Why the World’s Biggest Ocean Shipping Lines Are Buying Cargo Planes

The world’s largest ocean shipping lines are expanding their services to include air cargo fleets in an effort to address global supply-chain disruptions caused by the Covid-19 pandemic. Flush with cash, companies like A.P. Moller-Maersk and France’s CMA CGM are investing in cargo planes to offer faster delivery options for clients who are willing to pay a premium to bypass the ongoing bottlenecks at major global ports.

Air Cargo: The Last and Priciest Option

Shipping goods by air has traditionally been the most expensive option for manufacturers and retailers, but demand for air cargo surged in 2021 as global port congestion caused delays in moving goods. While airfreight accounts for less than 1% of global trade by volume, it represents 35% of global trade by value, according to the International Air Transport Association.

Major shipping lines like Maersk and CMA CGM are not aiming to directly compete with airfreight giants like FedEx and UPS, which have established global air cargo networks. Instead, the ocean shipping companies plan to use their cargo planes to complement their existing ocean freight services, providing a more comprehensive end-to-end logistics solution for their clients.

Why Shipping Lines are Adding Air Cargo Fleets

As global supply chains continue to experience delays, with ships often waiting weeks at major ports such as Los Angeles, Tianjin, Ningbo, and Antwerp, airfreight has emerged as a critical tool to ensure timely delivery of goods.

“We’ll grow airfreight fast because we need it,” said Ferwin Wieringa, head of airfreight at Maersk. For logistics partners like Maersk, diversifying into air cargo helps meet customer demand for more reliable shipping options and reinforces relationships with major clients.

Ocean Freight vs. Air Freight: A Strategic Shift

While airfreight is significantly more expensive than ocean cargo, the gap in cost has narrowed due to skyrocketing ocean-freight rates over the past year. Peter Sand, chief analyst at Xeneta, noted that air cargo is currently six times the cost of ocean shipping on average, compared to a pre-pandemic differential of up to 17 times.

This shift has made air cargo more viable for clients looking to move high-value or time-sensitive goods such as auto parts, semiconductors, vaccines, and technology products.

Maersk and CMA CGM’s Strategic Acquisitions and Investments

To further solidify their presence in the airfreight market, major shipping lines have made key acquisitions and investments. Maersk, for example, acquired German freight forwarder and airfreight specialist Senator International for $644 million, which is expected to double Maersk’s air-cargo volume when the buyout is completed.

Maersk subsidiary Star Air currently operates 15 Boeing 767 freighters and has placed orders for additional aircraft, including Boeing 777s. Similarly, CMA CGM expanded into air cargo in 2021, following the pandemic-induced grounding of many commercial jets. The company purchased four Airbus A330 freighters and plans to add more aircraft, including Boeing 777s and Airbus A350s.

Serving High-Demand Sectors: Auto, Technology, and Pharmaceuticals

Cargo planes owned by ocean shipping lines have been used to move a wide range of goods, from auto parts and lithium batteries to Covid-19 vaccines and hospital equipment. CMA CGM Air Cargo has seen strong demand from clients in industries like technology and apparel, with many clients asking for more airlift capacity to ensure timely deliveries.

During the pandemic, air cargo also played a critical role in transporting hard-to-find semiconductors, which were essential for both the automotive and electronics industries.

The Future of Air Cargo for Ocean Shipping Lines

For companies like Maersk and CMA CGM, adding air cargo fleets is not only about addressing current supply-chain challenges but also about positioning themselves as comprehensive global logistics partners. By offering a mix of ocean freight and air cargo services, these shipping lines are able to provide end-to-end solutions that meet the evolving needs of their clients.While air cargo remains a more expensive option than ocean freight, the ability to offer flexibility and faster delivery times is a competitive advantage that will likely play a key role in shaping the future of global shipping logistics.