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Qatar offers enhanced options

Airlines

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September 18, 2024

Qatar Airways Cargo has launched a range of enhanced services under the AirPlus Solutions brand. Q-Climate provides temperature-control for additional product categories, with ramp protection against external weather for general and vulnerable cargo in three standard temperature ranges.

Q-Plus offers priority capacity for time-sensitive shipments on confirmed or next available flights if the requested flight can no longer accept bookings. It is available as an add-on for Qatar Airways Cargo’s General Cargo, SecureLift (Vulnerable Cargo), Fresh Care (perishable cargo), and Drive (automobiles) products.

Q-Prime guarantees urgent shipments prioritised processing, best or preferred connections, and a money-back guarantee if the shipment does not fly as confirmed. It can also be used to gain capacity on full flights in urgent cases, where possible.

Temp-control container maker wins funding

Chris Lewis

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September 18, 2024

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Temp-control container maker wins funding

Active temperature controlled company Swiss Airtainer, has gained pre-round A investment from a consortium of private investors. The company, which has already received startup grants from venture capital sources, including the Swiss Federal Office of Civil Aviation for its initial development phase, said the new investment will help it meet the growing demand for its containers, which have been validated by pharmaceutical companies, airlines and logistics providers. The funding will enable the company to accelerate production and expand its market presence.

Swiss Airtainer’s says it active temperature-controlled offer lower weight and reduce CO2 emissions by 45%, saving four tons of CO2 on a round-trip between Zurich and San Francisco.

The containers offer redundancy in critical components, for example with solar panels backed up by six high-energy lightweight batteries for consistent and precise temperature control during flight and transit, even under challenging conditions. Airtainer also says they offer industry-first, true two-way GSM-based communication capabilities, enabling real-time tracking, alerts, and preventive intervention.

They have approval from regulatory bodies, including the European Union Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA).

Chief executive Eduard Seligman said: “This funding will help us to scale up and move closer to our goal. The trust that several major pharmaceutical companies have already placed in Swiss Airtainer demonstrates the strength of our product and its potential to transform cold chain logistics.”

Chairman of the board, Dr Ludwig Bertsch, added: “With its modern technology and focus on research and development, Swiss Airtainer provides pharmaceutical companies with a greener and more cost-effective alternative and continues to push the boundaries of what’s possible in cold chain logistics.”

Customs change not enough to stem Chinese imports, says airfreight analyst

Data & analysis

Chris Lewis

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September 18, 2024

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The Biden administration’s plan reduce shipments entering the US under the $800 ‘de minimis’ threshold “will not put the genie back in the bottle”, says analyst Niall van de Wouw.

The chief airfreight officer at Xeneta says that Chinese e-commerce platforms are seen as exploiting a loophole in US customs regulations but the real driver of e-commerce is in reality “the massive and seemingly insatiable consumer demand in the West for low-cost fast-fashion, apparel and textiles”.

He argues that Chinese e-retailers such as Shein and Temu were not set up simply because the loophole of de minimis regulations. “More than a billion shipments now enter the US under de minimis exemption each year, with the majority originating from Chinese e-commerce platforms. This extraordinary level of demand is not going away and the genie cannot be put back in the bottle,” de Wouw said.

Xeneta’s latest air cargo market analysis highlighted a 30% annual increase in e-commerce demand ex-China as well as 37 million new downloads of the TEMU app alone in a single month this summer.

There is no clear timeline for the introduction of the new de minimis regulations and van de Wouw believes the Chinese e-commerce businesses will be able to adapt quickly. He said: “Companies like Shein and Temu have known for a long time that changes to US import regulations are inevitable, and I don’t think they will be overly concerned by the latest announcement.

“Even if the new de minimis regulations cause prices to rise slightly on e-commerce platforms, they will still be very low cost. The US Government is trying to level the playing field for American retailers and manufacturers, but the price differential is so big that they aren’t even playing on the same field as Chinese e-commerce.”

Another argument used by the US Government is that the volume of de minimis shipments makes it difficult to target and block illegal or unsafe goods. However, Van de Wouw said: “The US Government has existing regulations at its disposal to stop illegal goods entering the country, they just need to enforce them.

“Stringent checks of every shipment entering the country would cause massive delays and hurt e-commerce businesses far more than any changes to de minimis regulations, but the resources required for this level of enforcement would be very costly. It would also have major repercussions for other businesses importing goods into the US by air.”

Xeneta says that most e-commerce goods are shipped from Asia to the US by air, with the massive growth in volumes during 2024 squeezing available capacity and causing markets to spike. Its data shows the air cargo spot rate from China to the US in the week ending 8 September rising by 30% year-on-year to US$4.53 per kg.

