Etihad Cargo has appointed Tim Isik as vice president – commercial, based in Abu Dhabi. He joins Etihad Cargo from American Airlines, where he gained over a decade of experience working within the aviation and air cargo sectors. In his new role with Etihad Cargo, Isik will oversee the development and deployment of the carrier’s sales strategy and be responsible for further growing Etihad Cargo’s strategic relationships, executing sales and marketing plans and driving team performance.
Cold chain container company Tower opens in LA
Cold chain container specialist Tower Cold Chain has opened a hub in Los Angeles, putting it on track to double its global network during 2022.
The latest hub, 18 miles from the international airport, gives Tower its first location on the US West Coast. It is operated for Tower by freight forwarder DSV, and offers up to 10,000sq ft of dedicated, secure warehousing.
California is home to several major biotech and pharmaceutical hubs, it was high on Tower’s priority list for a hub – pending the right local representative to operate the hub.
Global head of operations, Natalie Robinson, said: “We approached DSV because of its overall quality and calibre as a freight forwarder, but also the excellence of its Los Angeles operation.”
“DSV was able to provide us with dedicated space within its facility – initially, 5,000 sq. ft but with the flexibility to grow to 10,000 sq. ft. Its specialist staff also gave us every confidence they can manage the requirements of the Tower solution.”
Tower containers offer a passive solution, requiring no manual intervention or power supply during transit and this places particular importance on pre-conditioning th, to maintain the required temperature for 120 hours.
AGI set to buy fellow handler TAS
Ground handler Alliance Ground International (AGI) is to acquire passenger and cargo specialist Total Airport Services (TAS), subject to regulatory approvals.
TAS specializes in cargo, ramp, and passenger handling services at eight locations including Chicago O’Hare International Airport, San Francisco International Airport, George Bush Intercontinental Airport and Rickenbacker International. Headquartered in Spring, Texas, it employs a team of 1,600 and regularly handles up to 331,000 tons of cargo a year.
AGI chief executive, Jared Azcuy (pictured), said: “TAS boosts AGI’s operations in the passenger handling market, which is key to our current strategy and complements our cargo handling capabilities at key US hubs. TAS is an excellent fit, and we’re excited to welcome the TAS team to AGI.”
Azcuy added: “We will continue to pursue acquisitions that fit in with our strategy of expanding both our product offering and our global reach, with particular focus on Latin America, Europe, and Canada.”
TAS chief executive Silvio Tano commented: “It is clear that AGI and TAS complement each other very well. We are very proud of what TAS has achieved to date and look forward to further growth and opportunities as part of the AGI team.”
Quarter of global capacity on CargoAi – with more to come
The CargoAi online platform says it has attracted a quarter of the world’s airfreight capacity to its digital marketplace. More airline and GSA contracts are in place to double this by the end of this year, it adds.
It attributes its success to the fact that it uses code instead of servers to support its applications, deploying the latest available technology in building its solutions, together with its easy-to-adopt spot request feature available for more than 80 airlines. Freight forwarders can use it to request larger shipments (averaging 2 tonnes that are often not covered by airline systems due to technical limitations.
CargoAi says that more than 5,000 freight forwarders in 103 countries are actively using the platform, while its current contract roll out will connect 50% of the world’s air cargo capacity by the end of 2022, with more in the pipeline for 2023.
CargoAi is already integrated with every airline cargo management system such as Cargospot, iCargo, or Skychain, allowing carriers to quickly interface at minimal cost. It takes less than four weeks to activate the live distribution and receive the first eBookings, it says.
CargoAi chief executive, Matthieu Petot, said: “I created CargoAi three years ago because I saw that the air cargo industry is still very much in the infancy of digitalisation and could hugely benefit from technologies and digital best practices that are already standard in other industries…We have greatly expanded our product portfolio since then and are implementing a very clear five-year roadmap. Our advantage, as the only neutral marketplace provider, is the huge potential in terms of technology and additional efficiency that we can develop and offer to all airlines and freight forwarders.
He added: “Our sights for 2022 are set on North and South American expansion with the recruitment of more than 15 people worldwide this year, and we will be launching new airlines and partners in those regions in the coming weeks.”
Strong start to the year for IAG Cargo
IAG Cargo reported revenues of €432 million for the first quarter of 2022 (1 January to 31 March). It said the results are a reflection of how IAG Cargo’s growing network has supported international trade, as the global economy recovers from the pandemic.
The Q1 revenues were up 18.6% at constant currency versus the same period last year. Overall yield for Q1 2022 was up 2.3% at constant currency versus the same period in 2021.
Demand was particularly high between Europe and the US for key industrial goods, including automotive parts, with IAG Cargo increasing the availability of wide-body aircraft on European feeder lanes into Heathrow. Ecommerce has also remained a major driver of growth for IAG Cargo, with high volumes being shipped into North America.
IAG Cargo’s Constant Fresh product, for perishable shipments, saw exceptional growth with revenues growing 47% versus the same period in 2021.
The return to more widespread passenger flying has also boosted cargo, with new routes opening up and capacity on important trade lanes increasing. IAG Cargo also restarted cargo flights to Australia.
IAG Cargo managing director David Shepherd said: “IAG Cargo has had another busy quarter. The global economy is increasingly moving on from the confines of the COVID-19 pandemic. Trade and confidence are clearly increasing. At IAG Cargo we are seeing trends that first emerged during the pandemic continue to drive growth, with ecommerce as a stand-out example.”
