Cathay Cargo sees increase in BSA tonnages and more diverse array of customers
27 / 04 / 2023
Cathay Cargo has seen an increase in tonnage commitments and a “more diverse array” of customers in its annual block space agreements (BSAs) while confirming its summer freighter aircraft network.
Chris Bowden, Head of Cargo Global Partnerships at the Hong Kong based airfreight arm of the Cathay Pacific Group, also sees a trend of economic recovery on the Chinese Mainland, while some inflationary pressures in Europe seem to be easing.
Bowden, writing in the Cargo Clan customer update, said: “The summer freighter network is confirmed, and we have negotiated our way through the annual block space agreements.
“The contracts reflect continuing uncertainty in the market, but the overall tonnage commitment is up, and with a more diverse array of customers. This is encouraging as we rebuild our capacity this year ahead of the full operation of the 3RS (Three-Runway System at Hong Kong airport) that comes into effect next year.”
Bowden said that consumer confidence is yet to rebuild, which explains some of the “wait and see caution” for the second half of the year, but added there are some “encouraging signs”.
He continued: “US imports are increasing, and there is a trend of economic recovery on the Chinese Mainland; meanwhile, some inflationary pressures in Europe seem to be easing, which is a more positive scenario than many were predicting at the start of the year.
“Our investment in innovation, and our pandemic-honed ability to respond with agility to different situations, both continue to bear fruit.”
Last month saw the launched of the carrier’s Cathay Mail solution, which offers a data link between post offices and the airline’s air-cargo systems to enable postal customers to deliver the tracking and visibility to e-commerce customers.
Cathay Cargo recently carried the first shipment from Indonesia to use Ultra Track, its next-generation tracking solution, for Nippon Express.
In Mexico City, the carrier is responding to the relocation of cargo-only services from MEX to Felipe Angeles International Airport, while “minimising disruption to our customers within a tight deadline”.
Cathay Cargo recently operated the first commercial sea-to-air export shipment, for
Yusen Logistics, from the Airport Authority Hong Kong’s HKIA Logistics Park in Dongguan.
Said Bowden: “This is yet another example of Hong Kong’s innovation and
drive to remain pivotal to the logistics industry in the Chinese Mainland.”
Reflecting on Hong Kong maintaining its status as the biggest overall air-cargo hub by
tonnage in 2022 Bowden observed that it was accomplished despite operational challenges from the pandemic at the start of the year, followed by a weakening in the market.
“The accolade also proves that Hong Kong has enduring advantages as a cargo transhipment hub. The city’s logistics industry is world class, and it has a geographical advantage as the aviation gateway to the Chinese Mainland and the manufacturing and consumer powerhouse that is the Greater Bay Area.”