Category Archives: International

Air cargo demand returned to growth in June following a drop in May as a result of public holidays. The latest statistics from CLIVE Data Services show that air cargo demand in June increased by 1% compared with the same month in 2019 (used for comparison due to impact of Covid) after declining by 4% in May. Niall van de Wouw, managing director of CLIVE Data Services, said: “June’s performance data was relatively strong and seems to confirm that May’s decline was a one-off, as we anticipated, impacted by the public holidays during that month. The global air cargo market now seems to be back on track, reflecting what The Economist has described as the ‘long goodbye’ to Covid’s impact on our everyday lives”. “In June, we once again saw no signs of recovery in capacity. It is abundantly clear that airlines are micromanaging their flights because the pressure is everywhere and, in the case of cargo-only services by passenger airlines, the capacity out there is expensive to operate.

Etihad Cargo, the cargo and logistics arm of Abu Dhabi’s Etihad Aviation Group, and CargoAi, the SaaS application which provides air cargo digital solutions, have partnered to elevate the carrier’s API accessibility for freight forwarders as part of its digitalisation strategy. During the past few years, Etihad Cargo has accelerated its development of technology advancements which have provided simplified customer experiences through a number of partnerships. This has culminated in the launch of its brand new digital platform, etihadcargo.com. Their latest collaboration with CargoAi will further enhance this through the provision of brand-new API accessibility for freight forwarders the world over. “Digitalisation has been at the core of Etihad Cargo’s strategy over the last three to five years, and continues to be a focus in driving digitalisation and streamlining processes across the air freight world. Our partnership with CargoAi supports this vision, and provides an additional tool which delivers a rapid and fluid digital booking services platform,” explained Martin Drew, Senior Vice President Sales & Cargo, Etihad Aviation Group.

Delmos Aviation, a part of Sentro Group continues to ramp up its air cargo network in CIS Nations with the launch of its first smaller capacity aircraft cargo charter flight between India & Uzbekistan. The first flight took place on July 7th on DEL– TAS route on A 320 PTC smaller capacity aircraft to deliver essential medical equipment and pharmaceuticals products from India to the region. The cargo charter flights can also carry cross-border e-commerce products such as apparel and fast-moving consumer goods (FMCG). Delmos Aviation focuses on improving regular cargo operations between India & Uzbekistan and other CIS Nations, as India is the primary exporter of essential pharma supplies to the region. We are so excited to launch regular cargo charter services and are happy to provide an enhanced and streamlined cargo charter experience across the entire network. The charter flight on 7th July is a pilot flight project. It has been a milestone for all.” said Dr Naveen Rao, Group Chairman.

Kuehne+Nagel (K+N) is expanding its perishables network with the acquisition of Norwegian freight forwarder Salmosped, which specialises in the transportation of seafood. Norway is one of the largest fish and aquaculture producers in the world and its exports have remained strong throughout the pandemic. K+N said that over the years, it has developed a global perishables logistics network comprised of more than 70 stations to provide its end-consumers with an optimal product shelf life and maximum freshness. Dennis Verkooy, senior vice president of global perishables, and head of carrier management air logistics, at K+N, commented: “Perishables logistics is a strong growth driver for Kuehne+Nagel. “While we have been present in the seafood business in Norway for years, today’s acquisition strengthens our footprint in air freight exports from this important seafood producing country. “We are looking forward to enlarging our Norwegian team with Salmosped’s specialists.”

Ocean carriers could be in line for profits of $100bn this year and look assured of continued medium term profitability as capacity remains an issue globally in a market described as “crazy”. The Loadstar reports a substantial upgrade of Drewry’s quarterly Container Forecast report from an ebit (earnings before interest and tax) figure of $35bn to $80bn this year. Senior manager of container research and author of the report Simon Heaney, said: “If freight rates surpass expectations in the remainder of the year, we would not be surprised to see an annual profit line in the region of $100bn.” Incidents such as the Ever Given Suez grounding and Yantian port restriction have helped fuel a market where triple digit annual growth figures for spot rates are no longer surprising, Heaney said. Although Drewry expects ebit to drop by a third next year, it still predicts industry profits of almost $70bn.

