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Air Charter Services Market is Expected to be Valued at US$ 54.0 billion by 2033

air charter services
Archives, Global Logistics, Global Trade Daily

Air Charter Services Market is Expected to be Valued at US$ 54.0 billion by 2033

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The global air charter services market is expected to be valued at US$ 31.9 billion in 2023. It is projected that the market will rise with a CAGR of 5.4% during the forecast period and enjoy a total valuation of US$ 54.0 billion in 2033.

The globalization of businesses is happening at a fast pace. People are now buying/selling products digitally are shipping them globally. This has resulted in an increased demand for cargo charter services worldwide. As it is a prominent solution for oversized and difficult-to-fit product shipment in comparison with standard logistics containers. Customers are benefited from its quicker and more efficient delivery services. With the tremendous development of the e-commerce sector, demand for cargo charter services has grown potentially worldwide.

Also, technology and digitalization have made it easy to book charter planes, where customers can schedule routes, the timing of the flight, the date of the flight, and others as per their comfort which is escalating the demand for these services from the commercial sector. Additionally, the market growth is projected to have a suitable rise in the forthcoming period with the growing disposable income of people in developed and developing economies.

Key Takeaways from Market Study

  • During the historic period (2018-2022), the CAGR of air charter services market was 4.5%
  • The market is projected to rise with a CAGR of 5.4% during the forecast period (2023-2033).
  • Among the region, North America holds leading share of 44.0% in the global air charter services market.
  • In the end-user, business/corporates holds the largest share with 85.0% in the global air charter services market.

Rising demand for cargo charter services

The demand for air charter services is increasing due to the difficulty in the shipment of oversized and difficult-to-fit products in standard logistics containers and aircraft used by air cargo operators. This is resulting in demand for cargo charter services global. Additionally, the air charter services are time and cost-efficient and provide easy and fast cargo delivery.

With the significant development of the e-commerce sector, demand for air charter services has grown. As cargo charter services are proving to be beneficial for the e-commerce sector to efficiently serve the global market and act as a promising option to fill the sudden demand for goods across the border. Owing to this factor, demand for air charter services has grown significantly across the globe.

Market Development

The business environment in the air charter service market is highly competitive. Market players are taking strategic moves like merger and acquisition and service launch relevant to air charter services to strengthen their foothold and expand their market share in the industry. Additionally, technological advancement is playing an essential role in availing these services easily and precisely by the customer, which efficiently contributes towards the revenue growth of the market.

In January 2022, Wheels Up Experience Inc. a leading brand in private aviation signed an agreement to acquire Air Partner PLC, a UK-based global aviation group.

More Valuable Insights

Fact.MR, in its new offering, presents an unbiased analysis of the global air charter services market, presenting historical market data (2018-2022) and forecast statistics for the period of 2023-2033.

The study reveals essential insights on the basis of application (private charter, group charter, and cargo charter) end-user (business/corporates and individuals) across major regions of the world (North America, Latin America, Europe, East Asia, South Asia & Oceania, and the Middle East & Africa).

ceva logistics
Air Cargo, Archives, Global Logistics, Global Trade Daily

CEVA LOGISTICS ADDS SUSTAINABLE AIR TRANSPORT TO LOGISTICS SOLUTIONS

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Sustainability continues to underscore operations and initiatives in logistics. Last year, the industry saw even more attention on reducing carbon emissions, specifically for airfreight transportation–from commercial airliners to leading logistics companies. As seen with the maritime industry with IMO 2020, reducing the overall carbon footprint is the primary goal, but the logistics industry is taking a piecemeal approach to cover all bases. Notable companies linking arms to fight the issue of carbon emissions in the airfreight logistics sector include DHL, Yusen Logistics, Bollore Logistics and, of course, CEVA Logistics. In April 2021, CEVA Logistics announced its position on the issue through the joining of United Airlines’ Eco-Skies Alliance as an official partner (along with the other aforementioned companies). 

Known for being the world’s leading supply chain management organization headquartered in Marseille, France, CEVA is no stranger to stepping up in the name of sustainability. As part of parent company CMA CGM Group’s mission, CEVA is committed to acting for people, the planet and responsible trade–and that’s exactly what the logistics company is accomplishing through initiatives such as switching to sustainable aviation fuel (SAF), for example. Not only does this move support the Group’s mission, but it also supports collaboration along the supply chain. 

