Subscribe to our free, weekly email newsletter!


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 Patrick Burnson, Executive Editor
September 19, 2011

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

image
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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

The Port of Oakland has undertaken a series of measures in recent years to attract more import volume.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 8.2 percent from September 2013 to September 2014 at $102.2 billion.

NS said that the D&H lines it plans to acquire connect with the NS network at Sunbury, Pa. and Binghamton, N.Y. and give NS single-line routes from Chicago and the southeast U.S. to Albany, N.Y., which is in close proximity to NS’ Mechanicville, N.Y.-based intermodal terminal.

This follows a 1.6 cent decrease last week, which was preceded by a 5.4 gain the week before and stands as the first increase going back to the week of June 23, when the weekly average headed up 3.7 cents to $3.919 per gallon.

BNSF said that its 2015 capital expenditures will be allocated towards various areas of its business, including maintenance and expansion of the railroad to meet the expected demand for freight rail service, with 2015 representing the third straight year BNSF has invested a record annual capital expenditures investment.

Article Topics

News · Air Freight · Air Cargo · Global · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA