Category Archives: Aviation

As one of TIACA’s newest members, Challenge Group brings a panoramic industry viewpoint to the association and has adopted the topic of sustainability as its initial focus point. Stronger and better together is doubly relevant when it comes to Challenge Group. The unique air cargo conglomeration has not only been working on bringing its individual fractions together under one brand, but it also seeks to offer its combined expertise to the international air cargo community. Challenge Group, therefore, recently became a member of The International Air Cargo Association (TIACA). “We joined as a non-voting member in October 2021,” says Yossi Shoukroun, CEO of Challenge Group, “because we are keen to contribute proactively and tangibly to the future of our industry. Challenge Group has more than four decades of air cargo airline experience. We’ve been involved in air cargo handling for almost 25 years, provide extensive road feeder services, and can offer other aviation expertise, too, so I believe that, as a group, we can bring valuable input to the broad TIACA community, a motivated community that has a clear direction for the future of our industry. There is strength in numbers, and it is this strength that will drive change. Together with other supply chain stakeholders, we can make significant progress on the many changes that are necessary for a cleaner, more efficient, and collaborative air cargo industry.” Glyn Hughes, Director General of TIACA, states, “It is with great pleasure that we welcome the Challenge Group to the TIACA membership family. They have a wonderful vision for sustainable growth and transformation, and we are excited about supporting the group on their journey.” One TIACA topic, particularly in focus within the …

The FIATA Multimodal Transport Institute (MTI) gathered to address the implications of the ongoing events in Ukraine for freight forwarding and logistics spanning sea, rail, and road transport. Aside from the catastrophic human repercussions, which the industry is particularly sensitive to, global supply chains, which have already been weakened by the effects of the pandemic and the current maritime crisis, are being severely disrupted. Driver shortages, difficulty transporting freight within the impacted zone, and capacity challenges have all been cited. Rising fuel prices are projected to be a concern for the whole industry. It was observed that multimodal solutions are critical to guaranteeing the movement of commodities throughout the impacted area during this war, with border crossings apparently feasible by rail transit via Moldova and the Port of Galati, or via Romania, which gives port access. Trans-Caspian routes are projected to be crucial. Members of FIATA should be aware of the sanctions imposed by certain countries in reaction to the conflict, and should visit the appropriate government pages on a regular basis. Countries currently enforcing relevant sanctions include, among others, Australia, the European Union, the United Kingdom, and the United States. It is understood that more sanctions are being considered.

In the two weeks since Russia’s invasion of Ukraine, there seems to be a negligible impact on container prices and leasing rates in China. Container availability has improved from soon after the Chinese New Year until Friday across key ports in China. However, with the announcement of nationwide lockdowns, the supply chain must prepare for more turmoil in the coming months, impeding the flow of container movement as importers worldwide prepare for the peak season later this year. At the port of Ningbo, average prices for a 40-foot high cube container fell by 10%, approximately from $5930 on February 14th to $5329 on February 27th. As of March 10, this price stood at $5248. Similarly, average prices fell by 10–15% at the ports of Shanghai, Qingdao, and Shenzhen till March 11. Shenzhen witnessed a drop of 8% in the past two weeks. However, the lockdowns in Shenzhen, Zhejiang, Shanghai, Jilin, Suzhou, Guangzhou, and Beijing (19 provinces as of Sunday, probably more to come in a few days) imposed now will clearly heavily restrict container movement at these ports, which will, as we’ve seen in the past, prove to be further damaging to the global supply chain. Clearly, 2022 has not brought any cheer to the supply chain industry. On top of this, war will just prove to be another disruption amongst the other innumerable factors for China’s supply chain. Freight rates and container prices were already at a record high even before the invasion started, and what happened immediately due to the war was that the Russian ports were not being called by the national shipping lines anymore, the Black Sea being somehow closed, and the Asia-European railway being quite …

