Airfreight rates on major east-west trades picked up in October as the industry entered its traditional peak season. The latest figures from the Baltic Exchange Airfreight Index (BAI) based on TAC data show that average rates – spot and contract – on services from Hong Kong to North America increased by 18.4% compared with September to $5.80 per kg. Compared with last year prices are down 13.9%, although the difference between the two years has continued to narrow from a high of 47.7% in May. From Hong Kong to Europe, rates in October increased 14.5% on the September level to $4.26 per kg. Against last year, prices on the route are down 26.3%. Airfreight rates tend to rise at this time of year as the industry enters the peak season, although the increase level depends on the strength of demand. Many had been expecting a “muted” peak season this year with minimal rate rises due to subdued demand. In its latest market summary, TAC Index said that the recent rate rises reflected a “genuine if modest peak season bounce with gains on rates from all major outbound locations around the world”. Meanwhile, data provider WorldACD said that global air cargo tonnages and rates had stabilised after recovering from China’s National Day Golden Week in early October. It said that there are no clear signs yet of any significant fourth-quarter peak season, despite anecdotal reports from some freight forwarders of a slight seasonal tightening of the market.

NYSE-listed AerCap Holdings delivered its first Airbus A321 Passenger-to-Freighter (P2F) aircraft to IndiGo. The aircraft conversion was completed by Elbe Flugzeugwerke (EFW) before being delivered to IndiGo at ST Engineering Aerospace in Singapore, says a release from AerCap. “We are delighted to celebrate the delivery of AerCap’s first A321 Passenger-to-Freighter aircraft with our long standing customer IndiGo,” says Rich Greener, Head, AerCap Cargo. “The A321P2F is a best-in-class narrowbody freighter solution, offering superior economics in terms of fuel-efficiency and flexibility to meet the growing demand of cargo operators. We wish IndiGo every success as they expand their fleet to meet their customers’ freighter needs, and we thank the EFW and ST Engineering Aerospace teams for their support with this conversion programme.”

DP World has ushered in a new era of connectivity with the arrival of the maiden voyage of the vessel ‘M.V. Celsius New Orleans’ at its terminal in Nhava Sheva in October 2023. Operated by the Unifeeder Group and ONE LINE, this new weekly “MJI” service is designed to optimize supply chain efficiencies, connecting key ports including Jebel Ali, Mundra, Nhava Sheva, Mombasa, Beira, and Maputo. This strategic rotation spans 35 days and deploys three ships with a capacity ranging from 1,700 to 2,000 TEUs. This interconnected service aims to alleviate congestion and supply chain challenges in East Africa. By reducing transit times and enhancing accessibility to major Middle East and Indian Subcontinent ports through Jebel Ali, it significantly improves lead times while improving cost efficiencies, greatly benefiting customers. Commenting on the new service, Ravinder Johal, COO Ports & Terminals, DP World Subcontinent and MENA region said, “It is our endeavor to fortify the connection between India, the Middle East, and East Africa through our new service from Nhava Sheva. This strategic initiative underscores our relentless commitment to fostering crucial trade links and enhancing route connectivity. With a heightened focus on efficiency and reliability, our customers will further benefit from a seamless flow of goods, resulting in reduced transit times and cost savings. This initiative isn’t just about transportation; it’s about enabling businesses of all sizes to explore and access new markets along this strategically significant route, defining a future where global trade truly knows no boundaries.”

Bird Airport Services has commenced ground handling services for SriLankan Airlines today at Chennai International Airport. This marks a significant milestone in the company’s continued growth and commitment to delivering exceptional services. The scope of ground handling concession, includes the right and the duty to provide, the following services to all domestic & international airlines. It includes Ramp handling services (marshalling, cooling and heating, ramp to flight deck communication, loading and unloading, aircraft starting, safety measures, moving of aircraft, cabin & utilities cleaning, cargo ramp handling and storage of ULDs. Following a rigorous tendering process in 2022 (in which more than 10 international players had participated), which focussed on benchmarks in industrial know-how, current international operations, best practises, reliability, safety procedures and quality standards, the Airports Authority of India (AAI) awarded Bird Airport Services, a long term ground handling concession to develop and operate a state-of-the-art ground handling operation for both domestic and international airlines at Chennai International Airport. “As we embark on this new venture, Bird Group’s commitment to excellence remains unwavering. The company has made substantial investments in equipment, employee training, and facilities to enhance safety, sustainability, and performance. This includes upskilling new employees, implementing a digitalized aircraft turn-around process to improve efficiency and safety, and investing in state-of-the-art electric Ground Service Equipment (GSE) equipped with IoT and advanced safety features. Bird Airport Services is excited to bring its expertise to Chennai Airport, and we are dedicated to delivering exceptional ground handling services to all airlines and passengers,” said a spokesperson, Bird Airport Services.

