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Air cargo executives call for new midsize freighter, with eyes on 787F

Air cargo executives are concerned with what aircraft will replace the Boeing 767 freighters that now compose a hefty chunk of the midsize cargo aircraft fleet, and at this year's Cargo Facts Symposium in Nashville, they called on Airbus, Boeing and conversion shops to get busy on such a project. Many executives view the 787 - either a Boeing-produced dedicated freighter or a passenger-to-cargo conversion - as the most-logical answer to the 767-replacement riddle, though interest also exists for a cargo variant of Airbus' A330neo. Basically, airlines are desperate for a new midsize freighter with modern engines. "Hopefully, Airbus or Boeing come up with something that we can fly, because we're starting to get nervous about what comes next," LATAM Cargo Group chief executive Andres Bianchi said on 22 October. "They should have started already... I think both of them are late." LATAM now operates 20 767Fs and can add nine more, taking those from LATAM's passenger operation and converting them into freighters. But the 767Fs "cannot carry us into the second half of the 2030s", Bianchi said. LATAM is one of many airlines globally that depend heavily on 767Fs. The jets can carry roughly 50t of payload - less than half as much as the largest widebody freighters - making them ideal for operating medium-haul, medium-demand routes. So popular is the type that Boeing continues assembling them, but not for long. Its backlog is dwindling and a production halt is in sight. The problem is that a one-to-one replacement with a new-generation widebody is not available. Airbus and Boeing are largely focused on developing much-larger widebody freighters, Boeing with its 777-8F, which is several years from service entry, and Airbus with its A350F, which it aims to have certificated in the second half of 2027. That is where the 787 could come in. Yes, Boeing's flagship is larger, costlier and more complex than the 767. Still, the idea has backers. Those include aircraft conversion shops, whose executives see a chance to develop such an aircraft, likely in partnership with Boeing. "The right answer will be for [Boeing] to build a passenger-freighter conversion of the 787," Air Transport Services Group chief executive Greg Mays said on 22 October. "I'd cut a hole in one today," he added, referring to a cargo door. Asked to comment, Boeing offered a previously issued statement. "As we look ahead to future medium-widebody freighter options, the 787 is a natural place for us to look," the company said. "We continue to evaluate our options in this space and are listening to our customers." Israel Aerospace Industries is also interested. The conversion company's vice-president Yaacov Berkovitz posted on LinkedIn last week: "The Boeing 787 is the next chapter in passenger-to-freighter conversions." Speaking in Nashville on 22 October, Berkovitz added: "This is a more-complex conversion. It has to be done with the OEM." Jim Gibbs, chief executive of conversion firm Kansas Modification Center (KMC), agreed that any shop seeking to convert a 787 had best partner with Boeing, citing the aircraft's composite fuselage and advanced systems. "You have external loads based on carbon fibres, and carbon-fibre stringers. You have common core-technology. There's a bunch of stuff in there that could easily cost hundreds of millions of dollars," Gibbs said. "If you had an OEM partner on the deal, it could actually cut the conversion timeframe and cost in half," he added. The idea has momentum, but do not expect to see 787Fs taking to the skies anytime soon. Such projects take years to reach fruition. Also, demand is roaring for passenger-configured 787s. Boeing already cannot meet demand, and airlines are not yet offering up the number of second-hand 787s required to support widespread conversions.

