Emirates cargo boss says supply chain constraints could stretch beyond 2022

Global supply chain constraints will continue to hit freight movers until at least the end of next year and could stretch beyond 2022 as logistics companies struggle with labour shortages amid booming demand, Emirates' cargo boss said. A shortage of freight space and manpower as a result of the pandemic compounded by a rapid recovery in demand has jammed seaports and airports and led transport costs to skyrocket. "It's not something that will disappear overnight," Emirates SkyCargo Divisional Senior Vice President Nabul Sultan said. "I believe honestly it's going to be at least another year or two if not more ... I think it is going to go beyond 2022," he said. "There are huge logistical challenges that are out there." A vast amount of air freight globally is typically moved around by passenger jets, many of which airlines continue to keep grounded as travel demand gradually returns. At Emirates, the passenger jet fleet accounts for about 70% of its total cargo capacity, according to Sultan. Emirates has stripped the seats out of 16 Boeing (BA.N) 777-300ER passenger jets, temporarily transforming them into "mini-freighters" to cater to booming cargo demand. Emirates this week announced it would permanently convert at least four of its older 777-300ER jets into freighters. In addition to the "mini-freighters," it is also operating some cargo-only flights using passenger jets that still have seats. Emirates will receive converted freighters roughly every five to six months starting from the fourth quarter in 2023, Sultan said, though it hopes the time frame will reduce to nearer four months.<br/>