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China reportedly puts a stop on delivery of Boeing aircraft

China reportedly puts a stop on delivery of Boeing aircraft

By Damian BrettDamian Brett22 April 2025

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Boeing 777

China-based airlines have reportedly been told to stop accepting deliveries of Boeing aircraft as part of the ongoing tariff dispute between Beijing and Washington.

Newswire Bloomberg reported last week that China had ordered its airlines to stop receiving Boeing aircraft, while The Wall Street Journal reported on 14 April that China told its carriers to stop ordering new Boeing jets and to receive approval before accepting already ordered aircraft.

However, Air Cargo News’ sister publication FlightGlobal reports that analysts believe too much is at stake for any pause to continue for long, noting the importance of Chinese customers to Boeing and that Chinese airlines badly need Boeing jets and other US-made aerospace goods.

“We believe much of the headline risk with the pause in deliveries is a negotiating tactic, and we would be surprised if the delay were extended, considering the importance of US parts for the Chinese fleet,” RBC Capital Markets financial analyst Ken Herbert said in a 15 April research report.

Chinese airlines require US-made components for their existing Boeing fleets, Herbert added.

Boeing declined to comment about the reported delivery disruption.

“We do see this as unsustainable,” said Bank of America (BofA) Global Research analyst Ron Epstein in a 15 April note. “When considering balances of trade, we think the Trump Administration can’t ignore Boeing. In fact, Boeing [aircraft are] one of the few high-tech manufactured goods that the US exports in large numbers.”

The reported China-delivery pause comes after US president Donald Trump last week slapped more tariffs on Chinese imports, prompting Beijing to respond in kind. The US is now taxing some Chinese imports at 145%, while China is taxing US products at 125%.

Some analysts think China and Chinese airlines, by refusing to take Boeing jets, will suffer more than the US manufacturer.

“By stopping Boeing deliveries, China does not hurt the US,” said Addison Schonland, co-founder of consultancy AirInsight. “India will take them all, even at a slight discount.”

Damian Brett

Damian has been writing about the freight and logistics industry since 2007 when he joined International Freighting Weekly to cover the shipping sector. After a stint in PR, he went on to work for Containerisation International and Lloyd’s List – where he was editor of container shipping – before joining Air Cargo News in 2015.

IATA: Air Cargo Key to Supply Chain Resilience

15 April 2025

Dubai – The International Air Transport Association (IATA) emphasized the vital role of air cargo in maintaining global supply chain resilience and called on governments and industry to remain focused on delivering the fundamental expectations of customers—safety and security, digitalization and sustainability.

“Whether supporting global trade, enabling e-commerce, or delivering vital humanitarian aid, the value of air cargo has never been clearer. To meet customer expectations and navigate an increasingly complex environment, the air cargo industry must continuously strengthen safety and security, fast-track digitalization, and deliver on its sustainability commitments,” said Brendan Sullivan, IATA’s Global Head of Cargo at the opening of the 18th World Cargo Symposium (WCS) in Dubai, UAE.

Safety: Zero Tolerance for Rogue Shippers

Safety is the top priority for air transport and in the case of air cargo the specific focus is on the safe transport of lithium batteries. IATA calls on government to step up efforts to stop rogue shippers and support ICAO’s work to strengthen Annex 18 of the Chicago Convention—the global framework for the safe transport of dangerous goods by air.

“Shipments of lithium batteries are growing in volume. With that come increased risks associated with undeclared or mis-declared goods. The industry has invested in training, certification, and technology. Governments must match that commitment with robust oversight and enforcement,” said Sullivan.

Security: The Need for Coordinated, Risk-Based Measures

IATA reinforced calls to governments for a coordinated, risk-based approach to air cargo security following recent incidents involving incendiary devices concealed in shipments. While some states implemented new measures, the lack of alignment led to inconsistent outcomes. This situation reinforces the importance of harmonized responses based on global standards.

“Recent security incidents highlight the need for better coordination among governments. Aviation security cannot be built on fragmented or reactionary measures. Global standards and cooperation are essential,” said Sullivan.

IATA also renewed its call to states to fulfill their Annex 17 obligations by sharing timely and accurate threat intelligence to enable informed risk assessments and operational decisions.

“The industry is best placed to understand its operations and the associated safety and security risks. But governments have infinitely more resources, particularly in intelligence gathering. The best results come when governments and industry work together,” said Sullivan.

