Boom amid capacity strains

Boom amid capacity strains

The airfreight sector in the Americas has seen robust demand, with e-commerce emerging as the main growth driver. This surge in demand has put pressure on existing air cargo capacity, leading to increased rates as airlines adjust their service offerings to cater to the e-commerce boom.

While there is cautious optimism in the industry, the imbalance between supply and demand continues to challenge airfreight operations. In the second half of the year, capacity decreased as airlines shifted resources to Asian-Pacific (APAC) markets to accommodate increased e-commerce demand, further driving up rates as space became more limited. Despite these challenges, the automotive, industrial, and oil and gas sectors remain resilient alongside the booming e-commerce market.

“Trade lanes are dictated by our gateways in the US which cater to specific regions,” Jacques Nijankin – Head of Airfreight – Americas at Rhenus Logistics, explained.

“Miami International Airport focuses on Latin America due to economic ties and its proximity to the markets in addition to being a strategic in-transit point for shipments originating in Asia.

“Our Chicago O’Hare and Los Angeles gateways cater to APAC primarily to satisfy the growth for e-commerce traffic and industrial goods.

“Our Newark/New York markets support our European, Middle Eastern and Africa trade lane for automotive, industrial and consumer goods.”

Keeping pace

The airfreight industry in the Americas is witnessing significant investments aimed at expanding infrastructure to handle increasing cargo volumes. Airports and air cargo hubs are undergoing capacity expansions to accommodate the growing demand.

Beyond physical infrastructure, there is also a notable focus on efficiency and sustainability.

“We are also seeing an increase in airlines using Sustainable Aviation Fuel (SAF), which cuts down considerably on the carbon footprint.  The challenge is that this still is a more expensive option, and many logistics companies have not yet embraced this initiative in order to keep costs down for their customers,” Nijankin stated.

“Rhenus is at the forefront of implementing sustainability and continues to drive innovative solutions.”

Investments in advanced technologies, such as automated cargo handling systems and digital tracking solutions, are helping to optimise operations and improve cargo visibility, ultimately creating a more streamlined supply chain.

To improve cargo visibility and tracking in the Americas, Rhenus Logistics has developed its own Transport Management System (TMS). This in-house TMS provides greater flexibility in adapting to specific customer needs, allowing Rhenus to tailor solutions to meet unique requirements.

Whether clients need enhanced tracking capabilities, customised reporting, or specific integrations, Rhenus can quickly implement such solutions, thereby improving transparency and control over shipments. This system also supports better communication between all parties involved in the logistics process, ultimately helping to make operations smoother and more efficient.

“New partnerships and collaboration with airlines, airline cargo handlers, and logistics companies provide new synergies to provide a more efficient and seamless operation,” Nijankin stated.

“Rhenus focuses on dynamic growth and partners with those that share the same ideology.  The idea is to align with a select group of companies that want to share in the growth together, in the end the outcome is a mutually beneficial partnership and both sides win.“

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

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