Some of the largest shipping line firms in the world are purchasing their own fleets of cargo planes due to supply chain problems brought on by the COVID outbreak.
Although the greater cost of air freight still makes it unaffordable for certain businesses and retailers, demand has increased over the past year despite port backlogs continuing to grow. Numerous ships are still waiting outside important ports in locations like Los Angeles, Antwerp, Tianjin, and Ningbo. Frequently, ships must wait weeks before loading or unloading their cargo.
Executives from the shipping company claim that they seek to increase their maritime freight business by using planes. It might also herald a shift toward these businesses serving as full-service logistics providers.
However, compared to the top air freight businesses, ocean shipping companies still only operate a tiny number of aircraft. With a combined fleet of almost 1,000 planes, FedEx, UPS, and Deutsche Post AG can handle numerous trips each day. Instead of bundles of smaller shipments, ocean shipping businesses prefer to transport pallets filled with a variety of commodities.
The International Air Transport Association estimates that air freight accounts for less than 1% of global trade in terms of volume but 35% in terms of value. Cargo planes may transport anything, including food and auto supplies. They have been utilized to transport essential supplies during the epidemic, including semiconductors, vaccines, medical gear, technical products, and clothing.