Air Cargo World - IATA shows robust growth in August air cargo FTKs

Global air freight markets showed continued robust growth in air cargo volumes in August, according to the latest data from The International Air Transport Association (IATA). Measured by freight-tonne-kilometers (FTKs), volumes rose 5.1% in August 2014, compared to August 2013, while capacity grew at a slower pace of 3.4% from the previous year. This is the second consecutive strong month for cargo volumes, following the 6.1% year-on-year rise recorded in July.
“The outlook for air cargo is clearly getting better. However, there are some limiting factors on the extent of potential gains. Demand for air cargo is growing more slowly than global economic activity,” said Tony Tyler, IATA’s director general and CEO. “Businesses are reported to have more confidence in the future, but the list of political and economic risks continues to moderate how that confidence translates into actual activity.”
Carriers in all regions reported an expansion in volumes. African airlines led the pack with the strongest growth of air cargo demand – 9.2% year-on-year – with capacity growth of 4.2%. Although this is the second consecutive month of strong growth, the volatility of African data, coupled with the slowdown in key African economies such as South Africa, IATA said it is too soon to understand the extent to which this represents a real and sustainable acceleration.
Middle Eastern carriers enjoyed cargo growth of 7.8%, although the pace was a little below the year-to-date average of 9.6%. The Middle East continues to expand strongly on its growing links to developing markets, as well as diversifying into important commodities such as perishables. Capacity was up 6.0%.
Asia Pacific carriers grew 6.3% and capacity expanded by 4.4%, continuing the acceleration of recent months. Emerging Asia trade volumes have expanded volumes solidly in June and July. A notable rise in Chinese export orders bodes well for future demand growth, IATA said.
North American carriers increased air freight volumes by a solid 5.5% compared to a year ago. A rebound in business activity following the weakness in the first quarter and positive underlying economic growth trends should support stronger growth in the coming months, IATA said. Capacity, however, fell slightly, by 0.4%.
European airlines grew by just 1.4%, while capacity expanded by 4.8%. Economic activity within the Eurozone continues to deteriorate, IATA noted, although the latest data does show a moderate pick-up in imports and exports. EU sanctions as a result of the Russia-Ukraine crisis also continue to affect demand, the group added.
Latin American airlines saw air cargo grow by a sluggish 1.1%, compared to August 2013, while capacity rose sharply to 7.6%. The weakness in Latin American freight volumes reflects declines in regional trade activity and the anemic performance of the Brazilian economy, IATA concluded.

Source : http://www.wcainterglobal.com/eng/news.asp?id=951

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11th Annual Sino International Freight Forwarders Conference (4-7 November 2014)

The Sino-International Freight Forwarders Conference celebrates its 11th anniversary, and the 2014 event opens up even greater opportunities for delegates as it moves to Guangzhou — the most important manufacturing city in southern China and situated at the heart of the Pearl River Delta.

Open to all independent freight forwarders from around the globe, as well as an impressive range of logistics vendors and industry-related companies, the Sino-International Conference is the largest and most influential fully-open networking event in the world.

Co-organised by China International Freight Forwarders Association (CIFA) and WCA, the conference is scheduled to attract over 1,000 freight forwarders, all dedicated to creating new mutually beneficial partnerships and securing millions of dollars of new business.

Located at the luxurious 5-star Shangri-La Hotel, strategically located at the center of Guangzhou's new business and convention district, delegates can take advantage of the wide range of hotel options to suit all budgets and enjoy the many restaurants and bars overlooking the famous Pearl River.

The Sino Conference has time and again proved to be the most cost-efficient and beneficial event in the logistics industry. Face-to-face meetings are most productive way for independent forwarders to expand into new markets form vital new partnerships .

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logitrans 2014 - new running time (November 19–21, 2014)

For the first time ever, the largest exhibition for transport and logistics in Turkey will open its gates from Wednesday through Friday this year. Gerhard Gerritzen, Deputy Managing Director of Messe München, explains the event's new timing: "At the request of several exhibitors and visitors, the show now begins on Wednesday instead of Thursday, and so it ends before the weekend. The move will also emphasize the event's character as a trade show more clearly." The 8th logitrans—the International Transport Logistics Exhibition—takes place at the Expo Center ifm in Istanbul from November 19–21, 2014.

The first day of the exhibition, Wednesday, also has new opening hours from 14:00 to 20:00. As in the past, the exhibition will be open from 10:00 to 18:00 on Thursday and Friday. It will present a wide range of products and services along the entire value chain for logistics, telematics and transport.

Other new developments include countries pavilions from Luxemburg, which is being organized by the Ministry of Economic Affairs there, and from the Czech Republic, which is being organized by Czech Trade. There will also be joint exhibits from Germany and Austria, both of which have exhibited here in previous years.

Source : http://www.logitrans.com.tr/english/

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Freight upswing for Hong Kong Airport

Hong Kong International Airport (HKIA) continued to see upswings in freight in August. Cargo throughput grew by 8.8 percent to 366,000 tonnes. Flight movements had a 4 percent increase to 33,700, achieving a new monthly high for the second month in a row. 

The growth in cargo throughput was driven mainly by transshipments, which were up 22 percent from a year ago. During the month, cargo throughput to/from Southeast Asia and Mainland China improved most significantly compared to other key regions. 

“It is encouraging to see that HKIA has once again achieved new traffic records this month. We anticipate air traffic at HKIA to continue its growth trend during the remainder of the year in view of the upcoming travel peaks of the National Day golden week and Christmas,” C K Ng, acting CEO of Airport Authority Hong Kong, said. 

Over the first eight months of this year, HKIA handled 2.8 million tonnes of cargo and 258,105 flight movements, registering respective growth of 6.9 percent and 5.2 percent compared to the same period last year. On a 12-month rolling basis, cargo volume increased by 5.7 percent to 4.3 million tonnes. 

Flight movements recorded 5.6 percent year-over-year growth to 384,935. - 

Source: http://www.aircargoworld.com/Air-Cargo-World-News/2014/09/freight-upswing-hong-kong-airport/6766#sthash.qojEp06Q.dpuf

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FRENCH GIANT'S ANTIDOTE TO 2M ALLIANCE

French container-shipping giant CMA CGM has formed an alliance with China Shipping Container Lines and Middle East's United Arab Shipping Co to share vessels on some of the world's busiest trade routes.

The new alliance, called Ocean Three, is expected to deploy about 150 ships that would move roughly 20 percent of all cargo between Asia and Europe and 13 percent and seven percent across the Pacific and Atlantic oceans, respectively, people involved in the deal said, reported The Wall Street Journal.

The move comes after larger rivals Maersk Line and Mediterranean Shipping Co (MSC) sealed a 10-year tie-up in July that is expected to save them billions of dollars in operating costs.

CMA CGM said the Ocean Three vessels would call "in all the biggest Asian, European and North American ports, using transhipment hubs common to the three partners."

CSCL said in a separate written statement that the agreement would be valid for two years after the start of operations and would be automatically extended if the parties involved have no objections.

Maersk Line, a unit of Danish conglomerate A P  Moller-Maersk, and Switzerland-based MSC are the world's two biggest container-shipping companies in terms of capacity. They announced their so-called 2M alliance in July.

Chinese regulators earlier rejected a wider tie-up called the P3 alliance, which would have also included CMA CGM, over concerns that the combined strength of its proposed members would threaten Chinese container carriers.

"Ocean Three is an antidote to 2M," said Jonathan Roach, a container analyst with London-based Braemar ACM Shipbroking. "It's in line with staying competitive with the 2M and it's a good deal, because they have invested in some of the biggest ships in the business and also brought a Chinese company into the fold."

Container shipping, which carries about 95 percent of the world's manufactured goods, has suffered for the past decade from overcapacity that has led to falling freight rates, which major operators have described as unsustainable. A plethora of smaller shipping companies regularly undercut freight rates from Asia to Europe and across the Atlantic and Pacific oceans, hoping to stay in business until the industry recovers.

The 2M alliance would control a 35 percent market share in the Asia-to-Europe trade loop and 15 percent and 37 percent of the cargo moved across the transpacific and transatlantic routes, respectively. The 2M fleet would include Maersk's 20 Triple E vessels, the biggest and most efficient ships in the business, able to carry in excess of 18,000 containers each.

People familiar with the matter said MSC will also likely charter on long-term leases five Triple Es from Scorpio Group, based in New York and Monaco, and China's Bank of Communications Co.

UASC and CSCL have a combined 11 Triple Es on order. These vessels steam more slowly than most other ships to save fuel, slashing operational costs by 20 percent on each container shipped, compared with the average cost of existing vessels with less fuel-efficient engines.

