Category Archives: Aviation

The latest preliminary figures from WorldACD Market Data indicate that air cargo tonnages recovered at the end of January and the beginning of February, as expected after the early Lunar New Year this year, but the increase was significantly stronger than in the equivalent period last year. Figures for week 5 (30 January to 5 February) show an increase of +11 per cent in worldwide tonnages compared with the previous week, following a large decrease the week before of -13 per cent, mainly driven by the Lunar New Year that started on 22 January. In the same period last year, tonnages increased by +3 per cent. After falling by around -8 per cent in week 4, the global average rate level recovered slightly (+1 per cent) compared with the previous week, similar to the trend observed last year, but prices remain well below their level prior to Lunar New Year. Comparing weeks 4 and 5 with the preceding two weeks (2Wo2W), tonnages are down significantly (-8 per cent) below their combined total in weeks 2 and 3, with average worldwide rates also down by -8 per cent, despite a -4 per cent decrease in capacity – based on the more than 400,000 weekly transactions covered by WorldACD’s data. On a regional level, the effect of the Lunar New Year on air cargo tonnages was most notable on flows outbound from Asia Pacific to Europe (-41 per cent), North America (-40 per cent) and the Middle East & South Asia (-38 per cent), respectively, but also on intra-Asia Pacific flows (-23 per cent). Strong increases were recorded from Central & South America to North America (+37 per cent), from Africa to …

Air Canada Cargo and Emirates SkyCargo have signed a Memorandum of Understanding (MoU) to deliver more benefits to their air freight customers around the world. The MoU, which builds on the airlines’ strategic commercial partnership announced last year, was signed at Emirates Headquarters in Dubai, UAE by Nabil Sultan, Emirates Divisional Senior Vice President, Cargo and Matthieu Casey, Managing Director Commercial, Air Canada Cargo. Under the terms of the MoU, Air Canada Cargo and Emirates SkyCargo will work closely on a number of initiatives, which include expanding cargo interline options and block space agreements, pending any required regulatory approvals. These enhancements aim to offer freight customers of both airlines access to more capacity on a larger combined global network. Air Canada Cargo will have access to Emirates SkyCargo’s high frequency distribution network through the belly-hold of Emirates scheduled passenger flights to over 140 global destinations, as well as the additional capacity offered by 11 freighters currently in the Emirates fleet. In return, SkyCargo will have access to over 60 cities in Canada and more than 150 cities across five continents through Air Canada Cargo thanks to a fleet of Boeing 767 freighters and the belly-hold capacity of Air Canada’s scheduled passenger flights.

Hyderabad-based real estate developer Laxmi Nivasam Developers has officially announced the launch of Laxmi Logistics Parks across India starting with Chittoor, Sadasivpet & Lucknow. This marks the brand’s foray into the warehousing and logistics business. Laxmi Logistics Park will be constructing 6.75 lakh sq. ft warehousing space across 30 acres land. Built with an investment of approx. Rs 150 crore and will create 1200 job opportunities for the people in and around these cities.Laxmi Logistics Park is expected to be the one stop solution for all top companies like Flipkart, Amazon, P&G etc., all over India. Moreover, the company has provided the best option for investors who are looking for passive income. It offers 8-12 per cent monthly rental yield as return on investment (RoI) on purchase of 40-sq-yard land in the logistics park at an investment of Rs 5.24 lakh. Speaking at the event, Rajendra Prasad Samundarpally, Chairman and Founder of Laxmi Nivasam Developers, said: “We are happy to launch Laxmi Logistics Park. This venture is going to change the face of Investments to the common man & is one step away from making One million Millionaires by 2035. It is going to be one of the biggest ever logistics spaces with a thought of making a common man as an owner in our company, we have started offering monthly rental incomes. Our properties are lavish and affordable for everyone. And we definitely thrive to spread aggressively across India”.

Air India SATS will set up an integrated multimodal cargo hub at the upcoming Jewar airport in Uttar Pradesh in partnership with Zurich Airport, said Tata Group Chairman N Chandrasekaran, in his address at the UP Global Investors Summit. Air India has plans to connect every part of UP to the rest of India and potentially to important destinations of the world. I am happy to say that we are going to build an integrated multimodal air cargo through Air India SATS with our partner Zurich Airport in the new Jewar airport. Air India has a detailed plan to connect every part of UP to the rest of India and potentially to important destinations of the world,” he added.

Nitin Gadkari, Minister of Road Transport and Highways announced the opening of India’s largest Delhi to Mumbai Expressway with a length of 1,386 km to improve the connectivity betwee India’s National Capital Delhi and Fiancial Capital Mumbai. The minister said in a Linkedin post, “We are constructing the world’s fastest developed expressway which provides connectivity to 93 NMP Nodes, 8 MMLPs, greenfield airports (Jewar and Navi Mumbai) and port (JNPT). The 8-lane access controlled greenfield expressway would be built with alignment optimization to reduce to travel time to 12 hours from 24 hours. With a 180 km distance reduction (1424 km to 1242 km) it has scope for future expansion to the 12-lane epressway.”