Digitalization: Accelerating Industry-Wide Adoption of ONE Record

IATA reinforced the central role of ONE Record as the industry’s standard for end-to-end digital data exchange, supporting improved efficiency, compliance, and transparency. The industry’s goal is clear: by January 2026, ONE Record will become the preferred method of sharing data. To accelerate industry adoption IATA urged:

  • Airlines and forwarders to move forward with implementation
  • Governments to recognize ONE Record in regulatory data filing requirements
  • Developers to build secure, open, and compatible digital platforms

“ONE Record is a foundational shift in how we share, manage, and trust data across the supply chain. Airlines representing 72% of global air waybill volume are on track to implement it. More than 100 IT providers and 10,000 freight forwarders are already aligned. To achieve full value, implementation must accelerate across all stakeholders, and governments must recognize ONE Record in their regulatory frameworks,” said Sullivan.

Sustainability: Commitment Strong, SAF Support Needed
The air cargo industry continues to embed sustainability into its operations, with growing efforts to reduce waste, implement circular practices, and phase out single-use plastics. For example, IATA guidance to eliminate single-use plastics across the cargo supply chain is now reflected in operational standards.

Progress is also being made on the sector’s largest environmental challenge—reducing carbon emissions. Momentum around Sustainable Aviation Fuel (SAF) is growing, with new agreements across the value chain and more companies committing to SAF use. The SAF Registry, recently launched and operated by CADO, is designed to enable a global market for Sustainable Aviation Fuel (SAF) and accelerate the industry’s transition to net-zero emissions by 2050. In addition, IATA will soon launch CO2 Connect for Cargo to support accurate emissions calculation and reporting, including SAF usage.

However, SAF volumes remain far below what is needed, and production costs remain high. IATA urged governments to implement policy frameworks to scale up SAF production and reduce costs.

“We are committed to net zero carbon emissions by 2050. But the ramp-up of SAF—our strongest lever—has been disappointing. The major fuel producers have been slow-walking—or sidelining—planned investments in SAF. Aircraft manufacturers have backed off their commitments for medium-term delivery of CO2 saving products such as hydrogen-powered aircraft. And governments have not provided the policy support needed, even though they have a playbook at hand with how the wind and solar energy industries expanded. Instead, they send mixed signals by subsidizing fossil fuel extraction while aiming for net zero. Airlines are committed and determined but we cannot do it alone. We need action behind the words of regulators, fuel suppliers and manufacturers,” said Sullivan.

Trade Tensions

Amid growing trade tensions, IATA reinforced its position that trade drives prosperity, and that any measures undermining the free flow of goods ultimately hurt businesses, consumers, and economies.

“Current trade tensions are deeply concerning. Trade drives prosperity. The more the world trades, the better off we all are. So, whatever the resolution of current trade tensions is, we know that air cargo will be there to deliver the goods people need and want,” said Sullivan.

 

 

China-US tonnages down but rates up ahead of tariffs

By Damian BrettDamian Brett11 April 2025

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The latest statistics from data provider WorldACD show that airfreight demand out of China and Hong Kong to the US declined slightly last week while rates increased.

Figures from WorldACD show that in the week running to 6 April (week 14) demand from China and Hong Kong fell by 1% week on week for the first time since the start of the year, although volumes remain 3% higher than the same week a year ago.

Demand out of Asia Pacific as a whole was down by around 7% week on week.

Meanwhile, pricing ex-Asia Pacific jumped 4% week on week with the average spot rate out of the region going up 5%, to $3.94 per kg.

Overall air cargo demand across the globe also weakened in week 14, with WorldACD stats showing a 7% week-on-week decline.

The data firm said half of this decline reflected the Eid holidays at the end of Ramadan, while the other half reflects “worldwide uncertainty over a trade war triggered by the latest wave of US tariffs and the removal of US de minimis exemptions for shipments from China and Hong Kong”.

Compared with last year, demand is up 6%.

World ACD April 11 2025

WorldACD

On the pricing front, average rates out of every region were also on the rise, apart from Central and South America, climbing 2% on last week to $2.52 per kg. Against a year ago, prices are up 2.9%.

However, WorldACD said the situation could change in the coming weeks due to the trade war between China and the US that will see Washington implement tariffs of 145% on imports from China and Beijing respond with its own 125% rate.

The US also put on hold tariffs to several other countries for 90 days.

