Category Archives: International

DSV Panalpina releases the interim financial report for the first six months of 2021. The results show strong growth in EBIT before special items of 64, 7 percent during the first six months of 2021 compared to the same period in 2020. The great performance was driven by 18 percent growth in gross profit and a high productivity across all divisions. Jens Bjørn Andersen, Group CEO, “We are proud to report strong results for the first six months of 2021, where we deliver an EBIT result equivalent to our full-year EBIT of 2019. This is a clear testament to the successful integration of Panalpina and a strong performance by our organisation in an extraordinary market environment. The logistics markets continue to be characterised by tight capacity, congestion and low visibility.

The demand to transport global vaccination, consumer good are increasing and companies are looking for alternative transport solutions as the sea freight as well as on the Iron Silk Road market are tight. Despite capacity constraints in air freight, cargo-partner offers its customers weekly charter flights from Asia to Europe and has recently extended its successful charter program. In addition, further destinations have been added to the existing network. The resurgence of the global economy is in full swing and industrial production is picking up again. Private consumption in particular, but also the automotive, high-tech and retail sectors are considered drivers of this development. To help customers maintain their supply chains, cargo-partner has been offering regular charter services from Hong Kong to Budapest with two departures per week since spring 2020 (only one departure per week during the summer months). In response to increasing customer demand, the transport and logistics provider has now extended its scheduled charter services between Asia and Europe until the end of the year. To complement this high-demand service, cargo-partner has also introduced weekly charter flights from Frankfurt to Zhengzhou and back, starting in June 2021.

The International Air Transport Association (IATA) released data for global air cargo markets for June showing a 9.9% improvement on pre-COVID-19 performance (June 2019). This pushed first half-year air cargo growth to 8%, its strongest first half performance since 2017 (when the industry posted 10.2% year-on-year growth). As comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of COVID-19, unless otherwise noted, all comparisons to follow are to June 2019 which followed a normal demand pattern. • Global demand for June 2021, measured in cargo tonne-kilometers (CTKs*), was up 9.9% compared to June 2019. • Regional variations in performance are significant. North American carriers contributed 5.9 percentage points (ppts) to the 9.9% growth rate in June. Middle East carriers contributed 2.1 ppts, European airlines 1.6 ppts, African airlines 0.5 ppts and Asia-Pacific carriers 0.3 ppts. Latin American carriers did not support the growth, shaving 0.5 ppts off the total. “Air cargo is doing brisk business as the global economy continues its recovery from the COVID-19 crisis. With first-half demand 8% above pre-crisis levels, air cargo is a revenue lifeline for many airlines as they struggle with border closures that continue to devastate the international passenger business. Importantly, the strong first-half performance looks set to continue,” said Willie Walsh, IATA’s Director General.

Hapag-Lloyd, a German container shipping company, has decided to suspend its booking of import containers bound for Bangladesh via Singapore for a month. The container transportation company announced on June 24 that bookings for cargo moving into Bangladesh via Singapore would not be possible for the next four weeks due to an increased backlog of containers destined for Chattogram at the transhipment port. However, the decision is not applicable for export bound containers from Bangladesh, said Abul Kalam Azad, general manager of operations at GBX Logistics, the local agent of Hapag-Llyod. “Hapag-Llyod was forced to take such a decision after facing a huge pile up of its Bangladesh-bound import cargo at Singapore port, which is choking with congestion,” Azad said. More than 3,500 Bangladesh-bound import containers being carried by the company are now sitting idle in Singapore. This situation was caused by the increased number of import containers heading for Chattogram and reduced transport capacity among feeder operators.

Volga-Dnepr Airlines has played an essential part in the implementation of the large-scale Omani Oil and Gas project with a smooth and seamless delivery of two gigantic oil well rigs to the capital of Oman. The complex delivery for two advanced automated well service rigs, weighing almost 120 tons, was accomplished in partnership with Pentagon Freight Services Canada, who engaged Volga-Dnepr for a timely and efficient logistics solution to meet the end-user’s stringent delivery time whilst overcoming many challenging aspects of loading and required detailed and complex computer modelling to ensure they were safely loaded for transportation. The six-leg flight, lasting five days, was organised from Calgary, Canada to Muscat, Oman aboard one of Volga-Dnepr’s modernised An-124-150 which has an extended payload carrying up to 150 tonnes including loading equipment. Adrian Pruden, vice-president of Pentagon Freight Services Canada praised Volga-Dnepr and their operations and flight crew for the smooth seamless operation. “Pentagon and Highwood Technologies were very pleased and fortunate to work alongside such industry experts to properly plan and execute such a time sensitive project. Another well executed job by Volga-Dnepr and we look forward to the next one!”

