The Volga-Dnepr group transported more than 3,000 breeding pigs to China from France this year.
The coronavirus wreaked havoc in commercial aviation, but Alexey Isaykin’s cargo ship was fully loaded.
The Volga-Dnepr group transported more than 3,000 breeding pigs to China from France this year. The animals, transported in wooden crates in the hold of a Boeing 747, were transported in wooden crates of 6,450 miles (10,450 kilometers) to restore local breeding levels to alleviate shortages on the largest pork market in the world after an epidemic of African swine fever. decimated the pig herds of China.
Measures to stem the spread of the coronavirus have exacerbated these shortages of pigs and accelerated attempts to revive the domestic herd population. China imported a total of 254,533 tonnes of pork in the first four months of the year from the United States, which overtook Europe to become China’s largest supplier of pork. This is already more than the 245,000 tonnes purchased by China for the whole of 2019.
The cargo is a sign of the changing demand for the Isaykin company – known for transporting everything from satellites to emergency bridges – as the pandemic reshapes its industry.
The company also ships masks, dangerous overalls, medical supplies and even street disinfection vehicles to countries like Russia, France and Germany as they fight to contain the virus. Sales of Volga-Dnepr increased 32% to $ 630 million this year until April compared to the same period in 2019.
“Global aviation is going through its most difficult period ever, but for freight carriers like us, this is a chance,” Isaykin said in an interview with Zoom from Moscow. “Previously, more than half of all air cargo was carried in the luggage compartments of passenger aircraft. With this supply disappearing from the market, demand from freight airlines has increased and prices have more than doubled.”
While demand for air cargo fell 28% in April over the previous year, capacity fell 42%, according to the International Air Transport Association. Isaykin’s stake in Volga-Dnepr, which is closely held, is estimated to be around $ 700 million, according to the Bloomberg Billionaires Index. Revenues of the Russian company could increase by a third this year to reach $ 2 billion, predicts Isaykin.
Expansion of geography
The overall increase in sales occurred while certain sources of income were decreasing. Shipments for the aerospace industry fell about a third from last year, said Isaykin.
Medical products now account for more than half of global air cargo, with e-commerce freight for companies like Amazon.com Inc. and Alibaba Group Holding Ltd. another growing category.
The footprint of Volga-Dnepr is also changing, said Isaykin.
“The geography of our expeditions is expanding as a result of the spread of the coronavirus,” said Isaykin. “We have just started shipping Chinese medical products to Africa and we are receiving the first requests from Latin America. I think India will be next.”
Part of this request may be short lived. Freight rates have started to drop and the market for health-related merchandise shipments may decline in the second half, Isaykin said. However, he expects volumes and prices to remain above the “pre-virus” level with fewer passenger aircraft expected to fly.
Some new business could herald lasting changes in the global economy. While its transporter ships pigs to China, it also transports assets the other way around. The company recently transported a production line for the manufacture of masks to the Russian region of Tatarstan from China.
“An interesting trend is gaining ground now – we call it the medieval period of the 21st century – when strategically important production facilities are moved to reduce dependence on China,” said Isaykin. “I expect this trend to accelerate towards the end of the year.”
(With the exception of the title, this story was not edited by GalacticGaming staff and is published from a syndicated feed.)
