The International Air Transport Association (IATA) said its August 2021 data for global air cargo showed that demand, measured in cargo tonne-kilometers (CTKs), was up 7.7% compared to the pre-Covid month of August 2019, or 8.6% for international operations. Overall growth remains strong compared to the long-term average growth trend of around 4.7%.
The pace of demand growth did slow slightly compared to July, which saw demand increase 8.8% (against pre-COVID-19 levels).
Cargo capacity recovery paused in August, down 12.2% compared to August 2019 (13.2% for international operations). In month-on-month terms, capacity fell by 1.6% – the largest drop since January 2021.
IATA added that economic conditions continue to support air cargo growth but are slightly weaker than in the previous months indicating that global manufacturing growth has peaked.
IATA director general, Willie Walsh (pictured), commented: “Air cargo demand had another strong month in August, up 7.7% compared to pre-Covid levels. Many of the economic indicators point to a strong year-end peak season. With international travel still severely depressed, there are fewer passenger planes offering belly capacity for cargo. And supply chain bottlenecks could intensify as businesses continue to ramp up production.”
Airfreight recovery continues
Lufthansa greets new 777Fs, says farewell to the MD-11F
Lufthansa Cargo has put two more Boeing 777F freighters into service, bringing the carrier’s total of the type to 11, plus four aircraft operated by its AeroLogic joint venture with DHL.
One aircraft is a brand-new aircraft from the Boeing factory in Everett, Washington State which touched down for the first time at Frankfurt Airport at 06:00am on 29 September and, with this acquisition, Lufthansa Cargo has now exercised all of its purchase options held on widebody freighters with the manufacturer. The other aircraft is an acquisition from the used market.
The new arrivals also marks the end of Lufthansa Group’s last remaining tri-jet of and indeed the last MD-11 aircraft registered in Europe. Lufthansa Cargo is expressing its gratitude for more than 23 years of loyal service by sending its D-ALCC out on its final rotations to Cairo, Tel Aviv, Chicago and New York with the greetings “Farewell” and “Thank you, MD-11” emblazoned on its fuselage. Its active time with Lufthansa will come to an end with its last landing at Frankfurt Airport at noon on 15 October.
Korea move for FedEx
FedEx’s Logistics arm is to open an office in Seoul, South Korea. The new FedEx Logistics Korean organization will provide logistics solutions, including international air and ocean cargo services, customs brokerage and trade solutions, as well as a range of value-added services.
Europe’s pharma logistics spend set to overtake North America, says report
The global pharmaceutical logistics market will be worth €96,291m (US$112,456m) by 2025, growing 4.4% every year, according to a white paper by consultants Ti.
The market will also undergo a transition period over the coming years, it says. Growth will initially be driven by ongoing Covid-19 requirements alongside a gradual return to medical services. But towards 2025, the market will be driven by structural drivers such as aging populations, the rise of non-communicable diseases and more complex logistics requirements.
The current market, valued by Ti at €77,631m (US$90,664m) is dominated by North America, which accounts for 35.9% of the total thanks to its strong market and high levels of research and development, along with Europe (35.8%) with its major pharma companies. Asia-Pacific accounts for 23.2% of the market.
However, Russia, Caucasus and Central Asia, although it accounts for a small sliver of the current market, currently has the highest growth rate (24.2%). Europe, South America and Asia Pacific have the next highest growth rates, but only 4.1%, 2.6% and 1.1% respectively.
North America in fact has experienced negative growth (-1.4%) in market share terms. The main factor here was Mexico, where absolute pharma production went down in 2020.
By 2025, Ti predicts that Europe will be the biggest pharma logistics market at 37.7%, followed by North America (32.%) and Asia Pacific (24.2%).
Canada-India link restored
Air Canada is to resume flights between Delhi and Toronto and Vancouver, operated by a 787 Dreamliner with bellyhold capacity. It follows the lifting of Government of Canada restrictions on flights from India. The carrier said it would also launch flights from Montreal to Delhi and resume service to Mumbai “as market conditions allow”.
Lufthansa Cargo joins German federal high-tech program
Lufthansa Cargo has joined the Germany Ministry of Transport’s Digital Test Field Air Cargo coordinated by the Fraunhofer Institute for Material Flow and Logistics. The aim is to increase the efficiency and performance and competitiveness of air cargo in Germany by improving the networking of all the players involved and digitizing processes.
Digitalization or artificial intelligence are important prerequisites for improving performance and also make valuable contributions to climate and environmental protection
Within the project, Lufthansa Cargo is focusing on intensified data exchange between all partners in the transport chain, even beyond the roles that have been typical in the transport process to date.
For example, digital accompanying documents from manufacturers to consignees will be made available to all parties by using IATA’s new, open ONE Record standard in which Lufthansa Cargo had significant input. Likewise, temperature data, position data and photos of the entire transport chain are to be made available in order to identify and solve problems earlier.
Qatar Airways reaffirms USAID wildlife pledge
Qatar Airways has extended its participation in the USAID ROUTES (Reducing Opportunities for Unlawful Transport of Endangered Species) partnership to combat illegal wildlife trafficking.
Qatar Airways, one of the world’s leading carriers and a founding member of the United for Wildlife Transport Taskforce, signed the original Buckingham Palace Declaration on 2016, which aimed to shut down the routes exploited by the illegal wildlife trade and, in May 2017, went on to sign the first Memorandum of Understanding with the ROUTES Partnership. In May 2019, Qatar Airways became the world’s first airline to achieve certification to the Illegal Wildlife Trade (IWT) Assessment which confirms that it has procedures, staff training and reporting protocols in place.
Qatar Airways Group chief executive, Akbar Al Baker, said: “The illegal and unsustainable wildlife trade threatens our global biodiversity, and poses a risk to health and safety, particularly in marginalised communities. We are taking measures to disrupt this illicit trade in order to conserve biodiversity and safeguard our delicate ecosystems. We remain committed with other aviation industry leaders to emphasise our zero-tolerance policy towards illegal trafficking of wildlife and its products, and we join the ROUTES Partnership in saying – ‘It Doesn’t Fly With Us’. We will continue to work with our stakeholders to raise awareness and improve detection of illegal wildlife activities to protect these creatures that we value.”
ROUTES Partnership lead Crawford Allan, added: “Through its actions on raising awareness, training and including wildlife trafficking within its policies, Qatar Airways has demonstrated its commitment to the Buckingham Palace Declaration and to the goal of the ROUTES Partnership. I am proud to see that Qatar Airways is continuing these efforts.”
Qatar Airways says that the Covid-19 pandemic has shown that wildlife crime is a threat not only to the environment and biodiversity, but also to human health. Despite restricted travel, reports of illegal wildlife seizures over the past year have revealed that traffickers are still taking their chances to smuggle contraband through the air transport system.
Qatar Airways has a zero-tolerance policy towards the transportation of illegal wildlife and their products. It also launched the second chapter of its sustainability programme WeQare: Rewild the Planet earlier this year, focused on transporting wild animals back to their natural habitat, free of charge.
US handler Pinnacle joins the WFS family
World’s largest Worldwide Flight Services air cargo handler has acquired US operator Pinnacle Logistics for an undisclosed sum. Headquartered in Fort Worth, Texas, Pinnacle focuses on specialist express cargo handling for e-commerce customers, a sector that WFS is keen to develop.
WFS executive vice-president Americas, Michael Simpson, commented:“The acquisition of Pinnacle Logistics enhances our core cargo and express cargo handling value proposition to customers, and Pinnacle’s established trucking logistics business further expands our service offering. Pinnacle’s people bring renowned experience and expertise, great service quality, and long-standing customer relationships with them to WFS. This acquisition is a strong strategic and cultural fit for WFS and we are delighted to welcome the Pinnacle team to WFS.”
Bold new look for Baltic courier
Baltic courier company Venipak, which recently launched its own freighter aircraft between Hong Kong and Riga, has also created a new visual identity, Marketing manager Asta Raudonienė, says it reflects the company’s strategic international growth which includes an expanding parcel locker network in the Baltics and a self-service platform, as well as the new air freighter operation. The company also has ambitions to launche freighter services to the US.
DSV opens Africa’s largest logistics hub
DSV has inaugurated its Gauteng HQ in South Africa, Africa’s largest integrated logistics centre. DSV Park Gauteng is situated near OR Tambo International Airport between Johannesburg and Pretoria and with easy access to the East and West Rand. The logistics centre consists of 130,000sq m of buildings and covers supply chain solutions from first to last mile controlled and managed under one roof.
The sprawling complex includes a logistics warehouse of 79,000sq m, a cross-dock facility of 41,000sq m² and office space. DSV’s Air & Sea, Road, Solutions and Shared Services divisions function will locate at the new centre while other specific units such as Healthcare and parts of Mounties and Solutions will continue out of their current specialised facilities.
Executive vice-president and head of group property, Brian Almind Winther, said: “With DSV Park Gauteng, DSV has developed a large-scale modern logistics centre which captures the essence of our consolidation strategy to create larger and more efficient facilities, enabling us to have many of our business units together under one single roof.
“We have packed the new DSV facility with solutions such as an innovative sorter that can handle 13,000 packages every single hour. Throughout the whole building process, we have also utilised our global experience to construct buildings where sustainability and resource optimisation have been fundamental in all processes.”
DSV worked closely with contractors and the local community to ensure they were included in the development of DSV Park Gauteng. The company partnered with accredited training service providers to provide various skills training courses to 117 candidates.
DSV is also building a consolidated logistics centre in the Western Cape. DSV Park Cape Town will be near the international airport, and close to the port and industrial and commercial hubs.