United Cargo is anticipating a positive start to the year, continuing the momentum of a successful 2024 and peak season despite potential market uncertainties under the new Trump administration.
Jan Krems, president of United Cargo, said the carrier did “much better” in 2024 compared to its pre-pandemic performance despite a slow beginning of the year, and he signalled optimism that at least the first three months of 2025 would remain strong.
“I think there’s no real peak. I think we had the whole year as a peak. We had no really bad months. We never saw a decline,” he told Asia Cargo News, adding “2023 was also a good year, but 2024 is an outstanding year.”
“There are not many airlines that are better post-pandemic than pre-pandemic. We are doing about 40% better.”
Krems noted that October 2024 was also the best tonnage month in the history of United. “I’m very happy about that. I’m very happy about our end of the year [performance], and then at least quarter one will be good [in 2025]. So, then we have to see what Trump will do and what will happen with the tariffs.”
“So, I’m positive. I don’t know what will happen with the Red Sea. I don’t know what will happen with Trump tariffs if that would have an effect or not, but I’m very positive that it will be at least a good start. Good start,” the United Cargo chief added.
Krems said pharmaceuticals saw a lot of growth in 2024, but other high-value shipments also saw increased volumes.
“Pharmaceutical is the biggest. High-end perishables, high-tech products. We have automotive, we have a lot of human parts or medical parts, that we do. We do a lot of high-end diamonds, money, paintings, art, high fashion and sports cars. So high-value items.”
United Cargo aims for a balanced 50-50 mix between general cargo and speciality shipments. Currently, the carrier has a 55-45 mix.
Meanwhile, unlike most of the world’s airlines, the Chicago-headquartered airline is taking it slow when it comes to ecommerce.
Krems said while ecommerce shipments are lucrative, United Cargo is focusing instead on supporting the needs of its existing customers.
“We hardly do ecommerce because we feel the capacity is for our customers that we have globally,” he told Asia Cargo News. “Ecommerce can make us more money, but I want to help our customers in good and bad times with steady capacity. So, if we have extra capacity, we use it for ecommerce. Otherwise, we don’t use it at all. I don’t need ecommerce. Even without ecommerce, we are very full.”
United Cargo’s China operations continue to improve, with 14 flights a week now – although still far from the 14 flights a day that the carrier used to operate out of China to the U.S.
“It’s slowly getting better, but between the war or the controversy between the Chinese government and the U.S. government, there’s not much happening, but with what we can do, we fly, and it’s full, with very high loads.”
Krems said United’s Hong Kong operation is back to normal. “So, we do four flights a day from Hong Kong. Taiwan is doing well, two flights a day [to South] Korea. So slowly we grow.”
United is also looking at Vietnam and Thailand – although the carrier already has existing interline partners there.
The carrier’s busiest routes include the U.S. to Europe, vice versa, the U.S. to Asia, and Asia to Europe. The carrier also does a lot of domestic traffic with the United States Postal Service as its biggest domestic customer.
Krems does not foresee operating freighters, citing ample capacity on its current fleet and the risks of entering the full-freighter market.
“We don’t fly freighters,” Krems told Asia Cargo News. “We will never have freighters because I don’t believe in it.”
The United Cargo chief, who spent 27 years with KLM, noted the risks of owning freighters. “I was in 2008 at KLM and the whole world fell apart, and then you’re stuck with all your freighters that you cannot be flexible with it.
United currently operates 1,400 planes, of which around 300 aircraft are widebody.
“The widebodies are mini freighters. We have many of them. We have more capacity maybe than most freighter carriers in the world anyway,” Krems said.
Despite rising trade restrictions and geopolitical concerns, Krems expressed confidence that the air cargo industry would be able to navigate these short-term challenges.
“People need the goods in the U.S.. Are they willing to pay for it if the rates are [rising]? I don’t know. We have to be flexible and maybe we have to move other goods or change it, or take it from other markets to fly it,” Krems said.
“Cargo always finds its way because you have these restrictions before from different areas and we always found different things around it. So, with short-term, I guess, there’s volatility or risks [but] we always find ways to move around.”
By Charlee C. Delavin
Asia Cargo News | Hong Kong
