Wednesday, July 31, 2013


IATA’s figures for June 2013 show a 1.2% year-on-year expansion in global air freight demand.

Although weak, this is an improvement when compared to the 0.9% year-on-year demand growth recorded in May and the 0.1% growth realized over the first half of the year.

While previously the global economic trend has been defined by robust emerging economies and stagnant growth in developed markets, the strongest improvements in business confidence are now occurring in some developed economies. Nevertheless, overall business confidence, which is a key indicator for air freight, continues to be weak.

From May to June, global freight volumes increased by 0.8%. A quarter of that improvement was captured by European airlines which saw a 0.9% improvement in demand compared to May, and 2.6% up compared to June 2012. In contrast, Asia Pacific carriers (the biggest players in global air freight) and North American airlines recorded year-on-year declines of 1.8% and 1.2% respectively.

"It’s too early to tell if June was a positive turning point after 18 months of stagnation. Air freight volumes are at their highest since mid-2011, but that good news needs to be tempered with a dose of reality. The global economic environment remains weak, and the basis for the acceleration of air cargo growth in June appears to be fragile," said Tony Tyler, IATA’s Director General and CEO.

Earlier this month IATA released the July edition of its Airline Business Confidence Index which showed nearly 58% of respondents expecting freight volumes to increase over the next year. Despite this, a much greater percentage of respondents (72.2%) expect no change in weak cargo yields despite their expected increase in demand over the same period. The macro-economic trend remains challenging. Recent declines in global export orders do not bode well for trade growth.

Source: http://www.asiatraveltips.com/news13/317-AirFreight.shtml
DHL Global Forwarding, the air and ocean freight specialist within Deutsche Post DHL,  has launched a
mobile app for customers to track their shipments.

The ‘DGF Cargo Mobile Tracking’ shows users their shipping history and the status of their current shipments. The app also provides global access and is available free of charge in the respective app stores for iPhone and iPad, android and Blackberry smartphones.  

“The “DGF Cargo Mobile Tracking” application provides increased visibility to customers, as to the current status of their cargo movements, in real time, no matter where they are,” said Michael Young, global head of Marketing and Sales.

“Supply chain managers are often away from their desks and benefit from mobile solutions, which enable them to track time sensitive shipments and adapt their planning, where necessary,” Young added.

The app offers four functions to the user: seeking shipments, saving search queries, a detailed shipping history of the past six months, and a “location finder” that shows the nearest DHL Global Forwarding office and its contact details.  

The search function also allows customers to track further details of the shipment process, such as the shipment’s starting time, current location and estimated time of arrival. The “Save Search” function saves pre-defined search queries, such as multi-digit consignment numbers that can be called up again.

Source: http://www.tradearabia.com/news/IND_240309.html


Tuesday, July 30, 2013


Georgia’s ports set records during the last fiscal year for tonnage, bulk cargo, auto and machinery units, and freight moved by intermodal rail, the Georgia Ports Authority(GPA) announced Monday.
In the year ending June 30, the ports moved 27.23 million tons of cargo, a 2.4 percent increase over fiscal 2012.
“Our overall tonnage increase has been fueled by the strength of U.S. exports and the GPA’s varied cargo spectrum,” authority Executive Director Curtis Foltzsaid.
For the second year in a row, the GPA achieved a record for auto and machinery units with an 11.7 percent increase over fiscal 2012. The Port of Brunswick is the third busiest port in the U.S. for total roll-on/roll-off cargo and the second busiest for imports of such cargo.
Bulk cargo movement soared by 61.8 percent, while the authority moved a record 314,623 containers by rail, up 4,600 containers over fiscal 2012.
Source: http://www.bizjournals.com/atlanta/news/2013/07/29/georgia-ports-set-multiple-freight.html
Shipping through Europe's Third Largest Airport Continues to Increase


NETHERLANDS – As the third largest cargo airport in Europe the air freight figures for Amsterdam’s Schiphol hub are always interesting as they tend to reflect underlying shipping trends. The first half of this year has shown modest growth with a total of 736,608 tonnes handled showing an overall growth of 1.02% against the figure for 2012. Total exports for the first half year rose to 362,124 tonnes, which was a 49.16% share of the total whilst the proportion of imports fell slightly to 50.84%, with a total of 374,484 tonnes.

