Demand for freighters is peaking and prices too, brokers say
25 March 2020
Demand for freight charters is “going through the roof” with prices for capacity spiking as a result, shipping brokers are reporting.
The spike in demand is due to China’s return to manufacturing production, together with diminished belly cargo capacity that began as the country’s economy began its shutdown in December last year.
Air Canada and Turkish Airlines are among those which are substituting passengers for cargo, as demand for consumer travel falls away.
“Flights can accommodate general and specialised freight,” an Air Canada official told Aircargonews.net.
Far East route demand
Dan Morgan-Evans, head of cargo at shipping broker Air Charter Services, told authoritative shipping publication Lloyd’s Loading List that at present, “we’re in a peak, with demand for freighter charters on Far East routes going through the roof and keeping us very, very busy”.
Freighter availability is tight, depending on the route, Morgan-Evans reported.
He told Lloyds Loading List:
“There are freighters out there – be they from scheduled airlines, charter specialists or lessors. But prices have gone up dramatically to a point where suppliers can more or less name their price.”
However, the publication also reports broker predictions that demand for all-cargo planes will drop as economic activity continues to slow in Europe and the US.