Both alliances need clearance from US regulators. William Doyle, a commissioner for the US Federal Maritime Commission, said in an interview last week that he would consult with his Chinese counterparts at a meeting in November before the commission reaches a decision on the 2M alliance. The Ocean Three partners haven't yet filed with the commission.

The alliances are expected to gradually push smaller competitors out of the benchmark Asia-to-Europe route because their smaller and less fuel-efficient vessels won't be able to compete. This is expected to bring some stability in freight rates as supply, which is currently 15 percent above demand, will be more tightly regulated.

A P Moller-Maersk chief executive Nils Andersen said in a recent interview that overcapacity would take at least four years to be absorbed.

Source: http://www.cargonewsasia.com/en/news/detail?id=34226

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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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SriLankan Cargo moving towards the future with the adoption of e-air waybill system

Ushering a new era in Sri Lanka's airfreight industry, the national carrier's cargo arm, SriLankan Cargo signed e-AWB (air waybills) agreements with four of its top customers, September 10.
At a time when the industry is increasingly adopting sustainable and cost-effective practices to enhance operational efficiency, International Air Transport Association (IATA) views this as the first step towards a paper-free air cargo, involving fewer stakeholders.
The air waybill is the most important transportation document in the cargo operations, which contains the details of the shipper, consignee, airport of origin/destination, number of pieces, weight and the nature of goods.
Currently, the cargo industry relies heavily on paper documentation, which results in increasing freight costs and lengthening processing and transportation time. A freight shipment requires over 30 different paper documents and the paper air way-billing system requires that each shipment carries one such document whereas under the E-AWB system, an electronic contract between SriLankan Cargo and the freight forwarding customer replaces paper documentation.
The new system allows the airlines and freight forwarders to sign a single standard agreement once with IATA to enter into e-AWB agreements with all parties, without having to sign numerous bilateral agreements.
Initiated by the IATA, as a progressive solution, E-AWB avoids repeating data keying and reduces cargo delays due to missing or illegible paper AWBs. It also allows one to detect errors prior to the submission of physical freight, access Real Time AWB information and track status of the shipments.
Absence of paper usage eliminates the cost of purchasing and printing of paper, space for storage and archiving and noticeably reduces the waiting time for processing papers. In terms of data safety, E-AWB has been proven the more reliable option as the automated system facilitates error detection and cuts down the risk of losing documents.


Source :  www.colombopage.com/archive_14B/Sep13_1410594198CH.php

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Lufthansa Cargo strengthens its presence in West Africa

LUFTHANSA CARGO is integrating Lagos, Nigeria, into its network by launching twice-weekly MD-11 freighter flights from September, writes Thelma Etim, deputy editor.

The new services, which will take off from Frankfurt for the Nigerian city every Monday and Thursday, will also fly on to Johannesburg, South Africa.

The return leg will include a stopover in Nairobi, Kenya. “Another two weekly flights from Frankfurt to Johannesburg will also stop in Nairobi on the southbound leg,” says a company statement.

A total of 170 tonnes of capacity will be available to Africa customers. Lagos is an important destination for the oil and gas industry in particular. Urgently required spare parts and equipment for oil production facilities can now be transported even faster to Nigeria, and with greater flexibility, it adds.

“Adding Lagos to our freighter network considerably strengthens our involvement in West Africa”, emphasises Carsten Wirths, vice-president Europe and Africa at Lufthansa Cargo.

In Nigeria, the carrier also offers additional cargo capacity on board its A330 passenger flights to Port Harcourt and Abuja.

Lufthansa Cargo’s African network also serves Accra (Ghana), Malabo (Equatorial Guinea) and Luanda (Angola).

Source: http://www.aircargonews.net/news/single-view/news/lufthansa-cargo-strengthens-its-presence-in-west-africa.html

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Russian Cargo Ship Makes Fast Delivery to Space Station

A robotic Russian spacecraft filled with supplies for the six crew members on the International Space Station made an express delivery to the orbiting outpost on Wednesday.

The Progress 56 craft was launched atop a Russian-built Soyuz rocket from the Baikonur Cosmodrome in Kazakhstan at 5:44 p.m. ET (3:44 a.m. local time Thursday). It hooked up with the space station's Pirs docking compartment just after 11:30 p.m. ET.

The Progress was loaded with about 5,700 pounds (2,587 kilograms) of food, water, propellant and other supplies for the station's Expedition 40 crew.

Historically, Progress ships have taken about two days to arrive at the station. Since 2012, however, the Russian crafts have been flying to the science laboratory in six hours or less. Astronauts and cosmonauts have also started taking these quick, four-orbit flights aboard the Soyuz capsules that deliver new crew members to the station.

A different Progress craft, dubbed Progress 55, left the space station on Monday to make room for the new cargo ship. Progress 55 is now flying a safe distance away from the orbiting outpost. It will perform a series of engineering tests before it intentionally burns up over the Pacific Ocean on July 31, according to NASA.

The space station currently plays host to a crew of six. NASA astronauts Steve Swanson and Reid Wiseman, European Space Agency astronaut Alexander Gerst and Russian cosmonauts Max Suraev, Alexander Skvortsov and Oleg Artemyev make up the Expedition 40 crew.

— Miriam Kramer, Space.com

Source : http://www.nbcnews.com/science/space/russian-cargo-ship-makes-quick-delivery-space-station-n163516

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Aerofloat Cargo Revenue Slumps

25.07.2014 | 

THE decision by Russian airline Aeroflot to scrap its dedicated freighters business last year is the reason for a 36 per cent year-on-year slump in its cargo business in 2014. “Switching to belly cargo operations in 2013 is the main reason that cargo and mail carried decreased 36.0 per cent year-on-year to June 2014,” says a statement.
In the first six months of this year the company expanded its fleet, including 13 new A320s, two new B737-800s and six new B777-300ERs.
“The new, factory-direct aircraft contributed to the ongoing modernisation of the fleet, which is now one of the youngest in Europe,” says a statement.

Source : http://www.aircargonews.net/news/single-view/news/aeroflots-cargo-business-slumps.html

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Aramex Revenue Results....

The Middle East-based logistics company's half-year 2014 revenues increased to US$0.45 million [AED 1,768 million], up seven per cent on the corresponding period of 2013.
Net profits rose to $43.4 million, an increase of 13 per cent.
“Following a robust first-quarter performance, strong momentum in the business continued through Q2,” says a statement. 
The results include a one-off cost of $1.54 million for the acquisition of Australia’s Mail Call.
During the period, broad-based revenue growth was seen across all of Aramex’s geographies, with the Gulf States the key driver of this.
There were also much stronger performances from operations in Europe, Asia-Pacific and Africa, as economic conditions improved and the volumes of international and domestic trade increased.
Africa remains vital to Aramex’s expansion strategy and to its global network, as it continues to bridge new emerging market trade corridors, says the company.
Commenting on the results, Hussein Hachem, Aramex’s chief executive, is particularly pleased with the performance of the company’s e-commerce business – “and how we continue to seize the considerable international opportunities in this sector.”

Source : http://www.aircargonews.net/news/single-view/news/aramex-profits-up.html

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Air freight volumes rise for Panalpina

Panalpina saw improved group level profitability in the first half of 2014 as air freight volumes grew four per cent over prior year.

However, the Switzerland-based global logistics operator said that unit profitability in both the air and ocean freight segments was affected by a “challenging market”.

While air freight rates “remained under strong pressure,” Panalpina put the focus on trade lane optimisation and expects the air freight market to grow by between 3-4 per cent in 2014.

Panalpina’s half year air freight volume growth to 417,000 tons was in line with the market. Earlier this month, Swiss logistics rival Kuehne + Nagel reported a similar half year rise in air freight volumes, up 3.9 per cent to 580,000 tons.

Second quarter air freight volumes at Panalpina were up by 1.8 per cent to 213,000 tons, compared with a 6.3 per cent surge in the first three months of 2014.

The Panalpina group’s total gross profit and earnings before interest and tax were “significantly impacted” by currency movements although both financials increased two per cent, reaching SFr777.9 million and SFr60.1 million respectively.

Panalpina chief executive Peter Ulber said that there “is still a lot of work to be done in terms of profitability”, especially in ocean freight.

Added Mr Ulber: “The fact that low margins have absorbed much of the growth in the first half of 2014, particularly in ocean freight, goes to show just how important it is that we stay absolutely on course with our strategic execution.

“Turning around loss-making operations continues to be our firm focus. In the mid- and long-term better IT systems and processes will help us improve productivity and profitability as we keep restructuring and rolling out our new operational system SAP TM.”