Van de Wouw warns that the air freight market is set for an extremely challenging year-end peak season when volumes traditionally increase in the run up to Christmas and New Year: “There is a storm coming to the outbound China air freight market. Shippers need to take action now and have a clear plan in place for when the storm hits, such as working with their vendor to minimize the use of spot market capacity, which will likely come at spiralling costs.”

Belgian post operator acquires UK’s Staci

Chris Lewis

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September 18, 2024

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Belgian post operator acquires UK’s Staci

Belgian postal operator Bpostgroup has acquired UK and European fulfilment provider Staci for £1.3bn as part of its plan to become a leader in e-commerce and omnichannel fulfilment.

Staci UK has a presence in the US, Europe and Asia. Bppostgroup says the partnership will allow it to leverage Staci’s expertise in managing complex logistics flows and multichannel distribution.

Thomas Mortier, who has served as chief executive of Staci Group since 1996, will lead Bpostgroup’s International 3PL division as chief executive and serve on its board of directors.

Chief executive of Staci UK, Wayne Chapman, said the investment was an endorsement of the company’s long-term financial success, growth, and track record of supporting and retaining clients, adding: “ This partnership not only strengthens our ability to serve and expand our client base across the UK and Europe, but also opens doors to new markets, including Poland and Australia.”

Staci UK’s client base includes companies in e-commerce, fast-moving consumer goods, retail and health.

The acquisition opens up opportunities for cross-selling and expanding into new sectors, particularly through collaboration with other Bpostgroup brands like Active Ants and Radial.

Germans take over Air Cargo Americas

Uncategorized

Chris Lewis

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September 17, 2024

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Messe München, organizer of the globally popular transport logistic trade fairs, has acquired the Air Cargo Americas Conference and Exhibition from World Trade Center Miami. WTC Miami will remain on board as a strategic partner for a further three editions and will also support the Munich team in operational matters.

The first co-located free-to-attend event will take place at the Miami Beach Convention Center on November 11-13, 2025.

One Air adds a third

Airlines

Chris Lewis

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September 16, 2024

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UK cargo airline One Air has added a third Boeing 747 freighter to its fleet to meet to serve the Asia/Europe route.

The Boeing 747-400ERF joins One Air on a five-year lease from AeroTransCargo FZE and completed its first flight for the airline Hong Kong to East Midlands Airport on 16 September.

An original Boeing-built freighter, it is the first aircraft in One Air’s fleet to offer a nose door as well as a side door for loading and unloading. The -400ERF version also offers a higher payload capacity of up to 124,000kg.

One Air started B747F flights in July 2023 and added a second 747-400 aircraft to its fleet in December to support its programme between China/Hong Kong and Europe.

As well as ad hoc charter flights, One Air has recently been operating a contract for seven 747F flights a week ex Hong Kong into Europe carrying general cargo.

Earlier this year, One Air announced it was starting regular flights using East Midlands Airport for UK flight operations.

Virgin appoints Europe GSSA

Airlines
GSA

Chris Lewis

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September 13, 2024

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Virgin Atlantic Cargo has appointed ECS Group’s TCE subsidiary TCE as its new general sales and service agent (GSSA) in Continental Europe. Implementation starts later this year initially for exports from the Netherlands, Denmark and Italy, before expanding to all 14 countries across Continental Europe.

Interim managing director at Virgin Atlantic Cargo, Mark Faulkner, commented: “As a crucial cargo export market, we are eager to expand our customer relationships and provide unparalleled access to our transatlantic network and beyond.”

TCE managing director, Sarah Scheibe, added: “TCE is fully committed to ensuring seamless service and further strengthening Virgin’s cargo presence in Continental Europe. Together, we look forward to supporting our customers with the highest levels of reliability and care.”

US and Canada impose swingeing security rules on airfreight from Europe

Chris Lewis

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September 13, 2024

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US and Canada impose swingeing security rules on airfreight from Europe

The US Transportation Security Administration (TSA) and Transport Canada have implemented emergency measures, effective immediately, for air cargo originating from Europe and the Commonwealth of Independent States (CIS).

The follow reports of two packages containing incendiaries igniting on European parcel networks.

International forwarders grouping FIATA says that challenges in implementing the new requirements have led to some carriers imposing an embargo on all cargo originating from the region.

It adds that the freight industry is concerned about the uneven application of the new measures, as well as the technical and operational challenges brought by the new data requirements introduced in the US Advance Cargo Air Screening (ACAS) programme. The measures will have a significant impact on shippers, particularly those with lower volumes.

