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Cathay expects strong Q1 cargo demand as shippers scramble for space
CATHAY Pacific Cargo will be off to a flying start in 2018 with demand expected to be strong for at least the first quarter since shippers are already booking space.
The airline's executives highlighted in a number of articles the strength of the air cargo market in 2017 and also their forecasts for the coming year.
Regional manager cargo, Europe, Ray Jewell, said that bookings for January had come in earlier than usual, reported London's Air Cargo News.
"It's early December and we are already taking bookings for January. That lead times are lengthening, not across the board but at all, is a pretty encouraging indicator because people are struggling to find capacity.
"Customers have told us that they have warned shippers that there will be increases in rates," he said. "We may see agents willing to buy capacity for a longer time at a higher rate because they want to protect their business."
Manager cargo, China, Kenneth Tsui, voiced a similar sentiment, saying that shippers were working with airlines and agents to protect space for their exports.
Head of cargo global accounts Jeanette Mao said that the airline's freighters had been flying with a utilisation rate of 97 per cent over the first ten months of this year because of the growth in demand.
She said growth was fuelled by improving global economic confidence, e-commerce demand, retail confidence and shorter product cycles.
"In addition, the reliability of sea freight has been under pressure due to port congestion, a decline in on-time performance and the introduction of new alliance networks," said Ms Mao.
"This is a big risk for manufacturers reliant on just-in-time stocking, and that has seen automotive shipments and machinery parts air freight grow by 18 per cent and 14 per cent respectively in the first eight months of the year."
The airline's latest cargo statistics show that demand over the first 11 months of the year rose by 11 per cent year on year to 1.9 billion kilogrammes.
The airline's executives highlighted in a number of articles the strength of the air cargo market in 2017 and also their forecasts for the coming year.
Regional manager cargo, Europe, Ray Jewell, said that bookings for January had come in earlier than usual, reported London's Air Cargo News.
"It's early December and we are already taking bookings for January. That lead times are lengthening, not across the board but at all, is a pretty encouraging indicator because people are struggling to find capacity.
"Customers have told us that they have warned shippers that there will be increases in rates," he said. "We may see agents willing to buy capacity for a longer time at a higher rate because they want to protect their business."
Manager cargo, China, Kenneth Tsui, voiced a similar sentiment, saying that shippers were working with airlines and agents to protect space for their exports.
Head of cargo global accounts Jeanette Mao said that the airline's freighters had been flying with a utilisation rate of 97 per cent over the first ten months of this year because of the growth in demand.
She said growth was fuelled by improving global economic confidence, e-commerce demand, retail confidence and shorter product cycles.
"In addition, the reliability of sea freight has been under pressure due to port congestion, a decline in on-time performance and the introduction of new alliance networks," said Ms Mao.
"This is a big risk for manufacturers reliant on just-in-time stocking, and that has seen automotive shipments and machinery parts air freight grow by 18 per cent and 14 per cent respectively in the first eight months of the year."
The airline's latest cargo statistics show that demand over the first 11 months of the year rose by 11 per cent year on year to 1.9 billion kilogrammes.
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