You probably know Maersk as a sea freight company. But as part of our integration strategy, we are investing heavily in all modes of transport to offer our customers end-to-end logistics solutions. Especially in air transport.
However, this is not necessarily the case across the industry. In a recent interview with The Loadstar, one industry representative noted, “Air freight has been underinvested in for more than 40 years.” So while others are hesitant to invest in air freight, we are doing the opposite. We are going for the big thing.
Here are five ways that show we’re here for the long haul.
#1 Opening of our hub in Billund
First, we want to start at our new location in Billund, Denmark. This is where our European air cargo center is located and where the foundations of our air cargo strategy were laid. It is an ideal location with excellent road connections to Northern Europe and Scandinavia.
As for the facility itself, the hub houses a fully equipped 4,000 m² import facility and a 13,000 m² export facility, as well as separate areas for cold storage, dangerous goods, scanning and unit load handling (ULD).
It is relatively small for an airport, but this is a huge advantage for our customers because there are fewer congestions and we can unload, process and get goods on the road faster. Especially since air freight is often time-critical, this gives us a platform to maximize the speed advantage.
Opening our own hub shows that now that we are in the air, we are not coming back down.
#2 Expansion of our China-Europe route
One of the main reasons for opening our European air cargo hub is to help meet high Chinese export demand by establishing a route between Hangzhou International Airport and Billund Airport.
Based on the latest available data from the European Commission (2022), China was the largest exporter of goods to the EU (20.8%). That’s huge. While Chinese exports declined in mid-2023, they recovered towards the end of the year, according to the Financial Times.
In our experience, demand from China will continue to grow. When we opened the Billund Hub in March 2023, only two Boeing 767-300 freighters departed from Hangzhou per week. Since then, demand from our customers has increased significantly and we now operate seven flights per week on this route. We have more than doubled our capacity, demonstrating our commitment to air transport.
#3 Bigger, better planes
We have looked at facilities and routes, now let’s look at transportation.
In addition to our fleet of 25 freighters, we have invested in three new Boeing 777 aircraft, all of which are scheduled to enter service in 2024.
These new, state-of-the-art aircraft offer a number of advantages. The 777 Freighter, for example, is the largest, longest-range and most capable twin-engine cargo aircraft in the world.
Compared to conventional aircraft, the aircraft offers 17% better fuel efficiency and lower CO2 emissions.
The main benefit for us is that these aircraft will enable us to further increase our capacity. With global air cargo volumes expected to grow by 14.28% between 2023 and 2028, this investment puts us well-positioned to meet this growing demand.
#4 Introduction of our booking technology
Now to another part of our integrated logistics offering – technology.
According to McKinsey, less than 40 percent of an airline’s capacity is booked two weeks before departure.
This is surprising given the increasing frequency of black swan events and the ability of air cargo to overcome such disruptions. One would think that last-minute bookings would account for a much larger proportion.
It’s not a stretch to say that some of the industry’s problems stem from a lack of digitization and a cumbersome booking process. At Maersk, we’re making a conscious effort to change that. We’ve now extended our booking platform to air freight, making it easier for you to book whether you’re planning ahead or booking at short notice. In addition, with Maersk’s Instant Pricing, we offer air freight quotes on 70,000 trade lanes in more than 90 countries, giving you upfront cost transparency.
Air Cargo Week recently reported: “Air cargo companies that invest heavily in technology… will set the new standard for the entire air cargo industry.” At Maersk, we are doing just that.
#5 Investments
Finally, we also demonstrate our commitment to the air freight market through mergers and acquisitions.
This began with the acquisition of Senator International and its fleet of six aircraft in 2022. This enabled us to significantly increase our value in the air cargo sector.
This has not only improved our controlled flight operations, but has also enhanced our freight forwarding offering, opened doors to partnerships and opportunities, and provided us with new skills, expertise and assets.
The acquisition has strengthened our business overall and gives us many reasons to look to the future with excitement.
A clear declaration of intent
Whether it is investments in facilities, aircraft, routes or expertise, we have been busy expanding our air cargo capacity and network over the past few years.
This is a clear statement of intent. The air freight market is growing – and we are growing with it in order to serve our customers in the best possible way. In other words: This is not just a short-term solution; we are here for the long term.
Talk to us about how Maersk Air Freight can help your business:
