Category: Industry News

10 / 02 / 2020

By Damian Brett

Freight forwarders are bracing themselves for air cargo space shortages as a result of demand spikes and capacity cuts on services out of China and Hong Kong.

The widely reported capacity cuts on China and Hong Kong services comes in response to a collapse in passenger demand due to the coronavirus.

Meanwhile, a surge in volumes is expected once factories start production again after an extended New Year holiday break.

Joe Cipolla, senior director – airfreight, Crane Worldwide Logistics, told Air Cargo News that the virus outbreak is already resulting in a lack of space heading into China and Hong Kong, with shortages in the outbound direction expected to follow.

“[Inbound] demand has increased due to a lack of space and an increased need of protective medical equipment like surgical masks, hand sanitizers and items of that nature. For those carriers still flying freighters, the demand is very high, booking could be four to seven days out,” Cipolla said.

He added that he is expecting a surge in outbound demand and space shortages from China once factories restart production. This will last until passenger flights resume.

Rates out of China will reach peak-season levels on both imports and exports as a result, Cipolla predicts.

“The longer [passenger carriers] continue to stay inactive the worse the situation will get,” he said.

Meanwhile, DSV has also warned of tight capacity once factories re-open.

“Along with the currently canceled flights to and from China, some carriers are starting to cancel flights to and from Hong Kong, which will likely lead to capacity constraints and higher rates in the coming weeks,” it said in a customer update.

“We are seeing minimal cargo being shipped out of China due to factories remaining closed.

“Capacity will be tight after China resumes work [this] week. DSV China and Hong Kong will work closely with all core carriers and vendors to ensure proper capacity planning in line with expected shipping requirements, though scarce capacities and higher rates are expected starting in week 7.

“Airports continue to operate fairly normal; terminals, warehouses and customs are open for business.

“However, the overall air traffic has been significantly reduced and almost all airlines have adjusted their passenger flight schedules in and out of China. In line with reduced activity levels across China, these capacity reductions have been manageable so far.

“Based on the prevailing government announcements, we do expect a significant increase in shipping activities after 10 February or whenever cargo availability from shippers will return.”

13 / 02 / 2020

By Damian Brett

Chicago Rockford International Airport (RFD) handled record volumes of cargo last year helped by the expansion of Amazon Air operations.

The Illinois airport saw cargo volumes grow by 11% year on year in 2019 to reach just over 1m tonnes.

In just five years, RFD has tripled the amount of cargo landing in Rockford.

RFD is home to the second largest UPS hub in North America, which continues to increase its daily cargo flights.

The airport also serves other air cargo carriers, including ABX Air, ATI, and Atlas Air.

With the airport’s recent cargo expansions and additional flights announced by Amazon Prime and other Amazon carriers, Rockford is quickly becoming a “Midwest hub for e-commerce freight”, it claimed.

“We continue to see the cargo numbers increase due to the partnerships RFD has secured and nurtured throughout the past several years,” said Mike Dunn, executive director at RFD.

“In addition to our larger partners, we’ve been able to secure several additional organisations which further impacts our region’s job growth and economic development.”

In July 2019, the Federal Aviation Administration released its calendar year 2018 all-cargo data which ranked RFD as the 19^th largest cargo airport in the nation, with growth of almost 55% year on year.

Additionally, in September 2019, Airports Council International (ACI) named RFD as the fastest-growing cargo airport in the world for 2018 for airports that handled more than 250,000 metric tons of air cargo.

13 / 02 / 2020

By Damian Brett

Emirates SkyCargo has launched bonded trucking corridors to Riydah to meet customer demand.

The cargo airline said it had introduced two bonded trucking corridors in Saudi Arabia connecting Dammam and Medina with Riyadh.

This is in response “to customer demands and provide additional capacity options for businesses overseas wanting to send cargo to Riyadh”.

The trucking service is operated by Eastern Allied Transport, an affiliate of Allied Transport Company, which operates Emirates SkyCargo’s fleet of 49 trucks between Dubai International Airport (DXB) and Dubai World Central (DWC).

With the introduction of the new bonded lanes, cargo bound for Riyadh can also be moved on flights to Dammam and Medina from Dubai and then trucked to Riyadh where they will go through import customs clearance.

Emirates SkyCargo will offer same day delivery at Riyadh for cargo that is trucked from Dammam and Medina thereby increasing the number of connectivity and delivery time options for customers.

“The trucking service not only makes more optimal use of Emirates SkyCargo’s capacity into Saudi Arabia, but also allows for a wider range of connection times for cargo arriving from around the world to travel through to Riyadh,” the airline said.

Emirates SkyCargo is currently operating the trucking service up to five times a week based on customer demand.

The trucks are tracked using GPS and cargo loaded inside the trucks are secured with tamper proof seals to ensure that cargo arrives safely at Riyadh.

The main commodities being moved currently on the trucking service include garments, courier and other general cargo.

Although Emirates SkyCargo currently only offers import capacity into Riyadh through the trucking service, the carrier will also evaluate export opportunities based on market demand.

The new trucking service comes as the carrier celebrates the 30^th anniversary of its operations to the capital of the Kingdom of Saudi Arabia.

Emirates SkyCargo currently offers just over 1000 tonnes of combined export and import cargo capacity into Riyadh through its 27 weekly flights. Over the last five years, the carrier has helped transport more than 138,000 tonnes of cargo to and from Riyadh.