“As the new US tariffs that have not been put on hold for 90 days came into effect on Wednesday, 9 April, the impact is expected to be more clearly visible on certain trade flows in next week’s report,” WorldACD said.

Air cargo demand declines slightly in February

April 2, 2025 by PLA Editor

The International Air Transport Association (IATA) released data for February 2025 global air cargo markets showing:

Total demand, measured in cargo tonne-kilometers (CTK), declined by 0.1% compared to February 2024 levels (+0.4% for international operations). This marks the first decline since mid-2023.

Capacity, measured in available cargo tonne-kilometers (ACTK), decreased by 0.4% compared to February 2024 (+1.1% for international operations).

* Year-on-year comparisons are affected by the extra day in February 2024 due to the leap year.

“February saw a small contraction in air cargo demand, the first year-on-year decline since mid-2023. Much of this is explained by February 2024 being extraordinary—a leap year that was also boosted by Chinese New Year traffic, sea lane closures and a boom in e-commerce. Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs,” said Willie Walsh, IATA’s Director General.

Several factors in the operating environment should be noted:

In January, the industrial production index rose 3.2% year-on-year, the highest growth in two years and world trade expanded by 5%.

Jet fuel prices averaged $ 94.6/barrel in February, a 2.1% drop from January.

In February, the Purchasing Managers Index (PMI) for global manufacturing output was above the 50-mark (51.5), indicating growth. The PMI for new export orders rose slightly to 49.60 from the previous month, remaining just shy of the 50-mark, which is the growth threshold.

In February, consumer inflation remained elevated in the US, Europe, and Japan, easing only slightly from the previous month. In contrast, China recorded its first decline in consumer prices in 11 months, reinforcing signs of persistent deflationary pressure in the economy.

February regional performance

Asia-Pacific airlines saw 5.1% year-on-year demand growth for air cargo in February. Capacity increased by 2.7% year-on-year.

North American carriers saw a 0.4% year-on-year decrease in demand growth for air cargo in February. Capacity decreased by 3.5% year-on-year.

 

European carriers saw a 0.1% year-on-year decrease in demand growth for air cargo in February. Capacity decreased 0.2% year-on-year.

Middle Eastern carriers saw an 11.9% year-on-year decrease in demand growth for air cargo in February, the slowest among the regions. Capacity decreased by 4.0% year-on-year.

Latin American carriers saw 6.0% year-on-year demand growth for air cargo in February, the strongest growth among the regions. Capacity increased 7.6% year-on-year.

African airlines saw a 5.7% year-on-year decrease in demand for air cargo in February. Capacity decreased by 0.6% year-on-year.

Trade Lane Growth: The Trans-Pacific corridor remained the busiest trade lane in February. Intra-Asia led growth, becoming the fifth busiest. Europe–Asia and Transatlantic routes also expanded, while Middle East–Asia and European routes declined.

Other Topics: Air Cargo Network, Air Express, Air Freight Services, Air Logistics, Asia Pacific Air Cargo, Asia Pacific Air Freight, Asia Pacific Air Logistics, Asia Pacific Shipments, Cargo Flights, E-Commerce Logistics, Express Delivery, Express Logistics, IATA, International Air Shipments, International Air Transport Association, International Express Delivery, Transpacific Air Cargo, Transpacific Air Freight

IATA World Cargo Symposium 2025: Navigating geopolitical shifts with technology & innovation

inter airport Southeast Asia 2025 sets a new benchmark for attendance, marking its 8th edition in Singapore with record-breaking participation

 

Trump tariffs: Lower airfreight demand and China de minimis end date set

By Damian BrettDamian Brett3 April 2025

Donald Trump

Last night saw US president Donald Trump reveal a slew of new tariffs and also confirm the date from which Chinese goods will no longer benefit from the de minimis exemption.

In what the president has dubbed ‘liberation day’, Trump announced a universal 10% tariff on imports into the country, while certain nations are subject to higher levels.

A chart highlighting the tariff changes on a country-by-country basis showed that imports from China would be subject to tariffs of 34%, the European Union 20%, Vietnam 46% and Taiwan 32%. These are due to come into force on 9 April while the universal tariffs are due on 5 April, giving countries little time to negotiate with the US.

According to forwarder Flexport, China’s tariffs are on top of section 301 tariffs, the 20% tariff implemented in early March, and baseline US tariffs.

Last week, the Trump administration also announced a 25% tariff on autmobiles that starts today, along with a 25% tariff on automobile parts due to come into force in May.

