Despite, and partly because of, ongoing turbulence, air cargo keeps going strong. The industry flew through 2021 with an 18.7% increase in traffic over 2020 and 6.9% higher than in 2019. According to IATA, growth was well ahead of the rise in global trade.

2022 has continued in this vein and predictions are for more of the same at least for the first half of the year. IATA conducted a survey of airline chief financial officers and heads of cargo in December and January, who reported improved passenger and cargo volumes and expressed optimism that cargo yields would remain at lofty heights.

The air cargo industry is soaring on strong fundamentals. Inventory-to-sales ratios remain at low levels, necessitating ongoing re-stocking, with strong impetus from economic growth and rising glocargobal trade. In addition, the congestion that has plagued ocean cargo over the past year is not expected to abate significantly in the near term, with some voices predicting this to last through 2022, which promises elevated need for airfreight.

This spells continuing pressure on capacity, even though passenger airlines are in recovery mode. Aviation intelligence firm IBA predicts capacity of US and European low-cost airlines to exceed pre-Covid levels this year and transatlantic passenger traffic to recover to 2019 levels. However, Asia Pacific carriers continue to limp, with some not expected to reach half of their 2019 capacity this year.

[ED: On top of this is the invasion of Ukraine, which has severely limited AirBridgeCargo’s and Volga-Dnepr’s capacity while other airlines are scrambling to maintain services with extended routings to avoid Russian or European airspace.]

The experience with the Omicron variant was a powerful illustration how volatile the situation remains. Stringent Covid-related restrictions have severely hobbled Cathay Pacific’s longhaul freighter operations for months and Lufthansa Cargo had to embargo flows through its Frankfurt hub in late January after an Omicron outbreak decimated ground staff there.

The inevitable hunt for capacity is keeping rates in the stratosphere, and the trajectory of the oil price is adding fuel to the fire. Shippers are bracing themselves for more squeeze on their wallets. For the red-hot trucking industry, which has shown similar capacity pressures as airfreight, a recent survey reported that 97% of shippers expected to increase their freight procurement budget this year, more than half anticipating increases of 25% or more.

Forwarders are responding to the situation with moves to tie up more dedicated lift, from large players like Flexport to mid-sized companies like cargo-partner.

The scramble for capacity will go on. Those that have automated processes will find the going somewhat less strenuous.

Source: www.aircargo.com

Image: www.pixybay.com

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The aircraft will be purchased from Beta technologies (BETA) and used to augment UPS’s air service for select small and mid-size markets. The Beta aircraft’s 1,400-pound cargo capacity is ideally suited to more quickly and sustainably transport time-sensitive deliveries that would otherwise fly on small fixed-wing aircraft.

UPS’s use of the aircraft will benefit healthcare providers, thousands of small and medium-sized businesses, and other companies in smaller communities. With a 250-mile range and cruising speed of up to 170 miles per hour, UPS will be able to plan a series of short routes, or one long route, on a single charge to meet customers’ needs.

“This is all about innovation with a focus on returns for our business, our customers, and the environment,” said UPS chief information and engineering officer Juan Perez. “These new aircraft will create operational efficiencies in our business, open possibilities for new services, and serve as a foundation for future solutions to reduce the emissions profile of our air and ground operation.”

The aviation industry is focusing on small aircraft, which UPS uses to serve many small and medium-sized communities, to develop groundbreaking, sustainable electric-powered aircraft. BETA’s aircraft has four fixed vertical lift propellers and one pusher propeller for forward flight. It can charge in an hour or less, and produces zero operational emissions.

“We’re combining simple, elegant design and advanced technology to create a reliable aircraft with zero operational emissions that will revolutionise how cargo moves,” said BETA founder and chief executive officer Kyle Clark. “By utilising vertical takeoffs and landings, we can turn relatively small spaces at existing UPS facilities into a micro air feeder network without the noise or operating emissions of traditional aircraft.”

UPS has also reserved BETA’s recharging station for a seamless and fully integrated electric aviation system. The BETA charging station helps ensure safe and rapid charging of the aircraft in under one hour, and facilitates a quick turn for the loading and unloading of cargo. The charging station also offers the aircraft’s batteries a second life cycle.

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