Regionally, Schiphol’s largest market remained Asia and the total of 281,410 tonnes (up 3%) was 38.2% of all cargo handled. Exports to Asia rose 6% to 140,388 tonnes with imports from Asia also rising fractionally. North America remained Schiphol’s second largest market, with imports up 3% at 65,282 tonnes and exports down 11% at 60,079 tonnes, resulting in an overall share of 17.02% of freight handled (down from 17.94% in the same period last year).

The Middle East and Africa swapped places in terms of importance at Schiphol with the Middle Eastern market taking third place in terms of tonnage shipped, 38,088 tonnes of imports (up 16%) and 55,294 tonnes of exports (up 4.8%), producing overall growth of 9%. However, the increase in imports was largely due to the entry of various Middle East carriers into the Africa-Amsterdam flower trade, resulting in transhipments via the Middle East and re-classification of some Africa-originating traffic. Africa accordingly slipped to 4th place, with 55,641 tonnes of imports (down 3.8%) and 29,827 tonnes of exports (down 4.4%).

Latin America retained 5th position, with 40,492 tonnes of imports (down 4.8%) and 44,555 tonnes of exports (up 3.9%). The apparent reduction in imports chiefly resulted from re-routing of some South America originating flights via Miami, resulting in their re-classification as US traffic whilst Europe saw a small overall gain of 1.28% in the first half year, with a 9.3% fall in imports counteracted by a 12% growth in exports. Schiphol Cargo Senior VP Enno Osinga, commented:
“2013 is showing a similar pattern to 2012 so far, with an early peak around March. There has been a small decline in freighter flights of around 1%, which reflects the tightening of freighter capacity by some carriers in the face of rising costs and soft rates.”

Source: http://www.handyshippingguide.com/shipping-news/air-freight-figures-rise-slightly-overall-as-cargo-totals-released_4794

Russian carriers could be banned from transporting cargo from Russia to Europe if they fail to comply with new EU regulations that come into effect on July 1, 2014, Kommersant reported Monday.

Airlines who want to avoid the ban will need a third country to authorize their carrier status, but to achieve this they have to carry out audits on airport infrastructure.

The International Air Traffic Association said that the airlines themselves will have to pay for the audits — which could cost 18-60 million euros for each airport — and has offered to provide practical seminars to assist companies affected by the regulations.

Last Thursday Yevgeny Chibirev, head of the Association of Air Traffic Users, asked Transportation Minister Maxim Sokolov to provide recommendations to airlines on how to meet the requirements.

Chibirev said that Russian carriers will have to coordinate their flight safety programs with EU authorities and provide them with detailed information on the infrastructure of the airport from which the flight departed.

Cargo carriers argue, however, that airports are not obliged to provide them with the necessary information about customs points and security systems.

In 2010, the EU authorities decided to make cargo checks more rigorous after explosives were found in packages being shipped from Yemen to the United States.

A representative of Volga-Dniepr, the largest Russian cargo carrier, said he does not consider additional audits necessary because "all airlines and airports regularly have their safety standards checked."

The head of Novosibirsk's Tolmachevo airport called the initiative "an attempt to infringe on the rights of Russian airlines and create barriers in Russia on the cargo transportation market." He said the issue should be resolved on the government level.

Source: http://www.themoscowtimes.com/business/article/airlines-braced-for-new-eu-cargo-regulations/483796.html

Nippon Express Co., Ltd. (Kenji Watanabe, President), began to offer a consolidated air cargo transport service for urgent small-quantity shipments to Guanajuato International Airport on July 16.
The cities around Guanajuato Airport to be served as new destinations (Leon, Irapuato, Salamanca, Celeya, etc.) have seen remarkable inroads by the automobile industry in recent years and are expected to enjoy further development.
Our delivery network of Guanajuato Logistics Center opened on April 1 of this year by Nippon Express de Mexico S.A. de C.V., a subsidiary of Nippon Express Co.,Ltd, made it possible for us to carry out prompt and flexible deliveries.. This new service will allow customers to shorten total lead time by 12 to 24 hours compared with consolidated air cargo transport routes via Mexico City and Guadalajara.
To meet the various and sophisticated demands of customers in this developing region , Nippon Express will continue to enhance its service lineup.
Source: http://www.nipponexpress.com/news/global/2013/16-Jul-13.html

Monday, July 29, 2013


This year's Freighters and belly cargo Conference will be held at the Park Hyatt Hotel on Sadiyaat Island, Abu Dhabi from 29 September to 1 October 2013.
This is the 13th consecutive year we have held the Freighters World Conference – and this year we have included topics on belly cargo.
This two-day conference presents fantastic opportunities to network and socialise. Attended by delegates and speakers who can make things happen, make a difference and make change, you will not be disappointed.
Park Hyatt Abu Dhabi Hotel in the United Arab Emirates is an exclusive sanctuary for the discerning business and leisure traveller, located on a nine-kilometre stretch of environmentally protected beach on Saadiyat Island. The resort is adjacent to the famous Saadiyat Beach Golf Club, minutes from the city’s prime business district, the Abu Dhabi Corniche, and 25 minutes from Abu Dhabi International Airport. The island is only a 40 minute taxi journey from the business district of Dubai.
Source: http://www.aircargonews.net/events/book-event-form.html

The 31st anniversary of Air Cargo News awards evening, Cargo Airline of the Year, will take place at the Lancaster London Hotel on Saturday, 26th April 2014. If you need any further information about this Air Cargo News event, known throughout the airfreight world as the ‘Oscars’ of the air cargo industry, then please contact Patricia Cooper, General Manager of the Events Division on p.cooper(at)aircargonews.net or telephone +44 (0) 1784 255000



Saudi Airlines Cargo has reported revenue growth of 6% for the first six months of 2013.

In the first half of the year, Saudia Cargo moved a total of 270,000 tonnes, breaking last year's record of 250,000 and achieving a 6% increase in revenue and a 4% increase in tonnage.

Cargo moved on the bellies of passenger aircraft grew by 29%, with the main contributors being the USA (+50%) and the UK (+40%), while cargo boardings on the freighter network grew by 3%.

Cargo moved on the bellies grew by 29%, with the main contributors being the USA (+50%) and the UK (+40%), while cargo boardings on the freighter network grew by 3%.

The airline’s growth is the result of a number of factors, the airline said through a statement. During the first half of the year, the carrier increased its freighter capacity from Dhaka and commenced B747 freighter flights in Mumbai and Kano, Nigeria. It also started operations with its first B747-8F in June, which is currently scheduled on Riyadh-Hong Kong-Riyadh-Frankfurt-Saudi Arabia flight rotations.

In terms of charter activity, revenues were lower than anticipated in the first six months due to a shortage of aircraft availability. As of July 2013, however, the airline increased its fleet to fifteen aircraft (4 MD11s and 11 747s), three of which are dedicated to offering sufficient capacity in the growing ad hoc charter market.

“Although the current market is a bit soft, we still expect to achieve a 10% growth during the second half of the year,”said Nabil Khojah, CEO of Saudia Cargo. “This is principally due to the boost in our charter activity, optimization of our freighter network, adjustments to freighter schedules and increases in the number of freighters to some of our key destinations.”

Saudi Airlines Cargo operates a fleet of 15 freighters and sells the belly-capacity on 145 passenger aircraft for Saudi Arabia’s flag carrier Saudia, spanning a rapidly expanding global network of 225 destinations. In addition to its scheduled freighter services, the cargo airline also provides cost-effective and practical worldwide charter flight solutions from a growing fleet of dedicated charter aircraft.

Source: http://www.arabiansupplychain.com/article-8965-saudi-airlines-cargo-reports-6-revenue-growth-for-h1/#.UfY1LuRHL_I


The new measures, which include more scanning, might usher an increase of the maximum prices for flying shipments or the introduction of a security fee on exporters.

The price for sending air freight overseas could soon rise due to stricter U.S. security demands that could halt flights to the United States if not carried out. The companies affected would be El Al Israel Airlines, United Airlines, Delta Air Lines and US Airways.

source: http://www.haaretz.com/business/.premium-1.538436

VISAKHAPATNAM: Three new Container Freight Stations (CFS) are expected to be set up in the Port City around the end of the year. Currently, the Container Corporation of India (Concor), Sravan Shipping Services Private Limited, Gateway East India Private Limited and CWC-SICAL have one CFS each in Visakhapatnam.