He has also previously implemented a 25% tariff on all Canadian and Mexican imports that are not covered by the North American free-trade agreement.

Reciprocal_Tariffs

Market analyst Xeneta said it is not expecting the tariffs to result in an immediate jump in airfreight rates but could result in demand decreases as a result of lower consumer demand due to higher prices.

Niall van de Wouw, Xeneta chief airfreight officer, said: “We saw an uptick in air cargo rates from China and Europe to the US at the end of March but nothing to set alarm bells ringing. The more likely scenario is a decrease in air cargo rates if tariffs result in higher prices and lower consumer demand.

“We could also see lower demand for US exports if there is growing anti-US sentiment across consumers in regions hit by the tariffs. Consumer sentiment has the potential to be even more powerful than tariffs.

“We should also consider there will be more capacity added to these trades in the coming weeks as airlines start summer schedules, which will also put downward pressure on rates.”

 

According to Xeneta figures, air cargo spot rates currently stand at $4.16 per kg from Shanghai to US, down from the peak season high of $5.75 per kg in the week ending 10 November.

Spot rates from western Europe to the US stand at $2.16 per kg, down from the peak season high of $3.51 per kg in the week ending 15 December.

US retailers are expecting the tariffs to hit US consumers’ spending power and warn the sudden implementation will create issues.

“Tariffs are a tax paid by the US importer that will be passed along to the end consumer,” said National Retail Federation executive vice president of government relations David French. “Tariffs will not be paid by foreign countries or suppliers.

“Even more so, the immediate implementation of these tariffs is a massive undertaking and requires both advance notice and substantial preparation by the millions of US businesses that will be directly impacted.”

De minimis update

Amongst the various executive orders issued by the White House yesterday was an update on the end of the de minimis exemption for imports from China.

The US had tried to end the exemption that allows packages worth less than $800 to enter the country tariff-free and with minimal customs scrutiny in February.

But the country was forced to backtrack on its plans when it became clear customs did not have the systems in place to process the millions of packages that arrive from China every day.

However, the White House yesterday issued an update, saying that it planned to remove the exemption for China packages from 2 May. Packages that are sent through international postal networks will be subject to a different set of duties than those that are sent by other modes of transport.

“Imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties, which shall be paid in accordance with applicable entry and payment procedures,” the White House said.

“All relevant postal items containing goods that are sent through the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption are subject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025).

“This is in lieu of any other duties, including those imposed by prior orders.”

 

The different rules depending on how items are sent is likely to differentiate between small-scale shippers and e-commerce giants such as Shein and Temu which have such large volumes that they are able to charter aircraft and create direct commercial agreements with airlines to move their goods.

The impact of the removal of the de minimis exemption on e-commerce volumes, which has helped fuel a boom in air cargo in recent years, is debated.

Some are expecting it to have a large impact on the market, while others argue that the goods are so cheap anyway that adding a few extra dollars on top won’t make too much of a difference.

Others, however, say the need for customs to process packages will slow delivery times and make the overall proposition less attractive to consumers.

There are also expected to be changes to e-commerce supply chains, with Chinese firms utilising a more traditional distribution setup, with warehouses in the US to store goods and an increased use of ocean shipping.

They could also export from countries that are still able to benefit from the de minimis exemption or go through Mexico and Canada.

Shipping upside

While the latest developments are likely to be a blow to air cargo demand expectations, there is one geopolitical development that is expected to result in increased volumes if it is implemented.

The Office of US Trade Representatives (USTR) has proposed a fee ranging from $500,000 to $1.5m per US port call by any Chinese carrier, Chinese vessel, or other carrier that has Chinese vessels as part of their global fleet.

Ocean container carriers are expected to try and avoid the fees by calling at fewer ports, which could cause major congestion and delays to the US.

Xeneta’s van de Wouw said: “The proposed fees on Chinese vessels and carriers entering US ports could have a more significant impact if congestion in ocean container supply chains causes shippers to move more goods by air.

“With around 98% of the world’s goods transported by ocean, it doesn’t take much of a percentage shift to have major implications for air freight, as we saw during Covid-19 and the Red Sea crisis.”

 

 

Emirates Courier Express launches

Emirates Courier Express launches

By Rebecca Jeffrey Rebecca Jeffrey 2 April 2025

Emirates has launched end-to-end delivery solution Emirates Courier Express with what it said is an average delivery time of less than 48 hours.