Lufthansa Cargo is targeting the e-commerce market with the conversion of two Airbus freighters to be used on intra-European services. The Frankfurt-headquartered airline today announced that two of its Airbus A321 aircraft would be converted into freighters to be operated by Lufthansa CityLine. They are set to join Lufthansa’s fleet “from the beginning of 2022”. Lufthansa Cargo chief executive Dorothea von Boxberg said: “Lufthansa Cargo wants to offer customers in the eCommerce segment fast intra-European connections. With the converted A321s, we are meeting our customers’ growing demand for same-day solutions and further strengthening our dense network of global connections as well as our product offering. The selected aircraft type can transport 28t per flight, significantly larger cargo volumes than in the short-haul bellies of passenger aircraft. In addition to forwarders, integrators and postal operators, e-commerce providers will be customers for this offering.”

DB Schenker, the global leading logistics service provider that is 100% owned by Deutsche Bahn Group (Euro 39.90 Billion), today announced the expansion of its digitally forward innovation, connect 4.0. The platform allows customers to book air freight shipments quickly and conveniently online. Streamlining the logistics process as easy as Click. Ship. Done., the connect 4 air platform will provide hassle-free logistics services and meet all the real time tracking needs of a customer, including access to the company’s global transportation network. The platform is an online portal that streamlines shipping processes to deliver a seamless interface for customers. With this expansion, the company has combined the Ocean and Air transport activities on a single platform, offering customers a unique experience by helping them customize shipping services like getting real-time instant quotes, as well as booking and tracking a shipment with 24/7 online visibility from pick up to delivery

Logistics major DP World is planning to acquire South Africa’s Imperial Logistics Ltd for $890 million, one of DP World’s most significant acquisitions in Africa so far. DP World is interested in acquiring Imperial and all its businesses to expand its logistics footprint in Africa and Europe. Imperial’s Logistics International business is within the scope of the offer and as such will not be sold separately under this proposed offer. Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “We are excited to announce the proposed acquisition of Imperial, which will add significant strategic value to DP World given its attractive footprint and strong logistics solutions capability. Imperial has a significant presence in Africa, a market where trade is expected to grow at more than 2x GDP driven by population growth, accelerated urbanisation and rising middle classes. Imperial’s business strongly complements DP World’s existing footprint in Africa and Europe and will allow us to deliver a fully integrated end-to-end solution to cargo owners across a wider market.”

Chennault International Airport in Louisiana, US, is constructing a new cargo facility that will enable it to enter the airfreight sector. The hub said it started constructing the $4m facility last month. The 10,000 sq ft building is expected to be completed in 12 to 18 months. In a statement, the hub said the project was propelled by $3m in capital outlay funding from the Louisiana Legislature, with the balance of the funding paid by the Chennault International Airport Authority. It also said it is in talks with potential ground handling partners. Currently, Chennault International Airport is recognised as “an emerging aerospace hub” and the new cargo facility is expected to “provide economic diversity and ultimately create new jobs”. Chennault executive director Kevin Melton commented: “Chennault remains a game-changer for Southwest Louisiana — and we’re excited to offer this new opportunity for more development and more jobs.”

Buyers of airfreight capacity should expect the market to get worse before it gets better, according to Bruce Chan, vice president of global logistics at investment bank Stifel. Chan said that belly capacity is not expected to return until 2023 at the earliest. And while rates are expected to ease from their current elevated levels faster than the return of capacity, space shortages in the immediate future are likely to push prices up this year. Chan said: “Does that mean rates will stay this high until 2024? Unlikely, in our view. But there are structural factors that may keep rates higher than before, including the global rise of e-commerce and the fractalisation of supply chains in search of labour, capacity, and production diversification. “And several large freight forwarders have now declared air charter to be a permanent part of their service offering—not just peak capacity infill.” However, in the immediate future “we do expect things to get worse before they get better” for those buying air cargo capacity.