DHL airfreight volumes decline as it turns away business to protect margins

Freight forwarder DHL Global Forwarding's decision to turn away airfreight business to protect profits in the first half of this year resulted in a decline in volumes. The Bonn-headquartered forwarder recorded a 7.2% year-on-year decline in airfreight exports during the second quarter to 530,000 tonnes, while the half-year result was down by 3.6% to 1m tonnes. Second-quarter...

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European airports record growth in H1 2015, but only just

European airports just managed to drag cargo volumes into positive growth for the first half of the year thanks to improved performance in June. Figures from the Airports Council International (ACI) Europe show that freight volumes for the first half of the year increased by 0.5% against a year earlier. The organisation was not too optimistic for...

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Swiss and Lufthansa to launch new cargo pricing structure

Swiss WorldCargo and Lufthansa Cargo are to launch a two component pricing structure - a net rate plus airfreight surcharge – to reflect the "volatility of external cost factors". A joint letter to customers states: “The new airfreight surcharge will be significantly lower compared to the combined fuel and security surcharges, which will be eliminated...

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Logistics sector losing the price war

  A large section of the logistics sector is losing the battle to implement planned price increases, coupled with an extremely low success rate when introducing new products and services. These are the results of the most recent Global Pricing Study*, based on responses from approximately 1,600 managers, conducted by the global strategy consulting firm Simon-Kucher...

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Brussels launches probe into FedEx’s proposed TNT takeover

The European Commission has opened an in-depth investigation into FedEx’s proposed $4.8bn takeover of TNT Express over concerns the deal could reduce competition and push up prices. The Commission said it had concerns that on a number of European markets for international express and regular small package deliveries, the merged entity would face insufficient competitive...

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Tough June for Europe's air cargo carriers

European airlines continued to struggle with the continent’s weak economic conditions last month with volumes and load factors continuing to lag behind last year’s levels. Combined data from the IAG Group, Lufthansa Group, Air France KLM and Finnair show that demand at the airlines they own declined by 4.6% year on year in June in terms of revenue/cargo tonne km. Meanwhile,...

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UPS expands express freight service

UPS is adding eight origin and five destination countries to its Worldwide Express Freight service, designed for urgent, time-sensitive and high-value international heavyweight shipments. The expansion adds five countries in Latin America and three in Europe. UPS now offers the guaranteed service – targeting product launches, inventory shortages or equipment...

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Airfreight demand growth "comes off the boil" in May

  Cargo demand growth “came off the boil” in May, while capacity additions have resulted in a further weakening of load factors. Figures from the International Air Transport Association show that demand growth in freight tonne km terms increased 2.1% year on year in May, which is the slowest growth rate recorded this year, compared with growth of 4% for the first...

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Hong Kong airfreight chief steps down

Hong Kong Association of Freight Forwarding and Logistics (HAFFA) chairman Paul Tsui is to step down and will be replaced by Cliff Sullivan, senior vice-president of A-Sonic Logistics. Mr Tsui is a 30-year veteran of the airfreight industry and in 2001 founded Janel Group, which now employs 250 staff in offices throughout China. Mr Sullivan has been a HAFFA executive...

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FedEx-TNT deal edges forward

FedEx’s potential $4.8bn takeover of TNT has edged further forward as the US express giant has filed regulatory paperwork to the European Commission. Over the weekend, the New York Stock Exchange-listed logistics company confirmed it had submitted the required filing to the EC to obtain regulatory clearance in connection with the intended recommended public cash...

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Shift from ocean to air, but for how long?

  The air cargo industry has won marketshare from ocean rivals over the last year, but analysts have warned there will be a return to sea transport. In its weekly insight analysis, Drewry Maritime Research highlighted the modal shift that had taken place as US west coast port congestion caused by difficult negotiations...

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DHL, K+N and DB Schenker the leading airfreight forwarders

  DHL Global Forwarding, Kuehne+Nagel and DB Schenker have maintained their position as the world’s leading airfreight forwarders, while the top 25 forwarders recorded a total increase in airfreight demand of less than one percent. The latest top 25 Global Freight Forwarders List from consultant Armstrong & Associates, based on revenues and ocean and airfreight...

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FedEx and TNT deal on track but clearance could take a year

TNT Express has provided an update on its planned $4.8bn takeover by FedEx, stating that the two companies are making timely progress on preparations for the offer but reiterated that it could take a year to gain regulatory clearance. TNT said that FedEx expects to submit a request for review and approval of its offer document with Dutch financial service regulator...

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FedEx updates on freighter retirements and TNT acquisition

FedEx has provided more details on its decision to retire freighters early, while also providing an update on its proposed takeover of TNT Express and saying that it will continue on the acquisition trail. Speaking shortly after the announcement of its fiscal year fourth quarter results, the US express giant said its decision to retire 15 aircraft and 21 related engines...

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Boeing ups aircraft demand expectation

Boeing has upped its expectation for demand of new aircraft from last year’s forecast, predicting that 38,050 new airplanes will be needed over the next 20 years. The company predicted that by the end of the 20 year forecast period, the commercial airplane fleet will double, from 21,600 airplanes in 2014 to 43,560 airplanes in 2034. Last year, its forecast was...

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American goes further east with FlyUs

American Airlines Cargo has extended its reach in eastern Europe with the appointment of FlyUs as its general sales agent (GSA) in both Hungary and Poland.  Both countries are currently off-line destinations in the American Airlines network, with cargo being trucked from both Budapest and Warsaw to London, Frankfurt, Munich or Paris for direct entry into the...

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Etihad teams up with WCA

Etihad Cargo is offering World Cargo Alliance (WCA) members special rates for certain destinations when they use the Worldwide Information Network (WIN) booking platform. WCA members who are participants in Etihad's loyalty programme, CargoConnect, and who also use the WIN for booking and air waybill transactions, will qualify for special rates on selected origins...

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Sharp decline in load factors

Airfreight demand growth began to ease off in April, resulting in a “sharp” decline in load factors as they reached their lowest level for a year. The latest IATA figures show that airfreight volumes increase by 3.3% year-on-year in April compared with growth of 4.3% for the first four months. It said that the slowdown was mainly the result of a weakening in demand...

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FedEx takes axe to 15 freighters

US parcels and logistics giant FedEx has "permanently retired" 15 aircraft and 21 related engines as it continues to “rationalise capacity and modernise its aircraft fleet to more effectively serve FedEx Express customers”. FedEx has taken a non-cash impairment charge of $246m recorded in May 2015 and has also adjusted the retirement schedule of an additional...

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DB Schenker to charter from Etihad for new US freighter service

DB Schenker has revealed it is chartering an aircraft from Etihad for its new weekly freighter service from China to the US. The forwarder, through its JetCargo division, this week announced it had launched a freighter service travelling between Hong Kong, Chicago and Houston. A company spokesperson told Air Cargo News it was a fully dedicated service using a Boeing...

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Optimistic airfreight forwarders

European airfreight forwarders are expecting volumes to continue to increase over the coming two months. The latest monthly Danske Bank forwarder index for expectations for the coming two months came in at 57 points, with any figure above 50 suggesting that participants expect volumes to grow over the period. The April survey also shows an improvement on future expectations...

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Agility's airfreight yields boost Q1 performance

Improving airfreight yields have helped push logistics firm Agility to a 5 percent year-on-year improvement in profits during the first quarter of the year. During the first quarter, the Kuwait Stock Exchange-listed company recorded a 1 percent improvement in revenues on last year to KD318.1m ($1.06bn), while net profit increased by 5 percent to KD11.8m. Its Global...

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Vessels collide in same 2013 sea mishap spot

Talisay City, Cebu — A chief engineer was hurt when a fast craft collided with a cargo vessel late Wednesday afternoon at Lauis Ledge off Talisay City, the same spot where a passenger vessel and cargo ship collided two years ago, killing 116 passengers and crew. The Lauis Ledge has become an eerie spot for vessels traveling from Cebu to Bohol and passengers on board fast craft Starcraft 9 went into panic when the sea craft collided with cargo vessel MV Our Lady of Faith at 5:50 p.m. last...

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NGA to cease operations at the end of May

Main-deck cargo airline Nordic Global Airlines will cease operations at the end of the month after overcapacity in the market took its toll on the operator. NGA, which operates a fleet of four MD-11F freighters for customers, was launched in 2011 but faced continued pressure on pricing. Finnair Cargo, which owned a 40% stake in the company, leased freighter capacity...

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Damco sees $9m loss as airfreight dives

Damco, the troubled logistics arm of Danish shipping giant AP Moller-Maersk (APMM), made a $9m loss in the first quarter of 2015 as its airfreight volumes fell 19%. The division's total supply chain revenue fell nine percent, year on year, to $683m for the January to March 2015 period, of which eight percent was due to exchange rate movements. Netherlands-based...

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Frankfurt freight disappoints

Frankfurt’s airport operator Fraport’s airfreight and airmail tonnage dropped by 2.4 per cent year-on-year to around 500,000 tonnes in the first quarter of 2015. However, the group as a whole recorded “noticeable growth” in revenue, which rose 10.8 per cent to €575.9 million.  Contributing factors included growth in traffic and fees, consolidation of two new...

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FedEx-TNT deal to create third force in express

FedEx’s planned takeover of rival carrier TNT would create a third force in the express market – and unlike UPS’ attempted takeover 2½ years ago, it would succeed, the leaders of the two companies predicted at a press conference this morning. The acquisition would bring TNT’s “exceptional” road platform into the FedEx fold, helping to strengthen what had been a...

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FedEx set to buy TNT Express for $4.8bn

US parcels and logistics giant FedEx has made a $4.8bn  bid to acquire rival operator TNT Express of the Netherlands, with both sides reaching a conditional agreement on the deal. The agreement recommends an all-cash offer by FedEx for all issued and outstanding ordinary shares, including shares represented by American Depositary Receipts of TNT Express for...

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Hong Kong will be a three-runway airport by 2023

Hong Kong's government has approved a third runway for the city’s international airport. Expected to open by 2023, it will help the island maintain its status as the world’s busiest air cargo hub and help Hong Kong maintain its position against other Asian rivals in China and Singapore. The HK$141.5bn (US$18.2bn) scheme will be funded from internal funds, borrowings and user fees, including a HK$180 (US$23.20) additional passenger fee. The new runway would be to the north of the airport...

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Cargojet network expansion

Canada’s Cargojet is expanding its domestic air cargo network from the beginning of April. Cargojet, operating overnight services across North America plus global charters, has a total freighter fleet of 24 aircraft, including the recent introduction of five B767-300ERFs, three B767-200ERFs and one B757-200ERF. The carrier did not outline...

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WCS: Shippers slam poor service

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...

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FedEx sees peak season bounce

US parcels giant FedEx saw third quarter revenues up four per cent to $11.7bn. “We had a very successful peak season as volumes grew across all transportation segments, and our profit improvement programs are moving ahead as scheduled,” said Fred Smith, FedEx Corp chairman, president and chief executive officer. Operating results for the third quarter ended...

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DHL right in the heart of Texas

DHL has opened a service centre facility in Houston, Texas, mainly to serve the oil and gas sector. The $2.5m, 28,000 sq ft facility can process more than 2,500 shipments per hour, nearly double the existing capacity and will allow for earlier delivery times and later drop off times. DHL Express says it has seen an uptick in emergency shipping of machinery...

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UPS extends pharma network

UPS customers can now ship biological substances, dangerous goods in excepted quantities and shipments using dry ice to more than 20 additional international destinations. The US-based global express and logistics’ operator says that the expansion is a direct response to a growing demand from biopharmaceutical manufacturers, diagnostics companies, laboratories and ...

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Lieb to quit DB Schenker Logistics

Thomas Lieb, management board chairman of Schenker AG, will leave the German logistics company at the end of this month “by best mutual agreement”. The 56 year-old will take on new responsibilities outside the German railway parent company, Deutsche Bahn Group. Dr Lieb has resigned “immediately” as head of business unit at DB Schenker Logistics and as management...

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