According to sources, Concor and Sravan Shipping Services plan to set up one more CFS each in the near future. The central government too plans to set up one CFS in Vizag to cater to the increasing demand for container services. "The Balmer Laurie CFS is being undertaken as a joint venture between the central government and Visakhapatnam Port Trust (VPT). "We are finalising the joint venture," said the senior port official. The proposal was made three years ago but could not be implemented because of land related issues. "The handling capacity details will be released once the formalities are completed," said the official.

Phase 1 and 2 of the Concor CFS is expected to come up across 80 acres and is likely to handle around half-a-million TEUs (Twenty-foot Equivalent Units), according to a senior port official."The new (phase 1) Concor facility will be built with a terminal built across 55 acres adjacent the Aiyappa temple. We have transferred the land and it will be operational by October," said the official.

Sravan Shipping chief executive G Sambasiva Rao said the firm aims to handle 10,000 TEUs per month with a CFC built across 30 acres from December. "Container cargo is the future. More than 70% of the commodities in the developed world are switching to container cargo. In some places, even iron ore and coal are being transported through containers. Though container cargo in vizag is just 5% of total cargo handled, it is expected to increase provided there is improved infrastructure in place," he said.

"People are looking at better viability. Earlier, lorries used to be used to transport marble slabs from Rajasthan which was expensive. However, now with domestic and exim (export import) facility available at the ports, businesses are looking at container traffic," said a source.

VPT handled 45.54 lakh tonnes of container traffic in terms of tonnage and 2.48 lakh tonnes in terms of TEUs in 2012-13 as compared to 42.14 lakh tonnes and 2.34 lakh tonnes respectively in 2011-12.

source: http://timesofindia.indiatimes.com/city/visakhapatnam/Three-new-container-freight-stations-mooted/articleshow/21436552.cms

July 26 (Reuters) - Freight rates from Indore, the key wholesale soybeans
market in central India, to other destinations in India :

    --Charges for WET CARGO, in rupees per 10,000-litre tanker--


 
                      Friday's            Previous
    Indore to
    Abohar       ---               33,000-33,500       33,000-33,500
    Alwar        ---               24,500-25,000       24,500-25,000
    Ambala       ---               31,500-32,000       31,500-32,000
    Amritsar     ---               34,000-34,500       34,000-34,500
    Banglore     ---               32,000-32,500       32,000-32,500
    Bulandshahar ---               23,500-24,000       23,500-24,000
    Chennai      ---               36,000-36,500       36,000-36,500
    Chandigarh   ---               33,500-34,000       33,500-34,000
    Delhi        ---               25,000-25,500       25,000-25,500
    Faridabad    ---               24,500-25,000       24,500-25,000
    Gaziabad     ---               22,500-23,000       22,500-23,000
    Hedarabad    ---               21,500-22,000       21,500-22,000
    Hisar        ---               27,000-27,500       27,000-27,500
    Jaipur       ---               20,500-21,000       20,500-21,000
    Jalandhar    ---               34,000-34,500       34,000-34,500
    Jammu        ---               40,500-41,000       40,500-41,000
    Kanpur       ---               22,500-23,000       22,500-23,000
    Karnal       ---               30,000-30,500       30,000-30,500
    Ludhiana     ---               34,500-35,000       34,500-35,000
    Mumbai       ---               14,000-14,500       14,000-14,500
    Modinagar    ---               23,000-23,500       23,000-23,500
    Pathankot    ---               38,500-39,000       38,500-39,000
    Rajpura      ---               33,000-33,500       33,000-33,500
    Sangrur      ---               33,500-34,000       33,500-34,000
    Sarhanpur    ---               29,500-30,000       29,500-30,000
    Sikandarabad ---               23,000-23,500       23,000-23,500

