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Single brand for ACS urgent services

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Air Charter Service has consolidated its urgent cargo products under a new sub-brand – ACS Time Critical. Its 24-hour team can deliver a range of specialised services, alongside ‘go-now’ cargo aircraft charters, including onboard courier and ‘next flight out’, as well as integrated trucking solutions, for a premium door-to-door service for their clients’ urgent shipments.

Group Cargo Director Dan Morgan-Evans, said: “We continued to expand and improve upon our services before realising that part of our business had evolved into a time critical services provider. We have completed more than 10,000 OBCs in recent years and added the next flight out service during the pandemic, when travel restrictions limited our couriers’ ability to always accompany the packages.

“So we felt that our name, Air Charter Service, no longer reflected everything that we offer to time critical customers. Our forwarder and manufacturer clients often require multiple services and a complete door-to-door solution, so bringing these services under the new ACS Time Critical sub-brand means that it is clearer to clients that we have a team specialising in the full range of solutions for the most urgent freight and offer more than just charters.”

Turkey’s MNG takes delivery of second converted A330 freighter

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Turkey’s MNG Airlines has completed conversion of a second first passenger-to-freighter (P2F) aircraft. MNG became the first Turkish company to convert an A330 aircraft to a freighter in December 2020 and a second has now been delivered from EFW in Germany. The aircraft is scheduled to begin commercial operations in mid-September.

Avensis offers freighters with flexibility

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Passenger-to-freighter converter Avensis Aviation has been awarded a permanent freighter aircraft Supplemental Type Certificate by the European Union Aviation Safety Agency for its fully reversible Medius cargo modification.

Applicable to Airbus A330, the solution transforms passenger cabins into full Class E cargo compartments, giving airline customers the freedom to quickly adapt to industry demand. The modification also introduces a separate supernumerary crew cabin.

Avensis says its solution is the industry’s first to feature a Class E cargo compartment without a cargo door.

Launch customer is Portugal’s TAP Air Cargo and there are ten other customers for 10 committed conversions in 2022-23.

US to be testbed for autonomous planes for Africa

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Kenya-based cargo airline Astral Aviation has signed a strategic collaboration with autonomous aircraft systems firm, Reliable Robotics to launch operations in sub-Saharan Africa

The companies will work together to develop operational, regulatory, and business plans while Reliable Robotics is working with the Federal Aviation Administration (FAA) to certify its automation system on the Cessna 208 Caravan, and to begin commercial cargo operations in the US. It has already made aviation history with milestone flights in 2019 and 2021 in Northern California.

The collaboration with Astral Aviation will enable subsequent expansion into Africa where the Caravan is an essential utility aircraft with nearly 350 currently operating.

Astral Aviation founder and chief executive, Sanjeev Gadhia, explained: “Automation will enable us to serve more routes. We look forward to working with Reliable to safely transport larger payloads over longer distances at lower cost with remotely operated aircraft.”

“The African aviation sector is primed for change and automated aircraft can be part of the solution to the market’s constraints,” added co-founder and chief executive of Reliable Robotics, Robert Rose. “Astral has deep experience operating in Africa, and we share a vision for how automation and remotely piloted aircraft can help the region reach its economic potential with safer, more flexible and cost-efficient air transport.”

DHL buys Mexican pharma specialist

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Deutsche Post DHL Group’s DHL Supply Chain has acquired Mexico-based pharmaceutical and healthcare logistics specialist, New Transport Applications (NTA).

NTA serves more than 80 customers with services that include the storage and transportation of products that require refrigeration and temperature control. It makes more than 165,000 specialized deliveries annually, distributing more than 43,000 tons per year with a team of nearly 600 people. It maintains commercial agreements with all major airlines in Mexico.

President of DHL Supply Chain Mexico, Agustin Croche, said: “It will significantly bolster our footprint in a strategically important industry vertical for DHL globally, bringing together NTA’s proven operational capabilities, know-how and a team of healthcare experts. We expect to unlock significant growth opportunities for our customers and people.”

NTA general director, Rafael Figueroa, added: “Becoming part of DHL Supply Chain is a significant and positive milestone in NTA’s history and recognition of the great team of people who drive this company since our foundation 20 years ago, We hope to merge our knowledge of the local market and experience in managing the cold chain with the resources and skills of the world leader in logistics for the benefit of our people and our customers.”

