Our global freight forwarding network keeps our customers freight moving across the world.

Air cargo gains ground with shippers, but concerns remain on waybill changes

Airfreight is becoming an increasingly important contingency option for shippers, but new rules on direct air waybills could cause complexity, according to Global Shippers Forum director James Hookham. At Aviation Connect in Athens this week, Mr Hookham said air had traditionally been regarded as "Plan B", but since Covid had become increasingly embedded in supply chain planning. And with post-peak season holidays approaching, he added, shippers were more likely to turn to air transport as deadlines for Black Friday, Thanksgiving, and Christmas approached. "At a time when goods must be in for onward distribution, to meet sales windows and contractual deadlines, the customer may reach for the air cargo solution." But he said airfreight was especially "part and parcel of the planning for many shippers" now, because ocean transport had become less predictable, creating opportunities for the air cargo sector. Mr Hookham stressed to air cargo stakeholders that shippers should not be treated as a single, homogeneous customer group, their requirements varied, according to cargo type, destination, delivery speed, and handling requirements. For airports, however, one of the most important considerations was simply "how little time my cargo spends in a particular airport"; and he underscored that efficient interaction between commercial and statutory processes was crucial to minimising that dwell time. But he also highlighted the potential implications of recent changes on liability in direct air waybills - an issue he said could become increasingly important for shippers, forwarders, and insurers, as the changes by IATA altered where liability could fall in the event of a dispute or disruption involving a DAB. "Instead of dealing with the original shipper, the decision has been taken for the forwarder [to be the liable party], even though they are acting as an agent in the booking rather than as a contracted party. "I was surprised by the number of shippers that are affected by this," he added. However, he said, it was still too early to determine the operational impact, partly because awareness of the change had been slow to reach the market. "When I was in Australia and New Zealand last month, I have to say it hadn't really registered as an operational issue." And Mr Hookham warned: "It creates uncertainty, possibly risk; certainly for the forwarder community, with some unwelcome new liabilities which they either seek to avoid, which causes some changes in arrangements, or possibly leads to insurance, which again causes costs, which nobody wants to want to pass on." He said the lack of clarity meant the issue could ultimately become a matter for the courts. "Unfortunately, I think this is going to end up with the lawyers," he said. "Watch this space because I think it will be a continuing issue."

Canada pivot to Europe opens air cargo opportunities, exposing capacity gaps

Canada's efforts to reduce its reliance on the US are opening new opportunities for transatlantic air cargo, but forwarders warn that limited capacity and seasonal reductions in passenger flights could complicate the shift. Edmonton International Airport said its EU-bound cargo increased in 2025 while exports to the US fell, and expects record European flows this year. Alex Lowe, director, ecommerce, cargo, and aviation real estate, explained: "So far the data trend suggests 2026 will be a record year for air cargo from YEG to the EU." The airport also expects record EU imports this year, with turbine parts, medical diagnostic equipment, and specialised machinery among its leading inbound commodities. Mr Lowe said trade diversification could encourage greater use of airfreight as Canadian businesses developed relationships with more distant markets. "From an air cargo perspective, we welcome this trend as it encourages trade with markets that may lean towards increased air cargo, given the geographic distances." However, turning that opportunity into sustained business will require sufficient capacity. "Both our passenger and cargo data does show that the YEG market is underserved to/from the EU, so we are working with existing airline partners and potential new entrants to develop increased transatlantic air services, and/or increased capacity," he said. "The ability to offer consistent two-way cargo volumes is a strong contributor to our business case." Steffen Manz, CEO of Speed Global Logistics, said the challenge extended beyond Edmonton. "Capacity remains a significant bottleneck, particularly for Western Canada, meaning a substantial portion of western cargo must still route through eastern gateways or US hubs." He said West Canadian shippers depended on seasonal passenger belly capacity and domestic feeder networks connecting with eastern gateways. But diversification is already generating new airfreight business, according to Mr Manz, who cited an Ontario-based automotive and electronics manufacturer that had previously sent component sub-assemblies by truck to a customer in the US Midwest. Following the introduction of tariffs, he said, the Canadian supplier became uncompetitive on that lane and activated a backup supply agreement with a German automotive systems integrator. "Because the new supply chain had to be stood up immediately, to prevent factory downtime, the initial months of volume shifted entirely from domestic trucking to expedited transatlantic airfreight to Frankfurt and Liège, generating entirely new lane demand for the air cargo network." Official figures support the broader change in trading patterns, although they also underline the importance of distinguishing trade value from freight volumes. Statistics Canada reports that merchandise exports to non-US countries rose 17.2% in value in 2025, while exports to the US fell 5.8%. Total merchandise trade with non-US countries increased 14.3%. Gold was an important contributor: exports of unwrought gold, silver, and platinum-group metals and their alloys - predominantly gold - rose 41.7% in value amid rising prices. Excluding that category, total Canadian merchandise exports fell 3%. Transport Canada's 2025 annual report also identified weaker cross-border trucking and rail activity alongside increased overseas shipments and air cargo. It noted 8% more air cargo with Europe, mainly gold and aircraft. The Canadian International Freight Forwarders Association (CIFFA) said businesses were exploring alternatives to US suppliers, reflecting changing consumer preferences as well as tariffs. It said some additional freight was moving between Canada and Europe, but warned that the transition into winter airline schedules would reduce available widebody services. However, Canada's Cargojet has added capacity, launching a Wednesday 767 freighter service on 23 September, between Hamilton, Halifax, and Liège, returning to Hamilton. The service complements its weekend operation and connects with its Canadian overnight network. CIFFA suggested the additional flight could absorb some of the capacity lost as passenger airlines reduce their European services. CIFFA also cautioned that Edmonton's growth could partly reflect the additional European airline services over the summer, rather than solely a change in shippers' trading relationships. The economics of diversification remain challenging. CIFFA highlighted the difficulty of moving bulky or heavy goods by air, while higher fuel costs could make alternative routings prohibitively expensive. Airfreight was better suited to higher-value finished goods, it added. Mr Manz, nevertheless, believes the change will endure. He said: "Evidence points to this being a sustained, structural shift rather than a temporary trend." Export Development Canada's 2026 Trade Confidence Index found 31% of Canadian exporters planned to enter Europe in the next two years. EDC is also expanding its European presence with new representations in France and Sweden, and another planned for Poland in 2027. Meanwhile, Edmonton sees pharmaceuticals as a further source of potential demand. Applied Pharmaceutical Innovation is developing a Critical Medicines Production Centre in the region, with capacity to produce 70 million doses annually. The airport said operations were expected to begin later this year or in early 2027. "Air cargo is a critical contributor to revenue on our passenger flights to the EU as belly cargo," it said. "Our team is always working to find and grow the cargo contributions for our airline partners." The airport is also developing its International Cargo Hub, which it said was budgeted at more than C$350m (US$245m). Work includes expanded freighter aprons, a fuel hydrant system, additional perishables and pharmaceutical handling facilities, and infrastructure to serve a 2,000-acre cargo and logistics park. "These investments align perfectly with the Canadian government's objectives to diversify Canada's trade profile internationally and open up global markets for western Canadian businesses."

