Kuehne+Nagel announced the launch of its Book & Claim insetting solution for electric vehicles, making Kuehne+Nagel the first logistics service provider to launch the solution, which previously was limited to low-emission fuels. “Implementing decarbonisation solutions and helping customers achieve their sustainability goals is a key component of Kuehne+Nagel’s Roadmap 2026 Living ESG cornerstone,” says an official release. Kuehne+Nagel launched an insetting solution for hydrotreated vegetable oil (HVO) last October, which is now followed by electric vehicles, the release added. “The first-of-its-kind solution has been tested and validated in cooperation with leading external stakeholders.” Hansjörg Rodi, Member of Management Board responsible for road logistics, Kuehne+Nagel says: “We see battery-electric vehicles (BEVs) as the future to reduce emissions in road freight. Carbon insetting supports the scale-up of low-emission solutions like BEVs and helps to reduce the premium that customers pay for these solutions, thereby supporting the decarbonisation of road transport.”

The peak season surge in air freight rates of the past three months appears to have come to an end according to the latest data from TAC Index, the price reporting agency (PRA) for air freight markets. The overall Baltic Air Freight Index suddenly fell by -20 percent over the two weeks to 1 January, putting it down by -31 percent over the past 12 months. “Like the previous rise in rates, the sudden drop was heavily skewed by falling rates out of China, with every lane tracked from Hong Kong and Shanghai heading lower,” reads the report. The index for outbound Hong Kong routes was down -23 percent over two weeks putting it back in negative territory YoY by -15 percent. Outbound Shanghai fell even more steeply, pushing to a fall YoY of -30 percent. Sources suggested the sudden drop probably reflected a drop in spot market volumes – leaving a higher proportion of business conducted at previously agreed (lower) contract levels. Rates from elsewhere in Asia were not falling so much WoW – and indeed higher on lanes to Europe from Vietnam, Bangkok and India.

Geopolitical uncertainty and unpredictability could fuel demand for air cargo as shippers move to benefit from the stability of services. Figures from data provider Xeneta show that air cargo demand increased by 9% year on year in December – although this is partly a reflection of a weak end to 2022 – while spot rates reached their highest level in nine months of $2.60 per kg and the dynamic load factor increased by 3% to reach 59%. And Xeneta chief airfreight officer Niall van de Wouw said this could mark the start of a new cycle for air cargo, with shippers likely to appreciate stability returning to the market allowing them to “more accurately predict the transportation costs for the products they are selling”. He pointed out the ocean freight market is facing disruption due to attacks in the Red Sea. Van de Wouw said: “There’s still a lot of friction in the global supply chain market and that means there will be opportunities for some sectors. If big ocean carriers are not going through the Red Sea, it might delay a million or more containers, with all the knock-on effects. “And the fact that you don’t know how long this situation will continue means some shippers will pay for the predictability of air cargo to lessen the impact of the current ocean freight disruption.

Kartik Sharma, AI Expert shares, “In 2024, the air cargo industry is poised for a transformative leap with AI at its helm. AI-driven innovations streamline logistics, optimizing routes, and enhancing operational efficiency. Predictive analytics minimize delays, maximizing on-time deliveries. Smart warehouses leverage AI for automated sorting and handling, reducing errors. This synergy of AI and air cargo signifies a promising era of faster, cost-effective, and eco-friendly transport. Embracing this evolution, I am optimistic about AI’s role in propelling the industry forward, revolutionizing global trade and connectivity while fostering a sustainable future for air cargo in 2024 and beyond.”

Yashpal Sharma, President, Air Cargo Forum India (ACFI) shares, “2024 will see India take a key position in South Asia as a hub. We are confident that the Government is going to very soon bring regulatory changes to the processes to facilitate this. We do expect a higher level of digital penetration across all stakeholders to bring better speed and efficiency for air cargo. The year gone by was a re-set year post pandemic for most economies of the world. ACFI has also played an active role in bringing all stakeholders together and also addressing key industry issues to the Government and other regulators.”

Korean Air said it expects to complete the acquisition of Asiana Airlines this year, as it acknowledged that the process had “taken much longer than expected”. In a message to employees on New Year’s Day, airline chief Walter Cho said he is “confident” the merger – first announced in November 2020 amid the Covid-19 pandemic – will finalise this year. The integrated airline will “be a tremendous growth engine for us in the long run”, Cho added, urging employees to “work together” in its launch. “Korean Air will be poised to stand shoulder to shoulder with global leading airlines. The merger will optimise our network and allow us to operate to new destinations, so that we may offer customers more choices.” Last month, European Union competition regulators set a February deadline to review Korean Air’s proposed acquisition of Asiana Airlines. The two airlines last year gained board approval to sell the cargo business of Asiana Airlines to offset concerns about the market share the combined entity would have on the Korea-Europe trade lane. While the acquisition has gained approvals from several regulators, including in Singapore, the UK and China, it has faltered in major jurisdictions such as the EU, USA and Japan.