Sterling, a Kuehne+Nagel company, has launched a global aerospace service designed to expedite urgently needed aircraft parts from one of the largest original equipment manufacturer (OEM) based in Seattle, Washington. The high-level service will be operating 24/7 from a logistics service hub built in Seattle, staffed with Sterling drivers and a new fleet of vehicles, says an official release from Sterling. As a trusted logistics partner for delivering time-critical aerospace solutions, Sterling’s new shuttle service offers a secure and expeditious solution, complete with a comprehensive chain of custody protocols to guarantee the integrity of every shipment, the release added. “Sterling’s newly established Seattle logistics service hub is overseen by aerospace logistics professionals, featuring a specialised team of drivers and a dedicated fleet of vehicles. This configuration focuses on the initial stages of transportation, effectively mitigating associated risks at the onset of the shipment. ”

Allcargo Logistics is all set to collaborate with the Indian Institute of Management Mumbai (IIM) to develop a strong talent base in logistics management in India. They have started working on a case study titled ‘LogicOn’, this case study competition is inviting first-year and second-year MBA students to tackle challenges in the world of logistics using their unique ideas. Students who excel in the competition will be offered summer internships and pre-placement interviews apart from lucrative cash prizes. Already, the competition has secured millions of impressions on IIM Mumbai’s talent engagement platform and nearly 7,000 have registered for the competition. It is noteworthy that the LogicOn Grande Finale has been scheduled to be held at IIM Mumbai on November 1, 2023.

IAG Cargo saw its revenues fall in the third quarter of the year despite its volumes increasing. The airline group, which includes British Airways and Iberia, registered a 29.5% decline in revenues during the period to €263m. Meanwhile, air cargo traffic increased by 19.7% to 1.1bn cargo tonne kms. The reason for the decline in revenues despite higher volumes is a drop off in airfreight rates compared with a year ago. For example, the latest monthly rate data from the Baltic Exchange Airfreight Index (BAI) shows that rates from Hong Kong to Europe were down 38.9% in September compared with a year earlier. IAG’s own figures show that in the third quarter, its revenues per cargo tonne km fell 41.1% year on year to 23.11 cents. However, this is still higher the pre-Covid 2019 level for the third quarter of 19.99 cents. Commenting on the performance of its cargo business, IAG said: “Our Cargo business continues to see declines in revenue and profit as industry supply continues to exceed reducing demand for air freight. Cargo yields remain above 2019 levels.”

Globe Air Cargo and Royal Air Maroc Cargo have strengthened their long-standing GSSA contract and launched a winter schedule promotion to showcase the airline’s widespread network, including in-demand niche destinations across Africa. Royal Air Maroc operates regular flights out of three strategically significant American stations to its cargo hub at Casablanca’s Mohammed V International Airport (CMN). They are New York’s John F. Kennedy (JFK) Airport, Dulles International Airport (IAD) in Washington, and Miami’s International Airport (MIA) and are operated by a Boeing 787-9 with a 15 tons of potential uplift, and a Boeing 787-8 with a 13 tons of cargo capacity. With the start of the winter schedule on 28 October 2023, JFK to CMN enjoys a daily connection operated whilst IAD-CMN is operated up to 5 times a week. From MIA, CMN is served three times a week. More than 80 international destinations are included in Royal Air Maroc’s flight schedule out of Casablanca. Among them are regular full cargo services operated by the airline’s Boeing 767-300 freighter with a capacity of 45 tons. It flies to Brussels (BRU) in Belgium three times a week, Mali’s Bamako Airport (BKO), twice a week, and offers weekly flights to Ouagadougou (OUA) in Burkina Faso, Nouakchott International Airport (NKC) in Mauritania, and Istanbul Airport (IST) in Turkey.

Nitin Gadkari, the Union Minister for Road Transport and Highways, announced the expansion of the Multimodal International Hub Airport at Nagpur (Mihan). This expansion aims to establish Nagpur as the cargo capital and a thriving tech hub, says reports. The expansion of Mihan is expected to attract a range of opportunities for businesses, resulting in employment generation and economic growth in the region. With this development, Nagpur is poised to become a major center for cargo and logistics operations. The upgraded Mihan will offer world-class facilities for cargo handling, including warehousing, storage, and distribution services. This will make Nagpur a preferred destination for domestic and international freight operations, further boosting trade and export potential for the city.

Shipsy has recently acquired Stockone, a cloud-based Warehouse Management System (WMS) and inventory management solution provider, enhancing its product range. The acquisition underscores Shipsy’s commitment to delivering a complete logistics technology platform for various enterprise clients. The expanded suite aims to streamline logistics costs, improve customer experiences, and automate operations through a unified platform. According to Soham Chokshi, CEO and Co-Founder of Shipsy, the new Warehouse Management System (WMS) and inventory management capabilities align with the company’s vision of offering efficient end-to-end logistics management solutions to its clientele. The integration of Stockone reinforces Shipsy’s position in the logistics technology domain and supports the global trend towards sustainable and efficient logistics solutions, catering to the evolving demands of modern commerce.