Atlas Air is operating a new Boeing 777 between Hong Kong and Chicago for CMA CGM Air Cargo. (Photo: CMA CGM)
Two cargo airlines owned by major European shipping companies have introduced new Boeing 777 freighters and begun operating routes from Asia, responding to market signals for more export capacity in the region.
CMA CGM Air Cargo said Tuesday it has launched trans-Pacific commercial service with the first of three 777-200 freighters it has ordered from Boeing Co. The inaugural flight took place on Sunday from Hong Kong to Chicago, refueling in Anchorage, Alaska. On the return trip, the aircraft flew to Hong Kong via Seoul, South Korea.
As previously reported, CMA CGM, one of the world's largest container shipping and logistics operators, is outsourcing its aircraft operations to all-cargo airline Atlas Air. The Paris-based cargo airline needs Atlas Air to get across the Pacific because it does not have operating rights from the U.S. to transport goods from other countries without calling at its home port.
Routes from Asia to North America are typically much more profitable than other regions, so the introduction of the 777 freighter marks an important step in the expansion of CMA CGM Air Cargo's nascent network.
“We are very proud to expand CMA CGM Air Cargo's footprint to the United States, a strategic country for our group,” CEO Damien Mazdieh said in the announcement.
Boeing is set to deliver another freighter in the fourth quarter, which CMA CGM said Tuesday will be deployed between mainland China and North America. The two freighters will operate a combined seven flights per week on trans-Pacific routes. CMA CGM said it expects to take delivery of a third 777 freighter in the first quarter of 2025.
At that point, CMA CGM Air Cargo, which was founded in 2021, will have a fleet of five 777 freighters to transport goods around the world. The two existing aircraft operate routes between Europe and regional China, with five flights per week to Hong Kong and four to Shanghai. The airline also has three Airbus A330-200 freighters connecting various European locations with China.
The 777-200 is a huge freighter with a maximum payload of 226,000 pounds.
CMA CGM established the airline to offer customers more transport options as part of its strategic transformation from a purely port-to-port ocean freight operator to a global integrated logistics company with door-to-door delivery capabilities. Ocean freight and integrated logistics rival Maersk has been pursuing a similar strategy.
Air cargo capacity from Asia to Europe and the U.S., especially eastbound from China, is extremely tight due to a surge in cross-border e-commerce traffic, restrictions on maritime shipping due to fighting in the Red Sea, and trade tensions between the U.S. and China that are limiting the full return of wide-body passenger aircraft. Shippers say it's extremely difficult to secure space on dedicated cargo planes on major trade routes from China, Hong Kong and other parts of Asia.
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Airlines are redeploying aircraft from other regions to take advantage of Asia's much higher freight rates: Shipment rates from Shanghai to North America rose more than 25% in July from a year earlier, while rates to Europe rose 44%, according to the TAC Index.
As of the end of July, air freight rates from China/Hong Kong were around $5.72 for North America and $4.50 for Europe from Hong Kong, significantly higher than normal summer rates and are expected to exceed peak season levels in the fourth quarter.
Atlas Air said on Thursday it has leased three Boeing 747-8 freighters from BOC Aviation and plans to begin operations in the second half of the third quarter to meet strong e-commerce demand.
Marsk Airlines Cargo
Maersk Air Cargo recently deployed its first 777 freighter. In a July 26 LinkedIn post, the Hong Kong-based cargo terminal subsidiary of Cathay Pacific Airways welcomed Maersk as a customer and highlighted the inaugural flight to Maersk's base in Billund, Denmark. In mid-July, Maersk indicated the plane would be deployed on its existing route between Billund and Hangzhou, China, but regardless of the specific airport combination, the plane will operate between China and Billund. According to flight tracking site Flightradar24, Maersk 777s have previously operated between Billund and Birmingham, England, and to Hong Kong with a technical stop in Navoi, Uzbekistan.
Maersk had previously said it would operate three weekly flights to China, increasing that to six once it takes delivery of its second 777 later this year.
Maersk Air Cargo has a fleet of 20 Boeing 767 freighters in addition to the 777s. Most of the 767s are converted freighters and operate under contract with UPS and other European express carriers. In late 2022, Maersk launched 767 services between Asia and the U.S., flying aircraft built in its factory by Miami-based Amerijet. Destinations on its trans-Pacific network include Zhengzhou and Shenyang in China, Seoul, Chicago-Rockford and Greenville-Spartanburg in South Carolina.
For more FreightWaves/American Shipper articles by Eric Kulisch, click here.
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