    --Charges for DRY CARGO, in rupees per 10-tonne truck load--


    Indore to:
    Ahmednagar   ---               12,500-13,000       12,500-13,000
    Ahmedabad    ---                9,500-10,000        9,500-10,000
    Amritsar     ---               30,000-30,500       30,000-30,500
    Aurangabad   ---               12,000-12,500       12,000-12,500
    Baroda       ---                8,500-9,000         8,500-9,000
    Bedi Bunder  ---               10,000-10,500       10,000-10,500
    Bhavnagar    ---                9,500-10,000        9,500-10,000
    Bangalore    ---               25,000-25,500       25,000-25,500
    Chandigarh   ---               25,500-26,000       25,500-26,000
    Delhi        ---               20,000-20,500       20,000-20,500
    Dhulia       ---                8,500-9,000         8,500-9,000
    Faridabad    ---               20,500-21,000       20,500-21,000
    Jaipur       ---               18,500-19,000       18,500-19,000
    Jalandhar    ---               29,000-29,500       29,000-29,500
    Jammu*       ---               36,500-37,000       36,500-37,000
    Kandla       ---               11,500-12,000       11,500-12,000
    Karar        ---               16,000-16,500       16,000-16,500
    Karnal       ---               23,000-23,500       23,000-23,500
    Kolhapur     ---               17,000-17,500       17,000-17,500
    Ludhiana     ---               26,000-26,500       26,000-26,500
    Malegaon     ---               10,000-10,500       10,000-10,500
    Mumbai port  ---               14,500-15,000       14,500-15,000
    Mundra       ---               12,000-12,500       12,000-12,500
    Nashik       ---               10,000-10,500       10,000-10,500
    Nanded       ---               13,000-13,500       13,000-13,500
    Navlakhi     ---               12,000-12,500       12,000-12,500
    New Bombay   ---               13,500-14,000       13,500-14,000
    Okha         ---               12,000-12,300       12,000-12,300
    Porbandar    ---               11,000-11,500       11,000-11,500
    Pipawa       ---               11,500-12,000       11,500-12,000
    Pune         ---               14,500-15,000       14,500-15,000
    Satara       ---               15,500-16,000       15,500-16,000
    Sangli       ---               16,000-16,500       16,000-16,500
    Solapur      ---               15,000-15,500       15,000-15,500

    * 9 tonnes

source: http://in.reuters.com/article/2013/07/26/indore-freights-idINL4N0FW2RK20130726
FedEx Proposes to Continue Operations Despite Being Ruled Out of Public Utility Contract 


PHILIPPINES – When the judiciary comes up against state in virtually any country, casual observers can often sit back and enjoy the ensuing row. After effectively being kicked out of the country this week when a Court ruled that its government-issued freight forwarding licence was invalid, FedEx has apparently vowed to continue operations whilst awaiting the final decision of the Supreme Court after two native logistics firms won a wrongful practice suit.

The government, under the auspices of the Civil Aeronautics Board (CAB), issued FedEx with the 5 year licence in May 2011 following a Department of Justice authorisation some years earlier that exempted freight forwarders from the national requirement to only grant public utility contracts to companies owned and operated by Filipinos.

The appellate Court begged to differ however saying, having made the original decision to disqualify FedEx (and any other forwarder affected by similar licence arrangements) that the Justice Department had no authorisation to overturn its ruling. Three justices all agreed on this after a case was brought by two Philippine companies, Merit Freight International Inc. and Ace Logistics Inc., aiming to prove that FedEx is a foreign corporation.

There was precedent for the prosecution in that one company, Royal Cargo, apparently previously 70% owned by Filipinos and with a foreign president but married to a native, exchanged their president for a German national which caused the CAB to rescind their licence to operate unless a further change of presidential status was effected within one month.

It is difficult to see how FedEx can win this particular argument and certainly there may be some residue of distaste after the events of February 2009 when the logistics giant pulled out of its contract to operate a 300,000 square foot cargo terminal in the Subic Bay International Airport. The closure, despite an agreement stretching into 2010, was due to FedEx’s desire to reposition its main Asia Pacific hub to China’s Guangzhou Baiyun International Airport, the first time the US company had ever closed a main cargo hub. The move cost over seven hundred Filipino jobs and followed a move the previous year when FedEx pulled the plug on the operations of Corporate Air which also had a presence at Subic.