Some of the major commodities that Emirates SkyCargo has helped transport include chilled meat, electronic equipment, pharma and other types of general cargo.

12 / 02 / 2020

By Max Kingsley-Jones FlightGlobal

Boeing has delivered the first 767-300 Freighter to FedEx Express built at the increased production rate.

The manufacturer had been producing the all-cargo twinjet at a rate of 2.5 aircraft per month but has increased this to three a month this year. 767s are built at Boeing’s primary widebody production centre in Everett, Washington.

To help improve efficiency as the rate increases, Boeing last year transferred assembly of the 767’s forward fuselage to Spirit AeroSystems in Wichita. Spirit previously made sections of the 787’s forward fuselage and shipped them to Everett where the Section 41 nose was assembled.

The 767, which has been in production for almost four decades, has experienced increasing demand from cargo operators. It is also being produced as the KC-46A military tanker for the USA and Japan. The current backlog stands at 94 aircraft, comprising 54 freighters for FedEx and UPS, and 40 tankers.

After working with unit load device (ULD) management firm Unilode Aviation Solutions and supply china data management company OnAsset Intelligence, Hong-Kong-based carrier Cathay Pacific said it has completed a field test of a ULD track-and-trace system that supplies data to customers in real time.

Powered by Bluetooth low-energy (BLE) beacons, the ULD system was tested over several weeks at the Cathay Pacific Cargo Terminal at Hong Kong International Airport (HKG). During the tests, Cathay said the wireless BLE devices functioned well in the multi-story, concrete environs of the cargo facility.

“It’s important to explore technologies that work towards the air freight industry’s aim of offering both customers and operators transparency and data accuracy throughout the entire supply chain,” said Frosti Lau, Cathay’s general manager of cargo service delivery.

Unilode CEO Benoît Dumont said the field trial with Cathay Pacific was a successful demonstration of the company’s approach to digitalization, adding that “Unilode is committed to explore other digital initiatives for Cathay Pacific within 2018.”

Cathay Pacific provided few details about the next step, but said the airline is preparing to move forward with a “proof of concept” of the BLE technology using actual cargo shipments.

This week, DHL has invested US$2.2 million in a 16,200-square-foot facility near Charleston International Airport (CHS), which will “shorten delivery times to and from the airport,” and nearly triple the capacity, compared to its previous facility.

South Carolina has attracted “some of the largest U.S. automotive manufacturing hubs,” DHL said, referring to makers like Mercedes-Benz, BMW and Volvo, who operate manufacturing facilities in the region.

The pickup and delivery center has a sorting capacity of 2,000 pieces an hour, which matches DHL’s projected growth in the region through 2025.

Chet Paul, general manager of the Southeast for DHL Express U.S., said the decision for the expansion was in response to the “explosion in international e-commerce among businesses of all sizes.”

Today, DHL Express released news of its purchase of 14 Boeing 777Fs at the Farnborough International Air Show, calling the purchase the beginning of “a gradual replacement of our older intercontinental fleet,” and said the investment is a “direct answer” to growing demand for global express capacity.

The carrier said that the purchase will be a move to reduce its leasing arrangements with outside carriers and said the acquisition will “improve the cost position of the DHL Express division going forward” and strengthen its intercontinental network.

Each 777F offers a payload of up to 109 tonnes. The express carrier operates a fleet of over 260 aircraft over a network of 220 countries.

Panalpina Adelantex, the Belgian branch of the logistics giant’s perishables network, has received its certification from Certisys to handle organic produce.

The Swiss forwarder already holds certifications from the organization for its Brussels, Liège, Luxembourg and London operations. Its Amsterdam and Kelsterbach operations are certified by SKAL and IFS Food Standard, respectively.

Panalpina says the “majority” of its perishable products imported by Panalpina Adelantex enter via Brussels Airport, where it operates a 1,600-square-meter cold-chain warehouse on the tarmac, before being distributed throughout Europe. Another quarter of the overall volume arrive via nearby Liège and Ostend airports, the company said.

“The certification is another guarantee to our customers worldwide that their fresh produce is safely steered through the Panalpina perishables network on the way to its final destination, all while maintaining the integrity of the bio products during the documentation and handling process,” said Robert Verbaenen, operational key account manager at Panalpina Adelantex.

Lufthansa Cargo has introduced “myAirCargo” to target private customers looking to send bulky items via international airfreight. “Whether it’s an urgent move, an exotic antique or a larger-than-usual sports accessory,” the airline announced, Lufthansa can now send these goods by air.

For myAirCargo customers, Lufthansa’s logistics subsidiary will organize complete transport of goods from door to door, while also handling customs formalities en route. The new product frees up deep-pocketed customers, such as tourists, to indulge in ambitious impulse buys.

“We are occupying an innovative niche in the market between postal services and forwarders,” said Peter Gerber, CEO of Lufthansa Cargo. “Book air cargo quickly and easily online, at first hand – only we can do that.”

However, the World Wildlife Fund warned buyers to beware. Before forking over their Malaysian ringgits, Mozambican metical, or Vietnamese dong, customers should ensure that their purchases don’t violate international laws on endangered species and plants. “Most countries, including the United States, protect their native animals and plants under national laws and through CITES – a treaty signed by more than 170 nations to support sustainable trade in wildlife and plants while protecting endangered species,” the organization said. “Just because you find an item for sale does not mean it is legal to bring it home. By making informed choices, you can avoid having your souvenir confiscated or paying a fine.”