“One long-term benefit and advantage of SAF is that it is a concrete opportunity for shippers, freight forwarders and carriers to work together to improve the air freight industry,” explains Peter Penseel, chief operating officer of Air Freight at CEVA Logistics. “This type of collaboration can extend beyond SAF and environmental topics to ones like safety. As an example, we were recently the first company to receive IATA’s new CEIV Lithium Certification for the safe air transport of lithium batteries, so we’re encouraging other industry participants, whether freight forwarders, ground handlers, or carriers, to support this important safety topic as well.”

The leaders behind the CEVA mission capitalize on what can be done now to reduce problems for the future. This proactive approach differentiates the business from competitors while creating a competitive advantage for customers. This serves as a primary driver behind the CMA CGM Group’s goal of becoming carbon neutral by 2050.

“The Group aims at becoming carbon-neutral by 2050 and is significantly investing in research and development to help the emergence of future energy sources and technologies to reduce the impact of transport and logistics on the planet,” Penseel adds. “Encouraging the use of SAF in air transport is a direct outflow of this corporate commitment. Whether or not SAF is the long-term answer in air freight logistics, CEVA is taking tangible action today, with an eye on the solutions of tomorrow.”

What some logistics organizations might misunderstand that CEVA does not is the critical blending of customer needs and environmental needs. And in the modern world, it seems all players in the logistics arena are feeling the pressure to support sustainability more now than ever.

“Reducing emissions in the supply chain requires alignment with customers,” said Penseel. “We work alongside them to offer and encourage the right products and services, including alternative fuel options. We must embark on this journey together with a common vision and roadmap. To that end, we are a part of the Sustainable Air Freight Alliance (SAFA), which advocates for responsible transportation. The organization is made up of shipping companies, airlines and freight forwarders that are committed to measuring and reducing their carbon dioxide emissions.”

These changes do not come without their own set of unique challenges, however. Penseel adds that the current infrastructure landscape poses specific roadblocks that could potentially impede progress in the pursuit of carbon neutrality, warning that careful planning and collaboration along each step of the shipping process is critical and shouldn’t be compromised. 

“As an air freight industry, we need to be conscious of the production and infrastructure capacities for SAF,” he says. “As we ramp up the use of this alternative fuel, we need to ensure that we can deliver on our commitments. If the industry offers more SAF options, we need to work closely with the entire upstream environment to ensure the needed supply and infrastructure will be there to meet the demand we as an industry are creating.

“Estimating carbon footprint and planning accordingly is the first step toward a more sustainable supply chain. For example, we offer an eco-calculator on our website and through our MyCEVA digital booking platform to estimate the logistics carbon footprint of a shipment via ocean, air, or ground.”

Looking to the future, CEVA has more carbon-neutral tricks up its sleeve. Penseel confirmed the organization is currently discussing additional SAF options and programs with numerous air carriers to confront and resolve near-term environmental concerns. 

2022 has officially greeted the industry with CEVA taking it by the horns with customer and environmental needs at the forefront of its dedicated solutions. The organization capped off 2021 with its latest acquisition of Ingram Micro’s Commerce & Lifestyle Services business, representing another feather in the CMA CGM Group’s hat in the ecommerce planning and omnichannel sectors, further positioning them as leaders in all things shipping and supporting the goal of becoming a name among the top five global third-party logistics players. 

“The acquisition of Ingram Micro CLS is strategic for the CMA CGM Group,” Rodolphe Saadé, chairman and CEO of the CMA CGM Group, said in a December release. “After completing its turnaround this year, our subsidiary CEVA Logistics will accelerate its development and join the world’s top four in contract logistics.”

Customers can continue to look forward to maximizing their opportunities in meeting their own customer needs while playing an active role in contributing to a cleaner, greener and more eco-friendly way of conducting business. 

“We look to help our customers make the best decisions when planning their logistics and freight transport operations to reduce environmental impact as they balance the business and timing needs of their supply chain processes and shipments,” Penseel concludes. 

To learn more about CEVA Logistics, please visit cevalogistics.com.

