Logistics firms eye charters for growth

Logistics companies in China are planning to expand their international cargo operations and charter flights for air cargo shipments to cope with the growing air traffic suspensions across the world due to the novel coronavirus outbreak.

Buoyed by the government's statement that it would extend policy support for the sector, the carriers are considering such moves to reduce cargo inventories after the outbreak curbed air travel in most parts of the world. Cancellation of passenger flights means the loss of valuable cargo space in aircraft for logistics firms, according to AirSavvi, a leading global travel data intelligence company.

Data collected by the company suggested that the trend is changing as just 23 percent of the international air cargo was transported via passenger aircraft on March 18. The rest of the cargo will be delivered by cargo aircraft, indicating a steady decrease in the weightage of passenger aircraft in cargo transport.