Showing posts with label cargo price index. Show all posts
Showing posts with label cargo price index. Show all posts

Wednesday, July 11, 2018


Freight Investor Services (FIS), global leader in freight & commodity derivatives, has published airfreight future price curve, starting a new discussion in this $70bn market.
In order to hep buyers & sellers in ascertaining seasonal price increase & tackling capacity issues , a new risk management tool is been designed by FIS.
FIS along with index provider TAC index developed a robust tool for air freight market comprising 35% of total global trade . This launch just coincides with the recent freight surge in market this giving a valuable tool in hand of freight forwarders to ascertain future market & negotiate better rates in market.
Asset owner leasing planes to carriers can also streamline there income by using this tool & will be able to control risk in a more controlled manner. 


Friday, March 20, 2015



If the air cargo community was under any illusion that its efforts to speed up door-to-door delivery and eliminate paper documents are winning over shippers, it may have to think again, writes Martin Roebuck.
Two major shippers tore into the industry for its poor service quality and communication in a no-holds-barred session at the World Cargo Symposium (WCS) in Shanghai.
Of more than 330 shippers who responded to a recent global IATA’s survey, 94 per cent ship some product by air, explained Tom Windmuller, the association’s senior VP airports, passenger, cargo and security. Scoring the industry from zero to 10, they gave the industry an average performance rating of 7.08.
Asked to give his own satisfaction rating, Robert Mellin, head of distribution logistics at Ericsson, awarded the industry a five. Alex Xu, associate supply chain director at Lilly Suzhou Pharmaceutical, said that five years ago he would have rated airfreight at seven or eight, but now it would be between six and seven.
It is not so much that standards are deteriorating, but the industry is perceived as struggling to keep up with customers’ evolving demands.
Windmuller said seven per cent of survey respondents were unhappy with their air freight service provision on some level. “That’s $4bn at risk [in terms of potential lost revenue],” he said. “But it’s more. We all know what unhappy customers do - they talk.”
Ericsson has reduced its use of airfreight “quite drastically,” but still flies up to 80,000 tonnes of freight per year to more than 160 destinations, Mellin said.
“We don’t it for fun, but because it’s essential.
“Speed and agility, the ability to act the right way when things happen, is vital for us. We are very keen to have better service but we haven’t seen so much happening in the last 10 years.”
While the slow migration to e-air waybills (e-AWBs) was welcome, Mellin said that “at the same time we’ve seen surface transportation moving rapidly forward. Everybody knows the problem – crucial information doesn’t go through, documents are missing - it’s so old fashioned, somehow. We’re totally disconnected. The technology is there, but information sharing is not. We’re protectionist.”
Xu said that air is Lilly’s major international transport mode, and as the company develops new bio-medicines, more products will be temperature sensitive.
“New regulations are controlling the external business environment, pushing us to try and find the most effective ways to manage quality control and logistics. But talking with air freight forwarders, they say ‘I don’t understand, we don’t have this information’ when there is a temperature excursion between Europe and China.”
Lilly discovers whether there has been a problem on the truck, in the aircraft or while awaiting loading only when it interrogates the shipment afterwards, Xu said. “We have other modes we can choose, such as shipping, which can provide a more stable temperature.”
Fellow panellist Chris Welsh, secretary general of the Global Shippers Forum, said that recent conversations with retailers and automotive, pharmaceutical and electronics shippers mostly only use airfreight when they really have to.
“It’s a distress purchase and if can ship by another mode, they will do it for reasons of cost or sustainability. The airfreight supply chain needs to be so much slicker than it is,” Welsh said.
Airfreight forwarders see pharmaceuticals as a major opportunity, but shippers have told Welsh that the industry is trying to sell a product without understanding the pharma industry’s requirements.
“Road and even rail offer total integrity in terms of temperature control. There are gaps in the air cargo supply chain when it goes from the warehouse on to the ramp. That’s where you get the product failures,” Welsh claimed. But an industry that is highly dependent on airfreight – “or was” – is discovering that suppliers “can’t get their act together”.
Asked if shippers were prepared to pay for better supply chain data, Mellin said a cloud-based IT solution in the next 12 to 18 months was necessary if air freight was to maintain its transportation share. Greater efficiency would “drive cost down, not up,” he said. “But we are part of the problem too. We need to collaborate, we’re not optimising.”
Third-party logistics providers were not happy to let shippers have three-way dialogue, so Ericsson had very little contact with airlines, Mellin said. Astonishingly, he admitted: “The first time I walked through an airport and saw the whole process was last Friday. The 3PLs hate that, because they worry what else I will see.”

Source : http://www.aircargonews.net/news/single-view/news/wcs-shippers-slam-poor-service.html

Tuesday, February 24, 2015


Iraqi ground-handler Azmar Air has gone live with Kale’s Galaxy International air cargo management system.
Azmar, based at Sulaymaniyah International Airport in the Kurdish-controlled region of northern Iraq will use the system for e-freight compliance, warehouse management and vehicle management, and it will be able to offer real-time updates to customers’ trade partners and EDI messaging, says Indian-based Kale.
It added that Galaxy is already in use by handlers including Bahrain Airport Services, Mumbai International Airport and leading international airports in India, plus Lusaka and Ndola in Zambia amongst others.
Indrajit Marath, Azmar’s general manager- cargo village said: “We are now able to automatically capture all data, do better flight planning and plan the operations in advance.
“Our customers including airlines, forwarders, GSAs are happy to see online updates and track shipments. More importantly, we attained this without having to increase our staff count.” 

Source : http://www.aircargonews.net/news/single-view/news/kale-breaks-into-iraq-market.html

Wednesday, December 3, 2014



East-West airfreight rates were for the second month in a row largely unchanged in July with Drewry’s East-West Air Freight Price Index only moving up by 0.8 points to 102.4 points. The small increase in pricing brought the index up to within 1.4 points of April’s high and an impressive 8.2 points above last year’s level, indicating the strength of the recovery in airfreight pricing over the last 12 months. Pricing stability has been supported by the removal of freighter capacity that has compensated for a seasonal rise in belly-hold space. Hence, Drewry expects airfreight rates to remain stable through August. However, thereafter pricing is expected to rise as new product launches, such as the iPhone 6, lead to a tightening of capacity.
Source: Drewry Sea & Air Shipper Insight
http://aircargoworld.com/Air-Freight-Data#chart8