_______________________________________________________________________

Peter Penseel is chief operating officer at CEVA Logistics.

freight forwarders
Archives, Global Logistics, Global Trade Daily, Ocean Ports

TOP 10 FREIGHT FORWARDERS OF 2020

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By occupying six slots, including the top three, the Alpine Region of Central Europe dominates Global Trade’s list of the top 10 freight forwarders of 2020.

 1) Kuehne + Nagel

With more than a century specializing in the transportation space, Kuehne + Nagel serves multiple industries, including high tech, industrial products, perishables, pharmaceutical and healthcare industries. Services include: order management, warehousing and storage, supply chain consulting, project management, air, rail and sea cargo and expo and events. Kuehne + Nagel Management AG, Dorfstrasse 50 Schindellegi, 8834 Switzerland, Tel: 41 44 788-9511.

2) DHL

DHL Supply Chain and Global Forwarding Divisions provide freight forwarding services throughout Europe, Russia and the Middle East via rail, air and road. The company’s global reach extends from transportation and warehousing to industry-specific solutions designed to streamline worldwide logistics for its clients. Services include: dedicated freight management, warehousing, customs services, freight security, supply chain management and air, road and sea shipments. DHL Supply Chain and Global Forwarding, Deutsche Post AG Headquarters, Platz der Deutschen Post, 53113 Bonn, Germany, Tel: +49 228-1820.

3) DB Schenker

The logistics division of German rail operator Deutsche Bahn AG provides an array of logistical and supply chain consulting services for clients throughout the automobile, technology, consumer goods, special transport and trade fair logistic industries. Services include: e-commerce solutions, fulfillment logistics, lead logistics services and intermodal transportation. DB Schenker, Richard-Wagner Strausse, Essen, Germany, Tel: +49 (0) 201 8781-4990.

4) (tie) DSV Global

Headquartered just outside of Denmark’s capital of Copenhagen, DSV offers worldwide warehousing and transportation solutions for European and North American companies looking for supply chain solutions across the global stage. Services include: full or less-than-truckloads, warehousing, order fulfillment, intermodal, air, sea and rail shipments and “supply chain innovation.” DSV + Panalpina, Hovedgaden 630, 2640 Hedchusene, Denmark, Tel: +45 43 20 30 40.

4) (tie) Sinotrans Limited

With offices throughout Asia and the Pacific Rim, Sinotrans offers transportation solutions from warehousing to getting goods to their final destinations. Services include: warehouse management, distribution solutions, cross border freight hauling, intermodal transport, project lead and “innovative supply solutions.” SinoTrans Ltd., 6F Suite B Waiyun Building, Building 10 Yard 5 Anding Road, Beijing, China 100020, Tel: 86 10-5229-5600.

6) Expeditors

The Fortune 500 service-based logistics company believes because it does not own the aircraft, ships, or trucks they use every day on six continents, they can be highly flexible when it comes to supply chain management. Services include: supply chain design and optimization, order management, fulfillment, warehousing, customs brokerage and air, sea and ground transportation. Expeditors International, 14301 24th St E, Sumner, WA 98390, Tel: (253) 863-5502.

7) (tie) GEODIS

The French logistics company aims to be a growth partner with its clients through its proven expertise and emphasis on excellence. Services include: supply chain optimization, freight forwarding, contract logistics, distribution & express and ground transport. GEODIS, Espace Seine, 26 Quai Charles Pasqua, 92300 Levallois-Perret, France, Tel: +33 1 56 76 26 00.

7) (tie) Bolloré Logistics

A global leader in international transport & logistics, the French company is committed to delivering reliable, flexible, innovative and value-creating solutions that help clients grow. Services include: transport, trade compliance, contract logistics, global supply chain, e-commerce and customer care. Bolloré Logistics, Tour Bolloré, 31-32 quai de Dion Bouton, 92800 Puteaux, France, Tel: +33 (0)1 46 96 44 33.

9) Nippon Express

First established in 1937, the Japanese company operates in more than 40 countries, with clients throughout Asia, North America and Europe and overseas transit facilities in Thailand, Indonesia and Malaysia, among other locations. Services include: warehousing, distribution, cross border freight hauling, fine arts transport and moving services. Nippon Express, Higashi-shimbashi 1-9-3, Minato-ku, Tokyo, Tel: 81-3-6251-1111.

