Global air freight rates are still rising as peak season continues, according to the latest data from TAC Index, the leading price reporting agency for air freight. “The overall Baltic Air Freight Index rose a further 4.4 percent in the week to November 13 following a series of gains in September and October, cutting the year-on-year decline to only 26.4 percent.” The latest rise featured sharply higher rates out of China, which was not surprising after record snowfalls in Anchorage appeared to hit capacity on Transpacific traffic – though prices from China to Europe and the U.S. were both showing double-digit-plus gains, the update added. “The index for outbound Shanghai routes increased 8.7 percent WoW, cutting its YoY fall to only 4.7 percent, led by a sharp rise to North America. Outbound Hong Kong increased further (+0.6 percent WoW) to cut its YoY decline to 17.4 percent.”

Ras Al Khaimah-based Vaayu Group has signed an agreement to be a strategic investor in New Delhi-based Pradhaan Air Express. The agreement was announced on the sidelines of the Dubai Airshow 2023. It not only opens up business opportunities in the Middle East for Pradhaan Air Express, the agreement has revealed Vaayu’s commitment in reinforcing the business, says an official release from Vaayu. “The world’s first A320P2F aircraft, which is operated by Pradhaan Air Express, is on show at the Dubai Airshow. Pradhaan leased this aircraft from Vaayu last year, and has been in commercial service since October 2022.” Emad Al Monayea, Chairman and President, Vaayu Group says, “Vaayu’s vision is to become a significant player in the air cargo space in the years to come. This move with Pradhaan is quite strategic considering the opportunities it presents between the two regions. We are quite hopeful that we are flying in the right direction.” Vaayu plans to expand its footprint in the air cargo space with the addition of two more A320P2Fs by 2024, which will enhance capacity and improve its network, the release added. Nipun Anand, Founder and CEO, Pradhaan Air Express says, “We are pleased with the fact that Vaayu has joined us since they bring with them a great record in the aviation sector. Their invaluable expertise and their single-minded plans to increase cargo capacity bodes well for us. The Airbus range of freighter aircraft is impressive and will add immense value to Pradhaan’s plans.”

Etihad Cargo has launched an Instant Offer Rate (IOR) tool to streamline the shipment booking process, provide faster response times and offer improved levels of customer service. Developed in collaboration with IBS Software, Etihad Cargo’s IOR solution is designed to enable the carrier to boost efficiency by reducing pricing transaction times by up to 70% in its online booking portal. Utilising automation, the IOR feature means prices are instantly generated based on five key booking and flight parameters, including density, departure day, direct and indirect flights, flight demand and requested services. Using this data, the IOR solution will provide the “best available price to customers within a few seconds, offering a seamless, user-friendly booking process”, said Etihad Cargo. “Since launching Etihad Cargo’s revamped booking portal, the carrier has continued to add features that enhance the customer journey, making it easier and more intuitive for partners and customers to make bookings,” commented Leonard Rodrigues, head of revenue management and network planning at Etihad Cargo. “By giving portal users instant access to prices based on their unique requirements, partners and customers have all the tools they need to make a booking within seconds and with the confidence their cargo will be transported across Etihad Cargo’s global network safely, securely and reliably at the most competitive price.” The launch of the IOR solution is the latest feature to be added to Etihad Cargo’s booking portal, following the recent addition of features enabling the booking of cats, dogs and dangerous goods.

Wiremind is developing its capacity optimisation technology to better meet the needs of freight forwarders. The company said it is working closely with a number of forwarders and partners to enhance its SKYPALLET solution to accommodate the specific requirements of freight forwarders. Due to be released next year, SKYPALLET 2.0, will in fact “pave the way for the necessary product enhancements to offer a forwarder-specific, dedicated workflow module”, said Wiremind. Though originally developed to support airlines with space optimisation, SKYPALLET “could, and already does”, help forwarders optimise their own capacity management processes, explained the company. Airlines and forwarders have similar needs in this respect, however their processes and use cases vary slightly. For example, when planning shipments, forwarders determine how much capacity needs to be procured from an airline, or how best to assign house airway bills across different allocations, Wiremind added. Forwarders’ transport management systems also differ to those of airlines, the company pointed out. “We have collaborated with freight forwarder customers for many years, and they often illustrate use-case scenarios that lend themselves perfectly to becoming additional SKYPALLET features,” said Nathanaël de Tarade, chief executive of Wiremind Cargo. “Then, during the COVID-pandemic, when the pressure to make maximum use of available capacity was at its peak, two freight forwarders actively opted to use SKYPALLET to support their business processes. “From their reported positive results and the many discussions we have had with a forwarder community increasingly interested in adopting digital solutions, Wiremind’s mission now is to create a freight forwarder SKYPALLET version that offers dedicated functionalities to support their specific workflows.”

