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Express firms continue to ramp up their focus on air cargo

The expansion of express operators into the airfreight market has been ongoing for a number of years, but this year's market conditions have led companies in the sector to increase their focus on the air cargo market. In its third-quarter results, FedEx chief executive Raj Subramaniam confirmed that the company was increasing its focus on air cargo volumes. As a result, international airfreight daily freight pounds were up 15% year on year, the company said. Subramaniam highlighted a 15-fold increase in aircraft engine moves and added that the company had won new airfreight business with an AI data centre customer after a more than 40-year largely parcel-centric relationship. "Our expanding capabilities across key verticals are enabling us to address more of our customers' logistics needs and unlock airfreight demand from traditionally parcel-centric customers," he said. The company had already been making moves in this direction and last year, according to FreightWaves, moved a freighter from its express network to its air cargo network targeting high-value shipments such as pharmaceuticals and automotive. Following the release of its latest results, FedEx also announced the launch of a new product to cater for the transport of aircraft engines and aerospace components. It is not just FedEx that is trying to muscle in on more of the air cargo market. At the start of the year, DHL Express launched a Heavy Weight Express (HWX) service that can transport shipments of up to 1,000 kg per piece and 3,000 kg per shipment. Meanwhile, when announcing its third-quarter results, DHL said that its Express division had also handled more airfreight shipments, which it said contributed around an extra €100m to the division's earnings during the quarter. Time Definite International's daily shipment weight was up 9.7% year on year in part due to the Express division targeting heavier cargo. There are several reasons for the growth of air cargo shipments in the express sector. For one, DHL said that capacity constraints in the airfreight market have resulted in companies looking to utilise express. Also, when speaking to Air Cargo News earlier in the year, Mike Parra, the chief executive of DHL Express for Europe, said that the current geopolitical unpredictability and supply chain volatility had accelerated the trend because of the speed, certainty and uncomplicated pricing model on offer. Parra said that the shift to express, driven by current geopolitical conditions, is not necessarily temporary, as customers quickly get used to the level of service and reliability that is offered through express. "We are not trying to take that business away from our forwarding division, but where we have a customer that has an oil rig that is down and needs a 300kg part quickly transported, then they'll use DHL Express," Parra explained. "As we target those customers and they are coming over to us, they are seeing the safety, the security, the value of tracking and, more importantly, that it will get there in time." FedEx made a similar point when launching its new aerospace product. The company said that aerospace organisations are facing increasing maintenance demand, supply chain complexity, and are also under pressure to maximise fleet availability. "The solution helps customers keep critical operations moving while reducing disruptions associated with engine transportation," FedEx explained in a press release. "At a time when the aerospace industry is managing extended lead times, parts shortages, and growing pressure to maintain fleet readiness, reliable transportation of critical assets has become increasingly important," FedEx said. Another driver has been changes in the e-commerce sector that had previously driven growth in the express sector. The removal of de minimis exemptions has seen the online sales platforms switch