Mexico is the second largest pharmaceutical market in Latin America and shares a border and free trade agreement with the US, theworld’s largest healthcare market. In August 2022, the National Chamber of the Pharmaceutical Industry of Mexico (Canifarma) forecast growth of 36% in pharmaceutical production in 2022, the first year of double-digit growth within the last decade.

Global issues and Ukraine deplete Schiphol cargo

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Amsterdam Airport Schiphol’s total cargo volume for the first six months of 2022 decreased by -13.8% to 721,746 tonnes compared to the first six months of 2021.

Inbound cargo volumes decreased by -17.5% to 364,376 tonnes, and outbound cargo volumes also decreased by -9.7% to 357,369 tonnes during the same period in 2021.

The top three destinations for cargo by tonnage were Shanghai, China; Dubai, UAE; and Chicago.

Full freighters accounted for 65% of total volumes, and passenger flights at 35% of total volumes.

The outbound North American market decreased by -9.1% to 84,786 tonnes, with inbound traffic from here declining by -10.5% to 58,101 tonnes.

Cargo inbound from Latin America decreased by -22.3% to 46,827 tonnes and outbound traffic to the region went down by -14.6 % to 35,242 tonnes.

The main factors attributable to the decrease were the global decrease of volumes transported and the loss of volumes from a large carrier operating from Russia.

The airport’s head of aviation business development Anne Marie van Hemert, said: “The 2021 and 2022 figures have shown that Amsterdam Airport Schiphol is still the airport of choice for logistic companies and their customers. Now that demand for passenger flights has increased, the available airport capacity needs to be shared.”

“In the first half-year, innovation through our Smart Cargo Mainport Program has continued. Automated Nomination has been introduced as the new standard procedure for inbound cargo, which informs customers about incoming shipments before arrival. Going forward, additional measures will be implemented for secure cargo handovers.”

At the start of 2022, Dnata announced over €200 million investment in a cargo facility in Amsterdam.

Lufthansa aims to be film star

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Lufthansa Cargo says it will become the first cargo airline to use a new type of film that consists of ten percent recycled plastic and is also one micrometer thinner than previous films – saving about 2kg per flight. Each year, the carrier uses about 500 tons of plastic film worldwide to protect freight during transport but has been working for many years to reduce the need for plastic.

The airline is also focusing on the collection and disposal of end-of-life materials and has made agreements with local disposal companies to ensure that as much of the recyclable plastic material as possible is collected and disposed of properly – and does not end up in the environment.

In the future, Lufthansa Cargo plans to use Verpa material that contain a recycled content and are also biodegradable. If films do end up in a landfill, they will be completely degraded in a natural way within eight to ten years.

EV Cargo expands into Americas with Spanish buy

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EV Cargo has acquired 75% of Spanish-based Air Express Cargo from its founding family owners. 

Formed in 2004, and operating out of offices in Madrid, Barcelona and Valencia, Air Express Cargo provides air and sea freight forwarding and customs brokerage services across Spain.

The acquisition of Air Express Cargo will also provide access to additional global trade lanes from Europe to the US and South America.

Air Express Cargo will be branded as EV Cargo Spain and current founder and chief executive Francisco de la Sita, who will continue to own 25% of the shares, will take up the role of country managing director.

He said: “I firmly believe that by becoming part of EV Cargo, the future prospects for the business in Spain will be enhanced. It will enable us to provide our clients with the high-quality service they have enjoyed while being able to offer expanded services, which in turn will create opportunities to develop the business, attract new customers and drive growth. 

“EV Cargo’s global infrastructure, technology capabilities and international freight network will create new and immediate opportunities across different trade lanes, particularly between Spain and South America.”

EV Cargo vice president, Europe Marc Terpstra added: “Spain is an increasingly important market for us as we manage supply chains for the world’s leading brands, and we look forward to quickly developing our full-service proposition across air and sea freight, road freight and contract logistics to serve both existing and new customers.”

EV Cargo, which is owned by Hong Kong-based private equity investment group EmergeVest, already has 20 offices and over 400,000sq ft of warehousing in the Netherlands, Belgium, Germany, Poland, France, Switzerland and Greece. In March it acquired Fast Forward Freight in the Netherlands, adding expertise in automotive, marine engineering and aerospace.

