Air Cargo

Air cargo remains challenged by volatile conditions.

Forward progress remains intact in labor negotiations between Memphis-based global freight transportation services provider FedEx and pilots at the company’s FedEx Express subsidiary represented by the Air Line Pilots Association (ALPA), following a tentative agreement reached between the parties late last month.

FedEx officials declined to comment on the agreement, outside of a brief statement issued by the company on May 30, which stated: “We are pleased to have reached a tentative agreement with our pilots as we continue delivering outstanding service to our customers around the world.”

The company said that it has added two Boeing 747-400Fs to its freighter fleet and is also expecting 15 more freighters to become part of its fleet from previously announced orders and its freighter conversion program, in addition to what it called a boost in belly-hold capacity from new passenger aircraft deliveries, kicking off with Airbus A350s in late summer 2024, which will be followed by 777-Xs in 2025.

Despite a list of lingering challenges, there are a number of positive factors driving today’s air cargo markets, including the increase of airfreight fleets across different regions as well as returning passenger flights—which has only increased cargo capacity and market reach. Here’s what air shippers need to know as we roll through 2023.

Amazon Global Air Vice President Sarah Rhoads wrote in a blog posting that the company is adding 10 Airbus A330-300s leased from aircraft lessor, Altavair, to Amazon’s aircraft fleet. She explained that the aircraft are undergoing passenger-to-cargo conversion and will be the first A330 freighter conversions to operate in the U.S. upon entering the Amazon network in late 2023.

Atlanta-based global freight transportation and logistics services provider UPS said this week that is it purchasing eight new 767-300ER freighters from Boeing, which the company said will help to support its “customer-first strategy.”

Air cargo companies provide world-class service despite strong headwinds.

Atlanta-based global freight transportation and logistics services provider UPS remains highly focused on its Covid-19 vaccine distribution efforts, at a time when the FDA recently announced it expanded an emergency use authorization, for children ages 5-to-11, coupled with positive case numbers up in various parts of the United States.

Even with a strong recovery in revenue, the IATA maintains that air cargo did not meet its full growth potential last year. In the meantime, tight capacity, labor shortages, infrastructure shortfalls—and now the Russian invasion of Ukraine—continue to cloud the forecast in this vital sector.

A major part of this United States-based partnership centers around FedEx Express developing plans to test Elroy Air’s Chaparral autonomous air cargo system within FedEx Express’s middle-mile logistics operations and move shipments between sortation locations. The companies have been collaborating going back to January 2020.

Mike Short, president of Global Forwarding at C.H. Robinson, provided Logistics Management Group News Editor Jeff Berman with a detailed overview of the many issues shippers are facing, including the labor shortage, inflation, and mode selection, among many others.

Air rates are feeling even more upward pressure than usual from reduced passenger jet capacity—which could be made worse by omicron fears—and congestion due to labor shortages among overwhelmed ground crews.

With the company deep into Peak Season, Mike Short, president of Global Forwarding at C.H. Robinson, provided Logistics Management Group News Editor Jeff Berman with an overview of how the company approaches Peak Season and works with shippers to meet their objectives, at a time which may be the most unique and challenging market conditions the sector has ever seen.

DHL said its objective is to establish what it called an unparalleled electric Express network and make what it called a “pioneering step into a sustainable aviation future.” And it added that Evation’s Alice planes, as fully electric aircraft, enables both cargo and passenger airlines to operate a zero-emissions fleet, with DHL noting that Eviation has a 2024 target date to deliver the Alice aircraft to DHL.