[030321.EN.BIZ] DSV Boosts Air Charter Services As Air Cargo Capacity Tightens

 

DENMARK's transport and logistics provider DSV has expanded its air charter network again in a bid to secure capacity for customers.

It recently launched a weekly service from Luxembourg to Guarulhos, Sao Paulo, with 100 tonnes of capacity. At the same time it was scheduled to start a weekly operation from Shanghai to Chicago Rockford with 100 tonnes in each direction in early March.

Next month, it will start four week of direct rotations from Luxembourg to Johannesburg, two DSV "hot spots", it said, with a combined 150 tonnes.

DSV said customers were facing a "frustrating lack of capacity".

"We know a lot of customers struggle with a tremendous amount of uncertainty and a general lack of capacity," said Mads Ravn, head of global air freight procurement.

"Therefore, it is imperative for us to continue to provide new solutions to mitigate the negative impacts of the Covid-19 pandemic for them. We see cargo congestion at both sea ports and airports around the world."

In an earnings call this month, CEO Jens Bjorn Andersen confirmed the company had secured additional space.

"In Q1, we have got some more capacity at favourable terms, and some new customers. We have seen some customers move away from sea freight as they've been let down by ocean carriers."

He said that, while DSV's commercial terms with suppliers was secret, he did acknowledge that "it's pretty short-term", adding: "If the [contract] with the customer is longer, then it's longer with the airlines."

And, he noted that yields were stronger than they needed to be.

"We expect to reach our 2025 target, but we don't need the yields we have right now to get there. If yields were to come down, you'd normally see volumes going up."

DSV pointed to Rockford as "Chicago's congestion-free airport", as forwarders had expressed concerns recently about severe congestion in some major hubs.

DSV's air charter network is managed fully in-house and includes road freight to and from the airport, document handling, freight handling and planning for loading ULDs, reports The Loadstar of UK.

Source : HKSG / Photo : Air Cargo News.