To further meet the demand for its specialist aerospace logistics services award-winning B&H Worldwide has moved its New Zealand operation to a new on-airport site at Auckland Airport. The company has been operating in the country since 2012. Now located in the Airport Industrial Precinct, a highly desirable industrial area, the B&H team will be situated alongside some of the world’s largest freight and logistics companies, and will have easy access to all facilities at the largest and busiest airport in the country. In addition to warehousing and offices, the new site also has ample yards for devanning. Alongside manned 24/7 global AOG and aerospace logistics, the experienced B&H team in Auckland led by Country Manager, Lee Hedges will also offer specialist Dangerous Goods services. Says B&H’s Head of Operations, Oceania – Colin Kaltner: “Auckland is becoming an important forward stocking location for a number of our customers and the move to this on-airport site enables us to cater to their ongoing requirements. And of course, they will be able to have global visibility of their inventory through our unique, cloud-based track and trace platform FirstTrac.” The new operation is located at: B&H Worldwide Unit D, 6 Percival Gull Place Mangere Auckland 2022 New Zealand

APM Terminals Mumbai (GTI-Gateway Terminals India Pvt. Ltd.) and Jawaharlal Nehru Port Authority (JNPA) have signed a Settlement Agreement to reach an amicable solution and resolve a decade-long pending issue on tariff-related matters pertaining to the year 2012. The principles of the Settlement Agreement were formulated by the Conciliation and Settlement Committee (CSC) as per the guidelines issued by the Indian Port Association (an apex body of major ports under the administrative control of the Ministry of Ports, Shipping and Waterways) for the settlement of pending issues between the operators and the port authorities at major ports in India. The principles of the agreement have been settled in the framework. The tariff differential will be calculated after the court orders have been issued. The signing ceremony was attended by various dignitaries, including H.E. Freddy Svane, Ambassador of the Royal Danish Embassy to India, Sanjay Sethi, IAS and Chairman of JNPA, Jonathan Goldner, Head of Terminal Asia and Chairman of GTI, Gopal Krishna, Chairman of CSC, Dr. C. Chandramouli, and Shambhu Singh, members of the CSC, and key personnel from JNPA and GTI.  On this momentous occasion, H.E. Freddy Svane, Ambassador of the Royal Danish Embassy, mentioned, “Today’s milestone is an important development in the logistics sector of India. It could not have been possible without the role played by the Conciliation and Settlement Committee, JNPA, and APM Terminals. This is a progressive step in creating an environment of trust and ease of doing business for investors. We are moving towards a future where logistics will play an important role in India’s becoming a major player economically and politically.” He further added, “The need to find a resolution to this issue …

The International Air Cargo Association (TIACA) has elected Kamesh Peri, Chief Executive Officer, Celebi Delhi Cargo Terminal Management as their Board of Directors in order to broaden the Board’s sector knowledge and efficiently serve the air cargo industry. Kamesh brings more than 30 years of senior leadership experience in the aviation industry encompassing South Asia, the Middle East, Europe, Africa, and North America in various geographies. In his previous stint he has been with reputable organisations like Lufthansa Cargo AG & Menzies Aviation and as a consultant for large clients in the aviation business, providing advisory, strategy & implementation. Commenting on the development, Mr Kamesh Peri, CEO, Celebi Delhi Cargo said, “I am thrilled to be given the responsibility of being a part of the TIACA Board of Directors. TIACA’s vision is a safe, profitable and united air cargo industry that embraces modern technologies and practices to sustainably and fairly serve trade and social development worldwide. Through collaborative efforts, I look forward to helping shape TIACA’s vision and promising future.” TIACA has also appointed Kai Domscheit, CHI Handling; Dan Sheehan, UPS; Tushar Jani, Cargo Service Center India; Roos Bakker, Schiphol Airport and Massimo Roccasecca, Verona-Brescia Airport as board members in order to bring their perspective and experience across the industry sectors to ensure every sector’s view is well represented within the group. Çelebi has been in India for more than a decade now and has been successfully carrying out comprehensive ground handling operations at the major airports of the country – Mumbai, Delhi, Bangalore, Hyderabad, Cochin, Ahmedabad and Kannur, and is planning to expand its operations into other airports. In addition to the ground handling services, the company also started …