Lufthansa Cargo has launched a new service that provides real-time tracking of the location and temperature of perishable products. The new service is launched in cooperation with Sensitech and Lobster Logistics Cloud and utilises sensors and GPS technology to monitor the location and ambient temperature of fresh produce during air and land transport. “This increases the safety of the goods, reduces the risk of losses and [therefore] makes fresh produce logistics more sustainable,” Lufthansa Cargo said. The airline’s head of airmail, courier & perishable handling, Oliver Blum, said: “We are all the more pleased that we have been able to develop another technical innovation in fresh produce logistics together with our partners Sensitech and Lobster Logistics Cloud. “This is a showcase example of how important it is to put our heads together to achieve climate and environmental goals.” The temperature loggers and Logistics Cloud’s tracking platform enable notifications in real-time, for example when specified parameters for temperature and humidity are reached. Andreas Tittel, strategic account manager at Sensitech, said that the real-time notifications allow customers to identify issues at an early stage and act accordingly.

Reacting on increased repo rate and how it will impact the logistics trade, C K Govil. Vice President, ACAAI shares, “An increase in the repo rate in India can have a significant impact on the logistics industry. This is because the logistics industry heavily relies on borrowing to fund its operations and investments in infrastructure. An increase in the repo rate means higher interest rates on loans, which can increase the cost of borrowing for logistics companies. This can lead to higher operating costs, lower profit margins, and decreased competitiveness for the industry. Moreover, higher interest rates can also affect consumer spending and reduce demand for goods, leading to a decrease in the volume of goods being transported. This can result in a slowdown in the demand for logistics services, putting pressure on companies to find ways to reduce costs and remain profitable. Overall, an increase in the repo rate can have a negative impact on the logistics industry in India, leading to higher costs and decreased demand for logistics services.”

Airfreight rates continued their downward spiral in January but are still above pre-Covid levels, according to the latest statistics from the Baltic Exchange Airfreight Index (BAI). It shows that average rates – both contract and spot – paid by forwarders on services from Hong Kong to North America in January declined to $6.14 per kg compared with $6.50 per kg in December and $10.90 per kg a year ago. However, rates on the trade are still 67.8% above the $3.66 per kg registered in January 2019 (pre-Covid). It was a similar story in services from Hong Kong to Europe where prices fell to $4.96 per kg from $5.52 per kg in December and $6.61 per kg a year ago. On this trade, rates stood at $2.83 per kg in January 2019. Rates are supported by higher fuel prices, the lack of belly hold capacity on certain trades and ongoing expensive charter/BSA operations signed at the height of the pandemic. On capacity, figures from Boeing presented at the recent World Cargo Summit show that overall capacity in November was only around 3% behind 2019 levels, but belly capacity was 23% down, with the difference made up by a 16% increase in dedicated freighters.

The Kempegowda International Airport, Bengaluru (BLR Airport) recorded its highest-ever cargo tonnage in Financial Year (FY) 2022, despite challenging circumstances due to multiple Covid waves. BLR Airport processed an all-time high tonnage for a fiscal year since Airport Opening Day (AOD) of 411,513 Metric Tonnes (MT) of cargo, recording a growth of 26% as against 326,643MT in FY 2021. International cargo recorded a 31.1% growth, 271,988MT processed, as compared to 207,518 MT in FY 2021. Domestic cargo grew at 17%, with 139,525MT versus 119,125MT in FY 2021. Perishable cargo has been one of the major growth drivers for BLR Airport. It is the No.1 airport in the country for handling perishables — estimated to account for 31% of India’s total perishable shipments. BLR Airport processed 39,518 MT of cargo in October 2021 — the highest ever for a month since AOD. International cargo processed (both imports and exports) was also the highest ever in October 2021, accounting for 25,695 MT. The Airport achieved a significant record by gaining 13% of India’s air cargo market share and 45% of South India’s air cargo market share. With this achievement, BLR Airport has become the only major airport in the country to show growth over pre-pandemic levels.

Everts Air Cargo is expanding its fleet with the conversion of an MD-88SF into a freighter configuration through Aeronautical Engineers, Inc. (AEI). The aircraft will commence conversion in March 2023 with modification touch labor being performed by Dothan, Alabama-based, Commercial Jet, which is an authorised AEI Conversion Center. Everts will use the freighter to accommodate fleet expansion plans. The AEI MD-88SF is capable of carrying 12 88” x 108” Containers/Pallets. Everts Air Cargo is the sister company to Everts Air Alaska and serves customers residing in larger Alaskan cities, as well as, small villages in remote locations. The company’s primary business is transporting freight and mail, as well as the movement of oversized freight, hazardous materials and small packages. The company’s fleet consists of C-46 and DC-6 aircraft, which are well-suited to the many shorter, unimproved gravel or ice runways in Alaska, along with DC-9s, and MD-80s.