{"id":99148,"date":"2023-04-28T10:36:13","date_gmt":"2023-04-28T03:36:13","guid":{"rendered":"https:\/\/advantage.vn\/?p=99148"},"modified":"2023-04-28T10:36:13","modified_gmt":"2023-04-28T03:36:13","slug":"customers-wary-of-contract-commitment-says-cathay-cargo","status":"publish","type":"post","link":"https:\/\/advantage.vn\/en\/customers-wary-of-contract-commitment-says-cathay-cargo\/","title":{"rendered":"Customers wary of contract commitment, says Cathay Cargo"},"content":{"rendered":"

Cathay Cargo has revealed that customers are nervous and afraid to commit to long blocked space agreements (BSA), although its first round of contract talks saw volume commitments increase.<\/strong><\/p>\n

\u201cThe onset of summer means that we are looking ahead to the second half of the year,\u201d said Chris Bowden, head of cargo global partnerships, in a costumer newsletter yesterday.<\/p>\n

\u201cThe summer freighter network is confirmed and we have negotiated our way through the annual block space agreements (BSAs). The contracts reflect continuing uncertainty in the market, but the overall tonnage commitment is up, and with a more diverse array of customers.\u201d<\/p>\n

The contract uncertainty was underlined by DSV, in today\u2019s earnings call, noting that it was too easy to make mistakes in securing capacity. Not a \u201crisk-taker\u201d, DSV said it \u201chas not taken long positions by entering into long-term capacity commitments\u201d.<\/p>\n

Cathay said customers were waiting. \u201cConsumer confidence is yet to rebuild, which explains some of the \u2018wait and see\u2019 caution for the second half of the year.<\/p>\n

\u201cBut there are some encouraging signs. 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.\u201d<\/p>\n

\"Cathay-Advantage<\/p>\n

Mr Bowden added there would be more \u201cdiscussions on more annual BSAs\u201d and that orders were \u201creflecting continued uncertainty, but overall capacity is rising and our customer base is becoming more diversified.<\/p>\n

\u201cEncouragingly, we are returning to capacity this year, ahead of the commissioning of the three-runway system next year.\u201d<\/p>\n

Cathay has had a particularly torrid time, dealing with severe quarantine restrictions and China\u2019s zero-Covid policy. However, the carrier was happy to note that Hong Kong International Airport (HKIA) had retained its position as the \u201cbiggest overall air cargo hub by tonnage in 2022\u201d.<\/p>\n

\u201cWe\u2019re obviously proud to be the biggest cargo carrier at the world\u2019s leading cargo hub, and proud of our contribution to Hong Kong\u2019s premier air-cargo status. It\u2019s a great testament to our teams, and the collective efforts of Hong Kong\u2019s logistics industry, that we\u2019ve accomplished this despite the operational challenges from the pandemic at the start of the year, followed by a weakening in the market,\u201d said Mr Bowden.<\/p>\n

\u201cThe accolade also proves that Hong Kong has enduring advantages as a cargo transhipment hub. The city\u2019s 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.\u201d<\/p>\n

Cathay\u2019s optimism for a resurgence of cargo could be stymied by new capacity in the market. Cargolux, which yesterday reported record profits \u2013 again \u2013 was downbeat on the prospects for the rest of the year.<\/p>\n

\u201cThe return of belly-hold capacity and the emergence of new players in the industry, including multi-modal companies, pose a risk of overcapacity in an already declining market,\u201d it said.<\/p>\n

theloadstar.com<\/strong><\/p>\n

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