Vietnam Airlines is to operate its first regular US flight, to San Francisco, subject to obtaining clearance by the Federal Aviation Administration. It will be the carrier from the country to do so. Schedules and type of plane have yet to be determined.
Booking cargo is as easy as ABC
Russia’s AirBridgeCargo Airlines is making its entire worldwide capacity offer available on the CargoAi platform. Freight forwarders can access eQuotes and eBookings to destinations in Russia and Kazakhstan, the US, Europe, Middle East and Asia.
October demand nudges up, but rates soar
Air cargo rates soared again in October, although there were no clear signs of a surge in peak season demand for capacity, according to industry analysts, CLIVE Data Services. Demand for chargeable weight in October rose 3% over the same month of 2019 and was +14% higher than in 2020 year but CLIVE’s ‘dynamic load factor’ indicator – which measures both the volume and weight perspectives of cargo flown and capacity available to produce a true indicator of airline performance – remained lower than had been expected at 68%.
(CLIVE’s reports air cargo market performance to pre-Covid 2019 levels, as well as 2020 year-over-year comparisons, to provide meaningful analyses of the current conditions.)
Available capacity last month, while still down 13% versus October 2019, was up 17% compared to October 2020, but the dynamic load factor remained 3% below the level seen in the first month of Q4 2020.
But overall air cargo rates went up 155% and 37% in October 2021 versus October 2019 and October 2020 respectively.
As is often the case, CLIVE recorded significant market performance deviations. Flights ex Asia Pacific (APAC)-Europe remained virtually full to capacity, lifting rates by a further 20% over September 2021, while APAC-North America rates reached a double-digit level per kilo. Overall, international rates rose 10% month-over-month.
Load factors out of APAC westbound in October 2021 stood at 91%, while eastbound also produced an 89% increase. Some mid-tier markets in Asia, such as Vietnam and Malaysia, showed the highest spot rates – between US$9-10 per kg for spot shipments into Europe. In comparison, Hong Kong, in the last week of October, was close to 7 USD per kg.
“With load factors up 2% versus September, you can see the build up to the peak season but, admittedly, demand is not yet as high as some stakeholders had feared (or hoped). Capacity on a like-for-like basis (compared to September 2021) was more or less flat (up 1%) and, combined with a load factor of 68%, this does not seem to indicate the final sprint to the end of the year has started,” said CLIVE managing director, Niall van de Wouw. “October was a steady month in the market overall with some strong seasonality factors, but the dynamic load factor was lower than anticipated given the strong week-over-week increases we reported in September. A global dynamic load factor of 68% does show how efficiently the market is currently operating in terms of matching supply and demand.”
In its figures for September, published on the same day as CLIVE’s October data, IATA said that demand continued to be well above pre-crisis levels and that capacity constraints persist.
Global demand, measured in cargo tonne-kilometers (CTKs), was up 9.1% compared to September 2019 (9.4% for international operations).
Capacity remains constrained at 8.9% below pre-Covid-19 levels (September 2019) ( or 12% lower for international operations).
Qatar Cargo first to adopt fireproof containers
Qatar Airways has become the first cargo carrier to adopt Safran Cabin’s new Fire Resistant Container (FRC) taking delivery of an initial batch on 29 September in Doha, Qatar.
Over the next five years, it will replace its entire fleet of more than 10,000 ULDs with the design, aiming to exchange 70% of the units during 2022.
Qatar Airways Cargo said its decision stemmed from the increased risk posed by lithium battery shipments.
Chief officer cargo, Guillaume Halleux, said: “We were looking for a solution that prevents incidents in containers used for the handling and storage of baggage, as well as the transportation of cargo goods. Thorough testing has validated the absolute fire resistance of Safran Cabin’s new FRC containers, and we are very pleased to roll out this solution in our belly-hold fleet within such a short period of time.”
It is precisely these rising concerns amongst airlines about the safe transportation of lithium-ion batteries and related goods such as smartphones, that prompted Safran Cabin to extend its portfolio with a Class-D Fire Resistant Container, complementing its
Safran Cabin’s new containers are Class-D, designed to resist a lithium-based fire for six hours, and have a SEN (Secure, Ergonomic, and Non-Velcro) door made of high impact resistant materials, making it easy to maintain. Existing Class-A containers are proof only against fires in ordinary combustibles, such as paper and cardboard.
Air Cargo Canada revenue tops a billion
Air Canada Cargo said it had scored record-breaking results in the third quarter of 2021, with revenues reaching the CAN$1 billion (approx. US$0.8bn) mark for the first time. Cargo in fact accounted for almost half the airline’s total operating revenues of CAN$2.103 billion, which was almost three times the operating revenues of CAN$757 million in the third quarter of 2020.
The carrier as a whole made a net loss of CAN$640 million, an improvement on the CAN$685m loss in the third quarter of 2020. The net loss for the first three months of 2021 was CAN$3.11 billion.
