Heathrow, UK: The air freight sector is set to grow with the continuing rise of e-commerce, according to PML.
Within the specific chartered air freight sector competition is fierce with carriers offering their services directly rather than via a charter broker.
“These airlines are operating as logistics providers in their own right: from merely selling space on the aircraft, they are increasingly offering a complete one-stop shop to secure business and ensure flights are filled to maximum capacity,” PML says.
Although passenger traffic has been seriously compromised by the global outbreak of coronavirus, many of the airlines have been quick to seize the opportunity to retrofit aircraft to enable them to operate as cargo carriers providing the ability to continue flying at improved capacity.
Since the production of the Boeing 747 has stopped in favour of the more fuel efficient, newer 777, so interest in the procurement of 777s to lease or buy has increased and while some of these may already be converted for cargo, we are likely to see more of these passenger aircraft configured to accommodate the exclusive handling of cargo.
“Brexit has provided a massive boost to the chartered air freight industry. Companies which specialise in perishable goods cannot risk being caught up in cross-border delays, delays which can have a devastating impact on time-sensitive produce. UK supermarkets and independents demand quality fresh produce, with a good shelf life. Goods which have been kept in transit when they should have been on the shelves will have a reduced shelf life triggering substantial losses to the producer,” PML says.
For PML, the speed of transit associated with chartered aircraft services, supported by the company’s ability to handle product with an unbroken cold chain thanks to its relationship with Heathrow’s dedicated chilled airside storage, has dictated an even stronger interest in chartered air freight in the wake of Brexit. Such is the demand that PML, has seized the initiative to charter its own aircraft to ensure the seamless and timely transfer of fresh produce.
The impact of the global pandemic continues to be felt in all sectors of industry and the chartered air freight sector is certainly not exempt. As countries begin to prepare for massive vaccination programmes the priority for many airlines is to captialise on the opportunity to carry the vaccines and as a result the race for space on chartered flights continues to heat up.
“Competition for space in turn brings with it spiraling prices. Not only are logistics companies having to contend with the traditional seasonal variation in prices due to the influx of electronic products to satisfy the Christmas market, now the charters are becoming even more expensive due to the potential to charge a premium price for the transportation of PPE and vaccines,” PML says.
PML has chartered its own twice-weekly flight from Nairobi to Heathrow. It is watching the market to identify new opportunities to increase the number of flight rotations operated by PML and its partner network.
