Category Archives: Aviation

Kuehne + Nagel (K+N) has completed its first engine shipment using its Boeing 747-8F aircraft. The team in Chicago transported a nine-tonne Rolls Royce aircraft engine onto its B747-8F aircraft – named Inspire – from Chicago to Hong Kong. According to K+N, it took four people, three pieces of machinery and one hour to load the engine into its aircraft. The aircraft has been put into operation as part of the long-term charter agreement with Atlas Air, which sees K+N chartering the entire capacity of two B747-8Fs. The two B747s are the last of the famous jumbo jets that will be built by Boeing. K+N said the aircraft would be utilised on transpacific services and also linked to its intra-Asia network to provide better connectivity in the growing Asia Pacific region. In addition to expanding its airfreight offering, 2022 was a busy year for the forwarder’s project logistics team, which was involved in delivering wind turbine components for the pilot phase of Chile’s Haru Oni project – an integrated hydrogen plant producing synthetic fuel from wind and water.

DHL Global Forwarding’s December 2022 ‘Airfreight State of the Industry’ report indicated a fraught operating landscape but the outlook isn’t entirely gloomy. Following November’s low volumes, demand continued to remain reduced on most trade lanes and is likely to continue into 2023, said the report. DHL said that e-commerce shipments only added “negligible growth” to global volumes at the end of the year. The company stated that “any expected volume increase is likely to occur ex-Asia Pacific prior to Lunar New Year”. Reduced ocean freight rates are seeing shippers turn from air to sea shipments, it added. Additionally, rates worldwide are below their level against last year despite the effects of higher fuel prices. Although, recent analysis released by CLIVE Data Services indicates that while the spot rate dropped, average rates for December remained 75% above the pre-Covid level. The report did note that while inflation will continue into 2023 it is likely to decrease. Global inflation began climbing as economic pressures started to bite last year, but the International Monetary Fund (IMF) said the inflation rate is set to drop. “Global inflation is forecasted by IMF to decline to 6.5% in 2023 and to 4% by 2024,” said DHL. In the first quarter of 2023, DHL expects to see low but stable demand, with high inventories and low sales. “Demand [is likely] to increase only as countries start recovering from high inflation,” said the report. Increased belly and freighter capacity does mean that overall, capacity is sufficient to support current demand levels.

National Air Cargo is opening business avenues for oversize cargo with the addition of its first freighter and is in discussions with Airbus about renting the ultra large Beluga transporter that can carry tanks, yachts, satellites and electric transformers. Orlando, Florida-based subsidiary National Airlines next month will began utilizing two factory-built Boeing 747-400 cargo jets, increasing the carrier’s fleet to 10 aircraft – including two for passenger charter. The newly purchased assets have a nose cone that flips open for ramp-loading of long, bulky items such as helicopters and trucks that can’t fit through a traditional side cargo door. The six other 747-400s in National’s fleet do not have nose-loading capability, said reports. Meanwhile, the logistics side of the company is exploring options for chartering the Beluga mega-freighter that Airbus recently made available to companies with special shipping requirements, said an official in the reports.

“The sudden closure of International Air Cargo Terminals as well as Common User Domestic Cargo Terminals by the order of BCAS on Dec 30th 2022 came as a big surprise to the Shippers/Consignees/Agents who suffered huge avoidable losses. No time or advance notice was given to them to look for the alternative, neither by the Service Providers nor by the Regulatory body. Taking a deep dive into the root cause looking for immediate solution, I presume the Terminal Operators and the Airlines are not able to apply or get the RA status owing to the acute shortage of trained X-Ray Screeners in the market as well as the X-ray machines and the unviable economics of providing both. Although the regulatory requirements, protecting all security aspects, need to be in place, yet these could be made little flexible to allow the stakeholders pool their resources or outsource to a third party at all locations, especially smaller Airports, in the best interest of all concerned stakeholders. Whether it was a lapse on part of the Terminal Operators or Airlines or Authorities, all the stakeholders need to be sensitized to empathize with the business community to avoid such colossal losses to them,” says Sushant Nigam, ED, ACAAI.

Bureau of Civil Aviation Security (BCAS) has accepted the request of AAICLAS, MIHAN Nagpur, SACT CSMI Airport, Mumbai, KSIEL Calicut to extend the time frame up to March 31st, 2023 for the process of converting of CUDCT to RA facilities at airports, where RA approved but not operationalized due to shortage of screeners as well as where security vetting has been conducted by the standard committee. Previously, CUDCT facilities of AAICLAS at Jammu, Pune, Imphal, Coimbatore, Madurai, Raipur, Bhubaneswar, Visakhapatnam, Aurangabad, Vijayawada airports and AIASL Chennai airport where no substantive progress was observed were discontinued from Jan 1, 2023. In case of non-conversion to RA within the stipulated time all such CUDCT facilities shall be discontinued.

