FedEx predicts ongoing cargo capacity constraints to continue in 2022

FedEx is predicting that next year air cargo capacity will once again be hard to secure with space remaining scarce and supply chain issues supporting strong demand. Karen Reddington, president of FedEx Express Europe, explained that passenger networks – and therefore bellyhold services – were taking time to resume and this would put cargo capacity under pressure. She said, “The pandemic has undoubtedly brought supply chain resilience to the fore. With a new, highly contagious Covid-19 variant, reduced port and air cargo capacity and heightened consumer demand, it will continue to impact global trade well into 2022. As passenger travel remains depleted, air cargo capacity will be constrained through 2022 all while the demand for goods is likely to grow, with 2021 trading volumes overtaking pre-pandemic levels and achieving their fastest year of growth in over a decade.”