Carriers opt for more blanked sailings to bolster freight rates

Container spot freight rates on all three of the largest east-west trades - Asia-Europe, transpacific, and transatlantic - were on the rise this week. After three months of post-peak season declines, the Asia-Europe trades experienced a second week of spot freight rate increases, according to Drewry's World Container Index (WCI). The WCI's Shanghai-Rotterdam leg was up 3% week on week, to end at to $3,632 per 40ft, while its Shanghai-Genoa route saw pricing increase 5%, to $4,152 per 40ft. As is often the case, this week's WCI Asia-Europe spot rate levels were indicated by last week's Shanghai Containerised Freight Index (SCFI) figures, which showed Shanghai-North Europe at $3,547 per 40ft, and Shanghai-Mediterranean at $4,097 per 40ft, while analysts at Linerlytica noted that "actual spot rates remain weak with current carrier rates at below the SCFI's assessment", which chimes with some of the unsolicited spot market offers The Loadstar received from Chinese forwarders this week. In an effort to stave off a downturn in pricing as the market moves into November, carriers are increasing the number of blanked sailings - according to Drewry's Container Capacity Insight, eight blank sailings have been announced for next week, up from two this week, "indicating tight capacity", as well as introducing new freight all kinds (FAK) prices on Asia-Europe. This week MSC announced it would apply an FAK of $4,500 per 40ft on Asia-North Europe, $5,000 on Asia-west Mediterranean, and $5,100 on Asia-east Mediterranean on 1 November, while CMA CGM is aiming for $4,900 on Asia-west Mediterranean and $5,200 on Asia-east Mediterranean ports for the same date. However, Linerlytica predicts the new November pricing will likely fail, although it is worth noting that in MSC's case, the FAK rate to North Europe is the same level as that introduced in mid-October and only $500 per 40ft up in terms of Mediterranean destinations. European forwarders reported receiving discounted offers on FAK levels throughout the first half of this month and suggested this will be repeated in November. Meanwhile, transpacific spot rates grew more modestly in a week which US west coast forwarder Freight Right described as "a market stabilising". The WCI's Shanghai-Los Angeles leg rose 2% week on week, to finish at $8,007 per 40ft, while the Shanghai-New route was York up 1%, to $10,166 per 40ft, with Drewry recording two blank sailings scheduled for next week, "down from six this week, indicating more effective capacity". "Since strong US import demand continues to support freight rates, Drewry expects rates to remain stable next week," the consultancy added. However, North American demand levels remain open to question, with Freight Right reporting that a much-anticipated seasonal slowdown was beginning with the peak shipping season "officially wrapping up, and volume is beginning a natural seasonal decline", combining with a modest injection of capacity and some carriers offering discounts to gain market share. "While baseline market rates remain flat through month-end, additional capacity is opening up," it said. "Aggressive pricing anomalies exist among niche carriers, such as Ocean Network Express (ONE), offering rates significantly below general market averages, though space on these lower-cost options is fully booked through October," it added. It further added that a spot rate of around $8,000 per 40ft was now common on the Asia-US east coast trade. "Space conditions have eased in tandem with the west coast, ending the extreme tightness observed earlier in the season," it said. Meanwhile, rates on the transatlantic westbound head-haul grew again this week, with the WCI's Rotterdam-New York showing 3% week-on-week increases, to end at $3,181 per 40ft, maintaining a a months-long run that has seen the spot rate persistently above $3,000 - it is currently 85% up year on year.

Davies Turner to establish new airfreight HQ outside Heathrow

Davies Turner has acquired a logistics facility close to Heathrow Airport that will become the new headquarters of Davies Turner Air Cargo. The facility is currently being prepared for occupation, with an official opening scheduled for later this year. Its acquisition represents one of the most significant property investments in the UK-based independent freight forwarding group's recent history, the company said. The 130,000 sq ft facility is located less than two miles (3.2km) from Heathrow Airport's cargo terminal and just 500 yards from Junction 14 of the M25, the orbital motorway that surrounds London. It comprises approximately 70,000 sq ft of high-specification warehousing, with 12.5m clear internal height, and two mezzanine floors providing a further 50,000 sq ft of operational space. The site features five dock-loading doors and two level-access loading doors, together with 10,000 sq ft of office accommodation Davies Turner said that the acquisition forms part of its long-term strategy to "invest in critical logistics infrastructure that supports customer growth, operational excellence and future expansion". The new site has been selected to "strengthen the company's capacity, improve efficiency and provide a modern, future-ready environment for both employees and customers", it added. James Wheatley, managing director of Davies Turner Air Cargo, stated: "This acquisition represents a major milestone for Davies Turner Air Cargo and demonstrates our long-term commitment to the UK airfreight market. "Heathrow remains the country's premier international cargo gateway and this strategically located facility provides an exceptional platform from which to support our customers' future growth." He observed: "The investment gives us the capacity, infrastructure and operational flexibility required to continue developing our services for many years to come." Meanwhile, the long-running saga of Heathrow's own expansion rumbles on. Earlier this month, the airport indicated that the opening of its planned third runway is likely to be closer to 2039 than 2035. In its first quarter 2025 results, published on 30 April 2025, it said that depending on the UK Government's response, it aimed for the third runway to be operational by 2035. But in January 2026, Heathrow said the UK Government timetable was to secure planning permission by 2029 and bring the runway into operation within a decade, up to 2039. And, in a recently issued statement to Reuters, a spokesperson for Heathrow said that 2035 had been an "ambitious target". The airport added: "Our focus has always been to secure planning permission by 2029. Once achieved the runway will be open within a decade."