The inaugural Boeing 747-400 flight carried between 80 to 100 tons of high-value manufactured goods and left for Shanghai with outbound cargo.
The arrival of China Cargo Airlines, a subsidiary of China Eastern Airlines, came after years of negotiations between the airport, China Airlines and a coalition of area business leaders on a two-year lease for cargo space at Lambert.
Local officials were excited that the new arrangement connected St. Louis to the global economy.
Well, it was nice while it lasted. After a second flight, China Cargo canceled flights each week through press time in early November, according to the St. Louis-Post Dispatch.
What happened? Apparently demand was lower than expected.
Air freight out of Asia to North America has softened along with consumer demand, and sharply lower ocean rates may be peeling off some shippers that normally use air. Demand has declined for several months year-over-year and in September air cargo in the Asia-Pacific region, usually a leader, was down 6.3 percent. For the first nine months of the year, Asia-Pacific freight traffic declined 4.1 percent.
It probably didn’t help that the Missouri legislature failed to pass a tax credit designed to make the route more financially viable.
It’s possible that the tax credit could be revived next session, but as the Post-Dispatch points out there’s a chicken-and-egg dynamic going on here. Without cargo planes coming during what is normally considered the peak season how will lawmakers be convinced that a subsidy is justified?
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now