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Big changes in the air for London Heathrow

Big changes are coming to London Heathrow, both in terms of the airport’s physical cargo infrastructure and the way in which the UK’s primary gateway will operate in future.

Heathrow Airport Ltd (HAL) head of cargo, James Golding told a seminar organized by the CCS UK User Group on 24 October that plans were being drawn up to redevelop the cargo area’s physical infrastructure, much of which dates back to the 1960s and which was designed before 40ft-long trucks were a common sight on the roads. The famous – or infamous – ‘Horseshoe Road’ area (Shoreham Road and Sandringham Road) will cease to be. The site will be cleared and a new Cargo West area will be developed. Plans for what will be put in this area have not yet been finalized, but it could consist of up to four major blocks, each with its own yard and gatehouse.

The large buildings currently occupied by IAG Cargo – the dominant carrier at Heathrow – will remain unchanged, but an adjacent area currently used for various purposes including a concrete plant will be redeveloped as a Cargo East area, possibly with a fifth large block.

Golding added: “Crucially, there will be no truck parking within this estate.” A remote parking area, possibly near the Terminal 4 passenger facility, will be provided, but the current truck spaces in the middle of Shoreham Road will disappear. Using some of the most expensive real estate in the world as a truck park area makes no commercial sense, HAL reasons.

This will have major implications for the way in which the airport will operate in future and, indeed, “we will need to have new systems in play before we start this redevelopment”, Golding stated.

The final form of the redeveloped cargo area has not yet been finalized, nor has the timescale, although a start could be made in 2-3 years with completion over 8-10 years. That is a long time by the standards of normal construction schemes of similar size, but Heathrow Cargo Centre will need to stay in full operation while the work is going on and the work will need to be phased.

More consultation will be needed before the plan is brought to fruition, said Golding, and ensuring that all the different entities are involved is an important part of the airport’s strategy. These include airlines, truckers, handling shed operators and freight forwarders.

Golding unveiled the plans for the new Cargo Centre at a seminar organized by the user group for CCS-UK, a cargo community system owned by telecoms firm BT. This might at first sight seem an unusual choice of venue for an announcement about physical infrastructure, but the IT systems offered by CCS-UK will be vital in making the new cargo development run smoothly. The fact that there will effectively be no onsite parking means that it is essential that the flow of trucks is managed efficiently.

Program director Guy Thompson explained that over the past few years, CCS-UK has been developing an Airfreight Information System (AIS) that will offer a uniform platform for the entire air cargo community in the UK.

AIS includes a new truck slot booking system that allows operators to pre-book the times when they want to arrive at handling facilities to collect or deliver cargo and are seen as crucial to the future smooth running of the airport. Other airports have already developed such schemes and they are also used by seaports and supermarket distribution centers. In airfreight, Amsterdam Schiphol has refined slot booking to a greater extent than any other European air gateway.

However, slot booking remains quite a new concept in airfreight and while the system is available and ready to use as part of AIS, it will doubtless need tweaking and many refinements before it is fully-fledged. CCS has signed up around 90 users and is encouraging others to do so. The fact that using the slot booking system will give users a degree of priority could be an incentive to encourage more users to join up. Trucks with pre-booked slots would get top priority, followed by those booking ad hoc slots at shorter notice. Trucks without slots get the lowest priority.

The system is currently processing some 3,000 truck movements a week and issuing 7,000 truck status updates.

However, even putting just 10% of collections and deliveries on the slot booking system could bring major benefits to users and transit shed operators, allowing them to plan operations rather than having to constantly work in a reactive way, dealing with all trucks turning up as they arrive unannounced.

One major prize for the system would be IAG Cargo, by far the biggest cargo airline at Heathrow and one that self-handles at the airport. Discussions on creating a specific interface are continuing. Royal Mail has been using the system on a trial basis and is now stepping up its use.

Slot booking is a complex issue, particularly in airfreight. The time taken to load or unload trucks can vary greatly. One issue raised at the seminar are trucks making multiple calls at different handling sheds. If the truck was delayed at the first shed, how would the system manage the slots at the second and subsequent sheds? Port Health inspections and charges collect shipments also add complications. The system also needs to be flexible to cope with last minute bookings such as urgent aircraft spares.

Golding is anxious to avoid a too-prescriptive approach. “We don’t want to mandate anything, to turn away business,” he said. It’s unlikely that truckers who missed an occasional slot would be ‘punished’ in any way – other than by then having then to wait for the next available slot, although the system will yield valuable information on how different operators perform and also where any bottlenecks are.

Globalization still at record level, despite problems

Globalization remains at a record level, despite geopolitical tensions and uncertainties, say DHL and New York University’s Stern School of Business in the latest issue of the DHL Global Connectedness Tracker, published on 19 November.

In 2023, 21% of the value of all goods and services produced around the world was traded internationally – just shy of the all-time high of 22% first reached in 2008 and matched in 2022.

