Page 32 - STAT November 2022 for Magzter

regionalreport

66,000 tonnes of goods were handled, a 5%
decrease in volume from the previous year.
Cargo traffic at Brussels Airport fell 5% in Sep-
tember 2022 compared to September 2021
but rose 30% compared to 2019.
“Last year was remarkable for us, with a year-
over-year gain of more than 31%. We have been
actively capitalising on the overall growth of
the air cargo industry, especially our pharma-
ceutical leadership. This year, and in general in
Europe, we see a softening in demand, mostly
as a result of the Russia-Ukraine war influenc-
ing demand in the Western European market.
When combined with the consequences of
China's ongoing selective lockdowns, which
make shipping eCommerce products into Euro-
pean markets more difficult, and the geopoliti-
Amsterdam Schiphol Airport
cal situation, our results are clearly impacted.
We're also seeing some air-to-sea shifts for
low-yield goods like fashion or even perishables arose: a sharp rise in fuel prices. Since the start
and lesser-valued eCommerce goods, which of 2022, jet fuel costs nearly 120 percent more
is affecting our overall air cargo volumes as an than it did in 2021. This price increase poses a
industry,” said Geert Aerts, Chief Cargo & Real big issue for airlines because fuel is sometimes
Estate Officer, Brussels Airport Companies. the highest operational expense, accounting
Last year was a fantastic year, with more for roughly 25% of overall expenditures.
than 31% increase year over year. We have “Oil prices have been unpredictable and I be-
been massively capitalizing on the general lieve that most airlines can take precautions to
rise of the air freight business. We have also safeguard themselves to some level. However, it
been able to capitalise our pharma leader- will not be the same as it was two years ago or
ship. What we see this year and overall in last year, yields are lowering at particular routes.
Europe is a softening of the demand. The Other factors The increased fuel price puts further strain on
demand is still okay, but you can see that contributing to the crisis the airline markets, as well as the kind of items
with the events that happened post-Covid that may be carried by air cargo. I believe we
and certainly since February demand in the include rising fuel prices, will see some impact again, and some of the
Western European market has been slowing decreased worldwide high-yield commodities, such as automotive
down. Combined with the consequences of and pharmaceuticals, as well as high tech and
China still suffering from selective lockdowns, demand, labour shortage, machinery, will continue to be carried through
making it more challenging to export its and increased pricing. air cargo due to its ease, reliability, and speed.
eCommerce goods into European markets, However, we will probably observe greater
and the geopolitical scenario around this, our Then we see the Economic fluctuations in some of the lesser-yield com-
numbers are clearly hampered. That, along Optimism Index in Euro Area, modities, such as fashion,” said Aerts.
with the fact that we are seeing a little bit According to the World Bank’s latest Com-
more air-to-sea changes for low-yield items, signaling that we are going to modity Markets Outlook report, the shrinking
such as fashion or even lesser-valued eCom- enter a recession. value of the currencies of most developing
merce goods, is having an impact on our economies is driving up fuel prices in ways that
total air cargo volumes as an industry. David van der Meer could deepen energy crises. Kerosene will be-
The Euro Area Economic Sentiment Indica- Amsterdam Schiphol Airport come the most costly way to fuel an airplane in
tor fell for the eighth consecutive month in the next few years, and will certainly approach
October 2022, to 92.5, the lowest level since tions that will provide you with oxygen to lift price parity with liquid hydrogen before 2030.
November 2020, amid a weakening economic up and flourish. We will do everything possible “One of our USPs as an airport is that our
outlook caused by persistently high inflation to defend our most critical market segments, kerosene rates are lower than the rest of Europe
and increased borrowing costs, as well as a which include perishables, eCommerce, and since we have a big production base near the
worsening oil crisis, said the report. high-tech equipment,” said Meer. Port of Rotterdam. Traditionally prices in the
“Volumes are falling throughout Europe, Netherlands have been inexpensive in compari-
owing mostly to inflation. However, according The impact of rising fuel prices son to the rest of Europe,” said Meer.
to economics, the only way out of a recession Just as the aviation industry was beginning to “What is concerning at the time is the diesel
is to go through it. These are transitory infla- recover from the pandemic, another hurdle shortage. This will mostly affect trucking
30 | NOVEMBER 2022 www.stattimes.com