Air freight to grow at slower pace over next 20 years

Air freight traffic has grown at 5.3 per cent annually since 1980. Today goods worth $6.4 trillion travel by air — that’s 35 per cent of all world trade by value.

The growth rate is expected to be 4.9 per cent for the next 20 years. This means by the year 2023 traffic will double, according to V.K. Mathews, Executive Chairman of IBS Software, based in Technopark here.

Minimal profit

However, the profit margins are going to be nominal, Mathews said while speaking at the IBS Air Cargo Forum held at Istanbul in Turkey recently.

IBS Software is a leading provider of solutions to the travel, transport and logistics sectors.

Held every six months, the IBS Air Cargo Forum brings together leading cargo airlines where experts debate how advancements in technology can be leveraged to optimise cost of operations and improve yields.

Airlines have no control over their biggest cost element, fuel prices, Mathews said. Capacity utilisation was less than 50 per cent, leading to yield erosion.

“These statistics need to be kept in mind as we devise strategies on how we conduct business going forward,” he said.

Supply chain

“We need to move on and make the best of a demanding situation. For 90 per cent of the time in the supply chain, the cargo is just waiting to be moved. This is where efficiencies need to come in.”

A digitised shipper-to-consignee process has to become the standard to not only shorten the delivery time but also reduce unit cost, Mathews added.

The two-day conclave in Istanbul saw the unveiling of the iCargo portal by IBS Software, which would enable greater adoption of E-freight.

The first phase of the portal is expected to be complete by November and the second phase by the next financial year.

At least 70 experts representing airlines such as South African Airways, Qantas, Hawaiian Airlines, Lufthansa, All Nippon Airways, Nippon Cargo Airlines and Turkish Cargo, attended the event.

Istanbul as hub

They discussed key issues shaping the global air cargo industry and shared insights on strategies to address some of the critical challenges facing them.

Gary Hoyle of South African Airways was appointed the new Chairman of the IBS Cargo Forum.

Meanwhile, Temel Kotil, Chief Executive Officer, Turkish Airlines, said in his address Istanbul was ideally positioned to be the global connection point for air travel within 10 years.

While Europe’s traditional airports were struggling to add travellers as weak economies hurt demand, Istanbul was racing ahead with double-digit growth, thanks largely to the success of Turkish Airlines.

Kotil said Turkish Airlines was one of the fastest growing airlines in the world and well-placed to have 120 million passengers and 450 aircrafts by the year 2023.

Source: http://www.thehindubusinessline.com/industry-and-economy/logistics/air-freight-to-grow-at-slower-pace-over-next-20-years/article5141007.ece

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Cargolux Airlines International Increases its Flights Number to Muscat International Airport

Muscat, Sep 17 (ONA)--- Cargolux Company, one of the major air cargo carriers in Europe decided to increase its weekly flights to Muscat international Airport by two flights a week with effect from next October.

The company said that Oman Airport Management Company , represented by Commercial Operations Public Administration said in a statement today that Cargolux's decision to increase its weekly flights to Muscat International Airport comes at a time the shipping activity via Muscat International Airport has witnessed remarkable growth ( 8%). The total unloaded cargo during 12 months and up to last August amounted to 116,338 tons compared to 108,152 tons at the corresponding period last year.

The company will operate two flights weekly on Wednesday and Saturday from Luxemburg using B747-400 and B747-800 freighters. 

Cargolux started operating flights to Muscat international Airport on 22nd June 2013, with one flight weekly to meet the growth in the economic and investment activities witnessed by the Sultanate. The move comes in response to the growth of the shipping activity via Muscat International Airport and the remarkable growth in the number of passengers. 

Source: http://www.omannews.gov.om/ona/english/newsDetails_inc.jsp?newsID=176908

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TNT Express boosts Oman fleet

TNT Express, one of the world’s largest express delivery companies, has announced the addition of a new 7-ton Mistubishi /Fuso trailer truck to its domestic fleet. 

 

Oman is a part of TNT Express widespread Middle East Road Network (MERN) delivering to countries such as Jordan, Saudi Arabia, Qatar, Kuwait and Bahrain, the network offers the best day-definite transit times in the express market. 

 

James Edgeworth, the TNT Express Middle East sales and marketing director, said: “The investment is part of our commitment to offering excellent road express services across Oman.” 

