Hong Kong is set to become a popular destination for European freighter operators in the summer schedules, with ecommerce attracting capacity.
Both Lufthansa Cargo and Air France-KLM have opted to put extra capacity into Hong Kong as they adjust their seasonal freighter networks at the end of March – but it could lead to rate declines.
Tac Index said yesterday that rates out of Hong Kong were up a relatively muted 1.2%, with the overall index last week up 2.3%, while outbound Shanghai surged 7%. It added that there were falls on lanes to Europe from Vietnam, Bangkok, and Seoul.
AF-KLM Cargo said it was shifting capacity out of Latin America to court ecommerce in Hong Kong.
“For the Amsterdam network, KL/MP, during this winter season we’ve gradually moved away from Latam (Viracopos /Lima/Quito/Guatemala City) in favour of Hong Kong,” said a spokesperson.
“As from the summer start, we will suspend Harare and reduce our Johannesburg/ Nairobi frequencies from five to three/weekly in favour of increased frequencies to (DWC)/HKG up to six times weekly in high season.”
Lufthansa Cargo said it was increasing its global 777F flight schedule to add capacity to Hong Kong, Beijing, and South America.
A spokesperson said: “The addition of our newest aircraft last summer is one aspect that allowed the additional capacity.
“Another thing is, that we optimised our freighter rotations with the winter flight schedule, thus reducing stopovers and offering more direct connections to our customers. This also leads to more efficient freighter operations.”
According to Rotate, capacity out of Hong Kong to Europe year-to-date has fallen 16% year on year, although 2024 saw capacity rise 12% over 2023. Cathay Pacific failed to respond to questions on heightened competition in its home market.
Both European carriers – despite the focus on ecommerce – said they would continue to provide capacity for the southern perishables markets, which had struggled to find affordable capacity as airlines flocked to ecommerce.
Lufthansa Cargo said: “South America remains an important region for us. Besides perishables transport, we see a growing potential for import business coming from the automotive and pharma industries.
“Lufthansa Cargo has operated freighters to Brazil for more than 50 years, to Argentina for more than 30 years, and Uruguay for 10 years. Our commitment to the region is reflected in naming our newest B777-freighter Hola Argentina, already having aircraft named Olá Brazil and Buenos Días México in our fleet,” explained the spokesperson.
AF-KLM, despite acknowledging that it was reducing its African network, said: “We do not move away from perishables.
“Yes, going to HKG is ecommerce-driven. [But] even with cutting down our freighter network in Latam, we still operate times a week a Miami-Bogota freighter for perishables. In addition, this summer our thrice-weekly Nairobi-Amsterdam service for vegetables and flowers will continue.
“On top of that, [we have] lots of belly capacity in our AFKL passenger wide-bodies.”
The spokesperson said the decision had been “driven by several factors, like demand, revenue, costs, operational performance/stability, etc”.
However, it explained in January why it had cut its Harare service: “The suspension of freighter operations between Amsterdam and Harare reflects AFKLMP’s strategic network realignment in response to evolving economic, operational, and market conditions. This decision is not solely linked to Zimbabwe, but is part of broader capacity challenges affecting the entire East Africa region.
“Limited southbound demand into South Africa has impacted the viability of freighter operations, while increased demand for perishable exports to the Middle East has further constrained available capacity to Europe,” it added.
“Despite these challenges, we remain committed to serving Africa through our optimised freighter routes, via Johannesburg and Nairobi, supported by ample belly capacity on Air France and KLM passenger flights.”
KLM/Martinair’s 747Fs are “in a period of planned heavy maintenance checks, hence some deviations from the core schedule will apply”.
AF-KLM Cargo, meanwhile, has cut its A350F order from eight aircraft to six following production delays and a new fleet assessment. Three will be operated by Air France and three by Martinair.
Lufthansa Cargo added that its biggest change this summer would be the expansion of its A321F network, which will serve Poland’s Katowice twice a week from April. It will also continue with its first direct connection from Asia to the US, a transpacific service introduced this winter, a 777F connecting Frankfurt via Ho Chi Minh to Los Angeles, and back to Frankfurt.
Along with 18 777Fs, Lufthansa Cargo also sells the belly capacity for Austrian, Brussels, Discover and SunExpress, it said.
Meanwhile, IAG Cargo said today it had enjoyed 22% tonnage growth in its constant climate product last year, over 2023, with particular growth in pharma, and a significant portion of that emanating from Ireland and India.