Vice president, cargo,Jason Berry, described the performance as “an incredible milestone”, adding that the carrier continued to invest in new technologies “such as an Application Programming Interface (API) for our customers, enhancements to our cold chain facilities in Toronto and the upcoming arrival of our first dedicated Boeing 767-300ER freighter, later this year,”, he said.
Space saving experts set up air cargo unit
Revenue-optimisation specialist Wiremind has launched a dedicated air cargo business unit, aimed at helping operators get the best use out of their capacity.
The software and data-science company, which was established in 2014 with a focus on optimising systems mainly for the transport and logistics industries, launched its SkyPallet solution in 2017. The ULD and flight optimisation system that aims to address the imbalance in essential operational knowledge across air cargo teams, the lack of continuity between sales and operations processes, and the fact that airline pricing strategies often overlook the volume factor despite its critical impact on margins.
The software as a service (SaaS) solution offers a 3D planning view and manages capacity through advanced heuristics – in other words, a custom function that selects the best solution on a given dataset, applying rule-based logic. Unique algorithms take into account the respective regulations for special products, carry out weight and density checks for heavy cargo, and ensure smart capacity optimisation to minimise space loss.
With the Covid pandemic putting unprecedented pressure on available air cargo capacity, its efficient use is more crucial than ever. However, capacity management is not easy given that shipments come in all shapes, sizes, and commodities, and travel in varying aircraft types. Bookings do not always match what is actually delivered to the airline, and space wastage, as well as the risk of having to leave shipments behind, is inevitable.
Wiremind says that it now has over 1200 SkyPallet users in 100 countries and has been adopted by operators such as Emirates, Atlas Air, United, Qantas, ECS Group, and Chapman Freeborn.
Chief commercial officer, Nathanaël de Tarade, said: “There is huge potential for further digitalisation in air cargo, yet the industry currently lacks data science expertise at the right level. We know that it can certainly benefit from similar technology, such as deep learning models, for example, that we have successfully deployed on large-scale projects in several industries. Therefore, we have already doubled the size of our air cargo team, and aim at tripling it within the coming months.”
ATC signs deal with reborn Italian airline ITA
GSSA ATC Aviation Services has signed a cargo sales promotion and marketing deal with Italian carrier ITA Airways in the US, Canada, Chile, Colombia, Ecuador, Peru, South Africa, Germany and Switzerland. The carrier, the successor to one-time flag carrier Alitalia, operates a network of 44 destinations and 59 routes which will increase to 58 destinations and 74 routes in 2022 and 74 destinations and 89 routes in 2025.
Lufthansa special handling goes digital
Lufthansa Cargo is partnering with IBS Software to digitalize critical handling processes for special products and services like dangerous goods, pharmaceuticals and fresh produce. Part of the carrier’s Mobile Digital Handling initiative, it usess IBS Software’s iPartner Handling solution to provide a single access, easy to use set of mobile and web tools that ground handlers can use to carry out specialised workflows and tasks. The platform also offers digital connectivity options for handlers via APIs and has been designed with future industry initiatives such as IATA’s ONE Record in mind.
Under the first stage of the roll-out, over 30 Lufthansa Cargo stations in Europe, Asia and the Americas will go live, further stations and several new use-cases and enhancements being added to the solution. The first five stations have already successfully gone live.
AGI adds to JFK footprint
Alliance Ground International (AGI) has expanded its operations at New York JFK. The handler has moved into Cargo Building 22, adding almost 12,000sq ft of office space and 82,000sq ft of warehouse space to its existing facilities at the airport.
Florida-headquartered AGI already offers services at JFK’s Building 77, Building 86, and at Building 21.
Operations from the new facility are due to begin on 1 December.
Vice president business development, Warren Jones, said the expansion would allow AGI to increase operations to existing clients as well as support new airline customers.
Last month, its opened a new 76,000sq ft off-airport import facility near Newark Airport and is relocating its on-airport activity to a 24,000sq ft building.
We’re back to normal after Covid, says Hactl
Hong Kong handler Hactl says it has returned to full manning and normal operations, following the reported Covid case at its ramp handling team on 7 October, which led to quarantine rules being imposed by theCentre for Health Protection.
All quarantined staff subsequently tested negative, and have now been released from the quarantine centre.
The manpower shortage resulting from the quarantine affected around 20% of flights but – despite the additional impact on all airport operations of two typhoons on 9 and 13 October – the situation was progressively brought under control through increased overtime, re-scheduling of some flights, re-deployment of other ramp-trained Hactl staff and subcontracting of some duties to other operators.
Less than 5% of Hactl’s workforce were affected, and over 80% of flights were handled within normal timeframes. There is no truth in some reports of two-three day delays, it added.
The company has introduced further measures to increase resilience including installation of 120 sanitization devices with more on order, provision of two robots for disinfection of common areas, additional cleaning staff, more frequent cleansing and sanitisation of common areas and extra PPE to staff members handling inbound cargoes from high-risk areas.