Under the Sagarmala scheme, the government is planning to launch a ferry service between Karaikal Port and Kankesanthurai Port in Sri Lanka this year, Puducherry Chief Minister N. Rangasamy told the Assembly on August 22.  Presenting the Budget of Rs 10,696.61 crore for 2022-23, Rangasamy also said that under the Sagarmala scheme, it was proposed to commence commercial cargo handling operation in Puducherry Port in association with Chennai Port Trust this year. “It is proposed to invite EoI from firms for operating passenger and cargo ship and promoting other allied activities in Puducherry Port,” he said.

Jet Freight Logistics Ltd. has announced that it is gearing up to expand its operations in the US market as well. Jet Freight believes that the US Market has got that potential, where one can explore and exploit innumerable fruitful opportunities. “Recently, the Chairman and Managing Director of Jet Freight, Richard F. Theknath made several trips to the US and visited renowned and business-friendly places like Washington, New York, Indiana, St. Louis, and Rhode Island and found them to be very prominent and worth exploring. Richard’s plan is to improve the trade lane between India and the US, considering the Government’s initiatives to increase exports,” an official statement said.

Vietnam Airlines plans to send used passenger planes to Air Transport Services Group for conversion into cargo jets as it prepares to create a freighter division and capture more intra-Asia freight growth, said a statement. The small deal is noteworthy on two levels. It is another example of passenger airlines moving more aggressively to take advantage of cargo opportunities triggered by the pandemic. And it reinforces how ATSG, the largest lessor of freighter aircraft, is rapidly expanding its customer base beyond U.S. shores due to demand from express delivery providers with strong e-commerce business. Vietnam Airlines will remove two Airbus A321 narrowbody jets from its passenger fleet and sell them to Air Transport Services Group (NASDAQ: ATSG), which will send them to a specialty facility for conversion into pure freighters capable of carrying large containers on the main deck. Once modifications are completed, ATSG will lease the planes back to Vietnam Airlines, CEO Rich Corrado said on the company’s earnings call with analysts.

Air cargo demand fell for the fifth month in a row in July as the industry continues to face a ‘multitude of disruptions’, according to CLIVE Data Services. The Xeneta-owned data provider said that during July air cargo demand dropped by 9% year on year and the dynamic load factor – taking into account both weight and space – slipped 8 percentage points on last year to 58%.In July rates were up 11% on a year ago – and 121% of July 2019 – but CLIVE pointed out that the gap between pre-covid levels has continued to narrow. Xeneta chief airfreight officer Niall van de Wouw said that the demand declines come as the industry is hit by a multitude of disruptions outside of its control, such as the war in Ukraine and the cost of living crisis which is increasingly affecting household budgets. Meanwhile, airlines and airports continue to suffer “severe operational challenges due to significant shortages of ground staff.”“There are many dark clouds hanging over the air cargo industry given the state of the world right now,” said van de Wouw. “Volumes are subdued, and while air cargo rates are still elevated, they are slowly but surely easing back towards pre-Covid levels. From a rates point of view, indicators suggest the market has yet to bottom out. It’s clear that airlines are following the market very closely to ensure they are deploying their assets in the best possible way because the market is moving quickly. We have already seen freighters moving away from transatlantic routes. On the Atlantic, the decline in general airfreight rates we reported for the previous three months of 2022 continued in July,” he added. …

Lufthansa Cargo is adding new flights to its all-cargo network as it continues to take delivery of freighter aircraft. The Frankfurt-hubbed carrier will add another B777 freighter into service at the end of the month, while a second A321F will begin flying in October. Lufthansa Cargo said delivery of the aircraft will allow it to expand its network and add additional flights to existing calls for its winter schedule, which comes into effect on October 30. New to the schedule is Hanoi (HAN), which will be served twice a week from Frankfurt via Mumbai (BOM) from the beginning of November. The carrier already flies twice per week to Bangkok. In addition, the carrier’s service from Frankfurt via Kansai (KIX) to Seoul (ICN) will increase from three to four weekly flights. The frequency to Hong Kong (HKG) will also be increased from four to five weekly flights.

Air Canada Cargo has further expanded its fleet with the acquisition of two factory-built Boeing 777 freighters, to enter service in 2024. The “investment” in long range-wide body freighters, combined with our growing 767 freighter fleet and robust passenger network will allow us to continue to bring to life the most flexible and diverse cargo operation in the Americas,” said Jason Berry, Vice President, Cargo at Air Canada

A new report by the International Air Transport Association (IATA) said African airlines cargo volumes decreased by 1.5 per cent in May 2022 due to several factors, including geopolitical stress, caused by the ongoing Russiawar in Ukraine. Air cargo volumes in Africa decreased by 1.5% in May. Air cargo volumes in Africa decreased by 1.5 per cent in May. The IATA report also explained that global cargo tonne-kilometers was 8.3% below the level recorded in May 2021. Apparently, the war in Ukraine specifically affected cargo capacity in Europe. That is following because many Russian and Ukrainian airlines, major cargo players, were unable to haul freight during the period under review. Also, there was decrease across all markets in May with regards to new export orders, except China. And this was due to the lifting of Omicron lockdown measures.

Cargo markets in Asia-Pacific and the Middle East continued to remain robust, driven by a resurgence of air cargo volumes in China and the re-routing of Europe-Asia cargo through Middle Eastern hubs to avoid Russian airspace, as per Airports Council International (ACI) Asia-Pacific’s recent Industry Outlook. Improvements in supply chain constraints and the easing of COVID-19 curbs in China are likely to ease market conditions and drive demand for air cargo. The index based on actual cargo tonnage indicates that in Q1 2022, air cargo volumes are above Q1 2019 levels across most sub-regions. 

Turkish Cargo has been ranked fourth among the top 20 air cargo companies in the world, according to the World Air Cargo Data (WACD). Turkish Cargo’s market share was reported at 4.8 per cent, while the air cargo market shrunk by 6.9 per cent. With this success, the carrier demonstrated its determination for hitting the top, while being ranked 4th on the WACD list. Prof Dr Ahmet Bolat, Chairman, Turkish Airlines said, “The success demonstrates our commitment to make Turkey the heart of the air cargo industry in the world. Turkish Cargo’s geopolitical position and infra will lead our country to become an important player in the air cargo industry. Thus, we will realize our goal of ensuring Turkish Cargo’s place as one of the top three air cargo brands in 2025 in accordance with our plans.”

Representatives of Shell International Petroleum Co. Ltd. and Deutsche Lufthansa AG (Lufthansa Group) have signed a non-binding MoU for exploring the supply of sustainable aviation fuel (SAF) to the Lufthansa Group for seven years at airports across the globe, beginning 2024. The parties concerned contemplated negotiating towards reaching a purchase agreement with total volume reaching up to 594 million gallons.  Jan Toschka, President, Shell Aviation, said, “I am happy to see the relationship between Shell and the Lufthansa Group moving towards reaching our respective sustainability goals. It is encouraging to see large flagship carriers coming to us to discuss SAF supply deals, knowing there will be a lot of things to be defined and determined at a later stage, including established price markers. SAF is the significant way to decarbonise aviation over the decades to come.”