The Connectedness Report tracks how flows of trade, capital, information, and people move around the world, measuring international relative to domestic activity on a spectrum from 0% to 100%. Currently at 25%, it shows that globalization is holding steady at a record high, highlighting the resilience of international flows to geopolitical tensions and uncertainty. But it also indicates that, despite decades of globalization, the world is far from being completely connected.

DHL Express chief executive, John Pearson, said: “The Global Connectedness Tracker shows that there are still countless opportunities for countries and businesses to expand their markets across the globe. While the outlines of this complex landscape remain in flux, the fundamental drivers and benefits of international engagement endure. Global trade enhances international exchange and fosters opportunities to empower individuals, businesses, and allows entire nations to flourish.”

However, ties between the US and China continue to diminish. Direct trade between the two fell from 3.5% of global goods trade in 2016 to 2.6% in 2024 (January to July). However, direct trade between the US and China accounts for only a small part of the world total.

The Tracker also revealed that ‘unaligned’ countries that are neither close allies of the US nor China are conducting a growing share of world trade, developing new roles as connecting economies bridging geopolitical rivals. The share of trade involving countries that are not close allies of either superpower rose from 42% in 2016 to 47% in 2024, with the UAE, India, Vietnam, Brazil, and Mexico seeing especially large share gains over this period.

With the potential for new trade conflicts after Donald Trump’s return to the White House, the analysis suggests caution regarding predictions that such developments would reverse globalization. It is noted that, while actual policy changes in the US remain uncertain, international trade has remained resilient through Brexit, the US-China trade war, the Covid pandemic, and conflicts in Ukraine and Gaza.

Senior research scholar and director of the DHL Initiative on Globalization at NYU Stern’s Center for the Future of Management, Steven A. Altman, explained: “In turbulent times, it is essential to look beyond the political crossfire about globalization to make informed decisions based on how international flows are actually developing. While there is no guarantee that the recent resilience of global flows will continue, it highlights how companies and countries often find creative ways to preserve benefits they derive from globalization. As long as markets stay connected, a company that unilaterally retreats from globalization can put its competitive position at risk.”

Despite increased interest in producing goods closer to customers in recent years, the analysis indicates that regionalization is not overtaking globalization. In fact, most flows are taking place over stable or longer distances – which speaks against a broad shift towards regionalization. During the first seven months of 2024, traded goods even traversed the longest average distance on record (4,970 km). In line with this, the share of goods trade taking place inside major world regions fell to a new low of 51%.

Bellyhold boosts Vienna tonnage

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Vienna Airport handled of 216,360 tonnes of cargo in the first nine months of 2024, an increase of over 20% over the same period last year.

There were increases in both flown and trucked airfreight. Belly cargo on passenger aircraft increased by 45% to 90,692 tons compared to the same period last year.

Third quarter cargo, from July to September, was up 25% over the previous year, at 75,242 tons.

Growth is being driven by additional flights. Qatar Airways Cargo, for example, has been operating a weekly service between Vienna and its hub in Doha since September while Chinese carrier Hainan Airlines also returned to Vienna at the end of May.

Joint chief executive, Julian Jäger, commented: “The increasing number of airlines that have chosen us as a reliable cargo location, and in particular the 45% growth in belly freight, confirm our importance as a key logistics hub between Europe and Asia.”

Antonov to the Arctic

Ukrainian-owned An124 operator Antonov Airlines and Netherlands forwarder First Class Freight have moved an urgently needed marine propulsion unit from Hong Kong to Houston. It was needed to ensure the safety of a cruise ship due to set off for the Arctic.

The move was complicated by the shape and size of the unit. Antonov Airlines had only three weeks to design and build a frame and complete the transportation. It also posed challenges with loading and weight distribution in the aircraft.

Air charter firms step up to the plate in turbulent year

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The airfreight industry has been called into action multiple times around the world this year to charter planes into disaster regions, says Ben Dinsdale, Air Charter Service’s director for government and humanitarian services.

This year the industry has been busy assisting humanitarian operations in the Far East, Africa, the Middle East, Caribbean, as well as North and South America, in the aftermaths of a number of natural disasters and civil unrests.
In Papua New Guinea, there was a devastating landslide burying hundreds of homes in a remote community – the displaced survivors urgently needed shelter and medicines.

The worst flood Brazil had seen for 80 years caused widespread landslides and dam collapses, leaving at least 580,000 people displaced from their homes, and they needed shelter and medicinal supplies in the direct aftermath. And Hurricane Beryl hit the Caribbean hard, causing widespread damage to many of the islands in the area, leading to aid flights to the region, as well as evacuations.
Dinsdale said: “The civil collapse in Haiti has displaced hundreds of thousands of people, and the escalating conflict of the Sudanese civil war has led to mass displacement for much of the population. Both situations have required multiple flights with shelter equipment. Most recently, following the invasion of Lebanon last month, the country has required a huge amount of aid flights, as well as multiple evacuations.”
For ACS, the Sudanese civil war led to a series of charters into Port Sudan and Ndjamena, in Chad, with the aid originating in Pakistan and the UAE, using a wide range of aircraft types. But the biggest operation this year has been over the past month or so, following the invasion of Lebanon. ACS has arranged more than 20 cargo flights carrying in over 600 tons of aid, as well as organising 30 evacuation charters, moving several thousand people out of the country.
Dinsdale concluded: “We have been involved with, and responded to, virtually every humanitarian logistical operation over the past few decades. In such situations we feel fortunate to be able to call on a hugely talented network of industry suppliers to deliver these complex operations around the world. This year has, once again, highlighted some of the vitally important work that the air charter industry delivers.”