It is presumed that the FedEx appeal will centre on the money the US corporation says it is has earmarked to invest in the expansion of its facilities in the country, which was to include new offices and freight terminals supposedly at a cost exceeding $11.5 million. In a statement a spokesman for FedEx (Philippines and Indonesia) said:

“FedEx is operating under the international freight forwarder licence issued by the CAB as an independent entity in the Philippines. The licence was issued on May 2, 2011 and is valid until May 1, 2016. Pending the final decision of the Supreme Court, the CAB has confirmed that FedEx (together with all of the 30 plus other foreign-owned air freight forwarders) can continue to operate under the licence.”

source: http://www.handyshippingguide.com/shipping-news/giant-logistics-group-falls-foul-of-freight-forwarding-ownership-law-_4791

Saturday, July 27, 2013

New rules have been issued by the Ministry of Finance and State Administration of Tax in their Cai Shui no.37 (Circular 37) regarding application of VAT to ocean transport services. The majority of carriers have confirmed that they will start to debit 6 % VAT on all charges payable in China.


There is a great deal of uncertainty about the application of the new rules and some carriers are seeking clarification with Ministry of Finance and State Administration of Tax. We understand that until those carriers receive clarification of the rules and their application to ocean shipping, existing invoicing arrangements will remain unchanged.

As is often the case with changes to regulations in China there will be some contradictory statements and we cannot make definitive statements regarding implementation at present.

We have compiled the below information from carrier notices:

The following carriers have indicated that they will apply the 6% VAT charge on all invoices payable in the PRC from 1st August 2013based on the issuance date of the VAT invoice.
 
OOCL, Hamburg Sud, MSC, MOL, NYK Lines, CSAV, China Shipping Container Lines

The following carriers have stated that existing invoicing arrangements will remain unchanged until they have obtained clarification with the Chinese Authorities

Evergreen, Maersk, MCC

Source: http://www.bifa.org/content/popmessage.aspx?sec=2&id=3642
DHL Express has improved its carbon efficiency for the fourth consecutive year at 7.4 percent despite a significant rise in volume.

Top country performers include Thailand, Australia, Japan, Singapore, and Bangladesh.

Deutsche Post DHL, parent company of DHL, has now achieved a 16 percent improvement in its carbon efficiency since the launch of the GoGreen programme in 2008 and is over halfway to meeting its target of a 30 percent CO2-efficiency improvement by 2020.

Jerry Hsu, CEO, DHL Express Asia Pacific, said: "Demand for DHL Express services has increased in Asia Pacific. Last year, we saw a double-digit growth in volume, yet overall we managed to achieve a 7.4 percent year-on-year improvement in carbon efficiency. Despite opening new and bigger facilities to serve growing customer demand – such as the North Asia Hub in Shanghai – our increasingly efficient ground operations, energy efficient buildings have enabled us to lower overall carbon emissions for the fourth year in a row, showing our absolute dedication to growing a sustainable business."

Fleet modernisation, such as the introduction of new and more fuel efficient vehicles in ground transportation, was a major contributor to improved CO2 efficiency in the region. Over 500 vehicles in Asia Pacific were replaced with new units that feature innovative systems like GPS and telematics to help monitor, measure, analyse and improve the carbon efficient behaviour of drivers, in addition to continued effort on route optimisation and asset utilisation.

Most of the vehicles are Euro IV and V emission standards, which are defined by the European Commission as the acceptable limits for exhaust emissions for new light duty vehicles sold in European Union member states.

Thailand achieved an outstanding performance with a 36.2 percent year-on-year improvement in CO2 efficiency, followed by Australia at 22.7 percent. In Thailand, diesel vehicles were fitted with gasoline engines running on 100 percent CNG (Compressed Natural Gas). Australia's older fleet was also upgraded with new and more fuel-efficient vehicles meeting Euro V standards. Changes to ground facilities with improved energy utilisation also played a big role in achieving CO2 improvements.

In Australia, all of DHL's facilities are currently certified as ISO 14001 (Environmental Management System), and staff is fully engaged with the environmental programme. initiating different activities around energy savings, paper reduction and waste recycling.

Among other top performers of CO2 efficiency improvement are Japan (18.6 percent), Singapore (17.9 percent), and Bangladesh (12.4 percent). DHL's Central Asia Hub was the top hub with an 11.4 percent improvement in CO2 efficiency.

DHL Express Asia Pacific started the assessment of its carbon footprint from energy consumption in real estate and ground transport to measure and improve carbon efficiency through abatement programmes. This program was first introduced by DHL Express in 2008 and now covers over 1,000 facilities in 27 markets across Asia-Pacific. 


Source: http://www.cargonewsasia.com/secured/article.aspx?id=7&article=31403