Virgin Atlantic Airlines to start 90 cargo flights worldwide weekly from May

With the surging demand for Corona virus related items Virgin Atlantic Airlines is planning to operate 90 cargo flights per week starting May .

With four A 350 freighter capable of carrying 49 tonnes of goods Virgin Atlantic Airlines has overall 14 aircrafts available for cargo only operations.

The airlines is planning to target US, Hong kong , China, India, Israel & South Africa as major freight markets.

The airlines May programme is as below :

• Daily flights to/from Shanghai
• 3 services weekly to/from Johannesburg
• 17 flights a week from JFK
• 9 flights to/from Los Angeles
• 2 weekly flights to/from Mumbai
• 4 weekly service to/from HKG
• 2 weekly flight to/from Tel Aviv
• 2 weekly flight to/from JFK & Los Angeles to Dublin

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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 airfreight revenues, meanwhile, increased by 3.1% against last year to €1.27bn and for the half year there was an increase of 7.3% to €2.39bn.
It said that the decline in volumes was the result of withdrawing from some major transactions in order to counteract a decrease in margins, while revenues benefited from exchange rate gains.
"Whilst the measures we implemented in the previous year to increase profitability are in fact showing success, margins are still low when compared with the historical average," it said.
Asked whether it would turn away further business in the remainder of the year, chief financial officer Larry Rosen said the decision on whether to "pass out further on loss making routes and customers" depended on market developments.
If the market improves there would be less need to "pass out" but if it worsens the need to be selective would continue.
Airfreight gross profit increased by 1.7% in the second quarter to €246m.
The overall division saw revenues increase by 5.7% in the first-half to €7.57bn. It said the majority of the increase was down to exchange rate gains of €367m.
The DHL forwarding division's earnings before interest and tax declined by more than 62% at the half year to €57m, which it put down to the cost of implementing a turnaround initiative and tough market conditions, although this was offset by the €99m generated by the sale of shares in Sinotrans.
The turnaround initiative has been divided into three parts: the first, which is complete, is to adjust organisational structures, re-empower countries, re-establish stronger accountability and re-enable staff and adjust incentives.
The second stage, which is being implemented at present, involves improving gross profit, improving cost
and service performance and developing a specific country focus.
The third stage will sharpen commercial focus, see investment in skills and capabilities through training and and the renewal of IT with a business-centric approach.
The cost of the turnaround project of €81m was more than offset by the €99m generated through the sale of the stake in Sinotrans.
Following the announcement of its first-quarter results, DHL parent Deutsche Post said it was suspending the forwarding division's transformation programme as its roll out was affecting business performance.
It reasoned that the project had been too ambitious and more attention should have been paid to the results of pilot projects.
DHL airfreight volume decline for the first-half period was the largest posted so far by the major European forwarders that publish figures, although its position as airfreight leader was unaffected as DHL is by far the largest in this sector.
In comparison, Kuehne+Nagel recorded half-year air volume growth of 5.2%, Panalpina was down at 2.1%, DB Schenker saw growth of 1.1% and DSV's half-year increase came in at 8.7%.

Source : http://www.aircargonews.net/news/forwarders/single-view/news/dhl-airfreight-volume-decline-as-it-turns-away-business-to-protect-margins.html

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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 failure replacement parts – to 58 origin and 56 destination countries and territories.
Countries adding origin service include: Bulgaria, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Romania and Serbia.
Countries adding destination service include: El Salvador, Guatemala, Honduras, Nicaragua and Panama.
The service offers guaranteed palletised shipments, over 70 kg, for door-to-door and day-definite delivery, with customs brokerage service included.
“Eastern Europe is experiencing growth in the manufacturing and automotive industries and Latin America is undergoing rapid expansion of general industrial, healthcare, apparel, and high tech businesses,” said Nick Basford, UPS vice president of international marketing.
“We expanded the number of countries we serve due to consumer requests and anticipated future demand.”

Source : http://www.aircargonews.net/news/airlines/express/single-view/news/ups-expands-express-freight-service.html

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TNT launches Tel Aviv freighter links

TNT has launched a Monday to Friday B737-400F service between Israeli capital Tel Aviv and the express operator's European hub in Liege, Belgium.
The new service "answers increasing demand" and allows TNT to shorten transit times for express shipments to and from Tel Aviv by one day.
The flight arrives in Tel Aviv in the morning for same day deliveries, and departs in the evening, allowing for close of business pick up and same day export
Martin Sodergard, managing director network operations at TNT, said: "With this flight operated by TNT, our customers will benefit from improved delivery reliability, as well as later cut-off times for pick-ups thanks to improved departure times.
"It also gives us additional capacity to further grow our business in and out of Israel.”
The European Union is the first trading partner for Israel, with total trade amounting to approximately €29bn in 2013. 
Typical TNT shipments to and from Israel include machinery, electronic products, medical equipment and textiles
Under the company’s outlook strategy, TNT is working to combine its European road network with a stronger international air network.
TNT has recently upgraded its road express services to Turkey and the Balkan countries, and added Hannover and Venice to the European air network. 