Cargo surge and port congestion send Far East-Middle East rates climbing

Freight rates from Asia to Gulf economies trapped behind the straits of Hormuz hit unprecedented highs during this year's peak season as importers rushed to get cargo into the region, prompting another wave of port congestion. According to new data from Container Trades Statistics (CTS), prices on its Far East-Middle East & Indian subcontinent corridor showed the highest growth in freight rates of any major lane in container shipping so far this year. "It'll be no surprise that the big price index increase is Asia to India and the Middle East, where the index is up 250% since the beginning of the year and 25% month-on-month - so September's seen a resurgence of the price there and we're seeing some very strong prices," CTS chief executive Nigel Pusey tells The Loadstar's podcast today. The last pricing data came after volumes on the route rebounded during September for the first time since the onset of conflict in the region. "From Greater China to the Middle East, September was a bit of a boom month of volumes - China to Middle East was actually above this time last year for the first time since January and February. "I suspect that will fall back, but what has just kept forcing its way through to the top is the price they're paying to achieve it. We are now at a price index from Greater China to Middle East of 392, which is up 250% on the beginning of the year. "We have a month-on-month increase of 15.5%, despite the fact that year-to-date volumes are down 12%. "So, at the moment, what we've seen is a surge of cargo in late August, early September with prices to match, although I think that will drop off in October because the attacks did come back in that early part of the month. According to the latest spot rate data as per the Shanghai Containerised Freight index (SCFI), freight rates appear to have hit a ceiling of $6,500 per 40ft on the SCFI's Shanghai-Dubai leg and held at that level throughout October. However, that is some 300% up on the $1,630 per 40ft recorded at the end of October 2025. Meanwhile, the September surge has created some port congestion in the region, particularly at the two main ports immediately outside Hormuz - Fujairah and Khor Fakkan - which have acted as the chief landbridge gateways for GCC importers. Linerlytica reported last week that MSC had included a call at Khor Fakkan on a new Far East-Middle East service deploying 24,000 teu ships, "despite severe berthing delays". "Port congestion at Middle East ports has surged to a record high," Linerlytica added, and Mr Pusey said he expected to see liner networks flex to cope with the congestion. "I think there'll be some deviations. I've noticed one or two lines have stopped even serving cargo into Khor Fakkan and the Fujairah, which suggests that the place is getting very congested because people are trying to rush cargo through," he told The Loadstar. "They're now saying, 'Well, we're going to stop bookings whilst we just take a bit of a breather', and I don't usually use my crystal ball too much, but I'm pretty sure that's what's going to happen in October and early November." In general, the use of Khor Fakkan over Fujairah has divided the liner industry into two broad camps - with MSC and the Gemini partners Maersk and Hapag-Lloyd opting for the former, while CMA CGM and its Ocean Alliance partners have their services concentrated in Fujairah, with both ports hosting increasing numbers of smaller Asian and Middle East regional carriers' services. Meanwhile, Maersk said shippers were returning to using the Saudi Red Sea port of Jeddah as an alternative gateway to Gulf destinations. "Use of the Saudi Landbridge increased during October as evolving conditions at Khor Fakkan and disruption linked to the Strait of Hormuz led customers to explore alternative routings into Saudi Arabia and the wider Gulf," a Maersk statement said. "Interest is expected to continue into November, particularly when customers are seeking to reduce exposure to disruptions affecting port and shipping connections" it added. "The trend also highlights the value of coordinating ocean and landside planning across customer's chosen service providers. "However, capacity, border processing and onward delivery requirements should be confirmed for each shipment before routing decisions are finalized."

Ports could future-proof to beat box terminal congestion

In recent months, a daily review of container terminal utilisation levels has become something of a 'must-read' for supply chain planners seeking to understand where boxes may be delayed, and for how long. That remains an art rather than science, but indicates how the container shipping industry has experienced something of a paradigm shift into an era in which waves of mega-congestion ripple across the port and shipping system. Terminal occupancy levels - ie, how many containers are sitting in a yard awaiting either a truck or loading on a vessel - continue to sit way above what these facilities were designed to handle. A small selection from just today, as reported by Kuehne+Nagel: Tokyo AOM yard density is at 113%, up from 96%; Yokohama is above 100%; Busan's BNCT is around 95% overall, "with laden density near 100% and heavy-discharge ships at risk of lower priority"; and Rotterdam's ECT is at 94% yard occupancy. Some of this is beyond terminal operators' control - they have no say over when vessels arrive, or how delayed they might have been at the previous port; while wars, weather, and other disruptive events are in the hands of the gods - or people who think of themselves as such... However, in the spirit of supply chain resilience, they could be far better prepared to tackle congestion when it arises. Drewry's recent analysis of container port congestion is actually relatively straightforward: the difference in clearing a terminal that is 85%+ utilised and one that is 70% utilised, is massive - a one-day closure at the latter can be cleared in two days; at the former it will take a week; and if multiple disruptions occur, there is very little chance of the former ever clearing completely. This has been demonstrated clearly over the past couple of months with the arrival of successive typhoons in key Asia loading ports. The effect this had on vessel departures was, ultimately, congestion elsewhere in the world, because those ports too had been operating at 85%+ utliisation. Why? Because, as Drewry's Eleanor Hadland succinctly put it: "No terminal manager gets rewarded for having empty space." In fact, the opposite is true. Terminal operators - especially those which have carriers as sister companies - have enjoyed a bumper 2026, as recent third-quarter results demonstrated. At the same time, their ultimate customers - cargo owners, their freight forwarders, and finally everyday consumers - face increased costs as they witness supply chains fracturing in front of their eyes. It doesn't have to be like this, The Loadstar believes. Port authorities could future-proof their container terminals - which mostly they ultimately own on a landlord basis - by stipulating in concession contracts that a certain amount of nominal terminal capacity must remain unused, except when disruptions demand it. Your port needs a further 2m teu of container capacity? Stipulate that the operator builds a terminal with a nominal 2.5m teu capacity, thus giving the container supply chain into the port's hinterland the buffer this year has so clearly shown is needed.