The carrier also continued to transport items usually associated with sea freight as disruption to shipping persists. During this period the business also donated over 125 tonnes of capacity in aid shipments to Ukraine, working with global charities including the Spanish Red Cross and Project HOPE to move vital goods like blankets, kitchen equipment and medical supplies into the region.
Miami sees 8% freight surge
Miami International Airport total freight volume increased by 8% year over year In the first quarter of 2022. Of the 687,675 tons handled, 552,371 tons came from international traffic which has grown 5.4% year to date, while domestic freight is up 20.5%. In 2021, MIA set a new annual record of 2.7 million tons of total freight and 2 million metric tonnes of international freight, strengthening its position as the busiest airport in the US and ninth in the world for international freight.
Air Canada freighter flies to Madrid
Air Canada Cargo has operated the first Boeing 767-300 freighter flight into Madrid following the addition of a second aircraft to its fleet.
The carrier is also offering all-cargo services to Frankfurt and three flights per week to Madrid, from Toronto and Halifax. The carrier has already announced the acquisition of two new 767-300F aircraft that will enter service in 2023.”
Air Canada and Air Canada Cargo also offer capacity to Madrid and Barcelona on passenger service with five weekly flights from Toronto.
New capacity fails to budge airfreight rates
Factors which curtailed the growth recovery of air cargo in March continued to impact the industry in April with volumes down 8% year-over-year, says Xeneta’s CLIVE Data Services
Rates remained high despite the addition of new capacity, as airlines launched their summer schedules, the analyst explained.
The conflict in Ukraine, Covid lockdowns measure in China and the high cost of living all contributed to the fall in demand, which is also likely exacerbated by the staff shortages jolting airport handling services and manufacturing. Volumes in April were down 5% compared to the same month of 2019, before the pandemic took hold.
Xeneta chief airfreight officer Niall van de Wouw, said: “The rationale behind lower load factors and higher rates is the bottleneck on the ground – which appears to be being caused now by not only the shortages of people handling cargo at airports around the world and the severe lack of truck drivers to move the goods, but also by a wider shortage of people for lower paid logistics jobs. We are now seeing this larger theme impacting the entire supply chain.”
Shortages of goods in stores or available online, longer lead times for some products, higher shipping costs, and flight delays and cancellations are all consequences of these market conditions, he added. The hike in living costs and lower disposable incomes for consumers are other undoubted contributors to the slowdown.
CLIVE’s dynamic load factor from Europe to North America averaged 70% in April 2022, a drop of 12% points in just one month, and the first time in two years it has fallen below 80it said. This was caused by a big jump in North Atlantic passenger capacity as airlines stepped up their summer schedules. It is also expected to “takes some of the heat out of the demand/supply market,” Niall van de Wouw said, and potentially lead to a downward pressure on rates.
“During the last week of March, capacity increased by 15% compared to the previous week. This significant increase in space reinforces our previously stated forecast that the North Atlantic market will most likely be the first to return to some kind of normal, because of the high share of belly capacity on this lane. In terms of the dynamic load factor, we are seeing this shift starting to happen as we move from a seller’s market to a buyer’s market for air cargo. However, the issues on the ground might delay the buyer’s market a bit longer,” he added.
Spot rates from Europe to North America remained relatively unchanged. The spot share – the amount of weight being sold against a short-term rate – decreased however by close to 5% points to 44% from 49% in March, again potentially indicating a softening of the market.
Awery appoints project manager
Awery Aviation Software (Awery) has appointed Phaedra Den Hertog as customer success project manager. She has spent over 30 years in air cargo including Polar Air Cargo, Cathay Pacific, and more recently AirBridgeCargo (ABC), where she oversaw the implementation of its new Cargo Management System. Initially focussed on Awery’s Netherlands client portfolio, Den Hertog will oversee and manage projects across Europe.
Qatar Airways Cargo launches kids’ collection drive
Qatar Airways Cargo has launched Chapter 3 of its Let’s Stand Together WeQare programme, with a major drive to gather donations in kind for children to 10 May.
It is collecting study materials such as books, school bags or pencils, clothes and sports items (socks, soccer balls, sneakers or jerseys) as well as toys, musical instruments and board games.
Any donation for children is welcome, as long as it is clean, in good condition and without batteries.
The collection is worldwide, and open to business partners, friends, families and others. Each Qatar Airways Cargo station has its own collection point and it has also opened six donation collection points for its employees, as well as a public collection point in Doha.
All donations will be sent to its hub in Doha where a massive sorting operation will take place on 17 May, following which the donations will be sent all over the world. Qatar Airways Cargo will also offset the CO2 emissions.
Chapter 1 of WeQare, launched in July 2020, provided free transport of 1 million kilos of humanitarian aid and medical equipment to charitable organisations.
Under Chapter 2, Rewild the Planet, Qatar Airways Cargo committed to preserve wildlife and endangered animals and to transport them back to their natural habitat free of charge.
For more information about the donation and collection points, visit https://www.qrcargo.com/weqare-chapter3 or contact askcargo@qatarairways.com.qa
You can also watch a video at WeQare Chapter 3: Let’s Stand Together on YouTube