Air cargo shippers still waiting for new Boeing freighter’s debut

At issue, it seems, is a contract negotiation with one of the manufacturer’s key clients – Cargolux.

By ·

Shippers anticipating the launch of Boeing’s the 747-8 Freighter have been disappointed by the cancellation today.

At issue, it seems, is a contract negotiation with one of the manufacturer’s key clients – Cargolux.

“We know that Cargolux was bringing in a lot of journalists to cover this event,” said Tom Crabtree, who oversees Boeing’s cargo industry forecasting effort. In an interview with LM, he noted that demand for this capacity has been ramping up.

“The make-up of the world’s freighter fleet will change as fuel efficiency continues to be an imperative, leading to an emphasis on size,” he said. “However the resultant fleet structure may be more nuanced.”
In this case, said analysts, the “nuance” involved the refusal by Cargolux to accept delivery. Published reports contend that the disagreement between Boeing and the airline may also involve compensation for Qatar Airways – which owns 35 percent of Cargolux. Quatar was promised 787 Dreamliner aircraft which have yet to arrive.

According to the just-published Boeing “Current Market Outlook 2011-2030,” long term economic projections are fraught with difficulty.

“Many of the assumptions such as regional and national GDP growth underlying Boeing’s projections are highly variable, influenced by short-term factors,” said Crabtree.  “None-the-less, looking at Boeing’s numbers, the growth of air cargo volumes over the past thirty years appears to be remarkably constant; despite the volatility of the underlying economy.”

Admittedly, said Boeing, the structure of the air freight market will change, with emerging markets and longer-range trades becoming even more important; yet a forecast of 5.6 percent does not appear to be unreasonable in the light of historical data.

“If true the air freight sector might prove to be a quite attractive niche within the wider logistics industry,” Crabtree said.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Air Cargo · Air Freight · Global · All Topics
Latest Whitepaper
The Internet of Things and the Modern Supply Chain
Learn today how the internet of things is transforming supply chain operations.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...