Flush with cash from their windfall profits and continued good prospects on their seaborne business, ocean carriers are literally flying high..
Following CMA CGM’s recent venture into air freight business and Maersk’s re-entry into the business, MSC (Mediterranean Shipping Company), the world’s largest container shipping line has announced that it is developing an air cargo solution in response to market demand..
Commenting on the new initiative, MSC Chief Executive Officer Soren Toft said “We are delighted to announce the development of MSC Air Cargo and to welcome Jannie Davel to spearhead this exciting new offering for MSC clients.
This is our first step into this market and we plan to continue exploring various avenues to develop air cargo in a way that complements our core business of container shipping.”
MSC has tasked Jannie Davel, an air cargo veteran formerly of Delta Cargo, Emirates SkyCargo, and DHL among others, to develop its air cargo business and to build the team that will implement it..
The announcement said that MSC Air Cargo has been under development for several months and the new solution will be available from early 2023, following the delivery of the first of four MSC-branded Boeing 777-200F aircraft that will be operated by Atlas Air, a subsidiary of Atlas Air Worldwide Holdings, Inc..
So is it a question of carrier see, carrier do..?? Not really, because, the trend of ocean carriers owning/operating airlines is nothing new with many international conglomerates operating both shipping lines and airlines for many years..
EVA Air is the sister company of Evergreen Marine Corporation, currently, the 6th largest container shipping line in the world.. Dr.Chang Yung-Fa established Evergreen Marine on 1st September 1968 and EVA Air on 8th March 1989..
Maersk Air was started in 1969 but was eventually sold to Sterling Group in 2005 citing unprofitable operations in the European aviation market. Maersk announced its re-entry into the air cargo space in Apr 2022 in response to customer demands..
Cosco Shipping Air was established in 1995 covering the entire Chinese domestic air freight market..
With the announcement of MSC Air Cargo, the top 4 container shipping lines in the world accounting for 58% of global ocean capacity are also going to compete in the skies..
Who said the business of freight transportation business is boring..!!!
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