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All Nippon Airways has reached a basic agreement with domestic and foreign forwarders on a roughly 30 percent increase for its air cargo rates starting next month.
ANA now has more clout over cargo pricing because rival Japan Airlines is downsizing operations following its bankruptcy filing, reported The Nikkei.
In fiscal 2009, JAL handled about 20 percent of all air cargo arriving and departing Japan, compared with about 15 percent for second-ranked ANA.
ANA entered negotiations with such forwarders as Nippon Express and Kintetsu World Express in August. They agreed on an average rate of almost 190 yen per kilogram, up from the current 150 yen or so. The forwarders are expected to pass on the higher costs to their clients, including electronic parts manufacturers that ship semiconductors and other products by air.
Current air cargo rates stand at about 70 percent of where they were in fall 2008. The upcoming increase will return them to their prefinancial-crisis levels, according to the airline. ANA aims to return the money-losing air cargo segment to profit in fiscal 2011 through the rate hike and cost cuts.
Third-ranked Nippon Cargo Airlines is also planning rate hikes.
Cargonews Asia
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