Transpac spot rate climb takes a holiday as Golden Week arrives

The beginning of China's Golden Week national holiday yesterday appears to have coincided with a plateauing of the strong pricing peak that persisted on the transpacific trades throughout September. "Spot rates from Far East to the US ticked up again on 1 October, but we can say with a level of confidence that the market has reached its post-Hormuz crisis peak in 2026," said Xeneta chief analyst Peter Sand. The data signals were slightly mixed, but most indices pointed to transpacific spot rates either leveling off or beginning to marginally decline. Xeneta's XSI short-term rate index saw Far East-US west coast rates up 1.7% week on week, to end at $8,346 per 40ft, while the Far East-US east coast showed a 0.7% gain, to $11,523 per 40ft. Meanwhile, this week's World Container Index (WCI) from Drewry recorded a 1% gain on its Shanghai-New York leg, to $10,428 per 40ft, while its Shanghai-Los Angeles route was flat, at $7,835 per 40ft. In any case, the diagnosis was the same: "Part of the reason behind the turn is port congestion in Asia easing as typhoon season winds down, compounded by Golden Week and national holidays in China lowering exports in the first week of October. "Demand is not strong and rates have now peaked, but they will not collapse, so shippers should expect to pay elevated freight costs for the remainder of the year," Mr Sand said, adding that the elevated spot rate spread between east and west coasts is expected to diminish over the remainder of 2026. "There will be nuances in the decline between the US trades, however, with rates into east coast potentially falling harder than into the west coast - the spread will narrow as the broader decline takes hold, driven mainly by a harder fall into the US east coast due to its more elevated starting point. "Rolling forward three months, that could see spot rates into the east coast in the range of $6,000-$7,000, and to the west coast around $4,500-$5,500," he added. Meanwhile, spot rates on the Asia-Europe trades saw their twelfth consecutive week of declines, as well as the first post-peak season attempt by carriers to reverse the pricing movement. The WCI's Shanghai-Rotterdam route decreased 2%, to $3,399 per 40ft, while its Shanghai-Genoa leg was down 3%, to $3,702 per 40ft, despite some last-minute pre-Golden Week activity. "We had a slight up-tick in bookings for sailings pre-Golden Week, and I expect a few to be rolled as we had no restrictions on bookings," one large European forwarder told The Loadstar. "Bookings for post-Golden Week seem steady so far," he added, suggesting this indicated continued weak demand after the holiday. Nonetheless, carriers have begun to introduce new FAK (freight all kinds) rate levels for the second half of the month in an effort to arrest the declines - MSC announced a new FAK of $4,500 per 40ft on both Far East-North Europe and Far East-west Mediterranean shipments beginning 19 October, while CMA CGM has announced a $4,700 per 40ft FAK rate on Far East-west Mediterranean, and $4,900 per 40ft on Far East-east Mediterranean, also for 19 October. However, the forwarder said, carriers were also still cutting spot rates which meant the chances of a mid-month rate hike sticking were slim. "We're still receiving reductions on FAK rates for the first half of October, which make the rate increases of around $1,000 per 40ft, that I've seen for the second half of the month, confusing," the European forwarder continued. "If carriers have enough cargo for a roll pool to increase rates, then why reduce rates for sailings in the first half? "My feeling is it's an optimistic push to keep rates up and/or slow the decline - I don't see it coming from an increase in demand," he added.