Emirates SkyCargo is making significant investments to expand its fleet and boost its freight services despite current market volatility, as it signalled positive long-term prospects for air cargo.
Jeffrey Van Haeften, SVP of cargo commercial worldwide at Emirates SkyCargo, said the carrier started 2024 in a “strong position” – “outpacing the industry,” with global demand up by 30% compared to the same time last year, supported by ongoing issues in the Red Sea that are prompting a shift in volume from ocean to air freight, as well as continued growth in e-commerce.
Van Haeften noted that the demand for food and pharmaceuticals remains steady, while there has been a recent but steady surge in cross-border e-commerce.
“Our largest business unit by tonnage is perishables, where we uplift an average of 900-1,000 tonnes of fresh fruit, vegetables, flowers and other goods every day. Likewise, we move significant volumes of life sciences and healthcare cargo, an average of 2,000 tonnes a week,” Van Heaften told Asia Cargo News.
“We are seeing an increase in cross-border e-commerce deliveries, which we anticipate will continue to grow significantly, mitigating any losses from traditional air cargo commodities that may be in decline,” he added.
The Emirates SkyCargo executive pointed out that e-commerce has also accelerated product cycles, particularly for fashion and electronic goods, and the carrier’s network of over 140 destinations puts it in an excellent position to accommodate this shift.
Van Haeften said despite the ongoing supply chain disruptions, the air cargo industry is poised for future growth and Emirates SkyCargo is future-proofing its business with fleet expansion and other various investments to boost its operations.
“Global events have always impacted logistics and supply chains. With shipping through the two canals impacted, we are seeing a crunch on air freight capacity, which was already under pressure, coming through the pandemic. This has a knock-on effect on pricing across the supply chain,” he told Asia Cargo News.
“Both the pandemic and the current challenges with ocean freight are examples of how air freight is a cyclical industry impacted by macroeconomic and geopolitical issues. However, it’s important to focus on the big picture, which suggests the market will continue to grow at 3-5 percent year-over-year,” he added.
“Independent of the current challenges, we are confident in the long-term growth of the global market and air freight’s essential role in keeping goods moving,” Van Haeften said.
In a bid to fully support the boom in e-commerce, Emirates SkyCargo has also dipped its feet in last-mile delivery with the introduction of Emirates Delivers, the cargo carrier’s e-commerce delivery solution.
Launched in the UAE in 2019, the solution provides a door-to-door transport solution for e-commerce purchases from the UK and the U.S. for retailers not offering international delivery to several points in the Middle East in just 3 to 5 working days, including Kuwait and Saudi Arabia.
“The rapid growth of cross-border e-commerce has driven the increased demand for industry players to meet customer expectations for swift delivery and end-to-end logistics services. Recognizing the evolving needs of our customers, Emirates SkyCargo is dedicated to providing reliable and efficient air cargo solutions tailored to meet these demands,” Van Haeften said.
Emirates SkyCargo also continues to enhance its freighter capacity and capability to serve its global customers. Van Haeften told Asia Cargo News that one key aspect of Emirates’ strategy involves strategic partnerships and collaborations.
The carrier currently has over 170 partner agreements with its logistics partners worldwide. In addition to tie-ups, Emirates SkyCargo is investing in its fleet and infrastructure to support future growth expectations in air freight.
Van Haeften said Emirates SkyCargo is on a journey to grow Dubai’s position as the world’s largest logistics hub, and the carrier is expanding its fleet and network.
“We have laid out ambitious growth plans in terms of both network and fleet – adding 20 new destinations to our freighter network and doubling our existing capacity over the next decade,” he told Asia Cargo News.
“To double our capacity, we are expecting 15 more freighters to our fleet over the next decade.” Van Haeften said this includes the recent addition of two Boeing 747-400Fs, providing the carrier with immediate capacity, in addition to the orders in place for five new 777Fs to be delivered in 2024 and 2025, as well as 10 777-300ERs that will be rolled out over the next five years through a conversion program.
“We continue to plan ahead by exploring the next-gen freighters to ensure our fleet remains modern, efficient and flexible to best serve our customers,” Van Haeften added. In addition to its freighter fleet, the arrival of Airbus A350s in mid-2024, followed by 777-Xs in the following year, will also increase Emirates’ bellyhold capacity.
“Expanding our freighter network is another crucial aspect of our growth strategy,” Van Haeften said.
“Currently, we transport cargo to 140 destinations across our global network, spanning six continents. Over the next 10 years, we plan to add more than 20 new destinations, further strengthening our reach and connectivity,” he said.
By Charlee C. Delavin
Asia Cargo News | Hong Kong
