Spice Jet Entering Freight Business as It take Delivery of First Freighter

SpiceJet airlines is entering into freighter business as SpiceXpress with the delivery of first freighter .


It is expected that Spice Jet will initially launch 2 B737-700 freighter & will start operations from Sep 18.


Initially it will operate between Delhi & Bengaluru while spreading to Amritsar, Kabul & Hong kong.


Many attempts have been made earlier by airlines like Air India cargo, Deccan & Quickjet but only few were able to endure.


With make In India campaign more foreign companies are expected to setup production lines in India.

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Considering Uncertainity Air China is set to offload Majority Stake In Cargo Arm

Air China is planning to sell its major stake to Capital Holding considering uncertainties in international trade.
Capital Holding will own 51% stake of the airlines after $ 357m transaction is complete.
The remaining 49% will be owned by Cathay pacific.
 Capital Holding is a wholly-owned subsidiary of state-owned China National Aviation Holding Corporation (CNAHC), which is also a 53.5% shareholder of Air China.
Air China said: “Given the complex international trade situation and the expected weakening of Renminbi, the profitability has not been fundamentally improved. Due to the extended period of poor performance, there is still a large amount of losses to be covered.”
Air China gave two reasons for the selling of its freight-carrying subsidiary: “With the increase in the income of residents, the upgrade of consumption structure, and the increasingly close economic tie among regions, the air passenger transport business maintains stable growth while possessing huge market potential.
“Following the disposal of Air China Cargo, the Company will further concentrate its resources on the air passenger transport business to increase the competitiveness thereof while mitigating the impacts of intensified competition in the cargo transportation market and uncertainty of international trade situation on the Company’s business performance”.

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Ethiopian airlines cargo volumes increases rapidly for fiscal yr 2017-18

With fleet expansion Ethiopian airlines is experiencing rapid increase in volumes close to 400,339 tonnes for last fiscal yr. with an approx increase of 18% YOY.

Ethiopian airlines added 14 new aircraft to its fleet & routed to 8 new international destination namely Geneva, Chicago, Bahrain, Kaduna, Buenos Aires, Kisangani, Mbuji-Mayi & Nosy-Be. 

The airlines is further expecting rise in cargo volumes as it has signed up for 2 B777Fs last year in June & 2 more in November.

With 6 B777F & 2 B757Fs Ethiopian airlines stands as largest network cargo operator in Africa.

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Increase in air freight rate in July despite market slowdown

Air freight rates are increasing since July this year irrespective of market slowdown.

Generally with market slowdown the air freight rates also show decline but not this year as it seems that major cargo hubs are under pressure based on available cargo handling.

As per below TAC index the prices on Hong Kong to North America increased by 16% in July.

Similarly for Hong Kong to Europe the prices increased by 23% 

The forward curve prepared by FIS Invester says “Air Cargo rates have continued to grow throughout July and look to continue to rise, resulting in a reluctance of airlines to commit their space for quarter four early,” FIS’ Nicola Hughes said.

“This is in the hope that they will achieve greater rates through the spot market at a later date. Leading shippers and freight forwarders to look for smarter ways to secure capacity in an environment where time to market is critical.”

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To Kick Off Farnborough Airshow DHL orders 14 B777Fs

Based on current list prices worth $4.7bn DHL orders 14 Boeing 777 Freighters with purchase rights for additional 7 freighters.

After this order DHL fleet of B777 will be double in size.

This order was announced at Farnborough International Airshow, is in response to increasing express demand & also to replace ageing aircrafts.

 Ken Allen, chief executive, DHL Express, said: “The acquisition of the 14 Boeing airplanes reflects a gradual replacement of our older intercontinental fleet.

"As the most fuel-efficient, most reliable freighter type with the best long-haul range, these aircraft will contribute to our emissions reduction targets and allow us to serve even more markets with non-stop flights.

"DHL was an early adopter of this type of aircraft for the logistics industry and took delivery of the 3rd B777F produced by Boeing in 2009. With extensive experience operating this freighter type, it has proven to be superior in all aspects of operation making it a logical choice."

The 14 aircraft are capacity neutral, but operational wise offer "significant cost, efficiency and reliability benefits", DHL said.

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Get Spot market capacity on digital platform from Lufthansa cargo

The German cargo carrier has made an agreement with cargo.one for making booking online for its td.flash (express service) & td.pro (general service) in order to offer spot market capacity & provide digital facility to forwarders.

Lufthansa Cargo chairman Peter Gerber said: "Digitisation allows information to be distributed around the globe in fractions of a second.

"This has given rise to new expectations with which both carriers and freight forwarders are confronted. We are therefore now offering our customers the opportunity to exchange prices and capacities even faster and to book services even easier.

"Booking platforms such as cargo.one will in future support forwarders in meeting their customers' needs even better. This is the next logical step in the digitisation of our industry."

Cargo.one founder Oliver Neumann said: "Many solutions on the market promise digital bookability. The reality is that in most cases the rates offered do not give access to capacity.

"In particular at times of high demand, our solution offers airfreight forwarders a quick and easy access to capacities with immediate confirmation at live spot rates."

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New Freighter Service to Delhi by Korean Air

From July 17, Korean air is launching three times a week freighter service between Incheon & Delhi .

