Category Archives: International

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.

Following Russia’s invasion of Ukraine two weeks ago, the global seaborne commodities trading map is still being rebuilt at a breakneck speed. The US announced a ban on Russian oil and other energy imports. In remarks from the White House, President Joe Biden declared, “We’re prohibiting all imports of Russian oil, gas, and energy.” “This means Russian oil will no longer be accepted at US ports, and the American people will give Putin’s war machine another heavy blow.” This will only apply to energy imports into the United States. The United Kingdom plans to enact such a prohibition “before the end of the year.” Other European allies are not expected to join the US in the ban, at least for the time being. German chancellor Olaf Scholz said that although Berlin supported tough measures against Moscow, Russian energy supplies remained “essential” for daily life in Europe. Russia exported 114.2 million tonnes of crude oil to the European Union in the same year, accounting for 53.9 percent of Russia’s seaborne crude exports, plus another 40 million tonnes through pipeline. It sent 4.3 million tonnes of clean oil products to the United States last year, accounting for 6% of Russia’s seaborne clean product exports. Russia sent 41.9 million tonnes of clean oil products to the EU in the same year, accounting for 57.9% of Russia’s seaborne clean product exports. The European Commission outlined plans to rid the continent’s dependency on Russian natural gas by two-thirds by the end of the year, in a plan called REPowerEU. Meanwhile, the war and subsequent sanctions are seeing ships and cargoes pile up at ports across Europe. Leading liners – with the notable exception of COSCO …

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 …

Lessor Jetstream Aviation Capital has delivered a Saab 340B(F) cargo converted aircraft to US carri Castle Aviation. The aircraft is the fifth of a multi-aircraft commitment between Miami-based Jetstream and Ohio-based Castle and will be used for ad-hoc cargo charter and Castle’s scheduled operations on behalf of a major international logistics integrator. Prior to delivery to Castle, it underwent significant maintenance including overall refurbishment, inspections, painting and passenger-to-cargo conversion utilising the TABY Aircraft Maintenance Saab 340 Supplemental Type Certificate process. Castle Aviation, founded in 1984, is an FAA Part 135 air carrier. In addition to the five Saab 340 cargo aircraft, Castle operates two additional Saab 340B aircraft, also leased from Jetstream, in a dedicated live animal transport configuration on behalf of Puppyspot Aviation. Castle also operates eight Cessna Caravans, and four Piper Aerostars for passenger and cargo charter and long-term contract operations for third parties. Castle has recently completed a world-class 60,000 sq ft facility at Akron-Canton Airport in Ohio. In 2004, the company was the launch customer and world’s first operator of the Saab 340A(F) converted freighter.

Embraer has launched a programme to convert pre-owned E190s and E195s from passenger jets to freighters. The E-Jet freighter programme has been created in response to e-commerce growth and increased demand for cargo capacity, especially to smaller markets. The E190F will have a payload of 10,700kg and the E195F of 12,300kg. First deliveries are planned for 2024. Structural modifications to the aircraft include the removal of overhead “bins”, installation of new smoke detection and fire suppression systems, a new forward cargo door and reinforcement of the maindeck floor with installation of a cargo handling system. “What really makes the E-Jet freighters attractive is their ability to offer optimised loading configurations,” said Brazil-headquartered commercial jets manufacturer Embraer. “Cargo carriers can therefore maximise efficiency by better matching capacity to demand. The E-Jet freighters offer greater frequency and better operating economics in smaller markets than larger aircraft.” The range and payload capacity of the E195F is similar to the B737-300SF (nearly 2,500 nm) but the E195F burns less fuel, generates fewer emissions, and has lower maintenance and cash operating costs, added Embraer.