Source : http://www.aircargonews.net/news/single-view/news/tnt-launches-tel-aviv-freighter-links.html

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Volvo renews TNT international delivery contract

 

Swedish truck and bus maker Volvo has renewed a three-year contract with express operator TNT for ‘inbound to production’ and aftermarket delivery services in Europe.
TNT will continue to handle Volvo’s European emergency production movements.
TNT collects automotive components and parts from more than 800 different suppliers in Europe and delivers them to production facilities in Sweden, Belgium, France and Poland.
“The service builds on TNT’s integrated road and air network in Europe. It combines scheduled and special services to ensure all production delivery needs are met,” said the express company.
It added: “The need to maintain low inventory levels while keeping assembly lines running smoothly make guaranteed reliable deliveries essential. TNT provides a door-to-door transit monitoring service for shipments from its Automotive Control Centres, with 24/7 availability.”
Under the contract, TNT handles parts distribution to Volvo dealers throughout Europe to support Volvo’s aftermarket offering. Most parts are collected at Volvo’s central or support warehouses in Europe.
Another contract sees TNT managing the delivery of parts from suppliers in Europe to Volvo Trucks’ manufacturing plant in Hagerstown, Maryland, US.
TNT said that its ‘Inbound to Production’ and aftermarket services will be available to more customers in the automotive, high tech and industrial sectors in 2015.

Source : http://www.aircargonews.net/news/single-view/news/volvo-renews-tnt-international-delivery-contract.html

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FedEx swaps sides in Illinois

Federal Express officially started operations at Central Illinois Regional Airport (CIRA) in Bloomington on February 2. It follows an announcement in May 2014 that it was pulling out of its operation at nearby Peoria airport, on the west bank of the Illinois River.
The express carrier said the move would allow it to upgrade its priority overnight service and offer earlier delivery times to the central Illinois market, while maintaining delivery times to Peoria itself. Flights will operate mainly to Indianapolis and Memphis.
FedEx’s arrival fills a gap for CIRA, which lost passenger carrier Frontier Airlines in November and also suffered from the shutdown of DHL’s US operations in 2008.

Source : http://www.aircargonews.net/news/single-view/news/fedex-swaps-sides-in-illinois.html

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December's dollar yields dip

Air freight volumes continued to rise in December but exchange rate and fuel surcharge fluctuations saw a 2014 end of year fall in dollar-based yields, according to research house WorldACD.
December’s healthy year-over-year (YoY) volume growth continued 2014's trend, as chargeable weight increased 6.7 per cent, said the Netherlands-based analyst which uses primary data from global airlines.
December yields (in US dollars) dropped by 5.6 per cent, “a very worrisome figure at first sight,” said WorldACD, but citing two reasons for the fall.
The worsening Euro–US dollar exchange rate contributed to an 8.5 per cent dollar-yield decrease in December for cargo originating in one of air cargo’s largest markets, Europe. Measured in Euros, yields increased slightly.
Added WorldACD: “Overall yields were seriously influenced by a further drop in fuel surcharges. Although the yield drop was significant in Asia Pacific as well (-5.9 per cent), it was rather limited in MESA (Middle East & South Asia, -1.1 per cent) and North America (-1.6 per cent).
“The origins North America and Africa were the best monthly performers in terms of revenue growth, with YoY gains of 7.1 per cent and 6.9 per cent respectively.”
WorldACD said that 2014 was “a good year for air cargo”, with a volume growth of 6.4 per cent over 2013, and a much smaller change in dollar-yield (-1.45 per cent). Worldwide revenue increased five per cent after two years of declining revenues.
The Asia Pacific origin was above average (+ 6.2 per cent dollar-revenue increase), whilst MESA was well below (-0.4 per cent).
“North America distinguished itself as the fastest growing destination with a revenue increase of 10.9 per cent. Monthly yields decreased YoY in nine out of 12 months; they went up in June, July and August.”
Continuing the trend from previous years, revenues from pharmaceuticals and perishables outpaced the market, at 16.2 per cent and 7.2 per cent respectively.
Pharmaceuticals grew in yields by two per cent, more than the 1.2 per cent increase in 2013. But perishable cargo yields dropped by about three per cent, double the average of all cargo taken together.
The leading origins in both product markets strengthened their position: Africa and Latin America in perishables, Europe and MESA in pharmaceuticals.

Source : http://www.aircargonews.net/news/single-view/news/decembers-dollar-yields-dip.html

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Asia Pacific Airlines see 2014 revival in cargo demand

 


Association of Asia Pacific Airlines (AAPA) preliminary figures for 2014 show an “encouraging revival” in cargo demand after three consecutive years of decline.
An upsurge in exports from manufacturing hubs in the region led to a rebound in international air cargo markets in 2014, with demand in freight tonne km (FTK) growing by a "solid" 5.4 per cent compared to the previous year.
Available freight capacity grew at a relatively modest pace of 4.1 per cent, resulting in a 0.8 percentage point increase in the average international freight load factor to 64.9 per cent.
Andrew Herdman, AAPA director general said: "Despite challenges, Asia Pacific airlines enjoyed a year of good growth in international passenger traffic in 2014.
“Air cargo markets experienced a welcome upswing in 2014, with the second half of the year registering 6.0 per cent growth compared to the same period in 2013, following several years of stagnant demand."
Herdman added: "The dramatic fall in oil prices since the end of the year has been welcomed by many airlines, although the resultant benefit in terms of improved profitability will vary depending on individual airline hedging policies and their degree of exposure to external debt, given the weaker Asian currencies."
Looking ahead, Herdman concluded: "Overall, the outlook for the coming year remains broadly positive, with sustained growth in the global economy continuing to drive air travel demand, whilst lower oil prices will also help to keep air travel affordable.
“However, airlines will need to closely monitor market movements, and align future capacity increases with the actual increase in demand, whilst seeking further operating efficiencies to restore margins to more sustainable levels."

Source : http://www.aircargonews.net/news/single-view/news/asia-pacific-airlines-see-2014-revival-in-cargo-demand.html 

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China lifts price controls on 24 commodities, services

China will lift controls on prices of 24 commodities and services, said the National Development and Reform Commission on Sunday.

Market will decide the price of tobacco leaves, the last agricultural product to be freed from government price control, but a minimum price will be set to protect farmers, said a statement on the commission website.

Prices of railway bulk cargo, parcels and privately funded cargo and passenger transport will also be allowed to float. Railway passenger and cargo prices have been decided by the government, but lag far behind changes of road and water transportation prices, which has impeded the development of the railway sector, said Sun Zhang, a professor with Tongji University.

Prices of domestic air cargo will be freed, as well as prices of passenger transport of some airlines.

Wu Tongshui, deputy director of China Air Transport Association, said the move will help activate the market, attract more private investment and enhance the competitive edges of carriers.

Limits will be removed on port service fees, including fees on container loading, ship rubbish treatment and water supply.

Limits will be removed on factory prices of explosives for civil use.

Source: http://www.globalpost.com/dispatch/news/xinhua-news-agency/150104/china-lifts-price-controls-24-commodities-services

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Self-driving car the future of logistics industry

The logistics industry will probably be one of the first testing grounds for automated vehicles, according to a study from package delivery giant DHL.

Shipping companies will likely adopt the technology faster than other sectors, since moving cargo in non-public areas like storage facilities and warehouses provides a safer venue to test such devices, according to a study published this week by DHL, the freight and express arm of Deutsche Post AG.

Eventually vehicles might bring packages to a pick-up station where a consumer could find them, the study said.

DHL plans to “maintain pole position in the world of self-driving vehicles,” wrote Matthias Heutger and Markus Kueckelhaus, the authors of the study. "The question is no longer ‘if’ but rather ‘when’ autonomous vehicles will drive onto our streets and highways."

Source : http://www.cargobusinessnews.com/news/techwire/news2.html

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IATA figures find fair weather for freight flow

IATA’s November Airlines Financial Monitor finds good news for much of the air cargo sector as freight volumes continue to expand steadily and load factors improve on the back of growth in demand.
Air freight volumes increased in October compared to September, with recent improvements driven by progress in Asia Pacific and North America due to expanding trade volumes, bouncing back after weaker performance earlier in 2014.
Asia Pacific’s improvements were blunted somewhat as Chinese carriers were hit by a depreciating local currency, leading to a combination of weakness in cargo revenues as well as rising cost pressures.

Source : http://www.aircargonews.net/news/single-view/news/iata-figures-find-fair-weather-for-freight-flow.html

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Air Freight Volumes Show Solid Gains

 
Air freight volumes continue to show solid gains on a year ago, supported by economic improvements in some regions, says IATA in its latest quarterly cargo chartbook.
But high jet fuel prices and overall weakness in yields have kept cargo financial performance from improving so far this year, adds IATA.
“Emerging Asia trade volumes have rebounded after weakness in Q1 and consumers in the US are more optimistic. These developments have supported growth in demand for airfreighted commodities like semi-conductors,” says the report.
It continues: “However, in Europe consumer confidence and trade activity have weakened due to the Russia-Ukraine crisis. Business confidence continues to point to expansion, but rates of improvements are still weaker than 2013 year-end.”
And although jet fuel prices have eased slightly, they remain high at about $120/bb, the chartbook, adds: “On the positive side, although yields remain weak, overall they appear to be stabilizing and are up slightly on a year ago.
“This could help reduce downward pressure on cargo financial performance in months ahead. Consistent with more supportive demand conditions in some regions, cargo heads surveyed in July expect growth in traffic and yields to pick-up during the year ahead.”

Source : http://www.aircargonews.net/news/single-view/news/air-freight-volumes-show-solid-gains.html

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