Container spot rates are falling – and are unlikely to see any noticeable edge up for the remainder of what has been a record-breaking 2021. Liner shipping is on course to smash profits in excess of $150bn this year, more than five times their previous best cumulative effort as rates soared to highs never seen before. However, as the peak season has passed and carriers focus on getting more clients fixed to long term contracts, the spot market has entered free-fall. Last week saw the biggest week-on-week drop of Drewry’s World Composite Index since November 30, 2017, a global spot rate indicator, which plunged 4.9% in the first week of the month. “We think spot rates will probably continue to slide through the rest of the year, but that they will remain at high levels, feeding into strong contract rates next year,” said Drewry’s Simon Heaney.

Gujarat retained the top slot, amongst 21 States, on the logistics index chart, an indicator of the efficiency of logistical services necessary for promoting exports and economic growth, the release pointed out. Gujarat has been the top performer since 2018. The LEADS, Logistics Ease Across Different States 2021, report has been prepared by a team of Transport & Logistics professionals at EY LLP with inputs from Department of Logistics, Ministry of Commerce and Industry. Among the northeastern States and Himalayan Union Territories, Jammu Kashmir topped the chart. Among Union Territories, Delhi got the top position. The inputs given by the LEADS Report 2021 can lead the way to bring down logistics cost by 5 per cent over the next 5 years, Commerce & Industry Minister Piyush Goyal said releasing the report on Monday. “Some States have leapfrogged in their rankings. Uttar Pradesh has moved ahead seven places. That is reflective of the efforts that have been done in improving the quality of infrastructure there,” Goyal said.

Kuehne+Nagel taking forward the issue of sustainability by becoming the first air logistics provider with an option to purchase Sustainable Aviation Fuel (SAF) for each shipment and avoid carbon emissions. This new add-on is available for the customers on all Kuehne+Nagel air freight quoting platforms and channels, allowing customers to choose carbon neutral transport via their preferred online or offline quoting method. With the newly launched offering, all Kuehne+Nagel customers can easily opt for SAF to be used instead of fossil fuel for air transport and benefit from net-zero carbon emissions air freight services – regardless of airlines used, origin or destination. As SAF still produces some CO2 emissions, carbon neutrality is achieved by substituting each litre of jet fuel kerosene used with 1.33 litres of SAF.

Lufthansa Cargo reported traffic revenue increase of 37 percent to €2.4 billion for nine months ended September 30, 2021, from €1.8 billion in January-September 2020. The increased capacity (available cargo tonne-kilometres) by 5 percent compared to the previous year and sales (revenue cargo tonne-kilometres) increased 11 percent to 5.2 billion. “Cargo load factor improved four percentage points to 71.8 percent and yields, adjusted for exchange rate effects, went up in all traffic regions and were 25.4 percent higher overall than the previous year,” an official statement said. Lufthansa Group’s cargo business revenue increased 37 percent to €2.8 billion for January-September 2021 on higher sales and better yields. Carsten Spohr, CEO, Lufthansa Group, told analysts, “The unprecedented strength of the air cargo market will continue”. “Cargo results remain on record levels even in the lower-volume summer months”, CFO Remco Steenbergen added.

To become carbon emission-free, Zypp Electric-an EV logistics tech delivery start-up claims to build India’s 1st EV D2C business. “We are extremely proud to be the first EV D2C Business in India. Our goal is to achieve 100% electrification in last-mile logistics and to assist businesses from many sectors in becoming emission-free,” said Akash Gupta, Co-Founder & CEO of Zypp Electric. Zypp electric caters to a wide range of enterprises, including e-commerce companies, e-grocery, Kirana stores, and restaurants, and handles end-to-end last-mile deliveries – from stores to customers’ homes – with various differentiated tech-enabled custom solutions, including the use of e-vehicles, service timing fixes, IoT-enabled battery swapping infrastructure, etc. The start-up at present has a fleet of 2000+ electric scooters and provides 500k deliveries each month. Zypp Electric made its debut in India with its first B2B heavy electric scooter, the ‘Zypp Cargo,’ in July 2021. This heavy-duty scooter, designed for last-mile logistics is capable of carrying up to 250 kg and has a 40 Ah battery and can go 120 kilometers in one charge. It can accommodate multiple battery systems and have swappable batteries.

