Operators in the charter market are no strangers to uncertainty and turbulent times. As Russi Batliwala, Chairman of Chapman Freeborn, explained: “If we lived in a world of absolute peace—no wars, strikes, pandemics, or any other hurdles—our industry would cease to exist.”
With nearly 40 years of experience at the charter broker, the one defining trend that Batliwala has seen through that time is volatility.
“It’s not surprising when we see sudden spikes in rates due to events like conflicts in the Red Sea or other military issues. Volatility is simply the nature of our business, and as an industry, we’ve learned to weather both the highs and the lows.
“The ebb and flow of normal chaos and volatility has always been a constant in my experience, and I haven’t seen anything to suggest otherwise.”
This reality is why adaptability is crucial in the charter space, with operators ready to pivot and adjust to various situations as they arise, offering the right solutions at the right time.
When faced with humanitarian crises or geopolitical conflicts like the situation in the Red Sea, there are critical needs to address, and it’s essential to be adaptable and provide tailored solutions to meet those needs. While the scale may differ, the underlying approach remains consistent.
“The reality is that charter brokers thrive on providing solutions when things don’t go as planned. Whether it’s handling unique requests like transporting animals or car parts or simply being there to fill the gaps left by scheduled carriers, we excel at thinking outside the box and meeting specialised needs.
“While our services encompass a wide range of unconventional cargo, at its core, it’s about innovation and being there for our clients when traditional options fall short.”
Capacity and capabilities
The landscape of the cargo charter market is undergoing significant changes, particularly with regard to the availability of certain aircraft types. One notable factor is the decline in the presence of Russian aircraft, largely due to geopolitical tensions involving Ukraine and Russia. Many airlines that once flew Russian-registered aircraft are no longer able to do so, significantly limiting capacity.
The most substantial impact is seen in the dwindling numbers of the Antonov An-12 and the Ilyushin Il-76, which have historically been essential workhorses in the industry. While these aircraft were once ubiquitous, their numbers have sharply declined over the past decade.
Several factors contribute to this decline, including challenges related to maintenance and crew availability. As a result, the pool of operators for these aircraft has significantly diminished.
The absence of viable replacements compounds the issue. Unlike the phased-out Boeing 747s, which still have some presence despite ageing, there are no comparable commercial alternatives to the Antonov and Ilyushin aircraft. This scarcity is exacerbated by the fact that the remaining aircraft in operation are ageing, presenting additional maintenance challenges and operational risks.
“For us as a charter broker, the reduced availability of these aircraft types has a substantial impact,” Batliwala outlined.
“While the gradual reduction in the 747 fleet is noteworthy, it pales in comparison to the immediate challenges posed by the scarcity of Antonov and Ilyushin aircraft.
“These aircraft have been crucial for certain types of cargo operations, and their decline underscores the urgent need for innovative solutions to address capacity constraints in the airfreight industry.”
Sustainable situation
Sustainability poses one of the most significant challenges for the aviation industry. It starts with the scrutiny of private jets, where individuals may face criticism due to the large CO2 footprint associated with such flights. Now, the focus has shifted to ageing freighter aircraft traversing the globe, prompting many companies to reassess their environmental impact.
Despite efforts like the introduction of sustainable aviation fuel (SAF) on select flights, it remains a small-scale solution compared to the industry’s overall emissions. Achieving true sustainability in aviation, especially in airfreight, remains a daunting task that requires substantial time and effort.
“In my lifetime, I doubt I’ll witness a significant change. Perhaps it might occur in yours,” Batliwala suggested.
“The reality of sustainability is not straightforward: flying, whether for individuals or freight, inherently carries an environmental impact. We can’t ignore this fact.
“In terms of governance and economic decision-making, there’s a noticeable shift towards prioritising sustainability. Governments are increasingly inclined to award contracts to entities with robust sustainability initiatives and carbon-offsetting strategies.
“This trend is particularly evident in countries like Germany and is likely to spread further. Similarly, in the realm of investments, there’s a growing emphasis on funding sustainable businesses with proven track records. Investors are increasingly discerning, favouring companies committed to sustainability over those perceived as environmentally harmful.
“In essence, sustainability is not just an abstract concept but a critical concern that will shape our future. It’s a multifaceted issue that intersects with various aspects of our lives, including transportation practices like airfreight. “As we navigate this evolving landscape, it’s evident that sustainability will be a defining factor in the logistics decision-making processes across industries and sectors.”
Source: https://aircargoweek.com/insights-into-the-charter-market/
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