The airline has worked with various global customers to pilot the service, focusing on speed, reliability and flexibility.

As part of the pilot, Emirates Courier Express transported several thousands packages from the UAE, Saudi Arabia, Bahrain, Kuwait, Oman, South Africa and the UK over the last year.

Badr Abbas, divisional senior vice president, Emirates SkyCargo, said: “Emirates Courier Express is an evolution in how we move goods across the globe, at speed and at scale.

“Building on our world-class and well-established infrastructure, and reimagining traditional logistics processes where necessary, this innovative solution does not just meet the Emirates Gold Standard of reliability and excellence but sets a new benchmark for what’s possible.

“This is only the beginning of our vision to continuously innovate and lead the charge in the express delivery sector.”

Traditionally, cross-border delivery is managed via a global hub-and-spoke model, with a package making multiple stops before arriving at its end destination.

But with Emirates Courier Express, packages will travel from origin to destination directly, utilising Emirates’ global network and flight frequencies.

This reduces time in transit and package handling, explained the airline.

Direct connectivity is matched with different service levels, ranging from next-day urgent delivery to a two-day premium service.

The launch will make Emirates Courier Express active and available in seven markets, but Emirates added that delivery could extend to anywhere in its air network.

Emirates Courier Express has access to over 250 widebody passenger and freighter aircraft to move packages worldwide.

The service is also bolstered by an integrated cross-border network of partners to manage the customs clearance and first and last mile transportation to fulfill the door-to-door service.

 

Emirates stressed that the service’s integration into the airline’s existing infrastructure allows Emirates Courier Express to handle volume fluctuations from seasonal spikes while maintaining cost stability.

The integration also enables Emirates Courier Express to provide bespoke and tailored solutions, regardless of the type of product being carried.

A team of dedicated specialists provide niche segment solutions, facilitated by the airline’s freight and logistics infrastructure, including cool chain capacity, allowing the transportation of specialist or sensitive products from launch.

Emirates Courier Express is entirely digital. It operates using a purpose-built technology platform that features advanced tracking systems and offers real-time updates, while integrating directly into customer software.

Expansion of the service is also already being planned.

Dennis Lister, senior vice president of product and innovation, Emirates SkyCargo, said: “Emirates Courier Express is the result of challenging the status quo. Along with the industry, we watched the increasing volumes of cross-border shipping and challenged ourselves to find a better way to transport these goods faster and more efficiently.

“The new product launch reflects our ongoing commitment to push the boundaries to introduce innovations which drive real impact and ensure our customers always have access to the fastest, most reliable and cost-effective solutions available.”

IATA Ground Handling Conference 2025 to Focus on People, Processes and Performance

2 April 2025         No. 14

Geneva – The International Air Transport Association (IATA) announced that the 37th IATA Ground Handling Conference (IGHC) will focus on the need to modernize operations, invest in workforce development, and strengthen coordination and collaboration to improve performance.

“Ground handling is critical for the safety, efficiency and resilience of the entire aviation industry. The key word we will focus on at this year’s IGHC is “elevate”. We’ll be looking for ways to drive better performance in the ground handling sector. That means modernizing operations, investing in the workforce, and strengthening coordination and collaboration so that ground handling can support growth even more efficiently,” said Willie Walsh, IATA’s Director General.

IGHC is taking place in Nairobi, Kenya, from 13 to 15 May 2025, hosted by Kenya Airways. It is the first time that the conference will be hosted on the African continent.

Speakers and Sessions

The President of the Republic of Kenya, His Excellency Dr. William Samoei Ruto, IATA’s Director General, Willie Walsh, and the Chief Executive Officer of Kenya Airways, Allan Kilavuka will be among the keynote speakers at the event.

The conference will feature plenary sessions, specialized tracks and workshops, addressing:

  • Ground Operations: The reliability of Ground Support Equipment (GSE), the transition to hydrogen-powered GSE, the benefits of harmonized training, and key safety focus areas for ground personnel.
  • Baggage Operations: For the first time, a dedicated session will cover real-time baggage tracking, the transition to modern messaging standards, and the shift to electronic bag tags.
  • Collaboration and Innovation: Discussions will explore airport–ground handler collaboration, provide insights into privatization, and examine upcoming ground handling regulations.

