newstodate.aero
Aug 17, 2009 (newstodate): With wheels still spinning in late-summer mode, air cargo volumes in the Danish market remain moderate while expectations are for some rebound to be seen again from this autumn.
-Customers seem to be cautiously positive in their expectations for things to develop again from autumn, and we do expect business to pick up towards the autumn and Christmas period. But we are also convinced that there will be nothing like a replay of last year's frenzy in the foreseeable future, says Jens Davidsen, Kuehne & Nagel airfreight manager Denmark.
-Airlift capacity remains excessive, and rates are scraping the bottom. It might seem a blessing for buyers, but the opposite may be closer to truth. It is obvious that no airline can sustain unprofitable operations, and while freighters may be withdrawn or grounded, belly capacity on passenger aircraft remain in the market, forcing rates down to near-zero levels. The result may be that the carrier you count on today isn't in the market tomorrow.
-While air cargo rates remain at bottom level, sea freight rates have increased tremendously during the recent period, exceeding 100 percent growth on lanes from the Far East to Europe, as much capacity has been withdrawn. How this will affect the air cargo remains to be seen.
-As much cargo formerly transported by air has gone to sea instead, logistics patterns and warehousing practices have changed and the market may not immediately return to airfreight despite the change in transportation cost patterns.
-Anyhow, we expect the Danish airfreight market to gradually recover in the coming months as importers will need to re-fill stores, and exporters fetch new orders from abroad as seems to be starting again now, says Mr Davidsen.
-Customers seem to be cautiously positive in their expectations for things to develop again from autumn, and we do expect business to pick up towards the autumn and Christmas period. But we are also convinced that there will be nothing like a replay of last year's frenzy in the foreseeable future, says Jens Davidsen, Kuehne & Nagel airfreight manager Denmark.
-Airlift capacity remains excessive, and rates are scraping the bottom. It might seem a blessing for buyers, but the opposite may be closer to truth. It is obvious that no airline can sustain unprofitable operations, and while freighters may be withdrawn or grounded, belly capacity on passenger aircraft remain in the market, forcing rates down to near-zero levels. The result may be that the carrier you count on today isn't in the market tomorrow.
-While air cargo rates remain at bottom level, sea freight rates have increased tremendously during the recent period, exceeding 100 percent growth on lanes from the Far East to Europe, as much capacity has been withdrawn. How this will affect the air cargo remains to be seen.
-As much cargo formerly transported by air has gone to sea instead, logistics patterns and warehousing practices have changed and the market may not immediately return to airfreight despite the change in transportation cost patterns.
-Anyhow, we expect the Danish airfreight market to gradually recover in the coming months as importers will need to re-fill stores, and exporters fetch new orders from abroad as seems to be starting again now, says Mr Davidsen.