Category Archives: Aviation

According to latest weekly market analysis by CLIVE Data Services, part of Xeneta, Tension is mounting in the global air cargo market heading into the weaker summer months with general airfreight rates falling in May by 40 per cent to their lowest level since March 2020 as restless airlines and freight forwarders went in search of volumes. The global airfreight spot rate fell 40 per cent in May from a year earlier, reaching its lowest level in over three years of $2.41 per kg, just days after IATA predicted airline cargo revenues and yields could fall by more than 31 and 29 percent respectively in 2023. Softening global air cargo demand saw a less severe year-over-year drop of -1 percent in chargeable weight in May, the smallest monthly decline in the past 12 months, but the influx of belly capacity for the peak summer leisure travel market applied more downward pressure on rates. Global air cargo capacity in May continued its double-digit increase, up 14 percent year-on-year. Less demand and more capacity led to an inevitable fall in dynamic loadfactor, CLIVE’s measurement of global volume and weight perspectives of cargo flown and capacity available. It was -5 percent pts lower vs. May 2022 at 55 percent.

Kenya-based cargo airline Astral Aviation has launched a new freighter route from Nairobi to Tel Aviv. The scheduled route will be served by a Boeing 757 freighter and aims to cater for perishables demand. Chief executive, Sanjeev Gadhia said that the direct flight from Nairobi to Tel Aviv will reduce the transit time from 24 hours to five hours for Kenyan perishables, which previously were being routed via other hubs such as Istanbul, Addis Ababa, and Dubai. Gadhia added that return flights will enable exports from Israel to reach Africa via Astral’s Nairobi hub, strengthening the economic links between Kenya and Israel. The outbound flights will facilitate the efficient transportation of perishables, notably pineapples and vegetables. The initiative is also expected to facilitate mutually beneficial partnerships.

Japan Airlines (JAL) has begun converting Airbus A321 aircraft into freighters for use on a domestic freighter network due to launch in April next year. Conversion of the first aircraft began on May 8 in Singapore and is expected to be completed by mid-September, said the Tokyo-headquartered airline. Another two A321s are also due for conversion. The conversions are being carried out by ST Engineering in Singapore under the management and supervision of ST Engineering’s joint venture with Airbus, Elbe Flugzeugwerke GmbH (EFW). Following the refurbishment process, the freighter will be transported on a ferry to Japan in late October. The second and third aircraft are currently parked in France, confirmed JAL. The domestic freighter network that the A321 passenger to freighter (P2F) conversions will be used on will be operated by JAL’s low-cost carrier unit, Spring Japan, in partnership with forwarder Yamato. Spring Japan will utilise the freighters to operate 21 flights a day on four key routes.

IndoSpace Core has acquired the Amazon Fulfilment Centre in Hyderabad from GMR Group further expanding its pan-India portfolio. This is IndoSpace’s maiden acquisition in the city. With this investment, IndoSpace strengthens its regional presence and significantly expands its key tenant relationship. The acquisition which spans over 0.8 million square feet increases IndoSpace’s portfolio to approximately 58 million square feet of advanced logistics and industrial infrastructure across 51 parks in India. This asset in Hyderabad Airport City is strategically positioned near vital transportation hubs, ensuring convenient access to the airport, major highways, and railways and excellent connectivity to the city. The strategic location makes this facility the perfect choice for logistics operations. Rajesh Jaggi, Vice Chairman – Real Estate, Everstone Group, said, “We are thrilled to announce the extension of our presence into Hyderabad city with this acquisition in our IndoSpace Core portfolio. Hyderabad has established itself as a prominent market for logistics and real estate in India. This deal signifies another important milestone in our growth journey and underscores our unwavering commitment to offering world-class facilities to our valued clients.” IndoSpace continues to strategically evaluate attractive opportunities to expand its portfolio in key target markets across India.

Qatar Airways Cargo has reintroduced cargo and pax flights to Haneda, Nice, Manama and Sarajevo while continuing to expand its Middle East operations. The carrier re-launched services to Tokyo’s Haneda Airport last week. “The reintroduced cargo flights makes up for the vast majority of exports from Tokyo followed by vulnerable cargo and dangerous goods. As for imports, they consist of general cargo, fish, seafood, fruits and vegetables,” says an official release. The carrier also commenced four weekly passenger Airbus A320 flights from Doha to Sarajevo with six tonnes of weekly cargo capacity w.e.f May 30. “Commodities mainly consist of general cargo and also include vulnerable cargo and pharmaceuticals.” The carrier relaunched flights to Nice on May 9 with exports comprising of general cargo, dangerous goods, pharmaceuticals while on the imports front, general cargo, dangerous goods, vulnerable cargo and other types of cargo are flown into Nice. “With freighters to Lyon and Paris and belly-hold flights to Nice and Paris, the cargo carrier’s weekly cargo capacity to and from France increases to 1,100 tonnes each way.” Daily flights to Bahrain started on May 25, providing cargo customers with 11 tonnes of cargo space on the A320 passenger flights each week, each way, the release added. “In addition, Qatar Airways Cargo has also expanded its network in the Middle East, effective May. The airline introduced two Boeing 777 freighters to Dammam, bringing the weekly tonnage to 350 tonnes each way. A new freighter frequency was also introduced to Riyadh, bringing the total frequencies to five Boeing 777 freighters each week on top of the quadruple daily passenger flights, providing over 850 tonnes of cargo capacity each way to and from Riyadh.”

