SUPPLY chain trouble will continue at least till the end of next year and could stretch beyond 2022 as companies struggle with labour shortages as demand soars, according to emirates SkyCargo vice president Nabul Sultan.
'I believe it's not something that will disappear overnight. I think it is going to go beyond 2022,' he told Reuters at the Dubai Air Show. 'There are huge logistical challenges that are out there.'
A shortage of freight space and manpower as a result of the pandemic compounded by a rapid recovery in demand has jammed seaports and airports and led transport costs to skyrocket.
A vast amount of air freight globally is typically moved around by passenger jets, many of which airlines continue to keep grounded as travel demand gradually returns.
At Emirates, the passenger jet fleet accounts for about 70 per cent of its total cargo capacity, according to Mr Sultan.
Emirates, the world's largest international carrier based on seats and distance flown, has stripped the seats out of 16 Boeing (BA.N) 777-300ER passenger jets, temporarily transforming them into 'mini-freighters' to cater to booming cargo demand.
Emirates this week announced it would permanently convert at least four of its older 777-300ER jets into freighters. In addition to the 'mini-freighters,' it is also operating some cargo-only flights using passenger jets that still have seats.
The Dubai state-owned carrier would likely more than double its freighter fleet from 10 to over 20 aircraft by 2030, he said, and is evaluating the new Airbus (AIR.PA) A350 and Boeing (BA.N) 777X freighters.
Mr Sultan said demand for air freight was expected to remain high over the coming years, in part driven by a rise in online shopping, though was concerned a new wave of Covid infections in Europe could add further disruptions if governments enforced lockdowns.
Abu Dhabi's Etihad Airways expects air freight rates to start to come down in the first quarter as more passenger jets return, said Etihad vice president Martin Drew.
But with many airlines having downsized and some collapsing during the pandemic, Mr Drew said rates were unlikely to fall to 2019 levels at least for another three to four years.
SeaNews Turkey
'I believe it's not something that will disappear overnight. I think it is going to go beyond 2022,' he told Reuters at the Dubai Air Show. 'There are huge logistical challenges that are out there.'
A shortage of freight space and manpower as a result of the pandemic compounded by a rapid recovery in demand has jammed seaports and airports and led transport costs to skyrocket.
A vast amount of air freight globally is typically moved around by passenger jets, many of which airlines continue to keep grounded as travel demand gradually returns.
At Emirates, the passenger jet fleet accounts for about 70 per cent of its total cargo capacity, according to Mr Sultan.
Emirates, the world's largest international carrier based on seats and distance flown, has stripped the seats out of 16 Boeing (BA.N) 777-300ER passenger jets, temporarily transforming them into 'mini-freighters' to cater to booming cargo demand.
Emirates this week announced it would permanently convert at least four of its older 777-300ER jets into freighters. In addition to the 'mini-freighters,' it is also operating some cargo-only flights using passenger jets that still have seats.
The Dubai state-owned carrier would likely more than double its freighter fleet from 10 to over 20 aircraft by 2030, he said, and is evaluating the new Airbus (AIR.PA) A350 and Boeing (BA.N) 777X freighters.
Mr Sultan said demand for air freight was expected to remain high over the coming years, in part driven by a rise in online shopping, though was concerned a new wave of Covid infections in Europe could add further disruptions if governments enforced lockdowns.
Abu Dhabi's Etihad Airways expects air freight rates to start to come down in the first quarter as more passenger jets return, said Etihad vice president Martin Drew.
But with many airlines having downsized and some collapsing during the pandemic, Mr Drew said rates were unlikely to fall to 2019 levels at least for another three to four years.
SeaNews Turkey
