newstodate.aero
Feb 22, 2012 (newstodate): Airfreight rates remain at a low in the Nordic markets - but trends may soon be turning.
-Air cargo rates in the Nordic markets are low, but have probably now hit the rock bottom. I do not expect them to fall further from this level, says Alexander Kohnen, Lufthansa Cargo.
-What may slowly impact the rates level in the positive direction, seen from an airline perspective at least, is the fact that we at Lufthansa Cargo are seeing increasing and high load factors at almost all hubs and gateways. This means that there is now a better match between demand and capacity that will slowly lead to rising airfreight rates after a sustained period at very low values.
-While we are still to see this trend emerging in the Nordic scene I am confident that it will eventually break through here, too. But in the Nordic market we have one additional problem which is extremely high cost levels in handling, charges and manpower. This puts further stress on profitability and will in itself require an increase in rates to make services sustainable.
-Right now the Nordic markets seem still to be reluctant and we are probably all waiting to see the resurgence of fresh vigor in world economies before optimism will spread again, says Mr Kohnen.
-Air cargo rates in the Nordic markets are low, but have probably now hit the rock bottom. I do not expect them to fall further from this level, says Alexander Kohnen, Lufthansa Cargo.
-What may slowly impact the rates level in the positive direction, seen from an airline perspective at least, is the fact that we at Lufthansa Cargo are seeing increasing and high load factors at almost all hubs and gateways. This means that there is now a better match between demand and capacity that will slowly lead to rising airfreight rates after a sustained period at very low values.
-While we are still to see this trend emerging in the Nordic scene I am confident that it will eventually break through here, too. But in the Nordic market we have one additional problem which is extremely high cost levels in handling, charges and manpower. This puts further stress on profitability and will in itself require an increase in rates to make services sustainable.
-Right now the Nordic markets seem still to be reluctant and we are probably all waiting to see the resurgence of fresh vigor in world economies before optimism will spread again, says Mr Kohnen.