Geodis reduces its air cargo network due to recent market downtown
Freight forwarder Geodis is reducing the size of its air cargo network considering the recent market downturn.
The company was one of many forwarding companies to partner with an airline to set up its own air cargo operation during the Covid-pandemic to provide customers with capacity in response to the shortfall in passenger flights.
While many of these partnerships were based on charter flights, Geodis in August 2021 went one step further and leased its own aircraft – an A330-300 converted freighter operated by Titan Airways.
Since the end of the pandemic passenger services and belly hold capacity have quickly recovered while cargo demand has fallen back due to inflationary pressures.
In response, Geodis has stopped flying between Asia, Europe and the US, although other flights continue.
“Our own operated aircraft enabled us to set up weekly rotations between the European, Asian and American continents,” said a Geodis spokesperson.
“The more recent decline in demand and the return of passenger flights led us to review this strategy.
“While our bi-weekly services between Hong Kong, Shanghai and Mexico remain in place, we have suspended our flights between Asia, Europe and the US.
“The aircraft previously used on these services is now dedicated to charter flights and mid-term lease operations.”
The leased aircraft was initially flown between Amsterdam, London, Chicago and Hong Kong, while China-Europe flights were added at a later date.
The company also established a charter network. In 2020, following the outbreak of Covid, the company-chartered flights covering Asia, Europe, North America and South America.