargo Brendan Sullivan: 'We succeeded in what was the most sophisticated global logistics operation ever undertaken but there were and continue to be challenges that need to be resolved,'
'Despite this, air cargo emerged from the pandemic even stronger and more agile than before. And as a result, is well-positioned to support the global economic recovery and overcome future challenges.'
Mr Sullivan pointed to a trend of re-fleeting by airlines.
'We are already seeing some great examples by Atlas Air, DHL, and Lufthansa,' said Mr Sullivan.
'All of which signed new aircraft contracts recently. And there has been some interest in electric aircraft too, with UPS planning to purchase up to 150 electric cargo carriers. DHL Express is also ordering their first-ever all-electric cargo planes.'
Mr Sullivan declared logistics managers may also mitigate rate hikes by agreeing to pay a premium for airline purchase of sustainable aviation fuel.
'And FedEx and DHL Express have committed to getting 30 per cent of their jet fuel from alternative fuels by 2030,' said Mr Sullivan.
'The biggest growth areas are in cross-border e-commerce and special handling items like time and temperature-sensitive payloads.'
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