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Boeing 777 production halted by supplier dispute

Boeing was forced to pause production of its 777 and 767 freighters due to a dispute with a parts supplier, according to Reuters. Last week, the news agency reported that the airframe manufacturer had been in dispute with the supplier of the fixed trailing-edge rib kit used on its 777 and 767 aircraft. While the dispute was resolved at the end of September, aircraft production has yet to be resumed according to Reuters contacts. Air Cargo News has asked Boeing to comment on when it expects production to resume. The report said that the dispute was costing Boeing around $6.5m per day and work on two 777 aircraft had been affected, one of which is destined for FedEx. Boeing is reportedly bringing production of the component in-house to reduce its dependence on a single external supplier. According to its latest orders and deliveries report, Boeing has 38 outstanding orders for 777 freighter aircraft, although six of these were placed by Volga-Dnepr UK. Other customers waiting for delivery of the model include; China Airlines (2), China Southern Cargo (2), Emirates (3), Ethiopian Airlines (2), FedEx (7), Saudia (4), Silk Way West (2), unidentified (10). There are nine unfilled orders for the 767-300F: UPS (1) and unidentified (8). While the 767 freighter can no longer be ordered, Boeing was recently granted an emissions exemption for its 777 freighter that will enable the aircraft manufacturer to continue selling them beyond the end of 2027. The decision by the FAA means that Boeing, which filed its emissions exemption request in December and had requested that the exemption be approved by 1 May, can sell 35 more 777Fs that will be be eligible for a Certificate of Airworthiness. The delay in production comes as the air cargo market faces a shortage of widebody capacity as demand continues to soar and production of new cargo aircraft was already under pressure. Boeing's 777 freighter is now the most widely operated freighter in the world, according to data supplied by the US aircraft manufacturer.

K+N claims market share gains as 'strong' air cargo peak gathers pace

Kuehne + Nagel attributed most of its third-quarter airfreight growth to market share gains, and expects to keep winning business into 2027 as a strong peak season gets under way. Airfreight volumes rose 10% year on year, with chief executive Stefan Paul estimating underlying market growth at 3-4% and attributing 60-70% of K+N's growth to market share gains. "[It's] pretty much coming from hard cargo. Hard cargo had a double-digit increase in terms of volume this quarter, and ecommerce went down significantly," he told analysts yesterday. Asked whether further market share gains would follow next year, he replied: "Similar to this year, it should continue." Separate analysis from Aevean illustrates the weakening backdrop for Chinese low-value ecommerce air exports. Tonnage fell 19% year on year in September, taking the decline over the first nine months to 4%. Low-value ecommerce volumes to Europe halved in September, while those to North America were down 4%. Technology has also replaced business lost from the automotive sector, revealing a longer-term shift in the forwarder's airfreight customer base. Mr Paul recalled that, five to seven years ago, K+N had a strong automotive business out of Europe, serving major manufacturers and their first- and second-tier suppliers. That business had been replaced by technology cargo, he said. "I wouldn't say we have an overdependency now on this, but it has replaced the shrinking auto sector on a one-to-one basis." Management declined to quantify its technology exposure or specify the contribution of hyperscaler customers to growth. However, chief financial officer Markus Blanka-Graff confirmed that "the hyperscaler is a good part of our growth in 2026". "I think our view currently is that growth in that space, with the customers we continuously gain, is also going to continue into 2027," he added. Mr Paul said half of K+N's airfreight capacity came from its own charter operations, with the remainder covered by block space agreements. Improving the cargo mix, with a focus on hard cargo, would remain a priority into next year, he added. Mr Blanka-Graff explained: "The stronger profitability, the stronger margins are on the hard cargo side and special products, healthcare side, hi-tech side." However, one analyst questioned why the changing mix was not producing a stronger airfreight yield performance. Management reiterated its expectation of stable yields, without quantifying the contribution from the shift in cargo. K+N's airfreight volumes increased 7% sequentially in the third quarter, while ebit rose 84% year on year, to CHF169m ($205m). Its air logistics conversion rate reached 32%, against 23% a year earlier. Mr Paul said the forwarder expected its third-quarter volume development to continue into Q4, with stable yields. "We have just started in the peak season, but I would say it's strong. Is it even stronger than the Q3? [That's] to be seen, but it's definitely strong." Meanwhile, airlines are adding winter capacity. Qatar Airways Cargo has announced weekly 777 freighter services through Copenhagen from 25 October, and Warsaw-Chicago from 26 October, followed by a weekly rotation serving New York and Atlanta from 1 November. It has also introduced twice-weekly Dallas freighters. IAG Cargo's winter schedule includes three weekly Gatwick-Colombo flights, scheduled to begin today, alongside a doubling of Gatwick-Bangkok frequencies to six a week, broadening forwarders' bellyhold options on Asian lanes.

WorldACD: Air cargo volumes bounce back after Golden Week holiday

Air cargo tonnages out of Asia quickly rebounded following the Golden Week holiday, while volumes from other origins were under pressure. Figures from WorldACD show that air cargo volumes increased by 2% week on week in the seven days running to 18 October. The increase was fuelled by a 9% week-on-week increase in exports from Asia Pacific, which the data provider described as in "sharp contrast" to declines elsewhere. "The retreat was most pronounced out of North America (-5%), which can be partly attributed to national holidays in Canada (Thanksgiving) and US (Columbus Day/Indigenous People's Day)," WorldACD said. "Chargeable weight shrank 4% from Central and South America (CSA), also partly explained by 12 October national holiday celebrations, 3% out of the Middle East and South Asia (MESA) region, 2% out of Europe and 1% from Africa." WorldACD figures show that tonnages from Asia Pacific to the US were up 10% against a week earlier, while to Europe there was a 13% improvement. Tonnages from Asia Pacific to the US increased from all Asia origins, other than Japan, led by Hong Kong, which was up 27% and China, which improved by 18%. Meanwhile, compared with a year earlier, Asia Pacific-US volumes for the week are up 14%, which "reflects the ongoing strength of AI-related traffic crossing the Pacific". To Europe, South Korea led the way with a 34% week-on-week improvement, followed by China up 22%, Singapore 16% and Hong Kong 11%. "Volumes out of Vietnam, Japan and Malaysia to Europe retreated," WorldACD added. However, compared with last year, Asia Pacific to Europe volumes are down 16% year on year. "The decline was most pronounced out of Hong Kong (-32%), due to the European Union's moves to curtail imports of e-commerce parcels," WorldACD said. "Volumes from China and Vietnam were 12% and 10% lower than a year ago, while South Korea (+14%) was the only origin showing a double-digit year-on-year increase in chargeable weight to Europe." Rates on the rise Meanwhile, WorldACD figures show that airfreight rates were up week on week from all regions other than Africa in the week ending 18 October. Rates rose 4% out of Asia Pacific, 3% from CSA, 2% from Middle East South Asia and 1% from both Europe and North America. From Africa, there was a 4% fall. Looking towards the peak season, WorldACD commented: "The strength of AI-related flows has prompted predictions of a strong peak season ahead in the transpacific arena. "From Asia Pacific to Europe, the outlook is more uncertain in view of the €2 handling fee that will be applied to non-EU e-commerce imports per 1 November, in addition to the flat €3 customs duty per item that has already been in effect since 1 July 2026 for low-value consignments up to €150."