Lufthansa Group reported a 41 percent decline in cargo revenue at €675 million for the third quarter of 2023 compared to Q32022 on weak demand in a seasonally weak quarter. Revenue cargo tonne kms increased four percent to 2.2 billion, available tonne kms increased nine percent to 4.1 billion and load factor was down (2.7 percentage points) to 52.9. “Stabilisation of cargo yields (Q3: +39 percent vs 2019) and volumes indicates a bottoming out of the market,” says an official release. Adjusted EBIT plunged to €1 million from €331 million in Q32022. “For the fourth quarter, a slight year-on-year increase in transported volumes is expected.” For the first nine months of 2023, cargo revenue declined 38 percent to €2.2 billion and adjusted EBIT dropped 86 percent to €189 million. While capacity was up nine percent, cargo load factor declined five percentage.

Hopes of a surge in air cargo demand towards the end of the year diminished in October as the latest data showed only a slight uplift in demand. The latest figures from data provider Xeneta show that air cargo demand increased 2% in October compared with September which is described as “sub-seasonal” compared with the previous five years. General air cargo spot market rates were also up by around 2% over the two months, reaching $2.28 per kg. Compared with a year ago, demand was up 2% in October while rates were down 30%, although this is the lowest rate of decline registered this year. Rates also remain above pre-Covid 2019 levels, supported by premium and special cargoes, while general cargo rates have “nearly gone back to their pre-pandemic levels”. “This is attributed to the slight uptick in global cargo volumes as well as a slowdown of cargo capacity growth in a month in which global belly capacity returned to its pre-pandemic level, albeit this recovery is varied across major lanes,” said Xeneta in a press release.The dynamic load factor reached 59% in October, which is its second-highest level of the year, but still down two percentage points on October 2022 levels.

DP World and BoxcoWorld FZE, have signed a Memorandum of Understanding with to invest USD 28 million in the construction of a cutting-edge warehouse facility in Jebel Ali Free Zone (JAFZA), UAE to cater global needs. The agreement was signed by Abdulla Al Hashmi, COO, Parks & Zones, DP World, UAE Region and Vir Kotak, Founder, BoxcoWorld. The new facility will cater to the warehousing demands of its existing customers, providing them with a state-of-the-art facility equipped with one-window logistical solutions. The industrial bloc will offer sorting and repackaging services for imported waste paper, primarily from the USA and Europe. After the sorting and repackaging process, the waste paper will be re-exported to markets in the Indian subcontinent and Far East Asian regions. The facility is projected to have a throughput of approximately 15,000 TEUs. Additionally, a 40,000 CBM robotic racking system for Polymers will be created, which is a unique and pioneering initiative set to be the first of its kind in the GCC. The warehouse facility will serve as the ideal destination for customers to efficiently manage their import and export cargo with minimal delays when connecting to and from vessels. It will also be efficiently equipped to provide customizable on-site storage solutions tailored to the unique requirements of clients and their business needs. The facility will foster closer relationships with existing and prospective clients, enabling the company to gain a deeper understanding of specific customer needs and challenges in the import, export, and trading sectors. Speaking on the signing of the MoU, Vir Kotak, Founder, BoxcoWorld said, “I am extremely optimistic and excited about the growth prospects of the entire region. Dubai, Jebel Ali, and Jafza are …

Emirates SkyCargo reflects on over 30 years of connecting to Southeast Asia, developing trade flows and connecting manufacturers, traders and exporters with businesses all over the world, as the air cargo industry gathers in Singapore for air cargo Southeast Asia. “Markets in Southeast Asia were amongst the early additions to the Emirates network, back when we were a young airline, as we saw the opportunities to create reciprocal business opportunities for customers in the region with global economies. Since then, we’ve gone from strength to strength,” said Ravishankar Mirle, vice president cargo commercial, Emirates SkyCargo – Far East and Australasia. He added: “The region is currently undergoing a renaissance, as global supply chains are poised for change with manufacturers, distributors and suppliers aiming to diversify their production hubs. Asia is well positioned with Vietnam, Thailand, the Philippines, and Malaysia offering manufacturing capability and attractive investment incentives. Conferences such as Air Cargo Southeast Asia are essential for the logistics ecosystem to connect, share insight and strengthen relationships to ensure a streamlined global supply chain.”

Shankar Shinde has been appointed as the Vice Chairman of the International Coordination Council on Trans-Eurasian Transportation (CCTT) during the 32nd Plenary Meeting which was recently held in Moscow. Shinde was earlier Chairman, Federation of Freight Forwarders Association of India (FFFAI). The partnership is focused on improving border trade facilitation through INSTC route. Shinde, Immediate Past Chairman of FFFAI is also Secretary General of CIFA. Li Zhiming has also been elected as new CCTT Vice-Chairman. This year the meeting was dedicated to the 30th anniversary of the Council. More than 250 delegates from departments, companies and organizations from 20 countries of the Eurasian continent, heads and representatives of international organizations and associations participated in this GLOBAL event. Other new members who also joined during this meeting were from China, South Korea, Iran and Southeast Asian countries. The CCTT was founded by the Ministry of Railway Communication of the Russian Federation (after the restructuring of 2003 – RZD OJSC; Deutsche Bahn (DB AG); Group of European Trans-Eurasian Forwarders and Operators (GETO) and Korean International Freight Forwarders Association (KIFFA).

FedEx Express is further enhancing its intercontinental services between Vietnam and India, with the introduction of a new flight service that offers faster transit time, says official release. Effective October 31, 2023, the new flight service will use a dedicated B767 freighter flying four evenings a week from Ho Chi Minh City in Vietnam, improving transit time by one business day for importers in India. With a total of nine weekly flights now departing from Ho Chi Minh City, shipments will now reach India within two business days*. This enhancement from FedEx will help businesses in India benefit from Vietnam’s status as a growing manufacturing hub. Currently, India stands as one of Vietnam’s top eight trading partners, and the bilateral trade between both the countries has seen steady growth over the years. According to Indian data for the financial year April 2022 to March 2023, bilateral trade grew 4 % year-over-year compared to 2021-22 and reached US$ 14.70 billion[1]. “The evolving India-Vietnam relationship promises to unlock new growth opportunities for businesses in both nations, facilitating increased trade and economic expansion,” said Nitin Tatiwala, vice president of Middle East, Indian subcontinent, and Africa air network, FedEx Express. “The transit time enhancement can provide importers in India with a competitive advantage, by helping them build faster and more efficient supply chain networks with businesses in Vietnam. This facilitates trade and boosts the growth of businesses, especially SMEs, in both countries.” FedEx has been supporting cross-border trade to and from India since 1984. With the new flight service, businesses in India may gain a competitive edge with expedited delivery time. This latest announcement reaffirms the company’s dedication to improving services and strengthening operations …

There’s a need to be actively engaged in persuading the shippers to explore the newer trade opportunities abroad other than the conventional destinations for perishables, says Sunil Kohli, MD, Rahat Cargo. He shares, “As a freight forwarder mainly focused on perishables, we have commenced moving shipments to US and Canada. An optimal utilization of airports in non-metro cities such as Amritsar has also been our prime objective to promote exports from there to direct/assorted stations thereby providing the benefit of an economical airfreight to the exporters. We have also succeeded in handling the exports from shippers on pan-India basis in collaboration with our associates in all major cities such as Mumbai, Bengaluru & Hyderabad etc. The business being emanated from our concern has been shaping well and in all likelihood it would witness a considerable growth in future keeping in view the enhanced number of exporters, developed infrastructural facilities at the airports and the government’s liberal policies.”

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.”