 

TNT Express in Oman offers a broad choice of Express services, from air to road freight as part ofd its tailor-made solutions to customer requirements, remarked Sivdasan Payangool, the country manager for TNT Express in Oman.

 

"The new Mistubishi /Fuso has comprehensive safety and security features, and offers improved fuel-efficiency," he added.

 

TNT Express is represented in Oman by GAC & Company Oman, a long-established company specialised in the express and freight business.

Source: http://www.tradearabia.com/news/IND_242666.html

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Lootah Biofuels and TNT Express gearing up for Expo 2020

Lootah Biofuels, a fully owned subsidiary of S.S. Lootah Group has signed an agreement with TNT Express, a leading global Express Company to supply locally produced environmentally superior and performance enhancing biodiesel made from used cooking oil for the latter's commercial vehicles in Dubai.

This agreement aims at reducing carbon footprints, and also supports Lootah Biofuels mission of converting 5% of transportation fuel to Biofuels by the year 2020.

The agreement was signed by Mr. Yousif Bin Saeed Al Lootah, CEO, Lootah Biofuels and Mr. Bryan Moulds, Manging Director Middle East and Sub Continent Associates, TNT Express. As per the agreement Lootah Biofuels will provide its high rich content biodiesel B5 to meet the needs of TNT's large fleet of commercial vehicles in Dubai.

The key benefits of this initiative include carbon foot print reduction as well as reduction of UCO waste. It is expected that the agreement will reduce carbon emissions by 18% per year. Through using B5, UCO is put into sustainable use as opposed to being discarded as waste, thereby impacting the environment negatively. This is a further step towards environmental sustainability.

Commenting on this agreement, Mr. Yousif Bin Saeed Al Lootah, CEO, Lootah Biofuels said "Keeping in line with UAE's vision, the project is a significant step towards sustainable development and the Expo 2020 bid for sustainability. Our mission is to deliver economic, operational and environmental benefits for long-term customer satisfaction and sustainable growth and with the TNT agreement we hope to take the consumption of B5 biodiesel to the next level."

"We are pleased to work with Lootah Biofuels who share the same vision as we do for a sustainable environment. This joins our other regional initiatives such as recent CNG vehicle fleet in Pakistan in our continued efforts to reduce carbon emissions globally. With this agreement, we look forward to creating an eco- friendly environment with economically viable biodiesel, thus promoting H.H. Sheikh Mohammad's vision for a green and sustainable Dubai." said Mr. Bryan Moulds, Managing Director Middle East and Sub Continent Associates, TNT Express.

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DHL launches downtown mobile service

DHL-Sinotrans, the leading air express company in China, launched mobile stations indowntown Beijing, Shanghai and Shenzhen to provide companies with convenient pick-upfacilities.

The move will help optimize shipment routes for express items and extend cut-off times forcustomers, according to Wu Dongming,managing directorofDHL-Sinotrans International AirCourier Ltd andexecutive vice-president ofDHL Express Asia Pacific.

The mobile stations will also help tackle logistic issues in urban centers.

The DHL-Sinotrans, established in 1986 as a joint venture between DHL and China NationalForeign Trade Transportation (Group) Corp, has deployed eight vehicles in the three cities,extending the pick-up time by up to 60 minutes.

In Beijing, DHL-Sinotrans extends pick-up cut-off time for customers in areas around Guomaoand Zhongguancun. In Shanghai, the service is in place within the CBD area.

The vehicles use a 3G wireless signal to access the DHL’s operations network.

Source: http://www.chinadaily.com.cn/business/2013-09/16/content_16973931.htm

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Air Libya forms partnership for cargo flights

Chapman Freeborn and Air Libya have formed a partnership to fly cargo in Libya using an Antonov An-26 freighter, which will be based at Tripoli’s Mitiga International Airport on a long-term lease agreement.

The venture will introduce internal scheduled services to connect Tripoli and Benghazi with Libya’s more remote airfields—including regular operations to the oil fields in the south of the country.

The An-26—which offers a 5.5 ton payload—will be available for ad hoc cargo charter requirements within Libya as well as international flights to and from the European Union and North Africa.

“The venture will provide much needed logistics solutions in a country where few international aviation companies are currently willing to invest in establishing services,” Chapman Freeborn said in a statement. “It will also provide a viable alternative to sea freight routes to and from Europe which have been subject to high rates.”

Source : http://atwonline.com/finance-amp-data/air-libya-forms-partnership-cargo-flights

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