ARMED conflict in Ukraine and the Red Sea has helped ramp up freight shipments for Cargojet Inc, as global discord pushes companies to seek alternate transit routes.
The air freight and plane leasing company saw net earnings rise nearly seven per cent year over year to CAD32.5 million (US$23.6 million) in its latest quarter from CAD30.5 million in 2023 buoyed by continuing e-commerce demand in Canada but also trips chartered to haul cargo internationally, reports Bloomberg.
'A lot of the charter activity that we're seeing now is related to supporting both relief missions and military supplies either into the Middle East or into Poland and other places to support Ukraine,' said co-CEO Jamie Porteous on a conference call.
In the Red Sea, ongoing missile strikes by Iran-backed Houthi militants in Yemen have pushed major container carriers to steer clear of the Suez Canal. The crisis has prompted some shippers to opt for air transport, bumping global air cargo volumes by 11 per cent year over year for the third month in a row in March, according to freight analytics firm Xeneta.
'Air freight growth was primarily driven by increased volumes from the Middle East and South Asia as shippers shifted services from ocean to air to avoid Red Sea delays,' said Niall van de Wouw, Xeneta's chief airfreight officer, earlier this month.
Cargojet said revenue totalled CAD$231.2 million for the three months ended March 31, roughly on par with CAD$231.9 million in the same period last year. Revenue from domestic network, ACMI and All-in Charter for the quarter was CAD $181.0 million compared to CAD$169.9 million in first quarter 2023.
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The air freight and plane leasing company saw net earnings rise nearly seven per cent year over year to CAD32.5 million (US$23.6 million) in its latest quarter from CAD30.5 million in 2023 buoyed by continuing e-commerce demand in Canada but also trips chartered to haul cargo internationally, reports Bloomberg.
'A lot of the charter activity that we're seeing now is related to supporting both relief missions and military supplies either into the Middle East or into Poland and other places to support Ukraine,' said co-CEO Jamie Porteous on a conference call.
In the Red Sea, ongoing missile strikes by Iran-backed Houthi militants in Yemen have pushed major container carriers to steer clear of the Suez Canal. The crisis has prompted some shippers to opt for air transport, bumping global air cargo volumes by 11 per cent year over year for the third month in a row in March, according to freight analytics firm Xeneta.
'Air freight growth was primarily driven by increased volumes from the Middle East and South Asia as shippers shifted services from ocean to air to avoid Red Sea delays,' said Niall van de Wouw, Xeneta's chief airfreight officer, earlier this month.
Cargojet said revenue totalled CAD$231.2 million for the three months ended March 31, roughly on par with CAD$231.9 million in the same period last year. Revenue from domestic network, ACMI and All-in Charter for the quarter was CAD $181.0 million compared to CAD$169.9 million in first quarter 2023.
SeaNews Turkey
