Category Archives: International

The International Air Transport Association (IATA) has released the data for global airfreight markets showing that demand for air cargo decreased by 10.6% in 2020, compared to 2019. This was the largest drop in year-on-year demand since IATA started to monitor cargo performance in 1990, outpacing the 6% fall in global trade in goods. Global demand in 2020, measured in cargo tonne-kilometers (CTKs*), was 10.6% below 2019 levels (-11.8% for international operations). Global capacity, measured in available cargo tonne-kilometers (ACTKs), shrank by 23.3% in 2020 ( 24.1% for international operations) compared to 2019. This was more than double the contraction in demand. Due to the lack of available capacity, cargo load factors rose 7.7% in 2020. This contributed to increased yields and revenues, providing support to airlines and some long-haul passenger services in the face of collapsed passenger revenues. Improvements towards yearend were demonstrated in December when global demand was 0.5% below previous-year levels (-2.3% for international operations). Global capacity was 17.7% below previous-year levels ( 20.6% for international operations). That is much deeper than the contraction in demand, indicating the continuing and severe capacity crunch. With the stalling of the recovery in passenger markets, there is no end in sight for the capacity crunch. “Air cargo is surviving the crisis in better shape than the passenger side of the business. For many airlines, 2020 saw air cargo become a vital source of revenues, despite weakened demand. But with much of the passenger fleet grounded, meeting demand without belly capacity continues to be an enormous challenge. And, as countries strengthen travel restrictions in the face of new coronavirus variants, it is difficult to see improvements in passenger demand or the …

TIACA and Pharma.Aero has jointly released their second report for the global air cargo and pharmaceutical industries, outlining recommended practices and insights for effective COVID-19 vaccine air transportation and handling. The report reinforces that COVID-19 vaccines are of high value and urgent time and temperature sensitive products. As the vaccines are being transported across the globe, it is apparent that the challenge of COVID-19 vaccine global distribution demands the highest standards of Speed, Security, Reliability and Transparency. “To this end, open communication and air cargo community collaboration are paramount,” stated Nathan De Valck, Chairman of Pharma.Aero. The report details the role and recommended practices for each stakeholder in the air cargo supply chain when addressing the four major requirements identified. Both TIACA and Pharma.Aero encourage the industry to adopt a local air cargo community approach in executing these specific requirements. The project welcomed the formation of local air cargo communities in several key air cargo hubs, including some members of Sunrays’ Joint Task Force (JTF): • Brussels Airport’s BRUcure Task Force: Brussels Airport together with Air Cargo Belgium started the BRUcure task force, aiming to prepare the local cargo community stakeholders and align all resources and procedures for the correct handling of Covid-19 vaccines once they started moving through Brussels Airport. • Edmonton International Airport’s CEIV Cargo Community Ready Response: In early fall 2020, Edmonton International Airport’s CEIV cargo community and partners began preparing for the safe arrival, storage and deployment of vaccines destined for the Canadian region. • Miami International Airport’s MIAVAC19 Task Force: In anticipation of the eventual development of a COVID-19 vaccine, Miami International Airport formed the MIAVAC19 Task Force, a community partnership made up of both …

TOWER Cold Chain Solutions has entered into an exclusive partnership with SpiceJet and EFL India. The alliance will apply a seamless, multi-skilled approach to pharmaceutical and vaccine deliveries across India and the sub-continent. Senthil Shanmugam, CEO, EFL Global & Managing Director, EFL India, says, “The containers we chose are obviously of the upmost importance for this expansion and operation as we need to know that they are not only reliable but they are robust and reusable. After long consideration and market analysis we chose TOWER above all others for the flexibility and reliability they bring. To have a partner we can rely on like TOWER allows us to push forward with confidence and ensure we deliver compliant vaccines and save as many people lives as possible.” SpiceJet will provide narrow and wide-bodied aircraft to carry TOWER containers and Covid-19 vaccines across India. With over 90 aircraft, SpiceJet will look at distributing across 63 domestic airports and 11 international airports to ensure the supply chain and distribution objectives are met. Sanjiv Gupta, CEO, SpiceJet Cargo, comments, “The Covid-19 pandemic has brought forth the fact that Indian cold-chain infrastructure for pharmaceutical products is rudimentary and will take time to evolve. The tripartite agreement signed between SpiceXpress, Expo-Freight and TOWER, envisages to provide the pharma companies a speedy and reliable end-to-end cold-chain logistics solution. This strategic partnership is believed to lay a strong foundation for cold-chain infrastructure not only in India, but overseas too.”

