DHL Global Forwarding is hopeful that the airfreight market will return to growth in the second half of the year despite the tough start to 2023.
Speaking to London's Air Cargo News, Thomas Mack, global head of airfreight, dhl Global Forwarding, said that global air cargo volumes were down by around 17 per cent over the first four months.
However, this was something the company had expected as volumes had been returning to ocean freight - following a shift to air caused by box shipping delays - and the surge in IT equipment for home working during the Covid pandemic had eased.
Mr Mack said that looking ahead to the second half of the year, he expected demand to grow by around 3-4 per cent compared with the same period a year earlier.
He explained that much of the downturn had already had an impact on the market by July and therefore comparisons should start to ease.
Based on this, Mr Mack said that he believed that rates for long-term capacity, as opposed to the spot market, had now bottomed out.
'I believe to a big extent that the rates have bottomed out - that is our personal opinion - and that is based on talking to customers, talking to airlines, macroeconomics and so on.
'I believe that rates have bottomed out for long-term capacity. Short term you always have seasonal fluctuations and that means rates will go down a little bit and then up in the peak season.
'That is my opinion based on the assumption that we see in the second half of 2023 a recovery in the market versus the same period last year.'
Asked how DHL Global Forwarding had reacted to the market downturn, Mr Mack said the company had 'significantly' reduced the amount of long-term capacity it had on its books.
'We reduced the percentage share of our long-term capacity to adjust to the new market environment and we started already with that last year in September. That gives maybe an advantage, although we don't know what our competitors are doing.'
In terms of future investments, Mr Mack said that the company would focus on people, digital and infrastructure.
SeaNews Turkey
Speaking to London's Air Cargo News, Thomas Mack, global head of airfreight, dhl Global Forwarding, said that global air cargo volumes were down by around 17 per cent over the first four months.
However, this was something the company had expected as volumes had been returning to ocean freight - following a shift to air caused by box shipping delays - and the surge in IT equipment for home working during the Covid pandemic had eased.
Mr Mack said that looking ahead to the second half of the year, he expected demand to grow by around 3-4 per cent compared with the same period a year earlier.
He explained that much of the downturn had already had an impact on the market by July and therefore comparisons should start to ease.
Based on this, Mr Mack said that he believed that rates for long-term capacity, as opposed to the spot market, had now bottomed out.
'I believe to a big extent that the rates have bottomed out - that is our personal opinion - and that is based on talking to customers, talking to airlines, macroeconomics and so on.
'I believe that rates have bottomed out for long-term capacity. Short term you always have seasonal fluctuations and that means rates will go down a little bit and then up in the peak season.
'That is my opinion based on the assumption that we see in the second half of 2023 a recovery in the market versus the same period last year.'
Asked how DHL Global Forwarding had reacted to the market downturn, Mr Mack said the company had 'significantly' reduced the amount of long-term capacity it had on its books.
'We reduced the percentage share of our long-term capacity to adjust to the new market environment and we started already with that last year in September. That gives maybe an advantage, although we don't know what our competitors are doing.'
In terms of future investments, Mr Mack said that the company would focus on people, digital and infrastructure.
SeaNews Turkey