Forwarders’ focus turns to margins in the uncertain global environment

Now that the major freight forwarders have reported their earnings for the first half of 2019, a look at the market finds one of lower airfreight volumes and positive oceanfreight volumes. However, the lesson learned from years past was that volumes do not always equate to profit. Today, the focus is on profits. Simple common […]

Trade war bites into Atlas’ 2019 income

During its earnings call today, Atlas Air Worldwide Holdings CEO William Flynn revealed that “revenue and earnings in the second quarter were below our expectations, as air cargo volumes and yields were affected in the near term by the widely reported impact of tariffs and trade tensions.” The situation is unlikely to improve in the […]

Delta’s cargo revenue falls 17% during Q219

In its second quarter results announced yesterday, Delta Air Lines reported that its cargo revenue declined by 17% year-over-year during the second quarter to $186 million. However, the airline’s overall revenue was up 8.7% due to cargo’s small share of Delta’s total business.  During the company’s earnings call, Delta’s President Glen Hauenstein said that both volumes and yields declined during the […]

Tripping over tariffs

Temporary disruptor, or catalyst for supply chain revolution? An effortless downswing launches a ball up into the sky where it bisects an incoming China Southern 747 freighter making its final approach toward the nearby airport’s eastern runway. Unbeknownst to the golfer, a footwear executive in town for an urgent supply chain meeting, she has more […]

Asian carriers report mixed traffic for May

In Asia, Taiwan-based EVA Air and China Airlines reported year-over-year declines, while China-based China Southern Airlines and Air China reported mixed results in their traffic for the month of May. Singapore Airlines, meanwhile, saw a continued decline in its traffic this month.  EVA Air’s cargo traffic, measured in freight tonne kilometers (FTKs) declined 6.0% year-over-year for the Month of May to 300 million FTKs. Load […]

Hong Kong Airport’s cargo traffic continued to slide in May

Hong Kong International Airport (HKG) reported that air cargo traffic continued its downward slide in May 2019, slipping 7.3% year-on-year to 405,000 tonnes. Cargo imports plunged 9% compared to May 2018, as trade tensions ramp up between China and the United States. The International Air Transport Association (IATA) found that global cargo demand fell 4.7% […]

Lululemon increasing airfreight ahead of port congestion in Asia

In an effort to get ahead of impending tariff-fueled port congestion, Canadian clothing retailer Lululemon will be increasing its international airfreight shipments before the fall. PJ Guido, Lululemon’s CFO, brought up the shift during a June 12 conference call to discuss Q1 results, when he mentioned that the company expects “gross margin to be flat […]

FTKs for Asia-Pacific carriers slide 9.1% in April

Airfreight demand in the Asia-Pacific region continued to suffer the impact of the trade tensions between China and the United States, with preliminary traffic figures from the Association of Asia Pacific Airlines (AAPA) showing a 9.1% year-over-year drop in freight tonne kilometers (FTKs) for April 2019. According to AAPA, the air cargo volumes of its […]

Trans-Pacific rates, traffic decline early in 2019

Airfreight traffic among Asia-Pacific carriers is on the decline so far in 2019, defying expectations of increased shipments ahead of the Chinese New Year. Meanwhile, while data from the TAC Index, which publishes weekly average general cargo prices on major global origin-destination pairs, indicates that trans-Pacific airfreight rates between Hong Kong and North America have likewise fallen nearly […]

UPS’ Cindy Miller on the redefinition of ‘customer experience’ in forwarding

There was a time not long ago when the shipment of goods across an international border was considered a matter of grave, time-consuming importance that may take days to resolve. With e-commerce, those days are gone forever as customer expectations are continuing to be more demanding. The concept of waiting the traditional “five to seven business […]

NAFTA is out, USMCA is in

The United States and its North American trade partners have finally agreed on concrete parameters of a new trade agreement that will replace the North American Free Trade Agreement (NAFTA). The last-minute deal, called the United States-Mexico-Canada Agreement (USMCA), came after over a year of suspense that has intensified over the last month, after the […]
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