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No uptick in air cargo demand yet in wake of Hanjin bankruptcy
THE air cargo industry needs to adopt a wait and see attitude on whether the bankruptcy of Hanjin Shipping will result in more demand for air cargo, says Atlas Air Worldwide Holdings (AAWW).
"It's a little too soon for anyone to know," said AAWW vice president Spencer Schwarz reported London's Air Cargo News.
"They [Hanjin] are a big player and they have a lot of volume and a lot of ships that are currently on route and at the moment none of us know what this is all going to mean, what sort of government involvement there might be," said Mr Schwarz, also AAWW's chief financial officer.
"We don't know whether they are going to stop business, whether the government will allow them to continue business," Mr Schwarz said during the RBC Capital Markets Global Industrials Conference in Las Vegas.
"It could mean opportunities for air freight. It's pretty late at this point of the year and we are heading into preparations for the peak season so if there is any potential upside it would be great for air freight, but I still think it is a little too soon for any of us to really know."
Mr Schwartz went on to say that should any opportunities arise, Atlas, which leases and charters aircraft, would be able to provide capacity to cater for that demand.
He said the company could potentially buy capacity from its own customers and that it kept some spare capacity available during the peak to capitalise on any "last minute high yield flights that do take place".
Mr Schwartz added AAWW does not have a lot of capacity left, "but we do have capacity left. And if there is any impact from this Korean [shipping company] we will be ready to take advantage of that".
The report said that other air cargo carriers and charter brokers have also indicated that they have not yet observed an increase in demand related to Hanjin's receivership.
Cargo with an estimated value of US$14 billion is stranded on Hanjin's 141 ships worldwide as service providers refuse to work for the Korean shipping line owing to concerns that they won't receive payment, and the vessels have been banned from docking at ports.
"It's a little too soon for anyone to know," said AAWW vice president Spencer Schwarz reported London's Air Cargo News.
"They [Hanjin] are a big player and they have a lot of volume and a lot of ships that are currently on route and at the moment none of us know what this is all going to mean, what sort of government involvement there might be," said Mr Schwarz, also AAWW's chief financial officer.
"We don't know whether they are going to stop business, whether the government will allow them to continue business," Mr Schwarz said during the RBC Capital Markets Global Industrials Conference in Las Vegas.
"It could mean opportunities for air freight. It's pretty late at this point of the year and we are heading into preparations for the peak season so if there is any potential upside it would be great for air freight, but I still think it is a little too soon for any of us to really know."
Mr Schwartz went on to say that should any opportunities arise, Atlas, which leases and charters aircraft, would be able to provide capacity to cater for that demand.
He said the company could potentially buy capacity from its own customers and that it kept some spare capacity available during the peak to capitalise on any "last minute high yield flights that do take place".
Mr Schwartz added AAWW does not have a lot of capacity left, "but we do have capacity left. And if there is any impact from this Korean [shipping company] we will be ready to take advantage of that".
The report said that other air cargo carriers and charter brokers have also indicated that they have not yet observed an increase in demand related to Hanjin's receivership.
Cargo with an estimated value of US$14 billion is stranded on Hanjin's 141 ships worldwide as service providers refuse to work for the Korean shipping line owing to concerns that they won't receive payment, and the vessels have been banned from docking at ports.
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