Global strife is boosting Cargojet's freight business, CEO says

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Armed conflict in Ukraine and the Red Sea has ramped up freight shipments for Cargojet Inc., as global discord pushes companies to seek alternate transit routes.

The air freight and plane leasing company saw net earnings rise nearly seven per cent year-over-year to $32.5 million in its latest quarter, buoyed in part by higher revenue from trips chartered to haul cargo internationally.

"Air freight growth was primarily driven by increased volumes from the Middle East and South Asia as shippers shifted services from ocean to air to avoid Red Sea delays," said Niall van de Wouw, Xeneta's chief airfreight officer. He laid down a qualifier on the discord that has bolstered the Mississauga, Ont.-based company's profits, warning of a flip side to the conflict coin.

"The fact that supply chains have been disrupted because of that could lead — and have led to — additional ad hoc charter opportunities."

 

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Global strife is boosting Cargojet's freight business, CEO saysArmed conflict in Ukraine and the Red Sea has ramped up freight shipments for Cargojet Inc., as global discord pushes companies to seek alternate transit routes.
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