Ocean freight companies are adding air cargo to their businesses as shippers look for a “one-stop shop” to move goods around the world.
Airplanes are an attractive purchase for ocean shippers, according to Michael Field, a senior equity analyst at Morningstar.
"A lot of these ocean freight companies are awash with cash at the moment, having had a bumper couple of years, and they're looking for ways to spend it — and buying up air capacity is definitely one of those ways," he told CNBC by phone. Airlines, meanwhile, had a tough pandemic and needed the money, Field added.in its latest guidance, and it is set for delivery of seven Boeing 767s around the start of November. The aircraft will fly Asia-U.S. and Asia-Europe routes.
"Can they make money in the longer term on it? Yeah. Is a good idea in terms of upselling [to customers]? Yes," he added.Companies shipping goods are also planning further ahead, Field said."The carriers have told them, if you want the capacity, you have to lock yourself in for a year or two with us and they will guarantee that capacity ... I think we will see a continuation of that," he said.
"Customers ... are looking at these shippers as more partners rather than someone you just call up when you need something. That will definitely benefit the shippers in the long run in terms of their actual planning process too, and maybe making sure that supply-demand imbalance doesn't get out of whack like we've seen in the last decade or so," Field added.