CHALLENGES from ongoing reduced air freight capacity and the Ukraine war have caused the Nordic air cargo market to continue to invest and innovate to meet new challenges, reports London's Air Cargo News.

Companies from Denmark, Sweden, Norway, Finland, and Iceland had to contend with a lack of air cargo capacity due to the reduction of passenger flights as a result of the Covid crisis.

However, there was hope that the market could be settling into a new normal as lockdown restrictions were being lifted.

That hope was turned when Russian tanks entered Ukraine, causing sanctions affecting aviation issued by western countries and Russia.

The most relevant to the Nordic air cargo market was Russia's ban on using its airspace.

Accenture's Seabury Cargo commercial director Jonathan Mellink declared that between March 7 and 20 the Nordics' international air cargo capacity slipped 20 per cent behind the equivalent 2019 level due to airlines rerouting and canceling flights as a result of the sanctions.

This was five points down on the level recorded in January and February.

Finnair Cargo vice president Fredrik Wildtgrube declared Finnair was facing this challenge.

"We have now routed the flights to avoid Russian airspace, using either the southern or northern route," said Mr Wildtgrube.

"Finnair used the Polar route back in the 1980s and we quickly created alternative route solutions for our customers shipping to and from Japan and South Korea."

Source Shipping Gazette