-
Philippine multimodal transport service providers are optimistic the airfreight industry will perform better in 2022
-
Stronger demand is forecast due to more robust manufacturing activities
-
Bellyhold capacity for air cargo may grow with improvements in air travel
-
The unpredictability of the pandemic remains a challenge
-
Continuing challenges in seafreight offer opportunities for airfreight business
Philippine multimodal transport service providers are optimistic the airfreight industry will perform better in 2022 compared to last year, thanks to looser COVID-19 travel restrictions and increased manufacturing activities.
Any improvement though will still be a “far cry from pre-pandemic levels,” Philippine Multimodal Transport and Logistics Association, Inc. (PMTLAI) president Marilyn Alberto told PortCalls.
In an informal survey conducted by the association, some members were optimistic airfreight volumes will increase and rates decline this year as the COVID situation improves. Yet others expect rates to keep rising due to continued competition for aircraft space.
“With the easing of restrictions in passenger travel, we are hoping that there will be more demand for air travel, which will prompt airlines to increase the frequency of flights, which in turn will translate to more bellyhold capacity for air cargo,” Alberto explained.
A more active manufacturing sector and e-commerce are seen bolstering requirements for airfreight business.
“The continuing challenges in seafreight will also translate to opportunities for airfreight in terms of bigger volumes,” Alberto noted.
The unpredictability of the pandemic remains a challenge this year. “We still don’t know if new variants may again disrupt economies and cause passenger travel restrictions. Rates, capacities and lead times will remain to be affected by the COVID situation,” she noted.
Global shipping has been hit hard by the pandemic, leading to delays, vessel capacity constraints, skyrocketing rates, and port congestion, prompting some shippers to turn to airfreight.
Alberto said they hope government can continue to strengthen programs that will make COVID less disruptive and to strengthen support to manufacturers and exporters.
She also expressed a wish for airlines to “significantly reduce their rates” so that more exporters can avail of airfreight services.
The International Air Transport Association described 2021 as a “stellar” year for air cargo, with volumes increasing by 6.9% compared to 2019 (pre-COVID) figures and by 18.7% from 2020. IATA said overall, economic conditions do point towards a strong 2022. – Roumina Pablo
