Geodis extends transatlantic freighter flights to meet capacity shortage

Freight forwarder Geodis has continued to expand its use of freighter flights, extending its transatlantic operation into next year.

Geodis said its Own Controlled Network (OCN) linking Europe to the US three times per week in each direction would now run throughout 2021.

The service will run between Amsterdam Schiphol (AMS) and Chicago O’Hare (ORD).

The forwarder reasoned that transatlantic capacity continues to be tight as a result of the grounding of passenger flights due to the coronavirus outbreak.

The trade lane was previously heavily operated with bellyhold space and figures from Accenture’s Seabury Consulting show that capacity is 42% down in the westbound direction and 39% down eastbound.

According to Tac Index, rates between Frankfurt and North America are up by 124% year on year at $3.77 per kg, while from Chicago to Europe they 219% up at $1.70 per kg.

Eric Martin-Neuville, executive vice president, freight forwarding at Geodis, said: “Our customers on both sides of the Atlantic have been suffering from a severe shortage of regular, guaranteed airfreight options.

“We foresee this situation remaining for some time and so have committed resources to provide stability and assure the continuity of our service through the full year of 2021. As a critical element of our OCN programme, we can ensure seamless end-to-end delivery through consistent monitoring and control of all shipments, including pharmaceuticals and medical equipment as well as vaccine delivery as it becomes available.”

The company also offers space on a weekly fixed day schedule between Hong Kong (HKG) and Guadalajara, Mexico (GDL) as well as Shanghai-Amsterdam-Shanghai (AMS-PVG-AMS).