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Aperture & Focus-KWE-April 19th 2022

Regional and Global Update: April 19th, 2022

Thanks to a profitable fiscal year, airlines have continued to invest in their staff and fleet, which will buoy international freighter capacity for the time being, while recovering air passenger demand in Europe and the Americas lightens summer outlook for belly-hold capacity.

However, mass airline service cancellations, local labor deficits, and the shortage of critical supplies will have a domino effect on manufacturing output across regions in the coming weeks. Capital goods and oversized cargo will be more hard-pressed to secure capacity as Ukraine’s Antonov Airlines decommissioned its specialized freighter fleet on April 14 to fly humanitarian aid amidst the Russia-Ukraine conflict.

Global fuel supplies get a boost from US oil reserves that were shipped to Europe on April 1, while a more conservative growth forecast by the International Monetary Fund (IMF) and ongoing discussion within the EU to embargo Russian oil dampens market attitudes.

Speculation over the upcoming contract negotiations between ports of the US West Coast and the two largest unions of warehousing and dockworkers stoke shipping anxiety despite optimistic remarks from union leadership.

Regional Focus

The Americas

US ports on the Pacific Coast see fewer imports and easing cargo congestion, but… the East Coast ports of Charleston and Norfolk report rising levels of congestion due to the arrival of vessels completing their Transatlantic Asia-US voyages.


Shipping containers are stacking up in China—Shanghai’s lockdown has been extended indefinitely, dropping cargo throughput at the city’s seaport and offloading containers to neighboring ports…Ripple effects and initial business responses will hinder trade activity in the weeks to come: major airlines and vessel operators have temporarily placed shipping embargos to Shanghai, and vessel arrivals to Southeast Asia ports have been delayed or bypassed.

Europe, Middle East & Africa

Air cargo capacity between North Europe and Asia has dropped more than 20% since the Russia-Ukraine conflict began, driving demand toward rail and ocean…South Africa’s Durban Port was forced to halt operations after unprecedented flooding caused damage to Bayhead Road, cutting off terminal access and suspending rail services.

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