Cathay concludes real-time tracking test with Unilode, OnAsset

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.

DHL GF, Ethiopian Airlines launch JV to build logistics infrastructure in Africa

DHL Global Forwarding and Ethiopian Airlines have entered a joint venture (JV), “DHL-Ethiopian Airlines Logistics Services Ltd.,” that will serve the entire continent of Africa based from Ethiopia – with Ethiopian Airlines holding a majority stake in the venture.

“With its GDP growth, Africa is stepping into the spotlight as production hub,” CEO of DHL Global Forwarding for the Middle East and African regions, Amadou Diallo said. “Recent moves to open up the economy will continue to boost Ethiopia’s position as the fastest-growing economy in Africa.”

The forwarding giant aims to establish air, ocean, and road freight services to connect trade hubs in the Horn of Africa to the rest of the world. The nation is an exporter of perishable goods like flowers and livestock, as well as leather products and coffee. While the region has a solid portfolio of exports, there is a “much-needed [improvement in] freight capacity and logistics infrastructure,” a statement from the companies said.

DHL Global Forwarding has been supporting the maintenance, repair, and overhaul (MRO) operations for the carrier since 2010, offering its “end-to-end logistics services for aircraft parts, engines and mechanical modules to textile, utensils, food and beverages via air and ocean freight between Europe and Asia,” the statement said.

The cargo logistics partnership comes at an optimistic time for the region; this month, the Ethiopian government sealed an agreement that finalized a 20-year-long war with neighboring Eritrea, in which both countries spent hundreds of millions of dollars and saw thousands of casualties due to a border dispute. On July 18, the first flight since reconciliation between the two countries was operated by Ethiopian Airlines.

“Logistics is key to support Africa’s fast economic growth and industrialization drive,” said Tewolde GebreMariam, CEO of Ethiopian Airlines Group, and continued that “with this JV we aim to make the country a logistics hub for Africa.”

Auto market demand prompts DHL to triple capacity in Charleston

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.”

Panalpina releases positive first-half 2018 results

Swiss forwarder Panalpina reported a first-half net profit of US$36.1 million, up 20.1 percent over 1H17. Gross profit (what some forwarders call net revenue) was up 10.6 percent for the half to $744.4 million, while operating profit (EBIT) jumped 30.2 percent to $54.7 million. This strong performance comes after a long period during which Panalpina has struggled to match results reported by its competitors.

Referring specifically to the company’s air freight operations, gross profit increased to $354.7 million and earnings before interest and taxes (EBIT) in air freight increased a healthy 20 percent to $39.1 million to $53.4 million.

Looking forward, CEO Stefan Karlen said, “For the second half-year we expect accelerated volume growth for our Air and Ocean Freight activities. 2017 was a record air freight year though, so the comparison will be tough, and uncertainties in international relationships will increase volatility in the air and ocean freight markets and possibly change trade patterns.”

The forwarder also released news of its plans to expand it perishables network in South Africa by acquiring the majority stake of Johannesburg-based perishables specialist Skyservices, supporting the transportation of perishables from South Africa to destinations in Europe, the Middle East, Asia and the U.S.

DHL Express purchases fourteen 777-Fs

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.

DHL Express launches express Mexico-U.S. flights for pharma

DHL Express has launched multiple expedited Mexico-U.S. flights – serving Mexico City, Guadalajara and Monterrey to “most U.S. destinations” – addressing a demand for transportation of pharmaceuticals and biomedical shipments to Central and South America.

The logistics giant’s DHL Worldwide Medical Express (WMX) service, launched in 2014, offers dry ice supplies and temperature-controlled packaging fulfillment services via its web-based interface. Its network includes Argentina, Chile, Costa Rica, Dominican Republic, Ecuador, Guatemala, Panama and Peru, and will soon expand into Brazil.

Brian Bralynski, sector head of life sciences for DHL Americas, said customs are a difficult hurdle for logistics players, especially those dealing in pharma. “Given the complexity of export processes and Ministry of Health approvals in Mexico and several other Latin American countries, having an integrated system enables DHL to begin the export approval process ahead of samples arriving at our facilities,” he said.

