forsee calmer time than new year boom
Air cargo carriers are expecting a calm peak season, following the dramatic start to the year, but they see rates continuing to rise.
Cargolux‟s Senior VP for Sales and Marketing, Robert van de Weg, said he felt carriers and shippers were better prepared for the peak season than they were for the spike in volumes experienced at the start of the year. “If the capacity shortage experienced in March, April and May continues into the peak season, it will be a horrendous time, because supply and demand normally gets even tighter,” he said.
s“But this year, I don‟t think that is going to happen, and in October we will enter a good peak season. “Some people have over-reacted to the peak season, predicting it will be the „mother of all peak seasons‟, but I don‟t think that will happen. “It all comes down to preparation: people are already thinking about how the rest of the year will unfold and are preparing themselves for the peak, so they will not be caught off-guard.” Van de Weg said companies had already started building up inventories and pre-arranging charter flights in preparation.
He said the driver to the boom in volumes experienced earlier in the year was low inventory levels. Nils Haupt, Communications Director for Lufthansa Cargo, said he expected rates to increase duringthe peak season because they are currently still around 10% below 2008 levels.
He said: “I don‟t expect a big surprise for the peak season this year, but I would expect some rate increases in the industry.
“Last year, we saw losses never seen before – 2009 was the hardest year we have ever seen. So, we need to return to profitability this year. No one can afford more losses because then it is obvious the industry cannot survive if you operate freighters.”
Source: Damian Brett, IFW News, 18 June 2010