Session Details

Effectively Using Air Cargo in Your Supply Chain Portfolio

Tuesday, 1 March

4:45 pm - 5:30 pm (PST) / 02/mar/2022 12:45 am - 02/mar/2022 01:30 am

For air cargo shippers trying to plan their shipment needs in a market where available capacity is outstripped by demand, only one question really matters: how to secure long-term capacity at an acceptable price. It's not a question easily answered when approximately half the available cargo capacity remains grounded in the bellies of long-haul passenger planes and will likely remain that way through 2022. But the market demand for reliable and consistent air cargo shipment out of Asia and across the Atlantic is behind moves by global transportation and service providers to access and control capacity. Forwarders are chartering as much freighter capacity as they can find, and airlines continue to deploy passenger planes in all-cargo roles. And steaming into this heavily disrupted and capacity-constrained global air freight environment are two container shipping giants that are embracing air cargo in a big way. Maersk is giving its wholly-owned subsidiary Star Air, Europe’s second-largest cargo airline, a far more prominent role within the group’s integrated logistics strategy, it’s increasing fivefold its number of daily charters across the main trade lanes, as well as offering sea-air and truck-air options out of Asia. CMA CGM in early 2021 created its own airline, CMA CGM Air Cargo, which operates four Airbus 330-200 freighters on trans–Atlantic and Europe–Middle East routes, and has ordered two Boeing 777 freighters to serve trade lanes out of Asia. The carrier secured greater access to air freight through its 2019 takeover of CEVA Logistics and further shored up its position in air freight with the acquisition of a 30 percent stake in long-haul passenger airline Groupe Dubreuil Aéro. Although this additional capacity will be welcomed by the market, it will be quickly snapped up by ocean shippers desperate to get their cargo moving out of Asia, in a complete reversal of the longstanding modal shift from cargo owners searching for cost-cutting ways to use less air freight. Demand from sea freight shippers forced out of the congested ocean market is expected to continue through 2022. At TPM in March 2019 — the last time the event was held live in Long Beach — a panel session asked the question, “How to incorporate air cargo into your supply chain in a structured manner without breaking the bank?” Two years later, the TPM22 question can be rephrased, “How to incorporate air cargo into your supply chain through long-term, fixed-rate validity that won’t break the bank?”

Session Speakers