Boeing is facing challenges in delivering new 777-200 freighters, which is affecting carrier capacity, especially in the transpacific market. Additionally, freighter conversions are also being impacted due to the rising demand for passenger aircraft.
Boeing’s issues extend from their 737 and 787 lines to the 777 freighter segment. In March, they produced six 777-200Fs but were unable to deliver them, leaving them sitting at Boeing’s facility in Everett awaiting engines. This delay is not Boeing’s fault, according to Stan Wraight, President and CEO of SASIWORLD, but rather due to GE’s struggles in ramping up engine production, which has been hindered by labor and parts shortages.
The situation has been worsened by airlines deferring maintenance during the pandemic when cash reserves were low. This, coupled with issues with Pratt & Whitney engines needing replacement, has put further pressure on the engine sector.
The lack of 777 freighter deliveries in the first quarter has frustrated airlines and shippers, especially as airfreight demand has been on the rise. This demand has been largely fueled by e-commerce, particularly in the Asia to North America sector where belly capacity has not increased as much as in other areas.
This capacity shortage is reflected in airfreight rates from China to North America and Europe, which are above normal levels for non-peak periods. The decision of some carriers to cancel orders for 777 cargo planes has further compounded the issue, as well as the grounding of 767 freighters that are not suitable for transpacific operations.
Converted 777s are not expected to provide relief in the near future, as the buoyant travel market has led to airlines scrambling for aircraft and raised the value of potential conversion candidates. Aircraft leasing firms are now more interested in renting engines to passenger carriers rather than converting planes.
The delays in Boeing’s production of the 777X and the halt in output of the 777-300 have intensified demand for passenger aircraft, leaving the market struggling for available options. The challenges in the freighter sector highlight the complexities and bottlenecks in the aviation industry that are impacting both manufacturers and carriers.