Hermes completes Cairo project

Hermes Logistics Technologies has completed an upgrade to the Cargo Management System at Cairo International Airport last week and migrate local handler CACC Cargolinx’s to its Cloud-based service. Hermes Business Intelligence and Track and Trace apps will provide data insights and detailed shipment information for agents and shippers, in real time and making CACC Cargolinx’s operations in Cairo fully automated.

Tower offers carbon calculator

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UK based packaging specialist Tower Cold Chain – recently acquired by Massachusetts-based Cold Chain Technologies – has introduced a carbon calculator to help customers improve the sustainability of their logistics operations in partnership with Cardiff University’s Business School and using datasets from the Department for Energy Security and Net Zero. It provides actionable insights that enable customers to make informed decisions about their environmental impact and helps identify areas for improvement within Tower’s operations and the wider supply chain. It also compares Tower’s solutions against alternatives.

AGS appoints growth officer

New York-based Freight forwarder Accelerated Global Solutions (AGS) has appointed Tony Barnes to the new position of global chief commercial and growth officer. He also assumes the role of global head of ocean product.

His appointment follows the company’s acquisition by Chris Zheng, founder and chief executive of last-mile delivery specialist SpeedX.

Barnes’ career includes senior roles such at AP Moller-Maersk in Hong Kong and Ceva Logistics and was most recently president, Asia Pacific at Seko Logistics.

He stated: “Joining AGS at this stage of growth, as it continues to expand its international reach and capabilities, is a remarkable opportunity. The integration with SpeedX provides a unique platform to offer our clients end-to-end solutions that streamline logistics across borders.”

Chicago Rockford signs cargo-boosting deal with Scottish gateway

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Chicago Rockford International Airport has signed an agreement with Glasgow Prestwick Airport in Scotland, UK to promote cargo flights between the two locations.

It aims to strengthen the trade lane and to boost information sharing between the airports.

Both airports run full-service 24-hour operations with no night flying or handling restrictions, allowing for continuous operations at either end.

Several aerospace manufacturers operate within the catchment areas of both Prestwick and Rockford.

Prestwick business development director, Nico Le Roux (pictured, left at the TIACA Air Cargo Forum in Miami), said: “We are looking forward to getting underway with this new partnership with Rockford, and working with another regional cargo hub to grow this high-potential trade lane. Our initial focus will be on aerospace cargo, as both Prestwick and Rockford are positioned within large aerospace industry clusters.”

E-commerce is another major focus with Prestwick’s appointment as Royal Mail Group’s international e-commerce gateway to the UK, while Rockford is an established U.S. e-commerce hub.

Rockford’s executive director, Zack Oakley (right), commented: “The Chicago-UK air cargo market flow amounts to over 26,000 tons annually and is currently underserved by direct air cargo routes to Scotland. Developing the air cargo connections between PIK and RFD aims to rectify this, while supporting the emerging growth factors for air cargo across the perishables, automotive, pharma, and e-commerce sectors.

“The partnership also allows us to help shippers secure significant cost savings and Co2 reductions, aligning with both airports’ sustainability goals.”

Silk Way unveils plans for new Azerbaijan airport at COP29

Silk Way Group unveiled plans for a new cargo airport in the Alat Free Economic Zone during the COP29 summit, being held in its home country, Azerbaijan. It will operate under the Silk Way Alat Free Economic Zone Company, a registered entity established to advance Silk Way Group’s logistics and infrastructural initiatives in the region.

The project includes will a 4,000-meter runway and taxiway, 18 aircraft stands, individual forwarder warehouses, perishables airside facilities and office buildings.

On completion of the project in 2026, the wider Alat Free Economic Zone will have access to the Baku International Sea Trade Port and rail and motorway networks.

President of Silk Way Group, Zaur Akhundov, noted: “The establishment of the new cargo airport in the Alat Free Economic Zone represents a significant milestone in the country’s history, signifying a shift towards new opportunities that will effectively address the increasing local and global demand for freight transport. This initiative not only bolsters our standing within the Middle Corridor but also opens up new avenues for growth, offering promising prospects for our business, as well as for our valued partners and investors.”

Chief executive of Silk Way Alat Free Economic Zone Company, Jawad Dbila,  added that the new cargo airport would be “a pillar of the Alat Free Economic Zone, transforming our vision for Azerbaijan’s logistics and transportation capabilities into reality.”

Sander Doves, director of TKH Airport Solutions, a technology partner in the project that that his company’s advanced airfield ground lighting technology would be used in the construction of the runway and would result in enables significant energy savings.