Kuehne+Nagel has expanded its presence in Africa through the acquisition of Morgan Cargo. The companyy has plans to cater perishable market. The acquired forwarder has a presence in South Africa, Kenya and the UK, employs around 450 people and in 2022 handled more than 40,000 tonnes of airfreight and 20,000 TEU of sea freight. The company also offers “state-of-the-art” cold chain facilities, Kuehne+Nagel said in a release. Yngve Ruud, member of the management board of Kuehne+Nagel, responsible for air logistics, said, “With Morgan Cargo, we acquire a reliable logistics service provider for the benefit of our customers. Expansion in high-growth markets such as Africa clearly ties into our Roadmap 2026 and reinforces our commitment to the Middle East and Africa Region. We have been active in Africa for many years, but this acquisition is an ideal addition to our regional presence.”

Perishable exports are drastically impacted due to ceased cargo movement at 11 AAICLASS-operated airports in Amritsar, Pune, Coimbatore, etc.,” says Satish Lakkaraju, Senior Vice President, Global Head – Air Freight & Pharma, Radar Ventures. “In the past, airlines used to screen the cargo for the respective flights, which was then moved to a common user facility for multiple reasons, but now cargo is stopped without proper alternative arrangements. The air cargo industry is supposed to be the fastest mode of transport, whereas in India, the total time spent on the ground is much higher than expected because of non-alignment between agencies like BCAS, AAICLASS, and other allied agencies,” he adds. “It is time that MOCA and other agencies get together to resolve the same on priority, as it is giving such a bad image for the country and the trade. It is really sad that no one is even bothered in the country, and the customers are impacted as a result, Indian Air Cargo is going through a difficult time when customer expectations have been drastically increasing and the situation on the ground has been deteriorating with increased costs and longer dwell times on the ground because of security issues and a lack of clarity.”

IATA has lowered its expectations for air cargo revenues and yields for 2023 due to growing capacity and a weak demand outlook. In its latest airline profitability report, the airline association predicted cargo revenues of $142.3bn this year, which is 31.3% down from last year and behind the $149.4bn that was previously expected. Meanwhile, cargo yields are expected to be 28.6% behind last year, worse than the 23% fall IATA predicted at the World Cargo Symposium in April. “Yields will be negatively impacted by two factors: the ramping-up of passenger capacity which automatically increases available belly capacity for cargo and the potential negative effects on international trade of economic cooling measures introduced to fight inflation,” IATA said. However, the airline association also pointed out that both revenues and yields remained far above pre-Covid levels. Figures provided by the association show that cargo revenues stood at $100.8bn in 2019, $140.4bn in 2020, $210bn in 2021 and $207bn last year. And yield increases of 54.7% were recorded in 2020, 25.9% in 2021 and 7.4% in 2022. Meanwhile, cargo traffic in cargo tonne km terms is expected to decline by 3.8% on last year and by 5.5% compared with 2019.

Block your dates for The International Air Cargo Association’s (TIACA) upcoming regional summit in Nairobi, Kenya from June 19-June 21, 2023. The three day event will focus on drones, digital innovation, perishables, freighter capacity, global outlook and lot more. The event in Africa aims to bring together members, partners and business houses to identify and discuss specific issues that affect the industry at the regional level.

With the opening of its first Asia-based Squair Service Center, ECS Group is increasing its capabilities related to the AWB Verification service offering (known as “Verify”). As demand for AWB verification outsourcing is increasing, the new team in Mumbai, India, will perform the AWB data capture activity for existing Squair customers and allow for future growth opportunities, especially in Asia. The new team in Mumbai, India, complements the existing Squair team based in Sofia, Bulgaria that has been providing both AWB verification and customs reporting services to international airlines across 12 countries since 2019. “There is a growing interest amongst airlines to maximise efficiency in their processes. AWB verification is a necessary, resource-intensive, yet non-revenue-generating activity,” says Adrien Thominet, Executive Chairman of ECS Group. “ECS Group recognised this opportunity for a new service offering early on and is the first and only GSSA to offer AWB verification as a full quality “ability” since 2019. India is the perfect location for our Verify service expansion as it offers an abundant and skilled workforce with competitive unit costs and increases our time zone coverage”. “Our Squair team in India underwent two months of intensive training from December 2022, using ECS Group’s internal training platform, Discovery, as well as through a thorough cross-training by their Squair colleagues based in Bulgaria” Ian-Alexandre McMartin, General Manager of Squair, explains. “Squair India officially started operating on 01 February 2023, carrying out AWB verification on behalf of a leading airline operating from Spain.” The team since then took over the AWB verification activity from that same airline in the Netherlands and is preparing to extend the geographical coverage in more European countries as the year progresses. “We …