Under the emergency measures, most cargo originating from Europe and the CIS can only be transported on passenger aircraft where it is tendered by a a Known Consignor or a shipper with an “established business relationship” with a regulated agent such as a freight forwarder or air carrier.

An “established business relationship” must either have been established before the effective date of the emergency measures and demonstrated by the evidence of an account with physical and billing addresses, as well as a documented payment history or other business records or, for an account accepted after the effective date, with documentation containing business registration and contact details, payment information, and a signed contract with the regulated agent or air carrier.

However, the latest version of the measures no longer require a minimum number of shipments to have been made within a 90-day period.

Cargo that does not meet the criteria can only be transported by cargo aircraft or ocean freight.

Exceptions include items weighing less than 16 ounces (453.6 grams), mail, diplomatic pouches and US government shipments tendered on a US Government Bill of Lading or air waybill where a US Government entity is listed as the shipper.

The new emergency measures also introduce Enhanced ACAS Security Filing, which must be conducted by entities currently responsible for standard ACAS Security Filings, requring additional data elements about the actual shipper to better identify the parties involved.

FIATA says it is working closely with its airfreight network to monitor the situation and support the industry in implementing the new emergency measures.

It is also calling on governments for greater harmonisation in data requirements in pre-loading advance cargo information programmes.

China terminals switch to Hermes 5

Chris Lewis

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September 13, 2024

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Three cargo terminals at Pudong International Airport and the PACTL terminal at Shanghai Hongqiao International Airport, have switched to Hermes Logistics Technologies’ latest Cargo Management System.

The upgrade to Hernes 5 was achieved with minimal downtime. Chief executive of Hermes Logistics Technologies, Yuval Baruch, said: “A key element of the project was the integration of Hermes 5 with other technology partners working with PACTL, through our standard and bespoke APIs. These enable full integration with other solutions, so data can be shared and operational efficiencies gained.”

The upgrade involved a comprehensive gap analysis, database optimisation, and training delivered in Chinese through the Hermes Learning Management System.

Sale will make DB Schenker stronger, says new owner DSV

Chris Lewis

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September 13, 2024

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Sale will make DB Schenker stronger, says new owner DSV

German rail group Deutsche Bahn has signed an agreement to sell DB Schenker forwarding arm to Danish owned logistics giant DSV for € EUR 14.3 billion, or €14.8bn including expected interest.

Deutsche Bahn said that DB Schenker’s central functions are to be retained, including those at DB Schenker’s location in Essen, Germany and anticipated that five years from now, the combined organization will have more employees in Germany than Schenker and DSV have today. Social commitments, would protect jobs, and will apply for two years after completion of the transaction.

DSV said it would invest around one billion euros in Germany over the next three to five years.

The agreement is subject to final approval by the Supervisory Board of Deutsche Bahn AG and the German Federal Government in and the transaction is expected to be complete during 2025.

Deutsche Bahn said the proceeds from the sale will remain entirely within the DB Group and will significantly reduce debt and allow it to focus on and invest in its core rail business.

DSV group chief executive Jens H. Lund, Group said: “We have a clear plan for how we want to become one of the world’s leading transport and logistics company together. Hand in hand and under one roof, the employees of DSV and Schenker will combine our strengths to create a true global leader in the industry. This strategic combination with significant investments in competitiveness will ensure long-term growth and create sustainable jobs in Germany.”

Deutsche Bahn chief executive Richard Lutz said: “The sale of DB Schenker to DSV marks the largest transaction in DB’s history and provides our logistics subsidiary with clear growth prospects. We are focusing our business on rail infrastructure in Germany that serves the common good as well as on climate-friendly passenger and freight transport in Germany and Europe.”

He added that DB Schenker will gain a financially strong owner and new growth prospects with DSV. With its leading position in numerous markets, DSV opens up considerable potential for DB Schenker and would create a global leader in transport and logistics, with DB Schenker as a pivotal pillar. Germany as a logistics location will benefit considerably from this.

Chief executive of DB Schenker, Jochen Thewes, added: “With more than 150 years of experience, DB Schenker is one of the strongest and most innovative teams in transportation and logistics. The last few years have been the most successful in our company’s history and we have proven that DB Schenker is fit for the future. We are excited about the future prospect of our combined businesses. Together with DSV, our goal is to transform the industry and build a truly global leader with common European roots – for the benefit of our employees and our customers.”

Deutsche Bahn launched the sales process for its logistics arm in December 2023. Other bidders included AP Moller-Maersk, which dropped out of the bidding in July, leaving a two horse race between DSV and investment firm CVC Capital Partners.

DB Schenker has around 72,700 employees at over 1,850 locations in more than 130 countries, offering land, air and sea freight transport, logistics solutions and global supply chain management.