As Russia continues its military assault on Ukraine, the Western economies and their allies have retaliated by imposing harsh sanctions on the Russian economy, practically paralysing it. The shipping industry would be particularly affected, as delays and shipping prices are projected to rise as a result of interruptions in the global supply chain. Approximately 15 maritime ports in Ukraine were closed when the war broke out. Cargo loading and unloading has ended. Around 140 ships berthed in Ukrainian ports at the time have remained in the ports ever since. So yet, none of the ports or the ships berthed in them have been attacked. Two ships were attacked while in anchorage leading traders to avoid Black Sea routes for their ships. The ship, which contains electricity, food, and the ability to create water, is always the safest place for sailors in the event of an accident. According to Sanjay Prashar, managing director of VR Maritime Services, while bunkers in ports have been discovered for safely lodging seafarers, ship crews have not moved out of their ships. One of the company’s ships has become trapped in a port in Ukraine. Indian crews are on board some of the stalled ships at Ukrainian ports.

American Airlines Cargo is embracing Digital Cargo, providing over 10,000 global forwarders with access to live rates, capacity, and instant eBookings through partnership with WebCargo, a Freightos group company. With widespread supply chain disruptions and clogged ports creating chaos for shippers, more customers are looking to air cargo for fast and reliable global shipping. This partnership will help support the air cargo industry by offering customers increased service options and reliability despite these challenging conditions. Bookings on American Airlines Cargo, one of the top carriers in North America, will be available via WebCargo’s platform across parts of Europe and North America in the first half of 2022 before expanding to other parts of the globe later in the year. With the pricing and capacity transparency offered by WebCargo, American can offer immediate booking options to even more customers and better support industry demand through the platform’s accessible, real-time data offering. “Over the last two years, e-commerce volume has surged and demand for global freight has increased. American Airlines Cargo has continued to adapt and innovate in order to deliver excellent customer service, and the digital solutions provided by WebCargo create another important step forward in ensuring continued connectivity and visibility for customers,” said Jessica Tyler, President of American Airlines Cargo.

Surcharge are being increased as supply chain disruption due to the Ukraine invasion continues. FedEx Express is introducing increasing its peak surcharges on FedEx Express parcel and freight shipments and TNT shipments for some shipments moving between Asia Pacific (APAC) and countries in APAC, Europe, Latin America and the Caribbean (LAC), and Middle East, Indian subcontinent and Africa (MEISA). The increases apply to some shipments moving between Europe and countries in all regions; and some shipments moving between India and countries in APAC, Europe, and MEISA. “Due to continued disruptions in the global supply chain, air cargo capacity remains limited. We are incurring incremental costs as we continue to adjust our international networks and operate in this constrained environment,” said FedEx. Express logistics firm UPS also increased the peak/demand surcharges applied to shipments from major Asia Pacific origins (excluding China, Hong Kong SAR or Macau SAR) to 19 countries in Europe on February 27, until further notice. DHL Express has not announced any new charges, but said on its website: “We have temporarily suspended DHL Express shipments to and from Ukraine, Belarus and for inbound shipments to Russia.” Forwarder Scan Global Logistics, which has temporarily suspended bookings to/from Russia and Belarus from 4-18 March, also said in a release: “Cargolux has introduced a war surcharge of USD 0.20/kg from cargo to and from Asia.”

Lufthansa Cargo expects global market capacity will be approximately 10% down as a result of the Ukraine invasion. Lufthansa Cargo chief executive Dorothea von Boxberg said this is because of restrictions for global fleets. Russian carriers are restricted by airspace sanctions by the European Union, UK and US, European carriers are not able to fly over Russia and Ukraine, while, Japanese carriers are flying around the Russian airspace and Middle Eastern airlines have seen no changes. Two high profile airlines to be affected are Volga-Dnepr Group airlines, which are not able to operate flights to Europe and North America, and Narita-hubbed Nippon Cargo Airlines that has temporarily suspended flights to Europe. Lufthansa Cargo also calculated a 10% capacity reduction for its freighter operations from Asia Pacific to the European Union. She confirmed that the closure of Ukraine airspace and Russia’s decision to close airspace to airlines from 36 countries has impacted operations. “That affects some of our most important routes into China, Japan and South Korea.” These routes would usually cross Russian space, but now a route south of Russia and Ukraine is being taken that means flights take 1.5 to 2.5 hours longer than normal. However, as the average door-to-door time of a shipment is five to six days, this extra time won’t make much difference to shippers. Payload restrictions are also an issue.