Aviation

Saudi Arabia and US expand aviation deal to include cargo

November 6, 2024, 3:18 PM

Air freight has been an increasingly important method of transportation since the conflict in the Middle East erupted and shipping routes were disrupted — Air freight has become an increasingly important method of transportation since the conflict in the Middle East erupted and shipping routes were disrupted

Bilateral agreement extended
Seventh-freedom rights for cargo
‘Greater flexibility’ for carriers

Saudi Arabia and the US have expanded their bilateral aviation agreement to allow seventh freedom traffic rights for all-cargo flights.

Seventh freedom allows airlines to carry on flights that originate in a foreign country, bypass its home country, and deposit the cargo or passengers at another international destination.

The amendment will allow Saudi Arabian airlines to carry cargo between the US and third countries without needing to stop in Saudi Arabia, an important right for cargo hub operations.

American carriers will have the same rights to serve Saudi Arabia, without operating via the US.

A statement from the US Department of State said: “The amendment will further expand our strong economic and commercial partnership.

“These additional rights in the amendment will facilitate the movement of goods throughout the world by providing air carriers greater flexibility to meet their cargo and express delivery customers’ needs more efficiently,” the statement said.

The deal was signed by Ali bin Mohammed Rajab, Saudi executive vice president of air transport and international cooperation, and Heidi Gómez, US deputy assistant secretary of state for transportation affairs, on October 22.

Air freight has been an increasingly important method of transportation since the conflict in the Middle East erupted and shipping routes were disrupted.

Total demand for Middle Eastern freight carriers, measured in cargo tonne-kilometres, rose by 15.6 percent compared to September 2023 levels, marking the 14th consecutive month of growth, according to the International Air Transport Association.

This year in Saudi Arabia, airports have had a 53 percent year-on-year rise in air cargo shipments due to Houthi attacks on shipping in the Red Sea. A total of 1.2 million tons is anticipated to be shipped in the kingdom by the end of the year.

Saudi Arabia is planning to expand its air freight capacity. The country has already spent SAR200 billion ($53.3 billion) of a total SAR3 trillion it intends to spend on becoming a global logistics centre, focusing on ports, rail, and aviation.