The Vijayawada division of the South Central Railway (SCR) has been awarded the first-ever contract through e-tendering for developing the new Gati Shakti Cargo Terminal (GCT), on railway land, at Bikkavolu. M/s. Grasim Industries Limited will take up construction of GCT, estimated at a cost of Rs.₹15.24 crore. The Railways shall retain a revenue share of 15% in Terminal Charges and Terminal Access Charges for a period of 35 years after completion of the cargo terminal, said Divisional Railway Manager (DRM) Shivendra Mohan, said reports. “The anticipated traffic projections are more than 100 rakes both inward and outwards per annum from the new cargo handling plant. This move shall ensure development of additional terminals for handling the rail cargo and generate extra revenue for the division, the reports added. According to the reports, the firm will begin construction of Gati-Shakti Cargo Terminal within 18 months after receiving the grant of approval of construction from the headquarters.

Canadian freight forwarder FFAF Cargo is expanding in Asia following the launch of a subsidiary in India in the last quarter of 2022. FFAF Logistics India has been launched as India continues to develop in diverse industries, said FFAF Cargo, a subsidiary of Flying Fresh Air Freight. Karthi Baskar has been appointed managing director and a head office has been opened in Bangalore, as well as regional offices in Chennai, Mumbai and Delhi. The company also plans to set up offices in Hyderabad, Pune & Ahmedabad in the second quarter of the next financial year. FFAF Cargo said services in the Indian market consist of airfreight, ocean freight, surface logistics, warehousing, project handling and customs brokerage service with control tower support. Industry focuses will include perishable & cold chain solutions, aerospace, automotive, pharmaceutical, retail, electronics, high technology and manufacturing. Brendan Harnett, group chairman, said, “This is part of our global expansion and supporting our customer outreach to the Asia region. Our newest venture in India reflects our long-term vision of being integral to our client’s logistics solution through innovation and exceptional customer service.” Nelson Coe, executive chairman of FFAF Logistics India and chief executive of FFAF Cargo US, explained that the establishment of the subsidiary is expected to help accelerate the company’s expansion of India to Canada & America’s trade lane developments. “Our strong success is in air freight products globally,” said Coe. “Our plan for India would be to have a strong presence with lean management, cost optimization and leading the sustainability initiatives. We like to express our sincere appreciation to all our customers who have been part of our global journey and request their support for us in …

Shankar Shinde, Chairman, Federation of Freight Forwarders Associations in India (FFFAI) also expressed his views on the export cargo being grounded at the Chennai Airport terminal and said, “Firstly, if you are granting permission to any custodian, licensing any CFA’s or any airports, you must have compliances in place. Once you accredit them or provide them with a license, they will start operating in a trade. Shippers will go to them for getting their goods transported/ exported. Based on that trade goes into negotiations and commercials. The decision to halt the trade which is at it’s peak is not a good decision and already there’s economic crisis going on. We need to support the industry. There should be proper information given well in advance to the forwarders/ terminal operators to prepare for the upcoming situation and take alternate decisions or come up with solutions. There is need to develop adequate infrastructure at the airport but we cant stop the trade. Disturbing a market is not a good sign, there are contracts signed, confidence level between shippers/traders/ customers and carriers may get affected because of such decision. We would request the government to allow time to put regulations in place and now the extension has been granted till March 31st to convert to RA. So, hopefully things will be normal soon.”

Yashpal Sharma, President, Air Cargo Forum India (ACFI) says, “The issue is to convert the CUDCT facilities as Regulated Agent (RA) at various airports by AAICLAS. While the issue has been around for sometime and am sure the timelines were known to everyone but it is imminent that in the interest of hundreds of customers and for no fault of theirs. Someone should have acted in time to find the right way forward. Closing of facilities with no information to customers leaves a very bad impression of Indian Air cargo ecosystem in front of customers in India and overseas. Anyways the current markets are very soft and in domestic the air freight is struggling to keep up with land transport so this will put a hug jolt to the efforts being made by Government and industry to brand Air cargo in front of customers. ACFI had taken up the issue with MOCA and AAICLS immediately on receipt of the notification on 31st Dec 2022 to get immediate attention to resolve the issue and we did get some relief at a few airports on 2nd Jan but many airports are still struggling.” A notification has now been received on an extension for these airports till 31st mar 2023 to convert to RA.

M Afzal Malbarwala, President, The Air Cargo Agents Association of India (ACAAI) shares his views on the current situation at the Chennai Airport export cargo terminal and says, “It is very unfortunate, without any prior information, work stopped at Chennai Air cargo terminal. Tamil Nadu produces 80% of the export from South India but Chennai airport share is very less. It is because of lack of development of infrastructure at Chennai airport. All the shipments are moving through Bangalore and Hyderabad. Government has to seriously work on this and has to make Chennai a world class airport. Airlines who are being handled by Air India will now think 100 times to renew their contract. Perishable booked could not be uplifted, who will take the loss.” ACAAI in every forum in Chennai speaks and request for development of cargo but it is heard and closed. No development is done. Even now BCAS has given temporary extension only. Cargo complex has to be developed as per the world-standard, like Bangalore and Hyderabad. Why no action is taken on this. Requesting GOI to take up this seriously and make Chennai also a major airport in South India. Only with this development foreign airlines will bring in more flights and it can grow. Today, compared to other airports, Chennai does not have much flights.” C K Govil, Vice President, Air Cargo Agents Association of India (ACAAI) and Managing Director of Activair Airfreight India also adds, “Passenger flights and freighters shouldn’t go empty. This will result in huge losses not only for the airlines but also for the exporters/ shippers. Such a decision would also put the industry’s reputation at stake. Customers/ buyers abroad, without …