Go First becomes the first airline to start a direct international connection from Srinagar to Sharjah. It has inked a pact with UAE-based Lulu Group and becomes the first airline to commence international cargo services from Kashmir Valley. The memorandum of understanding (MoU) was signed between Go First Head (Corporate Affairs) Mohit Dwivedi and Lulu Group Director Salim M A, in the presence of Principal Secretary Industries and Commerce, and Administrative Secretary, Civil Aviation Department, Government of Jammu and Kashmir, Ranjan Thakur. “On behalf of the Lulu, I am very thankful to the Government of Jammu and Kashmir as well as the Government of India for giving us the opportunity to come to Kashmir. We are quite surprised to see the immense opportunities that we have for the exports from here. As Lulu, we will be able to take a lot of fruit, vegetables and antique and craft and a lot more items. We assure you that we will do our best to export goods from Kashmir.” said Salim M A, Director, Lulu Group “On behalf of Go First, I would like to thank the Jammu and Kashmir government, Lulu Group and the Government of India, for giving us this opportunity for taking up the cargo for gulf countries. We are happy with this agreement. The airline will start the operations from December this year.” said Mohit Dwivedi, Head (Corporate Affairs), Go First.

cargo.one announces the launch of a real-time data and analytics product called cargo.one360. This will provide cargo.one partner airlines with unique insights to maximize their sales performance in digital channels. cargo.one360 helps airlines to accelerate the airlines’ adoption of best practices in digital sales, delivers valuable customer insights, and reflects market changes and trends to facilitate better tactical and strategic commercial decision-making. As the Boston Consulting Group recently noted, data-based steering can boost net profits by up to 12 percent in the first year. While an increasing shift towards digital sales predates the pandemic, Covid-19 has supercharged this trend: volatile schedules, constrained capacity, and disrupted pricing mechanisms have sent customers seeking transparency on offers, and instantly confirmed bookings.

IAG Cargo capacity increased 24 percent compared to the previous quarter (Q22021) and 62.2 percent compared to Q32020. “The increased activity reflects growing levels of global trade as many economies experience recovery following the COVID-19 pandemic. New routes during the quarter included Nairobi, Istanbul, Male, Chennai, Vienna, Denver and Phoenix whilst many other lanes saw increased frequencies,” an official statement said. IAG Cargo reported a 34 percent increase in revenue to €405 million for the quarter ended September 30, 2021 on increasing capacity and network. Revenue for nine months increased to €1,174 million, up 28 percent compared to the same time last year. During the nine months, 3,334 cargo-only flights were operated. David Shepherd, managing director, IAG Cargo, said: “This quarter we have seen momentum build as IAG Cargo, and the global economy, begins to take increasingly confident steps towards a more buoyant future, as recovery from the COVID-19 pandemic continues to gain ground. The team’s resilience and commitment to put our customers first continues, and we are excited to enter into a new and ambitious phase of activity.”

Union Minister Piyush Goyal, while reviewing the functioning of the Government e-Marketplace (GeM), warned officials to watch out for business malpractices like ‘cartelisation and collusion’ and suggested the GeM team to use Artificial Intelligence (AI) to avoid them. The Minister for Commerce & Industry, Textiles, Consumer Affairs, Food & Public Distribution said AI would further simplify the system and as the volume of operations grow, AI would be needed to bring the most appropriate buyers and sellers together for transactions, according to a government statement. Goyal asked for bringing more transparency to the system and added that operations should be audited regularly to ensure that all technical and financial aspects of GeM stay strong all the time. He also asked officials to make GeM more user and commerce friendly so that ease of doing business can be further promoted. Officials were also directed to significantly reduce and cap the transaction charges so that more traders are attracted to the GeM portal.

The Hambantota International Port (HIP) recently facilitated the shipment of locally manufactured trailers, marking the beginning of its services to the local industry as a gateway port. “The master plan of the Hambantota International Port clearly spells out supporting the development of Sri Lankan industries servicing overseas markets. This shipment for Dutch Lanka Trailers emphasizes HIP’s position as Sri Lanka’s gateway port and flags a new era for local manufacturers in terms of cost effective methods to reach their respective markets,” says Lance Zuo- General Manager Commercial and Marketing. Tissa Wickramasinghe, COO of Hambantota International Port Group (HIPG) says, “The Hambantota International Port is well equipped to handle such cargo and has an advanced Turburg tractor which makes it more convenient for the shipper. Higher freight rate charges on container vessels and congestion faced by other ports in handling containerized cargo, makes HIP the better choice for such shipments. Shipping this kind of cargo via RORO vessel is becoming more of a trend because of its cost effectiveness for the shipper and we are looking to explore this new opportunity further.”