10) Hellmann Worldwide Logistics

Founded in 1871 by Carl Heinrich Hellmann, who as the lone employee used a horse-drawn cart to deliver parcels in and around the town of Osnabrück in northern Germany, Hellmann today has a worldwide network of 20,500 people in 489 branches in 173 countries. Services include: logistics, insurance, security, technology, e-commerce and road, air, rail, and marine transportation. Hellmann Worldwide Logistics GmbH & Co. KG, Elbestrasse 1, Osnabrück, 49090 Germany, Tel: 49-541-605-6450.

We created our list by considering three other lists that were released this year. In September, Armstrong & Associates, Inc. (A&A), an internationally recognized key information resource for 3PL market research and consulting, put out a list of 2020’s top 50 ocean freight forwarders that is based on 2019 TEUs, logistics gross revenue and air metric tons.

Actually, A&A updated an earlier list because two heavy hitters in the ocean freight industry, DSV and Panalpina, merged in 2019. Then came COVID-19 early in 2020, which necessitated an examination of responses to the global pandemic.

A “key trend we’re watching is the impact COVID-19 is having on various modes of transport,” A&A President Evan Armstrong explained to Logistics Management Executive Editor Patrick Burnson. “Ocean capacity may open up, but rates will escalate. In the meantime, the air cargo sector will become more reliant on expensive freighters, as passenger traffic remains in steep decline in the international marketplace.”

Global Trade also considered 360 Research Reports’ Global Ocean Freight Forwarding Market Size, Status and Forecast 2020-2026 examination that focused on 25 companies and was released pre-pandemic, in January.

Thanks to the A&A and 360 Research reports, there were definitive answers about which companies would occupy most of Global Trade’s top slots. However, we also turned to a third report to settle any differences between the other two: a list of the top 10 3PLs in the world released In July by TradeGecko, which is part of Intuit QuickBooks, an accounting software company.

While freight forwarders on the Global Trade master list serve U.S. markets and have facilities in the States, our collection doesn’t exactly scream “American.” Fortunately, Armstrong also shared some wisdom with Burnson that may have Yanks ranking better in 2021. “We’ll see more shipping and sourcing in North America as shippers reevaluate their options overseas,” the A&A president says. “The ongoing trade tensions with China will also exacerbate this situation.”

The U.S. companies that did not make our top 10 but would have easily made our top 50 include: C.H. Robinson, XPO Logistics, United Parcel Service (UPS), Yusen Logistics, Mallory Alexander, Odyssey Logistics and Technology and Horizons Air Freight.

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Armstrong & Associates, Inc.’s Top 50 Ocean Freight Forwarders of 2020: https://www.3plogistics.com/3pl-market-info-resources/3pl-market-information/aas-top-25-global-freight-forwarders-list/

360 Research Reports’ Global Ocean Freight Forwarding Market, Size, Status and Forecast 2020-2026: https://www.360researchreports.com/global-ocean-freight-forwarding-market-15076500

TradeGecko’s Top 10 3PLs in the World: https://www.tradegecko.com/blog/supply-chain-management/top-10-3pl-companies

pillar
Archives, Global Trade Daily, News

Kuehne+Nagel Partnership Focuses on Logistics

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With airside logistics as the primary focus, global logistics leader Kuehne + Nagel and FEAM Maintenance have confirmed an agreement this week to support efforts in providing a fresh approach to solutions for US airport hubs and logistics.

“Partnering with Kuehne + Nagel will increase the service levels for our clients and will enable FEAM to improve our customer’s supply chain” said Dan Allawat, Chief Operating Officer at FEAM. “We are proud to partner with Kuehne + Nagel and look forward to continue to develop our services portfolio for our clients.”

Per the agreement, FEAM will oversee and manage arranging deliveries and pick-ups in in airside areas while Kuehne + Nagel will provide loading and off-loading supervision and engine stand activation / de-activation.

“With this partnership, we are able to equip our airline and aerospace customers around the world with seamless and certified services deep into the airport environment” said Bob Mihok, President Kuehne + Nagel North America. “With FEAM we have added a respected and well established 145 maintenance provider to our network.”

Source: Kuehne + Nagel