Earlier this week, the Ministry of Defence (MoD) announced that a 13 acre defence land parcel will be allotted to the Airports Authority of India (AAI) for Pune International Airport. The airport currently has only 500 sq ft of space for its cargo operations. The land parcel will be given from the BSO yard and the CWE office, and will include a 2.5 acre land parcel allotted earlier. The decision comes at the right time considering that India will soon resume its scheduled international flights. We have received a letter from the MoD and now, a committee will be formed. The committee will check the inventory of the defence land which is going to be handed over so that the same type of inventory can be allotted to another land before the handover takes place.” said, Santosh Dhoke, Director, Pune International Airport The currently limited space occupied by the Airport for cargo services limits its international as well as domestic cargo operations, putting it far below the other airports in India. The Airport authorities are also planning to develop an airport apron on the said land, which is being touted to bring a boost to the overall development of Pune Airport. “The 13 acre of land will be occupied by national and international cargo and an apron will be created for the air craft. Right now, we cannot say exactly how much square feet of land we will have for cargo but expansion is a must,” said Dhoke. Pune International Airport, being close to the economic capital of India, Maharashtra, has seen a rise in the number of number of exports as well as the volume of exports in recent …

BIAL has been sprinting towards becoming a runway for excellence and innovation, establishing the Kempegowda International Airport, Bengaluru (BLR Airport) as India’s leading airport for perishable shipments since late 2021. During FY2020-21, the BLR Airport processed 48,130 MT of perishables, including 28,182 MT of poultry and 1,296 MT of flowers, as per the APEDA database. The top among 46 international destinations, for a whopping 31% of the country’s total perishable shipments, were Doha, Singapore, London and Muscat. “Perishable cargo has been one of the major growth drivers for BLR Airport. Our cargo infrastructure, powered with technology, provides rapid distribution of perishable cargo, making BLR Airport the preferred cargo airport in South India. Our aim is to create an environment that enables our cargo partners to introduce new initiatives and facilities that cater to constantly evolving demand.” said, Satyaki Raghunath, Chief Strategy and Development Officer, BIAL The favourable developments at the BLR Airport are a result of the efforts of a number of organizations. The Airport gets 24×7 assistance from Indian Customs, and the Plant Quarantine Office in Bangalore, the Agricultural and Processed Food Products Export Development Authority (APEDA) & the Karnataka State Agricultural Produce Processing and Export Corporation Limited (KAPPEC) help in faster movement. The APEDA acts as the link between perishables’ exporters and the BLR Airport to facilitate seamless transportation of cargo. They have also been instrumental in the promotion of export-oriented production, improving packaging standards, training in various aspects of perishable industries and assisting perishable exporters with various financial assistance schemes.

The International Air Transport Association (IATA) released data for global air cargo markets showing slower growth in January 2022. Supply chain disruptions and capacity constraints, as well as a deterioration in economic conditions for the sector dampened demand. Demand growth of 2.7% in January was below expectation, following the 9.3% recorded in December. This likely reflects a shift towards the more normal growth rate of 4.9% expected for this year. Looking ahead, however, we can expect cargo markets to be impacted by the Russia-Ukraine conflict. Sanction-related shifts in manufacturing and economic activity, rising oil prices and geopolitical uncertainty are converging. Capacity is expected to come under greater pressure and rates are likely to rise. To what extent, however, it is still too early to predict,” said Willie Walsh, IATA’s Director General

Global air cargo markets are already feeling the effects from the Russia-Ukraine conflict, according to IATA, however, the in-depth impact of the same is still to be assessed. Making the assessment based on its latest cargo demand data, IATA reveals that January has been a soft patch for the industry with a global growth of 2.7%, the lowest rise in cargo tonne kilometres (CTKs) since December 2020. Citing the factors responsible for the impact, IATA says that the Omicron variant of Covid-19 on passenger and cargo-only networks in January, notably reduced bellyhold cargo capacity as services were cancelled, plus weaker economic drivers have led to the soft patch of the industry. The airline association further suggested, that due to the pre-Ukraine conflict, the air cargo market was likely shifting “towards a more normal growth rate of 4.9% expected for this year”, following much higher increases throughout 2021. War in eastern Europe has introduced several uncertainties into that market and was already having a negative impact from late February, the airline body states. Consequences seen so far will ”further reduce available capacity and increase already elevated air cargo rates”, IATA says, adding that it is too soon to predict the extent of those developments. However, the increasing cost of crude oil, is likely to be “unprofitable for airlines and air cargo more expensive for businesses”. Although Russia accounts for only 0.6% of global air freight carried, the airspace restrictions will significantly reduce the cargo services to and from Russia, IATA notes. Nevertheless, “several key operators” in the sector are based in Russia and Ukraine, it states. The airspace restricton is also hampering with the Europe and Asia trade, although alternative routings …