Spotlight on Africa

In recognition of the critical role that ground operations play across Africa’s growing aviation sector, H.E. Dr. William Samoei Ruto, President of the Republic of Kenya will attend the conference and has extended invitations to regulators and aviation authorities from across the continent.

“Aviation opens a world of economic and social development opportunities, and aviation’s greatest potential is to make a real difference to the prosperity of people in Africa. Welcoming and supporting the IGHC in Kenya is an example of the importance that Kenya places on the aviation sector and the expectations that we have for it as a sector leading development in Kenya and across the continent,” said H.E. Dr. William Samoei Ruto, President of the Republic of Kenya.

 

Hosting IGHC 2025 in Nairobi underscores IATA’s commitment to supporting aviation growth in Africa, in line with its broader efforts under the Focus Africa initiative.

“As Africa’s aviation leader, Kenya Airways is honored to pioneer this landmark event. Hosting IGHC aligns with our mission to drive innovation, foster partnerships, and showcase Africa’s readiness to shape the future of global air travel. Hosting IGHC 2025 in Kenya reaffirms our commitment to advancing the industry—both domestically and continentally—to unlock prosperity and connectivity,” said Allan Kilavuka, CEO of Kenya Airways.

IGHC is open to accredited members of the press.

Trump announces 25% automotive tariffs

By Damian BrettDamian Brett27 March 2025

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Automotive supply chain

Source: Catwalk Photos/Shutterstock.com

US president Donald Trump has announced import tariffs of 25% on automobiles and automobile parts coming into the country.

The Trump administration said the automobile tariffs would come into effect on 2 April, while those on parts will be implemented no later than 3 May.

The tariffs are designed to encourage firms to manufacture cars in the US.

Industry observers expect the move to push up the cost of buying cars in the US – around half of all cars sold in the country are imported – and therefore dent sales figures.

“In recent years, American-owned automotive manufacturers have experienced numerous supply chain challenges, including material and parts input shortages, labour shortages and strikes, and electrical-component shortages,” the executive order reads.

“Meanwhile, foreign automotive industries, propelled by unfair subsidies and aggressive industrial policies, have grown substantially.  Today, only about half of the vehicles sold in the US are manufactured domestically, a decline that jeopardises our domestic industrial base and national security, and the US’ share of worldwide automobile production has remained stagnant.”

The US imports around 8m cars per year, while US manufacturers are reliant on parts manufactured in other countries, particularly Mexico and Canada. Around 60% of cars made in the US use imported parts, according to research from investment bank Berstein.

However, according to CNN any parts coming from Canada and Mexico that comply with the US-Mexico-Canada Agreement (USMCA) will be exempt from the tariffs until US customs has a system in place to apply tariffs to non-US parts.

“A new 25% tariff on US imports from outside of North America would reduce vehicle imports by 73.9%, increase average prices of vehicles in the US by 5%, and increase variable profits from domestic production by 5.2%,” according to research from David Riker, research division, US office of economics.

Reuters reports that some manufacturers have responded with plans to increase production of cars in the US, although there are concerns about making large investments in plants based on a policy that could at any moment be reversed.

 

The air cargo industry transports all types of automotive spare parts, everything from windshields, engines, tyres, shafts, gearboxes, seats, windshields, electronics and spare parts for production sites, right up to entire cars.

Korean Air and Boeing finally sign off on ‘landmark order’ for up to 50 new jets

ByIan Molyneaux

Andy Murray

March 27, 2025, 12:10 (UTC +3)

Airlines

Korean Air Boeing order 777 9s 787 10s

Boeing

Korean Air and Boeing have finally signed off on a long-anticipated order for up to 50 brand-new widebody jets, having first announced the potential agreement at Farnborough Airshow last year.

The finalized order, announced on March 26, 2025, includes 20 Boeing 777-9s and 20 787-10s, with options for 10 additional 787 Dreamliners in the future.

Boeing has described the agreement as a “landmark order” between two companies with a business partnership that stretches back half a century.

“For over 50 years, Korean Air and Boeing have built a relationship based on trust and mutual growth. Today, we further strengthen our historic relationship with this landmark order,” said Walter Cho, chairman and CEO of Korean Air and Hanjin Group. “We look forward to continuing our journey with Boeing as our trusted partner in innovation and excellence.”

The order will see the new widebody aircraft, powered by GEnx and GE9X engines, join Korean Air by 2033 in a deal worth $24.9 billion.