Qatar Airways Cargo has extended its cool chain industry partnerships by joining Cool Chain Association (CCA), a non-profit organisation, effective 28 July 2021. Founded in 2003, the association aims to reduce food wastage and improve the quality, efficiency and value of the temperature sensitive supply chain by facilitating and enabling vertical and horizontal collaboration, education and innovation amongst its members and stakeholders. Guillaume Halleux, Chief Officer Cargo at Qatar Airways said, “Through our membership with Cool Chain Association, we look forward to collaborating with its members, and contributing to CCA’s vision of improving quality of temperature-sensitive products, increasing sustainability and reducing waste, thereby also contributing to the health of the planet, which aligns with our sustainability programme WeQare.” “CCA members are focused on developing tangible programmes and backing projects which help reduce food waste and ensure that life saving pharma consignments safely reach their destination and this has never been more relevant than now,” said Stavros Engelakakis, Chairman, CCA.

DB Schenker is continuing on its course of growth in Finland. Five terminals and more than 260 employees are now joining the network of the leading logistics provider in northern Europe, as DB Schenker in Finland has concluded an agreement to acquire the entire share capital of Vähälä Logistics Oy and its wholly-owned subsidiaries, together known as Vähälä Yhtiöt. The Finnish family-owned logistics group was founded in 1937 and offers domestic land transport services in central and northern Finland as a partner of the DB Schenker network. This cooperation dates back to 1956. “With this acquisition, we are strengthening DB Schenker’s position in Europe,” says Helmut Schweighofer, CEO of DB Schenker in Europe. “With the takeover of Vähälä Yhtiöt, a company that already operates for DB Schenker in Finland, we have the opportunity to expand the structure of DB Schenker’s land transport network in central and northern Finland.”

Leading logistics and supply chain company Jeena & Co. and German-based Hermes World have come together in a strategic and exclusive partnership, where Hermes will represent Jeena in Germany and Jeena will represent Hermes in India. Jeena has been handling the Otto business for over three decades and this association is now one step further in forging the relation spread across Sea and Air freight. Speaking on this partnership, Stephan Schiller – CEO, Hermes International said, “Jeena and the Otto Group have already been working together for more than 30 years. It therefore made sense to deepen this cooperation when setting up the Sea and Air business segment (now Supply Chain Solutions) at Hermes. Working with a local expert like Jeena gives us and our customers an advantage in the Indian market. Despite its considerable size, Jeena is a family-run company with fast decision-making processes, a sustainable strategy, and great personal relationships at all levels – everyone benefits from this corporate culture”.

LATAM Airlines has been awarded Worldwide Flight Services (WFS) a cargo handling contract extension at Barcelona Airport, Spain. Having initially appointed WFS in Barcelona in 2018, LATAM has now signed a new three-year agreement for WFS to handle cargo on board its Boeing 767 operations, carrying import and export shipments through Barcelona annually. “WFS is our partner for cargo handling services in Europe. The renewal of our contract for Barcelona is the reaffirmation that our relationship is based on WFS’ good quality service,” commented Eva Penalva, LATAM’s regional operations manager, Cargo. Humberto Castro, WFS’ managing director – Cargo, Spain, said, “It is especially satisfying when our existing customers extend their contracts with WFS because it demonstrates that our handling teams are delivering the service levels, safety and security airlines need, and this is a tribute to their hard work. We remain committed to providing the best airport handling services to support the recovery and growth of the aviation industry in Spain.”

EL AL Israel Airlines is accelerating its digital presence with real-time eBookings, access to live rates, and visible air cargo capacity through WebCargo, a Freightos Group company. With the pandemic fueling digital adoption among both carriers and forwarders, EL AL is tapping into WebCargo’s platform. EL AL Cargo will be rolling out on WebCargo across a network covering the United States, Europe, and Asia, offering freight solutions for all types of customers and freight. This engagement enables more than 2,500 WebCargo forwarders across over 10,000 global branches instant access to capacity, pricing, and booking on EL AL Cargo. “Digital adoption has always been a top priority for EL AL, and as air cargo demand continues to rise, providing our customers with instant and accurate information is essential,” said Ronen Spira, head of EL AL Cargo division.