Mar 12, 2007
Another challenge is that less-expensive ocean shipping "is becoming more competitive and taking business away" from air cargo operators. Ocean container freight grew 9.5% in 2000-05, more than double the rate of air cargo. IATA forecasts 5.3% annual growth in airfreight through 2010 and a 7.2% rise in ocean freight. "New container ships are faster and cheaper to operate and 2006 ocean container freight rates were 20% in real terms below 2000 levels. Airfreight rates were only 8% lower. . .So we can expect more intense price competition," IATA DG Giovanni Bisignani said. Mar 9, 2007
IATA DG Giovanni Bisignani opened this week's World Cargo Symposium in Mexico City by pointing to "concerns" raised by cargo operators' heavy investment in Asia, including imbalanced trade flows, overcapacity and China's lack of standardized business practices. He noted that rapid growth in China and surrounding markets is driving air cargo's strong expansion rate, expected to average 6% annually over the next 20 years, but said, "Asia is exporting more than it is importing. . .So the planes are full leaving Asia but half empty coming in. And the situation will become more acute as airlines add capacity to meet the outbound demand. We all know what overcapacity does to our bottom line." Mar 9, 2007
Boeing, DHL, General Electric
Boeing said yesterday it reached agreement with express cargo operator DHL on an order for six 767-300ER freighters valued at $894 million. It chose General Electric CF6-80C2B7Fs valued at more than $120 million to power the aircraft. DHL Express CEO John Mullen said the aircraft will be delivered beginning in 2009 and likely will be dedicated to US routes. A DHL spokesperson said it is undecided which of the company's affiliated contract carriers will operate the freighters. Astar Air Cargo and ABX Air are its largest US subservice carriers and it is the process of finalizing a deal to acquire a 49% equity interest and a...