WHILE many industries are languishing, freight forwarding industry may be thriving.
Despite 2020 being the worst year for air cargo demand since 1990 with a 10.6% dip year-on-year (yoy), global air freight markets have rebounded to outperform pre-COVID-19 levels with demand up by 4.4% yoy in end-March, according to the International Air Transport Association (IATA).
In the Asia-Pacific region, airlines saw demand for international air cargo to increase to 10.5% in February this year compared to the same month in 2019.
On the local front, the Malaysian freight and logistics market was valued at US$37.60 bil in 2020, and with a compound annual growth rate (CAGR) of 4%, this sector is expected to reach more than US$55 bil by 2026.
The importance of air cargo to the economic supply chain has been clearly demonstrated in the current COVID-19 pandemic.
This is due the surging demand for cross-border e-commerce in which the COVID-19 pandemic has accelerated the online shopping trend.
Even post-pandemic, e-commerce is expected to continue growing rapidly over the coming years, thus resulting in freighters dominating air cargo as retailers spend more on logistics operations to meet demand.
Blue skies
Such outlook augurs well for Kargo Xpress which commenced its flight operations with schedule charter flights from the Kuala Lumpur International Airport (KLIA) today, flying its first dedicated cargo freighter – a Boeing 737-400F bearing registration 9M-KXA – with a capacity of up to 18 tonnes.
“The launching of this inaugural flight represents a significant event in developing a comprehensive range of logistics services focusing on the untapped market and selected routes that is currently underserved by the industry,” Kargo Xpress said in a statement.
As a start, the aircraft will service the Kuala Lumpur-Kuching-Kuala Lumpur and Kuala Lumpur-Kota Kinabalu-Kuala Lumpur air cargo routes with six weekly flights to each destination from Tuesday to Sunday.
The blue colour face mask livery is Kargo Xpress’ statement and commitment to the fight against the COVID-19 pandemic, especially so in Malaysia which has seen alarming increase in numbers of infection resulting in the country having to go into a total lockdown for third time in a span of 15 months. It is also to honour the front liners in the war against COVID-19.
Meanwhile, M Jets immediate fleet plan is for the induction of additional one (1) B737-400F and two (2) B737-800F aircraft by the end of 2021.
Plans are also underway to induct additional four freighter aircraft within 2022. These eight aircrafts will be connecting 25 domestic and international destinations.
“There will be additional aircrafts inducted yearly for the next five years till 2025. The growth in demand for air cargo is driven by e-commerce, postal services, transhipments and industries requiring high-value logistics services,” the freight operator shared.
By operating from KLIA, Kargo Xpress becomes a catalyst to the further growth and development of e-commerce supply chain ecosystem.
“With the commencement of Kargo Xpress flight operations, additional dedicated air cargo capacity is introduced to the logistics industry and shippers now have greater access to fast, timely and efficient delivery of goods,” Kargo Xpress concluded. – June 13, 2021
