Category Archives: Aviation

Global air cargo demand increased three per cent in December compared to December 2022, according to the latest Air Freight State of the industry report by DHL Global Forwarding. Despite a slight increase in output price inflation observed in November 2023, it remained among the lowest levels seen in the past three years, contributing to an environment of relative stability. “PMI index increased to 50.4 in November from October’s 50.0, indicating a slight revival in production growth. Global demand remains low, leading to a decline in demand-driven price pressures towards their long-term average,” the report added. The report emphasises an upswing of 10 percent in air cargo capacity compared to December 2022. The growth is attributed to a 17 percent increase in passenger belly cargo capacity. However, certain regions experienced capacity constraints during Q423 due to higher seasonal demand, resulting in industry backlogs.

Global average air cargo rates are now 50 percent above their pre-Covid levels following the significant rebound in the last few months in demand and pricing, especially ex-China, according to the latest figures from WorldACD Market Data. Preliminary figures for week 50 (December 11-17) indicate that global tonnages and average worldwide rates have been stable compared with the previous week after recovering more quickly than last year from the seasonal post-Thanksgiving dip last month based on the more than 400,000 weekly transactions covered by WorldACD’s data. “Comparing weeks 49 and 50 this year with the preceding two weeks (2Wo2W), overall tonnages increased one percent and overall global average rates continued to rise, by two percent, with capacity up one percent. The figures indicate that demand and pricing are levelling off, as they usually do in the second half of December, after rallying in the last three months. Although the main driver for the recent increases has been a surge in tonnages and rates ex-Asia Pacific, especially China, volumes ex-Asia Pacific have now flattened although there have still been some modest rises in average rates ex-Asia Pacific, especially to North America (up four percent), on a 2Wo2W basis.” Tonnages to and from North America, and in some cases prices, have continued to recover in the last few weeks after dropping significantly for much of this year, especially outbound, the update added. “Notable tonnage increases in the last two weeks from North America include to Asia Pacific (13 percent), Europe (12 percent) and Central & South America (11 percent).”

DHL Express and Japan Airlines (JAL) have signed a long-term contract to utilise JAL’S Boeing 767-300 freighters. The companies that they aim to use the new partnership to leverage “growing customer demand in the expanding international express and e-commerce shipping market in the East Asia region”. JAL’s partnership with DHL will support previously announced plans to connect Japan, Seoul, Shanghai, and Taipei using Boeing 767-300ER freighters. Earlier this month, JAL said it would launch freighter operations on February 19. It has already taken delivery of one 767-300ER freighter converted from its passenger fleet, and is due to add a further two 767-300 freighter conversions. The airline first announced it would return to the freighter market after an absence of 13 years in May. In response to the growth of cross-border express shipments, DHL has strengthened its infrastructure network, including the recent inauguration of its expanded Central Asia Hub, its largest hub facility in Asia Pacific. The companies said DHL will further strengthen its intra-East Asia network using the routes which JAL will inaugurate in February.

Kempegowda International Airport Bengaluru (BLR Airport) has been honoured with prestigious accolades at the UNESCO’s 2023 Prix Versailles. The airport’s Terminal 2 (T2) has secured recognition as one of the ‘World’s Most Beautiful Airports’ and has been awarded the coveted ‘World Special Prize for an Interior 2023.’ The World Judges Panel for the Prix Versailles 2023, chaired by Elie Saab (renowned fashion designer), revealed the latest architectural projects to win a World Title. BLR Airport is the only Indian airport to receive this esteemed recognition, highlighting the airport’s commitment to exceptional design and architecture on a global scale. This remarkable achievement positions BLR Airport amongst the top airports globally. The Prix Versailles, established in 2015, focuses on “intelligent sustainability” as a cultural driver, acknowledging innovation, creativity, reflection of local heritage, ecological efficiency, and values of social interaction. T2, also known as the “Terminal in a Garden,” was inaugurated on November 11, 2022. Encompassing 255,661 square meters, the terminal is built upon four foundational pillars: technological leadership, a terminal in a garden, environmental and ecological stewardship, and a celebration of Karnataka’s rich heritage and culture. Embraced in engineered bamboo, the terminal’s interiors offer a contemporary yet classic ambiance. The terminal also features a spacious indoor garden with rammed-earth walls and waterfalls, as well as hanging planted bells, adding to the terminal’s unique aesthetic. Hari Marar, MD & CEO of Bangalore International Airport Ltd, said, “The nomination of Terminal 2 for the 2023 Prix Versailles Award is a moment of immense pride, and we are pleased to see the terminal receiving the recognition it deserves. T2, with its unique blend of art and technology, serves as a distinctive gateway, leaving a lasting …

Ethiopian Airlines has secured a $450m loan agreement that it will partly use to finance the purchase of two of its previously announced Boeing 777 freighters. The loan will also finance three Boeing 737-8 passenger aircraft. The airline said that “delivery of all the aircraft will be completed in the US state of Washington in December” but it did not specify when the freighters would join its fleet. The loan will be secured against the value of the five planes and has been arranged exclusively by Citi’s Corporate Banking and Export Agency and Finance teams. It is guaranteed by the Export-Import Bank of the United States (EXIM). Ethiopian took delivery of its 10th 777Flast month, for operation by Ethiopian Cargo. The aircraft is part of an order for five 777Fsmade by Ethiopian in May 2022. The B777 freighter can carry up to 107 tonnes of cargo with a maximum range of 9,200 km.