IG Drones has won a contract to survey Uttarakhand Metro Rail Project to build a PRT corridor, under the Neo Metro System, the country’s first such Project. The Neo Metro Project is aimed to construct state-of-the-art rapid transit systems in Dehradun, Haridwar, and Rishikesh within the next four years to ease traffic congestion. The Personalized Rapid Transit Corridor or PRT is being developed under the Mass Rapid Transit System (MRTS) that will link three cities– Haridwar, Rishikesh, and Dehradun. An initiative by the Government of Uttarakhand, the PRT Corridor project is anticipated to be completed by 2024 and seeks to offer world-class and state-of-the-art commuting. IG Drones will help prepare a Detailed Project Report (DPR) by surveying the project through high-tech drones. The company will employ domestically developed drones to conduct regular overview of the ongoing work progress on the ground. The drones are equipped with advanced sensors capable of capturing high-resolution images, videos, and additional data from the ground. This collected data is then processed through IG One, their proprietary software, which offers in-depth technical insights and analytics. These analytics enable real-time tracking of the project’s progress. Drones are increasingly prevalent in infrastructure projects, valued for their efficiency, precision, and cost-effectiveness. They not only diminish the reliance on manual labor but also result in significant time and cost savings. Their applications extend to surveying construction progress, assessing work quality, and identifying potential issues during the construction phase.

Xerrxes Master, President, AMTOI expresses his concern, “The Transport Association truck and bus drivers have gone on strike to protest against the new law for hit-and-run cases. This is definitely a very serious issue as it has severely disrupted the supply of petrol, vegetables, fruits, and essential goods. Transporters have already warned that the situation may turn worse and there could be a price rise in commodities if protests do not end soon. This has also led to a potentially serious law and order issue. Our industry is already dealing with a volatile freight market and geo-political situation. If this strike continues supply of raw materials to factories and in turn, exports will further impact volumes. This can also lead to a huge import pile up in the ports if the transporters do not clear the goods swiftly and in time. Even now the existing strike which has been on since Monday will create a huge backlog in ports, ICD’s & CFS’s. It is vitally essential that the government and transport industry representatives sit down and trash out a solution before things spiral out of control.”

As global air cargo tonnages for December 2023 are expected to be up five percent year-on-year, Q4 will be the first quarter of 2023 showing positive growth (up three percent) compared to last year, coming from Q1 at -11 percent, Q2 (down eight percent) and Q3 (down three percent) despite all uncertainties in the last months. “This means that global tonnages for the full year 2023 end up being five percent lower than in 2022,” says the latest update from WorldACD Market Data. “While the first half of 2023 was down nine percent, the second half was characterised by an improving YoY performance for each consecutive month and closing at flat YoY growth.” Weekly analysisPreliminary figures for week 51 (December 18-24) show a drop of eight percent in global tonnages and a decline of six percent in average worldwide rates compared with the previous week after recovering more quickly than last year from the seasonal post-Thanksgiving dip last month. “This slide in tonnages and rates follows the typical pattern seen in the second half of December,” the update added. Comparing weeks 50 and 51 this year with the preceding two weeks (2Wo2W), overall tonnages decreased four percent, and overall global average rates were down three percent with capacity up one percent. “While volumes went down across all regions, we saw that the global decrease in average rates has mainly been driven by origin region Asia Pacific (down six percent) that recently showed a surge in rates, especially China.” On a regional level, a drop of 15 percent in tonnages was recorded on key flows ex-Asia Pacific to Europe, ex-North America to Europe and ex-Europe to Africa, the update added. “On …

Expressing his views, Sunil Kohli, Managing Director, Rahat Cargo said, “The government has made an attempt to plug the loopholes, whereby the instances of hit and run have been rampant which resulted in deaths of the accident victims which could be averted if a timely medial aid was provided by the errant drivers instead of running from the scene, by introducing a stringent penal provision entailing imprisonment of 10 years added with a fine of 7 lakh. Thus, the intent of the government, by and large is welcome which seems to curb the ongoing malice. However, it would have been preferable if such provisions were pre-deliberated with the AIMTC before their introduction. Needless to add that a proposed widespread national agitation by the drivers may severely hit all quarters of trade including the exports and also leading to crunch of the items essential for a common citizen hence the government should negotiate with the union across the table to achieve an amicable solution and avert a possible situation of transport disorders all over the country.