Demand for pharma in South America is heating up, with logistics members across the board investing in facilities and infrastructure for the handling of the temperature-sensitive cargo. Patrick Fehring, director of aero business at Rio Galeão Airport, a major aviation hub in Brazil, told Air Cargo World the airport has expanded its infrastructure for the handling of pharma cargo in recent years.

“We the have CEIV-Pharma certification, [which] we obtained three years ago,” he said. “I would probably say that if you look at our infrastructure for handling pharmaceuticals, it’s right up there with some of the top cargo airports in the world.” He added that the investment “definitely drove real improvement in infrastructure, and definitely in cargo infrastructure.”

Panalpina expands certification for European perishables network

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.

Panalpina opens logistics center in Singapore

Yesterday, Swiss forwarder Panalpina opened a six-floor, 25,800-square-meter air- and oceanfreight logistics center in Singapore, targeting demand for its services from clients in the energy, healthcare, technology, manufacturing and fashion industries operating through the tiny nation.

In his remarks at the opening ceremony, Panalpina CEO Stefan Karlen said, “more than one-third of the space is occupied by two customers alone,” naming Korean retailer Metro and Royal Dutch Shell (Shell) as two of its most prominent clients set to utilize the warehouse space. “Ninety-sox out of our top 100 customers globally have a base in Singapore, so it makes perfect sense to extend our capabilities in this dynamic city-state.”

The company said it plans to test new logistics technology at the facility, including augmented reality systems, which can be used to improve inventory management efficiency, the implementation of “internet of things” systems and, potentially, the use of 3D printers for distributed manufacturing.

DHL Freight opens new facility in Turkey

DHL’s Freight division opened its 38,000-square-meter warehouse in Manisa, Turkey, in response to a growing demand for logistics services near the nearby port city of Izmir.

Uwe Brinks, CEO of DHL Freight, said the company’s investment, which is in the “high single-digits” in millions of euros “in order to meet our customers’ growing needs and take advantage of Turkey’s essential geographic location for logistics routes,” which likely refers to trans-Eurasian and African-European trade.

Turkey is a prominent exporter of agricultural products, textiles, motor vehicles, transportation equipment and home appliances. DHL said merchants in the Manisa region export to more than 100 countries worldwide, touting an overall export value of nearly €3.5 billion last year.

IATA’s most recent report showed the Middle East comprises 13.7 percent of the world share of air cargo traffic volume. Today, Turkish Cargo, a major regional carrier, reported a 30 percent growth rate in volume between January and May of this year, compared to the world market growth of 4.3 percent during the same period. If the carrier’s recent figures are an indicator of the region’s economic potential, then the Middle East should be on the radars of logistics players.

“Manisa hosts Turkey’s first logistics park and is home to some of the country’s leading production and import/export companies,” said Hasan Kavci, managing director of DHL Freight Turkey.

DHL Freight currently operates a network of more than 200 terminals in 32 countries.

Virgin Atlantic re-launches Sydney-Hong Kong service

This week, Virgin Atlantic Cargo re-launched its Sydney-Hong Kong service ahead of schedule, following the airline’s three year hiatus. The carrier points to a “shift in the market” since 2014 – specifically, the growth of online shopping – as the main reason for the resumption of service.

“Sydney-Hong Kong is a route we know very well,” said the cargo division’s managing director, Dominic Kennedy. “The launch of this important new route is coming at a prime time for air cargo capacity demand to and from Australia,” which will allow for 15 to 20 tonnes of cargo capacity per flight in the belly of Virgin Australia’s new A330 aircraft.

Trade between the two nations has also been encouraged by the lucrative China-Australia Free Trade

Agreement (ChAFTA), signed in June 2015. The deal made 85 percent of Australian exports to China tariff-free – a figure the nations’ governments say will rise to 95 percent in the next decade.

The demand for e-commerce products between the two nations “generates high volumes in both directions,” said Kennedy, with Chinese consumers increasingly making purchases via apps like Alibaba’s e-commerce platform, which serves as a market for everything from electronics to lobster to milk powder.

In 2018, Virgin Atlantic Cargo increased its route frequencies, in March, increasing its London-Johannesburg route from one to two frequencies per day, and adding a new Belfast-Orlando service.