October 2023

October 2023

More airlines cut service to Tel Aviv amid war

Ben Gurion International Airport (Photo/Tourist Israel)

Major carriers around the world have halted services to Israel as the escalating conflict between Israel and the militant group Hamas continues in the country. ??

British Airways temporarily stopped service to and from Tel Aviv’s Ben Gurion International Airport (TLV) after a plane bound for the Israeli city returned to London Heathrow Airport (LHR) due to heightened security concerns earlier this month.?

Cathay Pacific sent an alert Oct. 11 about halting its services to Tel Aviv until the end of October.

“In view of the latest situation in Israel, all Cathay Pacific flights between Hong Kong and Tel Aviv from today up to and including [Oct. 29] will be canceled,” the carrier stated in an email. “Customers who have already begun their journey and have not received a message from Cathay Pacific are advised to check the current status of their booking.”

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The Freight 50: 2022 a challenging year for carriers

(Photo/Air Cargo Next)

While most carriers saw a significant boost in volume in 2021 due to the pandemic, 2022 was a year marked by drastic year-over-year drops in volume as the market began to normalize.?

“Obviously, we came out of an incredibly busy pandemic period, with air cargo carriers carrying the lion’s share of goods for medical purposes, the vaccines, etc.,” Cargo Airline Association President Lauren Beyer previously told Air Cargo Next. “It was an incredibly busy and challenging time for the industry.”?

But the market continues to normalize to pre-pandemic demand and capacity, resulting in the decrease in 2022 volume from the prior year.?

For the fourth year in a row, Air Cargo Next is pleased to provide the Freight 50, a fully sortable chart of the top 50 carriers ranked based on data compiled from the latest World Air Transport Statistics (WATS) report from IATA. The sorting options allow carrier information to be viewed by 2022, 2021, 2020 and 2019 ranking; cargo tonne kilometers (CTKs); and year-over-year change by CTKs and percentage.

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How will nearshoring affect air cargo?

Jose Fernandez of BlueGrace Logistics (Photo/BlueGrace Logistics)

As more producers turn to nearshoring to reduce costs and add resilience to their supply chain, Mexico is reaping the benefits of moving goods production closer to customers in North America.

Air Cargo Next recently chatted with two executives from Tampa, Fla.-based third-party logistics firm BlueGrace Logistics, which is in the process of opening an office in Mexico in response to nearshoring growth in the country. The company’s nine other offices are in the United States.??

Jose Fernandez, vice president and country manager for Mexico, and Mark Derks, chief marketing officer, shared insights on why nearshoring is a growing practice, as well as its benefits and the role air cargo will continue to play as production is moved to Mexico.

WEIGH IN HERE


Consultant’s Insight: Flexport’s return to profitability faces hurdles?

(Photo/Flexport)

Rising interest rates and a harsh freight market are taking a toll on carriers and supply chain providers. Digital freight broker Convoy closed its doors last week, causing some to question other digital providers’ viability.

Unsurprisingly, digital freight forwarder Flexport pops up in many conversations. It made waves when it began 10 years ago by announcing it was modernizing the supply chain by bringing it to the internet. While many of the existing supply chain businesses were already investing in technology and moving to the internet, Flexport caught the eye of the investment community and has raised more than $2 billion, according to a recent Wall Street Journal story.?

Many in the supply chain market became fascinated by Flexport. Whether due to its great marketing tactics or charismatic founder Ryan Petersen, Flexport set itself apart from other providers with what it called a special focus on customers.??

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