Cargojet Rebounds: UPS Charter Work Offsets China E-Commerce Decline

Key Details Canadian all-cargo carrier Cargojet has secured substantial new revenue from UPS and FedEx after the grounding of MD-11 aircraft forced major reshuffling in North American air cargo operations. The grounding followed a fiery UPS crash in Louisville, Kentucky, leaving 56 MD-11s sidelined for mandatory inspections. Cargojet quickly deployed Boeing 757 and 767 freighters to fill the capacity gap. Operational Expansion Since November, Cargojet has operated multiple daily flights between Louisville and Toronto, with 14 Boeing 757s and seven 767s rotating through UPS routes. The airline also supports FedEx operations from Memphis to Canadian and U.S. West Coast hubs. While neither carrier disclosed exact contract terms, the volume suggests a multi-quarter commitment worth significant revenue. Why It Matters This partnership cushions Cargojet against steep losses from reduced China-to-North America e-commerce shipments, driven by U.S. tariffs and a 32% quarterly charter revenue decline. UPS plans to retire its entire MD-11 fleet rather than return them to service, replacing them with Boeing 767-300s on order. Cargojet expects to maintain charter work through the third quarter, providing crucial stability during market headwinds. For drivers, these developments signal strong near-term demand for all-cargo operations and potential crew deployment opportunities in a tightening freight market.