Cathay Cargo has announced the selection of the next-generation Airbus A350F freighter to meet its future fleet requirements. Cathay has placed an initial firm order with Airbus for six aircraft and has secured the right to acquire 20 more aircraft. This order for state-of-the-art aircraft to be delivered commencing from 2027 will help further strengthen Hong Kong’s status as the world’s number one air cargo hub, providing even greater cargo connectivity between Hong Kong, the Chinese Mainland and the rest of the world. Cathay Group Chief Executive Officer Ronald Lam said, “As we move into 2024, our rebuild journey is gaining momentum. This order marks another major component in our investment for the future. It reflects Cathay’s confidence in the Hong Kong hub as we look ahead to the opportunities provided by the Three-Runway System. “These highly fuel-efficient, next-generation freighters will provide important additional cargo capacity, expand our global network and contribute to our sustainability leadership goals.” *******

The air cargo peak season for 2023 appears to be peaking, according to the latest data from TAC Index, the leading price reporting agency (PRA) for air freight. “Following a series of rises in recent weeks, the overall Baltic Air Freight Index was slightly lower by 0.1 percent in the week to December 18, leaving it lower by 14 percent over the last 12 months,” says the latest update. Air freight prices outbound from Hong Kong – still the biggest airport in the world by cargo volume – kept going up last week, rising by a further one percent WoW to put that index ahead by nine percent YoY, led by a continuing rise in rates to North America. “However, outbound Shanghai gave back some ground after the recent surge, falling three percent WoW with rates to the U.S. dropping to leave that index only narrowly ahead YoY by 0.3 percent.” Market conditions continued to be mixed out of Europe, the update added. “Outbound Frankfurt gained six percent WoW, showing gains on rates both to China and to the U.S. though still lower by 48 percent YoY. Outbound London enjoyed no such bounce with rates falling on all major lanes to show a further WoW fall of five percent and a huge YoY drop of 57 percent. Meanwhile, the latest significant new addition to the data this week were air cargo rates from Europe to Japan, which showed a gain of three percent WoW.”

UPS has introduced a number of enhancements to its Asia Pacific network, including a new intra-Asia flight route, enabling customers in Singapore and Indonesia to ensure deliveries to the United States are completed in as little as two business days. The moves add more capacity and connectivity between Southeast Asia and UPS’s intercontinental network, and reduce delivery times from Singapore and Indonesia to the U.S. by one business day, says an official release. Additional upgrades to the regional network also mean businesses sending and receiving certain dangerous goods – including lithium batteries and dry ice – between Hong Kong and Singapore can now have these completed one day faster, the release added. UPS is also cutting delivery times on lithium battery shipments from Ho Chi Minh City to the United States and Europe by as much as two business days. “This is such an exciting announcement as it significantly benefits a really wide range of businesses located across the region and in a number of high growth sectors such as high tech and healthcare,” says Wilfredo Ramos, said President, Asia Pacific, UPS. “And it comes at a time of real opportunity, particularly for small businesses. In a post pandemic world, we see that supply chains are shifting and becoming more resilient. Companies around the globe require faster delivery times and seamless connectivity to gain competitiveness and capture even more opportunities as they look to build strong and reliable customer bases in markets with huge growth potential.”

The international cargo services at the newly established cargo terminal at the Pune airport have been inactive for the past nine months due to technical issues thus causing inconsiderable inconvenience to small producers, farmers and traders. The primary cause of the delay has been attributed to an incomplete broadband (LIS line) connection that links the computers within the cargo terminal project, says reports. Consequently, the customs department has withheld approval for the international cargo service at Pune airport. The domestic cargo services though have earned appreciation for making a positive stride in local logistics this year. It may be mentioned that international cargo services are considered to be crucial for connecting local businesses to global markets and bringing them good revenue. This technical glitch has resulted in a significant setback for those dependent on the international cargo service at the airport.

An agreement has been signed by Vietnam Airlines and Turkish Airlines to enhance cooperation in the field of air cargo transportation. The agreement aims to bring additional long-term benefits to air cargo customers and both airlines. Vietnam Airlines and Turkish Airlines intend to strengthen cooperation in cargo transport and will conduct research to enable the potential launch of an air cargo joint venture, providing customers with the benefits of a larger, faster network, enhanced direct flights, a wider range of destinations, and increased frequencies. Combining the resources of the two national airlines will support increased efficiency in the use of their aircraft capacities and further boost their position in global competition.