Source: http://www.aircargonews.net/news/single-view/news/air-freight-volumes-rise-for-panalpina.html

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C.A.L. Cargo Air Lines to Introduce Younger B747 Freighters

C.A.L. Cargo Air Lines Ltd., Israel's boutique air cargo company which provides air cargo services worldwide, has announced the signing of an agreement to dry lease a B747-400F and the purchase of a B747-400ERF, both with nose and side doors.

The B747-400F will be introduced to C.A.L.'s network in September this year and the second aircraft will come into service two months later.

The B747-400F has maximum payload of 112,630 kg and maximum range of 4,445 nautical miles (8,230 km). The B747-400ERF has maximum payload of 112,760 kg and maximum range of 4,970 nautical miles (9,200 km). Both aircraft can fly nonstop to destinations in South America and Far East.

At present C.A.L. owns and operates two widebody 747-200F aircrafts, each with an over 110 ton capacity, and with special nose and side loading cargo doors specifically designed to accommodate cargo of exceptionally large size.

C.A.L. Cargo Air Lines Ltd. was founded in 1976 and is based in Airport City, Israel. It has air cargo stations and offices in Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Holland, Hungary, Italy, Ireland, Germany, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and Switzerland; China, India, Hong Kong, Taiwan, Thailand, and Japan; and California, Florida, Georgia, Illinois, and Texas.

Source :http://www.port2port.com/article/Air-Transport/Airlines/C-A-L-Cargo-Air-Lines-to-Introduce-Younger-B747-Freighters/

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Joint Effort by Cargo Tracking and Loss Detention Groups to Prevent Freight Theft

US – Covert cargo and vehicle theft detection, recovery, and loss prevention company, SC-integrity (LoJack SCI) and perishable and high value shipment tracking firm Locus Traxx Worldwide, have announced an alliance which aims to both advance and bolster supply chain and cargo shipment security and efficiency. Together, the organisations plan to release a series of bundled tracking and information solutions based on Locus ‘SmartTraxx™ GO’ tracking technology, which monitors both the security and condition of the freight in real-time. LoJack SCI CEO, Ted Wlazlowski, said:

"We couldn't be happier with this collaboration. This venture will allow both Locus Traxx and LoJack SCI to support the latest generation of communication and geo-localisation technologies, while continuing to provide high value service to customers. Our market is ready for the flexibility and ease in providing a disposable tracking solution; and, together with Locus Traxx, we intend to exceed expectations for reliable, low cost visibility and control."

Locus Traxx will cooperate in providing information to and through the LoJack SCI sponsored Supply Chain Information Sharing and Analysis Center (Supply Chain-ISAC). Food is the primary target product for freight theft, accounting for 27% of recorded sector robberies in the US last year, leading to the industry facing increasing regulatory pressures from the FDA. The ability for Supply Chain-ISAC participants to obtain an enhanced view of potential risk or efficiency opportunities in the food, produce and cold chain markets could be extremely beneficial.

Source: http://www.handyshippingguide.com/shipping-news/joint-effort-by-cargo-tracking-and-loss-detention-groups-to-prevent-freight-theft_5605

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Japanese logistics firms to share drivers

Logistics companies in Japan are moving to combine their freight truck operations amid an industry-wide shortage of drivers as the economy recovers.

Yamato Transport, Seino Transportation and six other companies have set up a committee to study possible collaboration, according to Nikkei Report.

As early as the fall, the group, which also includes Tonami Transportation, Sapporo Express, Meitetsu Transport, Chuetsu Unso, Daiichi Freight System and Kanda, plans to begin sharing cargo space and sorting sites on a trial basis as early as the fall. Based on this, they will decide how to split costs.

A nationwide association of logistics companies will implement the initiative. Other carriers, such as Sagawa Express and Nippon Express, will be encouraged to take part as well.

Trucks handle about 90 percent of domestic freight transport.

About 60 percent of the carriers had anticipated a labour shortage between April and June, according to an industry survey. And drivers are ageing as well. By collaborating with peers, the carriers will work to maintain quality service while curbing costs.

The joint operations will be employed on routes that include small and mid-size cities. Trucks hauling freight along these routes often have under-utilised cargo space on return trips.

Source: http://www.cargonewsasia.com/secured/article.aspx?id=7&article=33655

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