Air Cargo

Quarterly consolidated revenue, at $21.7 billion, fell 5.3% annually, and adjusted earnings per share, at $1.43, saw a 35.0% annual decline. Consolidated quarterly operating profit came in at $1.6 billion, which was off 36.5% annually.

Despite ongoing geopolitical headwinds, the majority of airfreight analysts say that 2024 may herald the start of a new economic growth cycle for the global air cargo industry.

The survey’s findings were based on feedback from more than 1,400 North American shippers across various sectors and was conducted late last year. Topics covered in the survey included measuring the use of and interest in various supply chain services compared to last year’s survey, if businesses are predicting an increase or decrease in shipments in 2024, how important a carrier’s sustainability program is to a shippers’ decision making, and identifying the biggest challenge with international shipments in 2024.

Logistics Management Group News Editor Jeff Berman recently caught up with DHL Express U.S. CEO Greg Hewitt to discuss various topics, including: the 2023 Peak Season; the freight economy; and variuous logistics trends and themes. Their conversation is below. 

With a focus on helping its shipper customers achieve their emissions objectives, Flexport.org, the impact arm of San Francisco-based freight forwarding and customs brokerage services provider Flexport, announced today it is introducing a new offering in collaboration with SaaS platform services provider CHOOSE, focusing on accelerating air freight decarbonization.

More than 50% of the survey’s respondents stated that the economy will enter into a recession within the next six months. As for reasons why this may be the case, responses included: high interest rates; high balances on credit cards; inflation; lower consumer demand; and high gasoline prices, among others.

The company said the new offering will fly six times per week between Miami International Airport (MIA) and Buenos Aires, Argentina (EZE), with a stopover in Santiago, Chile (SCL), prior to returning to Miami (MIA). And it added that the flight is operated by DHL Aero Expreso, with a Boeing B767-300 aircraft providing a gross payload capacity of 52 tons per flight.

High-flying service prevails in turbulent market

The DHL CVG hub currently operates on 194 acres with 67 aircraft parking gates and 6.4 million sq. ft. of ramp area, according to the company. It is a key part of the DHL U.S. network with 130 daily flights and a fleet of 60 aircraft, connecting customers from more than 220 countries and territories worldwide to every corner of the U.S.

ALPA said that the pilots rejected the deal by a 57% to 43% margin. And as for next steps, it added that it expects the National Mediation Board to convene a status conference with the pilots and FedEx, with the caveat that there is no time requirement for this to occur.

Air cargo remains challenged by volatile conditions.

Forward progress remains intact in labor negotiations between Memphis-based global freight transportation services provider FedEx and pilots at the company’s FedEx Express subsidiary represented by the Air Line Pilots Association (ALPA), following a tentative agreement reached between the parties late last month.

FedEx officials declined to comment on the agreement, outside of a brief statement issued by the company on May 30, which stated: “We are pleased to have reached a tentative agreement with our pilots as we continue delivering outstanding service to our customers around the world.”

The company said that it has added two Boeing 747-400Fs to its freighter fleet and is also expecting 15 more freighters to become part of its fleet from previously announced orders and its freighter conversion program, in addition to what it called a boost in belly-hold capacity from new passenger aircraft deliveries, kicking off with Airbus A350s in late summer 2024, which will be followed by 777-Xs in 2025.

Despite a list of lingering challenges, there are a number of positive factors driving today’s air cargo markets, including the increase of airfreight fleets across different regions as well as returning passenger flights—which has only increased cargo capacity and market reach. Here’s what air shippers need to know as we roll through 2023.