As European airfreight markets grapple with ongoing disruptions and shifting demand, Liege Airport has emerged as a resilient hub.
Right now, airfreight demand is generally weak, and Asia is once again the heartbeat of the global market, driving activity even more than during Covid-19.
There are anticipated challenges for US lanes originating from Europe. It is believed that belly capacity out of Europe will not meet the entire demand, particularly with agricultural products and automotive parts still requiring shipment.
Additionally, there is a suspicion of a “butterfly effect,” in which high transportation costs may compel freight forwarders to adjust their capacity or seek alternatives between Asia, Europe, and the US.
“The good news is that air freight, while sometimes slow to adapt to innovative opportunities, the industry remains agile and reactive. Airlines can quickly reposition their aircraft around the world, allowing for flexibility in response to shifting demand,” Federic Brun, Head of Commercial Cargo and Logistics at Liege Airport, explained.
“In the long run, we may see increased demand for charter programmes while scheduled cargo services decline. However, I question whether this situation is sustainable and what the outlook will be in 2025.
“Many expected 2024 to be a strong year for business, but the current landscape suggests otherwise.
“However, ultimately, logistics is like water; it will always find a way. Freight forwarders will continue to pursue the most cost-effective options available.
Industry priorities
Disruptions in areas like the Red Sea have led many cargo handlers and freight forwarders to seek alternatives, such as sea-air or rail transport, which can have a positive sustainability impact.
This natural shift to more intermodal options is something airports like Liege are pushing, although it’s also happening more organically than initially anticipated. There’s a dual benefit to having intermodal opportunities—not only in terms of minimising disruption risks and offering cost efficiency and effectiveness, but also providing more sustainable transportation options. By utilising all available modes of transport, it’s possible to achieve both efficiency and meet green goals within the supply chain.
“The primary concern for many players in the market right now, especially with the current disruptions is on moving cargo as quickly as possible. While they are aware of CO2 footprints, their primary driver is maximising revenue,” Brun explained.
“That said, hubs like ours can still offer greener supply chain options without sacrificing efficiency or cost. By adopting electrified solutions and other environmentally friendly measures, we can contribute to their sustainability goals without compromising what matters most to them.”
Trade lanes and commodities
When considering developments in trade lanes and current customer concerns, key trends in the crosshairs as peak season approaches and beyond into 2025 include a strong focus on Asia, particularly Southeast Asia, as well as potential expansion into Latin America.
One of Liege’s key verticals is perishables, especially flowers, handling around 700 tonnes of flowers daily. e-commerce is also playing an increasingly significant role in air freight, as some estimates suggest that this segment could soon account for up to a third of all air freight volumes.
“What we aim to do is create a marketplace where we can help connect the dots,” Brun outlined.
“New opportunities are emerging, like Challenge Airlines opening a Nairobi route, which is a positive development for us. Having a strong home carrier has been instrumental to our growth—much like Lufthansa for Frankfurt, Air France for CDG, and KLM for Amsterdam. We’re fortunate to have one that’s transitioned from being a charter airline to a more network-based operation, which is exciting for our future.
“In terms of regional focus, Latin America and Africa remain areas of opportunity, though they are on the weaker side for now. On the strong side, without question, the focus is on Asia. e-commerce platforms in the region are thriving and now represent around 30 percent of the global market- a trend I don’t see slowing down any time soon.”
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