Air Freight News

December 17, 2019

Joseph Cipolla - Senior Director

Joseph Cipolla,

Senior Director

Air Freight

Recent reports have highlighted that the impact of the trade war between the United States and China have contributed to the downgraded forecast expectations of air freight usage in 2020.

‘Many factors have contributed to this turn of events,’ comments Joseph Cipolla, Senior Director Air Freight at Crane Worldwide Logistics. ‘Certainly, the current tariff war, but also it is important to note the developments made in air freight capacity from China,’ he adds. ‘Aircraft such as the Boeing 787 and Airbus A350 can fly for a longer period as well as carry more cargo, the global carrier market is taking advantage of these developments, and we will continue to see more capacity continue to enter the market moving forward.’

Peak season has been reported as weak coming out of Asia, and based on our discussions with our key carriers, the market will continue to be soft as 2020 continues, even through to the second quarter’.

‘Another impact is the continued development that manufacturers are making with regards to their supply chain visibility, working with partners like Crane Worldwide Logistics, inventory planning is becoming more effective through the use of supply chain visibility tools. By working in partnership with our clients, our goal is to provide the most efficient transportation solution’.

‘According to IATA, we see the worst air freight slump since the 2008 market collapse, but I do believe that as we see progression with the trade agreements, an uptick in freight volumes is likely. Growth in commodities such as pharmaceuticals, perishables, components needing a time-sensitive solution, and certainly, the demands of e-commerce will drive demand.’


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