Weekly Logistics Headlines: Airfreight Trends, Intermodal Trouble, Vessel Orders
Passenger airlines pressed aircraft into freight service in the early days of the pandemic as passenger volume dropped. The move cemented freight as a healthy revenue driver for many airlines. According to a FreightWaves report, freight grew from 13 percent of industry revenue in 2019 to 35 percent in 2020 and is expected to remain near 30 percent in the years to come.
As domestic trucking continues to operate at max capacity, many have eyed intermodal as an available alternative. But with severe congestion at inland hubs along weather-induced delays and line closures, intermodal has not emerged as the trucking relief valve for which many had hoped. The intermodal entanglements are just one more part of the logistics quagmire awaiting shippers this peak season.
Steamship lines have raked in huge profits amid the pandemic capacity crunch and historic demand. Despite an environment conducive to record freight rates, carriers see opportunity for even more revenue through added capacity. Supply Chain Dive reports that carriers have doubled their container ship orders in 2021.
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