PPRuNe Forums - View Single Post - Oil price will kill Cargo
View Single Post
Old 3rd June 2010 | 00:38
  #14 (permalink)  
fdcg27
20 Countries Visited
15 Anniversary
 
Joined: Feb 2008
Posts: 142
Likes: 11
From: Ohio
I think you're missing the financing costs involved in moving product.
While Korean autos will ship by sea, it often makes economic sense to ship lighter, higher value per unit weight products by air, even if fuel costs are high.
Air freight was hurt more by the global recession than by the cost of fuel.
Very old and thirsty aircraft may now be economically obsolete, even as freighters, but there will be plenty of later, more efficient ex-pax aircraft coming to market for conversion as time goes on.
As others have pointed out, fuel costs are but one part of the equation.
fdcg27 is offline  
Reply