Currently Korean air is operating passenger aircraft from Incheon to Delhi & Mumbai three to five times weekly.

In a statement, Korean Air said: “The decision to introduce the cargo flight accompanies the South Korean government’s new diplomatic strategy to strengthen partnership with India, and rapid growth of the Indian market. Korean Air will operate its Boeing 777F freighter three times a week (Tuesday/Thursday/Saturday)."

The flight will depart at 11.10pm from Incheon & will have 1 stop at Hanoi while in returning from Delhi it will have 2 stops namely Vienna & Milan, respectively.

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Airfreight future figures published by FIS

Freight Investor Services (FIS), global leader in freight & commodity derivatives, has published airfreight future price curve, starting a new discussion in this $70bn market.

In order to hep buyers & sellers in ascertaining seasonal price increase & tackling capacity issues , a new risk management tool is been designed by FIS.

FIS along with index provider TAC index developed a robust tool for air freight market comprising 35% of total global trade . This launch just coincides with the recent freight surge in market this giving a valuable tool in hand of freight forwarders to ascertain future market & negotiate better rates in market.

Asset owner leasing planes to carriers can also streamline there income by using this tool & will be able to control risk in a more controlled manner. 

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Panalpina Opens new logistics centre at Singapore

Located on Pioneer view with an area of 3.5 football pitches Panalpina opens new logistics centre at Singapore.

The warehouse is constructed six floor measuring 25,800m2 of which major space is already rented out .

As per chief executive officer of Panalpina Singapore is very important location for Panalpina as 96 out of its 100 global customer are based out of Singapore.

The new facility can also be used for testing & using new technology including Internet of Things, augmented reality & various automation systems. It can also run 3D printers on behalf of customers which can promote distributed manufacturing in near future.

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US President Donald Trump puts 25% tariff on goods from China

800 products exported by China to US worth $34bn will be affected by increased tariff which will come into effect from 06/Jul/2018.

As per White House more tariff will be imposed on products worth $16bn later after discussion.

China retaliates saying that it will impose additional 25% tariff on US goods affecting 659 goods worth $50bn

As per Mr. Trump tariffs are essential to protect from unfair transfer of intellectual copyright & technology which will help save hundred of jobs.

Stock markets have crashed in US & Europe considering expected trade war between these 2 countries.

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DHL Global Forwarding planning to expand freighter service

With increasing demand DHL Global Forwarding is planning to expand its freighter services to meet customer expectation & demands.

According to David Goldberg , Chief Executive, Global Forwarding , US , steady & predictable service along with steady rates to be provided to customer throughout the year.

As per him last year there were many airlines who cancelled there capacity at certain ports which resulted in huge delay for our customers hence deploying own capacity on those lanes where we expect high demands will help sustain customers & increase business.

People are using air freight to avoid delay in production & they prefer cargo movement in accordance with production time table so as to have it when it is needed.

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Air Incheon launches freighter service to Hanoi

Air Incheon has launched freighter service to Hanoi while ACSV(Air Cargo Services of Vietnam) will be its handling partner at Hanoi.

This South Korean carrier has also promised to lauch its 2nd freighter by end of this year.

Considering the global expansion Air Incheon has taken this decision & may launch more services in future.

Air Incheon & ACSV partnership will be a milestone in services of logistics industry.

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George Willis Appointed as President of UPS US Operations

Effective May 1, UPS has appointed George Willis as president of US operations.

Willis will succeed Myron Gray who chose to retire after serving for 40yrs at UPS . Willis will report to Jim Barber & will join most senior leadership group of the company.

Willis began his career with UPS in 1984 as part time package handler in the Georgia district & many other part time supervisory roles while attending Morehouse college. He received his bachelor degree from Trinity college.

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Mike Ducker , Fedex Freight President Retiring After 43 yrs service..

Michael L. "Mike" Ducker the Fedex Freight President after 43yrs service is retiring Aug. 15 as announced by company. The new successor would be named soon.

Ducker native of Chattanooga joined FedEx Express in 1975 and served in frontline operations staff at the Memphis hub. He rose through operations rank in 1980s & handled international assignments staring 1991 as Vice-president for South Europe based out of Milan, Italy.

Ducker rose through the U.S. ground operations ranks in the 1980s and took a series of international assignments starting in 1991 as vice president of Southern Europe, based in Milan, Italy. He also served as vice president for South pacific & middle east region & senior vice president for Asia / Pacific region till 1999 . He was chief operating officer at Fedex Express for five years starting in 2009.

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Kerry Logistics added 2 more directors...

 Kerry Logistics has appointed two more directors namely Mathieu Renard Biron & Patrick Chea in its team. 

Mathieu Renard Biron as Managing director based out of Hongkong & Bangkok will be responsible for strategic development of group international freight forwarding division on both strategic & operational level. In earlier roles he has worked with several logistics, freight forwarding & manufacturing corporations since 1991 & last served as Geodis group regional vice president for Asia Pacific.

Patrick Chea as Executive director based out of Singapore will be responsible for developing air freight product , trade lanes & service capabilities. Earlier to this role Cheah was working with UTi & Damco as head of air freight for Asia.

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