CEVA Logistics has further expanded its reach in South East Asia with the opening of a new warehouse located in Bien Hoa City, Dong Nai Province in Vietnam. Strategically located to the north east of Ho Chi Minh City, this new facility has a range of convenient connections to the Eastern Economic Zone as well as the city. The new facility will support customers’ storage and distribution needs including value-added services across various industries. CEVA Logistics’ multi-user distribution centre spans 10,000m² and is designed to provide storage and fulfillment solutions with value-added services such as co-packing, labelling, kitting and consolidation services for B2B and B2C distribution across Vietnam. The facility will act as CEVA Logistics’ main hub for south and central Vietnam, leveraging CEVA Logistics’ in-house warehouse management system capabilities and suite of solutions supporting global and local customers in a fast-growing environment. Elaine Low, CEVA Logistics’ Regional Managing Director South East Asia & Pacific Region, says, “This new facility allows us to continue to expand our capabilities in support of our customers’ growth in Vietnam complementing our air, ocean and ground services. It will provide customers with additional storage and various services to meet their rapidly expanding supply chain needs in the country. Its strategic location means customers will also be able to take advantage of new transport infrastructure coming to the region as economic growth gathers further momentum.”

DB Schenker collaborates with Microsoft to accelerate the logistics service provider’s transformation towards becoming a leading global digital logistics company. Within this collaboration, DB Schenker has set the next milestones for the evolution of its future ‘logistics-as-a-service’ approach. Markus Sontheimer, CIO/CDO, DB Schenker, says, “Our digital services will create value for our customers by making supply chains more data-driven and efficient. Using Microsoft Azure will boost our ability to seamlessly connect our cloud- based services with our real-world logistics solutions.” Ulrich Homann, Corporate Vice President & Distinguished Architect, Cloud + AI at Microsoft said, “Investments in digital technologies help companies reimagine their businesses and build more agile and resilient operations. By harnessing Microsoft Azure, DB Schenker enables organizations to redefine their supply chains and accelerate the delivery of new customer value.” DB Schenker will migrate key infrastructure services to Azure. This will enhance security, speed and scalability of DB Schenker’s cloud-based services. DB Schenker has already commenced the first cloud migration projects by using the Azure Migration Program in several country organizations. AMP supports with best practices, guidance, direct access to Azure engineers, tools and subsidized partner services. A new Big Data service on Azure will enable DB Schenker to analyse and optimise volumes, capacities and supply chain performance in near-real time.

DP World and UNICEF have announced a wide-ranging partnership to support the global distribution of COVID-19 vaccines and related immunisation supplies in low and lower middle-income countries. The new partnership – with a multi-million dollar value – is the largest to date to support UNICEF’s lead role in procuring and supplying 2 billion doses of COVID-19 vaccines and auxiliary vaccination supplies on behalf of the COVAX Facility. DP World and UNICEF will also collaborate on other global programs in support of education, health, women’s empowerment and water and sanitation. DP World will provide UNICEF with logistics solutions and supply-chain expertise. By using DP World’s warehouse facilities in Dubai, UNICEF will have optimised access to many countries. In addition, DP World has committed to leveraging its global logistics infrastructure and services on a pro-bono basis in support of COVID-19 vaccine logistics needs, including transport, port and storage requirements in countries where DP World is present. Dubai is currently used by UNICEF as a strategic hub for pre-positioning auxiliary materials needed for the COVID-19 vaccine campaigns, such as syringes and safety boxes. The partnership was signed by Henrietta Fore, UNICEF Executive Director, and Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World. It arose from UNICEF’s collaboration with the World Economic Forum’s Supply Chain and Transport Community, of which DP World is a member and explores how the community collectively could support an equitable access to the COVID-19 vaccines globally. “Distributing COVID-19 vaccines is humanity’s biggest logistics challenge since the end of the Second World War,” said Sultan Ahmed bin Sulayem. “We offer our infrastructure and expertise to support this effort because everyone should have access to vaccines, especially the most …