Boeing and Korean Air unveiled the airline’s plan to purchase up to 50 of Boeing’s widebody aircraft on the first day of the 2024 edition of the Farnborough Airshow.

“This record order is the culmination of our more than 50-year partnership with Korean Air and demonstrates the strength of Boeing’s market-leading widebody family,” said Dan Schull, Boeing Vice President of Commercial Sales and Marketing for Northeast Asia. “The combination of economic efficiency and range of the 777X and 787 Dreamliner will position Korean Air for continued growth and long-term success.”

The engine order with GE Aerospace also includes a service agreement to cover the maintenance, repair, and overhaul of the GE9X engines.

 

“We’re grateful for the Korean Air team putting its trust in us again,” said Russell Stokes, President and CEO, Commercial Engines and Services, GE Aerospace. “Today’s order represents the next chapter in our long-standing partnership with Korean Air and reaffirms our commitment to support their successful fleet upgrade and expansion.”

Air cargo sees the pressure to be sustainable ease

By Damian BrettDamian Brett21 March 2025

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The pressure on air cargo to be sustainable declined last year in a “shock” industry survey result, according to the latest Tiaca Sustainability Insights Report.

The report included a survey of 274 industry professionals and this year 61% of respondents said they felt pressure to be sustainable compared with 67% in 2024 and 64% in 2023.

It is the first time since 2022 that the results have shown that the pressure to be sustainable has decreased.

Tiaca secretary general Glyn Hughes said that it was “quite a shock” to see a decrease, adding that the result was “one we were not prepared for”.

The survey also shows that the pressure to be sustainable was down 13 percentage points to 44% for small businesses, flat at 60% for medium businesses and down five percentage points to 71% for large businesses.

However, Tiaca also pointed out that the pressure to be sustainable was still higher than in 2021 when 58% of respondents felt the pressure to be sustainable and 2022 when the figure stood at 56%.

“This is one that we were not prepared for,” said Hughes. “We have all seen in the press that since [US] president [Donald] Trump came into office the focus on diversity equity and inclusivity has diminished and the US focus on global warming has diminished as he feels they are not crucial topics.”

Tiaca sustainability survey

Hughes said that the survey also asked why sustainability matters to companies, and here there was also a decrease across the various options, other than for shareholders.

“Over the last few years, we have seen an increase in every sector, whether it is customers, employees, partners, shareholders, financial institutions, regulators, community etc.

“What we are seeing here now is that it is still important for all of those sectors but the scale of that importance is decreasing. It is only shareholders where we have seen an increase.

“Every one of the other categories has actually decreased vs the prior year. Again that is reversing the trend we saw over the previous two years.”

 

He added: “[It is] a little bit of an alarming situation going forward and as an association we need to continually remind people that sustainability as a topic is one of the most crucial factors to enable this industry to thrive as different groups become more challenging of us as a transport sector.”

There were also some positive results in the survey, with one question highlighting that sustainability was gaining greater visibility at the chief executive and chief financial officer levels.

The survey showed that 96% of respondents confirm support from their chief executives, while 88% report chief financial officer engagement in sustainability initiatives.

It also showed that 71% of companies now have a dedicated sustainability strategy, with larger firms leading at 84% compared to 60% of small businesses.

Other results showed that 42% of surveyed organisations have a dedicated sustainability budget, and 53% now have a sustainability team, reinforcing the industry’s commitment to ESG initiatives.

And the report notes a decline in engagement with SAF and carbon offset initiatives, with only 32% of companies actively investing in SAF solutions and 35% utilising carbon offsets.

Instead, 72% of companies are prioritising energy efficiency to decarbonise operations and reduce costs.

This includes fleet modernisation, digitalisation, and innovation as key focus areas, with 84% actively investing in digital solutions and 83% in innovation-driven sustainability measures.

There is also an industry-wide push to eliminate single-use plastics, with 91% of respondents indicating active measures to phase out single-use plastics and foam.

Meanwhile, the results also highlighted that respondents mainly viewed sustainability from the perspective of environmental topics.

“We also need to focus on us as an industry,” said Hughes. “Attracting the next generation, how we can become more efficient, how we can use digitalisation, how we can create the right working environment, how we can create a fully inclusive and diverse workforce so we can capture the opportunity that presents and create an industry that can really be a good career choice for everybody.

“So it is interesting to note the strong focus on environment but we as an association need to make sure the other parts of the sustainability agenda continue to get a lot of focus.”

The full survey results can be found here.