Ongoing supply chain disruptions due to the Ukraine-Russia war and COVID-19-induced lockdowns in China have encouraged cargo stakeholders to look to the Middle East as a stable hub.
Carriers and forwarders have reoriented cargo to pass through Middle Eastern hubs to avoid Russian airspace and dodge the lockdowns, but a significant increase has yet to be seen, according to the latest monthly analysis by the International Air Transport Association (IATA).
However, cargo traffic is expected to increase over the coming months, Daniel Randig, senior vice president for air logistics in the Middle East and Africa at logistics firm Keuhne+Nagel, told Air Cargo World.
“Airlines and shippers want stability, so they can plan middle and long term, and the hubs in the Middle East have proven they can provide that,” Randig said, referencing how airports in the region have remained operational and efficient during the pandemic without closures or workforce reduction.
Capacity challenges
Available belly capacity has continued to increase this spring as carriers resume pre-pandemic flight routes, albeit at a lesser frequency, according to Randig.
“Disruptions like the conflict in Europe force cargo to move in not the most optimum routes in some cases, which impact the total cost, but when compared to a year ago we definitely see more alternatives and connectivity,” Randig said.
Competition for capacity is a challenge for carriers, as the rerouting of flights to the Middle East does not ensure carriers have room for additional cargo.
“Even if flights touch our region, they very often are already coming in full of cargo that will continue the journey beyond this market,” Randig said. “The increment in flights on schedule may not necessarily represent easier access to capacity to the local market.”
In turn, some carriers, like Ethiopian Airlines and Etihad Airways, continue to utilize passenger freighter flights to improve capacity.
Ethiopian Airways used passenger freighters to maintain its regular freighter schedules and reserved freighters for long-range flights to Asia and the Americas, Betelhem Abel, cargo manager in the Gulf for Ethiopian Airlines, said recently during a panel at Cargo Facts EMEA 2022.
Cool-chain shipments driving cargo demand
Cargo demand in the region remains diverse, but health care continues to be a key vertical for airfreight as hubs in the Middle East remain critical to COVID-19 vaccine distribution, Randig said.
Emirates-owned ground handler dnata recently expanded its Erbil, Iraq facilities to meet a rising demand for cool-chain commodities, including medicine and vaccine shipments for retail and humanitarian aid purposes through Erbil International Airport (EBL), the handler told Air Cargo World.
In March Emirates SkyCargo reactivated its freighter hub, SkyCentral, at Al Maktoum International Airport (DWB) to better accommodate the surge in cargo demand. The hub has a dedicated cool-chain and EU GDP-certified pharma handling zone.
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