August gives glimmer of hope for global air cargo

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August offered a glimmer of hope for the global air cargo market as the decline in demand of the previous four months slowed and general air cargo rates between Europe and North America stabilized, said CLIVE Data Services, part of Xeneta.

After -8% and -9% year-on-year falls in demand in June and July 2022, August volumes were a more modest -5% adrift of the August 2021 level, and -4% compared to the pre-pandemic 2019.

Despite continuing transportation and supply chain chaos resulting from staff shortages in airports and airlines, global air cargo capacity in August recovered 7% from the same period last year, thanks to the surge of international summer passenger travel in the northern hemisphere.

General air freight spot rates averaged USD3.61 per kg in August, the lowest since September last year, benefitting from the cut in jet fuel prices from the historical peak in June. This was still +4% versus August 2021 and +113% above the 2019 level, although this latter percentage compared to +156% at the start of 2022, reconfirming the continuing, gradual transition of air freight rates back to the level of three years ago.   

August 2022 market data, however, could be an early signal of volumes and rates starting to pick up again, said Xeneta chief airfreight officer, Niall van de Wouw.

“In many respects, this latest data is quite remarkable relative to the two previous months because volumes in August – traditionally the quietest summer month due to the holiday season – levelled out and out-performed June and July when compared to last year’s volumes. The strong Dollar and its parity with the Euro clearly boosted demand from Europe to North America, with westbound load factor remaining above average for the month at 61% and rates stabilizing on these lanes,” he said.

While expectations of a muted fourth quarter remain due to continued supply chain disruptions, Van de Wouw says the unexpected deviation from previous months seen in August could signal a better-than-expected end to the year for the air cargo market. 

“Heading into summer, we saw a 15% increase in transatlantic capacity. Now, with a slowdown in global economies expected in the near term, airlines are reporting reductions in their winter schedules, and we are likely to see continued capacity constraints on popular air cargo trade lanes, such as outbound Asia to Europe and North America, and Europe to North America.

“If the fall in demand is easing, however, as August indicates, that capacity shift could see us return to a seller’s market again and load factors return to the mid 70% to 80% range. It is fair to assume volumes will be higher in November than in August.”   

The air cargo market, however, remains chaotic and difficult to predict. Ongoing disruptions due to a lack of people, the war in Ukraine, industrial action, natural disasters, record inventory levels in the US, high inflation and more Covid-related lockdowns in cities in China promise more volatility over the rest of the year, he said.

El Al freighter likely target of Israeli four-engine aircraft ban

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Israel’s recently announced ban on four-engined aircraft could affect El Al, says aviation market intelligence and consulting company, IBA. It says that with the widespread demise of the passenger-carrying Boeing 747 following the Covid pandemic, the biggest impact of the ban is likely to be on the converted 747 freighter aircraft operated by the Israeli flag carrier. IBA adds that although the ban is mandated to come into effect from March 2023, it operators may be discouraged from operating such aircraft even sooner.

Mike Yeomans, director – valuations and consulting at IBA, comments: “According to IBA Insight, around 98% of four-engined aircraft departures from Tel Aviv this year have been freighters. Four-engine passenger aircraft numbers are dwindling, and few still operate from Tel Aviv following the withdrawal of El Al’s Boeing passenger 747 fleet from service in 2019.

“According to early reports, there are likely to be some exemptions under a licence agreement. IBA predicts that such exemptions will be applied to Boeing 747 factory freighters, as there is no viable alternative aircraft for oversized air freight.”

IBA believes that the ban will most likely affect the converted Boeing 747 fleet. This in turn will drive demand for the new generation of converted twin-aisle widebodies, including the Boeing 777-300ERSF, which is being developed by Israel Aerospace Industries (IAI) and AerCap. According to IAI, the 777-300ERSF will offer 15% more volume than the 747-400BCF, and 21% lower fuel burn compared with the 747-400F. If more countries and airports adopt similar stances on four-engine aircraft, the 777-300ERSF and its contemporaries should benefit.

The Airbus A350F and the Boeing 777-8 Freighter are expected to enter service in 2025 and 2027 respectively, with the former firmly targeting the replacement market for ageing Boeing 747 freighters.