Alaska Air Cargo has put into service a new 737-800BCF (Boeing Converted Freighter) and will add another second 737-800BCF “early next year”. The 737-800 freighters have been sourced from Alaska Airlines’ passenger fleet. The US cargo airline currently has three 737-700Fs in its fleet. Alaska Air Cargo took delivery of the first 737-800BCF, from lessor Babcock & Brown Aircraft Management (BBAM), last month. The first aircraft was converted at Cooperativa Autogestionaria de Servicios Aeroindustriales (COOPESA), a maintenance facility in Costa Rica. Now, the second aircraft is being converted by Boeing at KF Aerospace in British Columbia. Ketchikan (KTN), Sitka (SIT), Juneau (JNU) and Bethel (BET) will be among the first in Alaska to benefit from the increased capacity, with expanded freighter service coming to their communities by mid-December, said the airline. The new freighters are in the process of becoming ETOPS-certified, which will enable them to fly long ranges over open water. The aircraft’s expanded range will allow the cargo team to explore new routes, such as a possible nonstop from King Salmon (AKN) to Seattle (SEA). 

Cargo drone airline Dronamics and the UAE’s Strategic Development Fund (SDF) have signed a joint venture (JV) agreement to produce Black Swan cargo drones. The JV will result in the first serial production plant for the airline’s Black Swan aircraft. Production is due to start at the UAE facility in 2025. In late 2022, SDF, through its Venture Capital division, invested in Dronamics and is its largest investor to date. The JV term sheet signed at this year’s Dubai Airshow, builds on the Venture Capital investment and the memorandum of understanding (MoU) signed between SDF and Dronamics at last month’s SAVI Cluster launch event at Masdar City by the Abu Dhabi Department of Economic Development. Christian Jens Ziehe, executive director, portfolio management and head of industrial investments portfolio at SDF, said: “Through the JV, we will set up a facility in the UAE to start serial production in 2025 that will have capacity to produce up to 300 Black Swan drones annually. “The JV will also contribute to further development of the local supply chain within Aerospace in the UAE.”

The existing multimodal infrastructure for cargo movement needs well-thought & strategically driven steps as presently the cargo movement from the warehouses to the respective ports does not have a comforting & time saving travel by road, says Sunil Kohli, MD, Rahat Cargo, adding road is the only mode which is used maximum by the shippers for domestic cargo movement. The desirability of smooth roads & seamless travel remains all over. He adds, “The critical areas of concern at present which need to be addressed by the related agencies are: Government Regulations, Environmental Regulations, Technological Barriers, Materials handling, Transport, Supply Management and Logistics, Information and control, Distribution and Material Movement and Production Logistics and Management.

As a bonded trucking operator, carrying export and import transshipment cargo, is a challenge because of unavailability of custom clearance services 24*7, says Dileepa BM, CEO Bonded Trucking, Shreeji Transport Services. “As a freight forwarder, we can’t move the cargo on custom holidays and weekends. If the cargo arrives on Friday night, we wait till Monday to move the transshipment cargo. We need 24*7 services available for moving, export and import transshipment cargo in all airports in India. Another challenge is in the US and Europe, bonded trucking is common. In India, the Bonded trucking activity is permitted only from one airport (from where cargo loading is done) to the destination airport. For example, if cargo is planned to move from Delhi to Bangalore via bonded trucking service, we can’t load the cargo from any other airport which will come on the route towards Bangalore Airport. But in the US, or Europe it is not like that. We need that facility in India, to simplify the process, simplify the movement of transshipment cargo. Thirdly – Dual handling charges are very high.”

Allcargo Logistics reported a 92 percent decline in net profit at Rs 16 crore for the second quarter ended September 30, 2023 compared to Rs 195 crore in Q2FY2023. Revenue from operations declined 35 percent to Rs 3,307 crore, says an official release. “The board has approved the issuance of three bonus shares for each share held by the shareholders. The decision is aimed at improving the liquidity and allowing for broader base participation of shareholders in the company. This shall also facilitate the strategic restructuring plans.” The express logistics business under Gati posted record volumes in the past quarter, driven by strong pickup in festive demand, the release added. “Contract logistics business under Allcargo Supply Chain continues to demonstrate robust growth in revenue and EBITDA for the numbers reported for Q2FY24.”

Logistics service provider Pristine Logistics and Infraprojects has agreed to acquire Distribution Logistics Infrastructure Pvt Ltd and its group companies (DLI India) from the Alternative Investment Market (AIM) London-listed Infrastructure India Plc in a stock and cash deal, the company said in a press release on November 7. “The agreement has been entered into with AIM (London Stock Exchange) listed Infrastructure India Plc (IIP), the holding company of DLI India and DLI Mauritius,” Pristine Logistics said in the release. The acquisition will help the rail-focussed logistics firm expand further into the hinterland, riding on the Indian Railways plan to raise modal share in freight from 27 percent to 45 percent by 2030 to cut carbon emissions. The deal involves DLI Mauritius selling 100 percent of the equity of DLI India to Pristine Malwa Logistics Park, which will become the sole owner of all IIP’s logistics entities in India.