UPS (NYSE: UPS), has entered into a definitive agreement to sell UPS Freight (UPSF) to TFI International Inc. (NYSE and TSX: TFII) for $800 million, subject to working capital and other adjustments. “We’re excited about the future and the opportunities this creates for both UPS and UPS Freight as part of TFI International Inc.,” said Carol Tomé, Chief Executive Officer, UPS. “The agreement allows UPS to be even more laser-focused on the core parts of our business that drive the greatest value for our customers.” The decision to sell UPS Freight was reached following a thorough evaluation of the UPS portfolio, and aligns with the company’s ‘better not bigger’ strategic positioning. UPS and TFI International will also enter into an agreement for UPS Freight to continue to utilize UPS’ domestic package network to fulfill shipments, for a period of five years. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close during the second quarter of 2021. UPS expects to recognize a non-cash, pre-tax impairment charge of approximately $500 million on its statement of consolidated income for the year ended December 31, 2020. Goldman Sachs & Co. LLC is serving as financial advisor, and King & Spalding LLP is serving as legal advisor to UPS.

Jettainer has developed and launched ‘plug & fly’, a new basic version of its full-service ULD solution to help airlines optimise their ULD fleet by 15 per cent while making sure that the ULDs are available anywhere, at any time at transparent fixed prices. With plug & fly, small and mid-sized airlines will now be able to unlock the benefits of outsourced ULD management in a way that is quick and easy. “Big carriers are not the only ones who get to enjoy optimised ULD fleets and the smart global management services provided by Jettainer’s industry experts. Many other airlines with fleets of up to 2,000 ULDs can now reap the rewards too. To arrive at this destination, we had to take a separate, more streamlined approach that we are now rolling out with plug & fly,” said, Thomas Sonntag, Managing Director. Jettainer offers all kinds of ways to customise partnerships with airlines; from ULD management to maintenance and repair, from deploying controllers directly at the customer’s premises to many other additional services. Yet, these tailored full-service solutions do not meet the needs of each and every airline. Leveraging a wealth of possible ULD services, Jettainer has therefore developed a basic product with a fixed pricing model that is guided by the number of ULDs. These assets remain the customer’s property. By optimising the ULD fleet quantity, Jettainer generates direct and immediate cost savings for the customer. These savings come in addition to reduced costs for airlines’ own IT and coordination efforts, which are typically incurred with in house solutions. Jettainer uses an integrated IT solution harnessing artificial intelligence, ensuring real time visibility of ULDs and inventories. Jettainer’s customers also …

dnata has opened a new, state-of-the art cargo complex, dnata City North, at Manchester Airport (MAN). Representing an investment of over GBP 30 million, the 150,000 sq ft² facility allows the company to significantly expand and consolidate its Manchester operations. Particularly well-situated for ease of airfield access, dnata’s purpose-built on-airport facility includes 125,000 sq ft² warehouse space and is capable of processing in excess of 150,000 tons of cargo annually. It is equipped with the latest technologies and complies with the highest industry standards ensuring efficient and safe handling of all types of cargo, including pharmaceuticals, perishables, dangerous goods, aircraft engines and vehicles. Alex Doisneau, Managing Director of dnata UK, said, “We are thrilled to announce the opening of another world-class cargo facility in a strategic location in the UK. Our new, purpose-built facility in Manchester complements our existing multiple UK operations including the dnata City complex at London Heathrow, enabling customers to enhance their operations in the region. “Our continued investment and expansion in the UK underlines our commitment to our customers and the local cargo industry at a critical time, providing operational excellence at key gateways across the country.” Gareth Jackson, MAG Group Property Director, said, “The new facility will further enhance the role we play in ensuring freight is seamlessly transported into and out of the North region markets from all parts of the world. Not only will the centre help the North’s trade credentials, it will boost employment opportunities for communities in Greater Manchester too. We look forward to working closely with dnata as it continues to grow from Manchester Airport.”

Bolloré Logistics Switzerland has handled the door-to-door shipment of 50 tonnes of temperature-sensitive pharmaceutical products from Europe to Iraq for a leading biotech company. The operation started on January 16 at the customer’s warehouse in Germany. The goods were carefully packed in passive cool boxes equipped with cooling elements to maintain the temperature of +2°C to +8°C. For additional protection were the pallets covered with special thermal blankets. The pre-transport to Cologne airport was executed by temperature-controlled full truck loads and the air freight to Bagdad airport by full charter A330F. The precious shipment was upon arrival at destination on the tarmac directly loaded into pre-conditioned temperature-controlled trucks for delivery to the consignee. Based on detailed preparation and in-depth process set-up with the various stake holders was the complex customs clearance finalized within a record time to make it possible that the entire operation of the end-to-end delivery was accomplished within 24 hours. The optimal transport conditions ensured the perfect preservation and integrity of the pharmaceutical products.