EXTRANS GLOBAL - Air Freight News - Week 39 2024

1) T'way Air - Introduction of the First National Airline's New Aircraft 'A330-900 Neo'

• T'way Air announced that starting next year, it will sequentially introduce five new wide-body aircraft, the A330-900 Neo (NEO).
• The airline recently signed a leasing contract with global leasing company Avolon for five A330-900 Neo aircraft and is negotiating to add five more by the end of 2027.
• The A330-900 Neo offers greater fuel efficiency and a longer range than the A330 CEO series, reducing carbon emissions. It will be deployed on mid-to-long haul routes, including Europe, the U.S., and Canada.
• T'way Air already operates three A330-300s on mid-to-long haul routes, such as Sydney and Singapore. It recently acquired four A330-200s from Korean Air for routes to Europe, including Rome, Paris, and Barcelona.
• The airline also operates two B737-8 narrow-body aircraft and plans to expand its fleet to 20 by 2027, aiming to reduce carbon emissions and enhance market competitiveness.
• CEO Jeong Hong-geun stated, "With the introduction of the fuel-efficient and sustainable A330-900 Neo, we will provide better service and safety while expanding our role as an eco-friendly airline."

2) Slight Drop in Air Cargo Rates Ahead of China's Golden Week

• As of the 23rd, global air cargo rates dropped 0.3% compared to the previous week but remained 94% higher than last year. The decrease is linked to China's Golden Week holiday (October 1–7).
• According to the Baltic Air Freight Index (BA), air cargo rates from Hong Kong (HKG) fell 0.3% compared to the previous week but were 18.7% higher than last year. Rates from Shanghai (PVG) increased 0.5% week-over-week and 21.3% year-over-year.
• Air cargo rates to Europe from South Korea and Thailand increased, while rates from Vietnam and India remained stable. U.S. routes saw rising rates.
• Frankfurt (FRA) air cargo rates increased 5.7% week-over-week due to demand for routes to China and Southeast Asia, though they were 11.7% lower than last year.
• Chicago (ORD) rates fell 3.6% from the previous week and were 23.5% lower year-over-year, though demand for U.S.-to-China and Europe routes increased, while demand for Latin America routes remained stagnant.

3) AF-KLM Cargo Expands Supply in the Asia-Pacific Region - Resumes Hong Kong Cargo Flights After 9 Years

• Air France KLM Martinair Cargo (AFKLMP) resumed cargo flights to Hong Kong after a 9-year break, reflecting the strong demand in the Asia-Pacific market.
• Martinair, operating on behalf of KLM, flies the route between Schiphol and Hong Kong using a Boeing 747-400 freighter with a capacity of 110 tons.
• The service initially runs three times a week, with plans to increase to four times a week starting from the winter schedule on October 27.
• AFKLMP cited the continued growth of the East Asian e-commerce market as a reason for the service resumption.
• However, the reopening of the Hong Kong route will lead to the suspension of some Latin American freighter routes.

4) Air Cargo Market Ahead of Peak Season - Charter Supply Still Available

• Experts and market players expect the fourth quarter to be the busiest peak season of the year. However, they note that despite rising demand, charter capacity is still available "if the price is right."
• An Air Charter Service representative commented, "While wide-body aircraft availability is limited, e-commerce demand remains strong, and air cargo demand is very high going into the fourth quarter. Yet, space can still be found, depending on how much shippers or forwarders are willing to pay."
• Market participants are delaying final decisions, but charter prices are expected to rise further.
• Experts predict that global air cargo rates will increase as the market enters the peak season, with charter rates already considered high by real demand users.
• E-commerce demand continues to drive the air cargo market, and rerouting due to the Suez Canal issue is further stimulating the market.
• Increased exports from Bangladesh and India have also supported the general cargo market throughout the year. It remains uncertain how much additional space will be needed once current issues are resolved.
• Many experts emphasize that e-commerce volumes are ultimately driven by end consumers, with predictions that the trend will not stop this year.
• In addition to e-commerce, the general air cargo market is expected to perform well. A specialist noted, "August rebounded after a quiet July, and September has started smoothly."
• Concerns over the U.S. port workers' strike (ILA) scheduled for October 1 are minimal. One expert commented, "Port strike-related demand has not significantly affected air cargo yet, particularly on the East Coast, where existing air capacity helps mitigate potential impacts."