DHL Supply Chain is to acquire final-mile delivery and healthcare transportation specialist SDS Rx, subject to regulatory approvals. The company delivers from more than 200 locations across the US. The acquisition also expands DHL’s same-day and expedited delivery capabilities for life sciences and healthcare customers. It follows DHL’s purchase of CryoPDP, a leading specialty courier focused on clinical trials and biopharmaceuticals earlier this year.
Chief executive of DHL Supply Chain North America, Mark Kunar, said: “The life sciences and healthcare sector is projected to grow at a compound annual growth rate of 11% through 2030. Specialty pharmacy already accounts for approximately 50% of total prescription drug spending in the U.S., and the number of patients served by specialty pharmacies grew by 12% between 2018 and 20221.
“The increasing demand for specialty pharma and healthcare solutions presents significant opportunities for DHL to leverage its scale, expertise, and commitment to operational excellence. With this acquisition, we are expanding our healthcare logistics capabilities, attracting a new segment of healthcare customers, and reinforcing our position as a trusted partner in building resilient and connected healthcare supply chains.”
Hong Kong Air Cargo Terminals Limited (Hactl) – Hong Kong’s largest independent handler – and its added-value logistics subsidiary Hong Kong Air Cargo Industry Services Limited (Hacis) have once again been honoured at this year’s Asian Freight, Logistics and Supply Chain (AFLAS) Awards.
Hactl was named “Best Global Air Cargo Terminal Operator”. Hacis meanwhile won the “Best Logistics Service Provider – Warehousing” award.
The annual AFLAS awards recognise leadership, consistency in service quality, innovation, customer-relationship management and reliability among leading industry service providers – including airlines, ocean lines, airports and seaports, as well as professionals engaged in the industry.
Finalists for each category are short-listed by the organiser, having satisfied pre-determined criteria; winners are then chosen by the 15,000+ readers of Asia Cargo News.
Receiving the awards at a gala ceremony held at the Renaissance Harbour View Hotel Hong Kong, Hactl Chief Executive Wilson Kwong said: “We thank the readers of Asia Cargo News for voting for us once again. These two prestigious awards are a true testament to our team’s ongoing commitment and continuous efforts to set new standards in all areas of the handling industry.”
A surprise summer of growth in global air cargo volumes showed no sign of abating in August as demand rose 5% year-on-year for a second consecutive month, says analyst, Xeneta. However, falling spot rates are likely to be a more telling indicator of the market outlook as shippers, airlines, and forwarders continue to battle against economic uncertainty,.
Despite the rise in cargo volumes, alongside a similar +4% year-on-year growth in capacity supply, the average global spot rate fell for a fourth month in a row, down -3% to US$2.55 per kg. And it’s these freight rates which may signal a challenging next few months for the air cargo market, according to Xeneta’s chief airfreight officer, Niall van de Wouw.
The August decline in spot rates is likely even steeper once currency effects are considered: all rates are converted into dollars, which have lost -4% against other currencies over the past year. Shift in trade flows may be weighing on air cargo rates.
Consider China-US air cargo, for instance, which, in August, was priced at $4.30 per kg. Many e-commerce shipments have been re-directed to the China-Europe corridor due to US de minimis bans, where the rate was $3.65 per kg. Such reallocation drags down the global average. A -7% drop in jet-fuel prices may have also helped keep airlines’ costs down, muting pressure on rates for now.
“It is often said that airfreight is a bellwether for macroeconomics, but I don’t think it is at the moment,” he said. “We’ve now reported +5% growth in demand for July and August and it would be easy to take some comfort from these volumes were it not for the current market conditions.
“Right now, volumes are certainly not as bad as people feared, but also not as good as people hoped. In our April data, on the back on the US administration’s ‘Liberation Day’ tariffs announcement, we asked ‘how bad will it get?’ for air cargo demand. We still cannot answer that question,” van de Wouw added.
“More than ever, shippers are falling into three categories right now,” Niall van de Wouw said. “There are those who will always say ‘no way’ to airfreight because their products simply cannot justify the higher cost of air versus ocean freight. Then there are traditional air cargo customers who always ship goods by air because of its speed and value for their high-priced or more perishable or time-sensitive products.
Between these two views sits a bigger group of shippers who will use ocean to move their goods if they can, and airfreight if they must. It is this segment of the market which is driving the upturn in airfreight demand we are seeing.
“Air cargo’s higher demand remains the result of mode shift we saw in July, with a bit of support from e-commerce. It is not an indicator of increased economic activity. It’s just that airfreight is getting a bigger share,” he continued. “Many shippers looking to lessen the impact of tariffs just do not know how the market will look in 3-4 weeks’ time because of the lack of clarity.
“Consequently, I think more businesses are deciding to take a hit and move their products by air – but this good news for the air cargo market remains under constant review. Overall, it’s hard to see where strong, sustainable airfreight growth will come from,” he said. “One forwarder I spoke to this week said that while air shipments related to AI are one of the few verticals showing a little bit of growth, they had far lower expectations for big and typically regular airfreight users like automotive, pharmaceuticals, and high-tech. I think this sentiment will resonate with a lot of other companies.”
Downward pressure
Whether it’s frontloading supply chains, ‘piggybacking’ on concerns of the financial implications of tariffs, or efforts to avoid or minimise their impact, there is little doubt that air cargo’s unexpected summer demand growth is based on the continuing unpredictable nature of world trade – but rate pressures are increasing.
The downward trend for global spot rates was echoed across most major air cargo corridors. In August, outbound flows from South East Asia continued to tumble, with air cargo spot rates to North America and Europe dropping by more than -20% year-on-year, to $4.80 and $3.05 per kg respectively, as capacity constraints eased.
North East Asia to North America routes fared somewhat better, with rates down -8% year-on-year and remaining stable compared with July. Delicate capacity management narrowed the pricing gap with South East Asia to less than five cents, settling at $4.76 per kg.
Similarly, North East Asia to Europe spot rates, at $4.01 per kg, held steady compared to a year ago and showed a more modest decline (-4%) from a month earlier. But this is at the cost of backhaul prices, which showed a -13% year-on-year decline due to continued trade imbalance.
The Transatlantic market remained the only bright spot, posting a +5% rise in spot rates year-on-year to $1.82 per kg. Yet this was a sharp deceleration from July’s near +20% surge. Spot rates appear to have peaked in mid-August, before retreating in tandem with an -11% fall in volumes in the weeks that followed. Seasonal holiday slowdowns in Europe and the fading effect of frontloading – previously spurred by extended Trump tariff deadlines – played their part in the lower demand.
From 29 August, the end of the US de minimis exemptions globally added further turbulence. Several countries suspended postal services to the US in anticipation of new compliance requirements. Following China’s early exposure in May, Canada, the UK and Mexico – together accounting for the bulk of the remaining third of affected flows – will be next to feel the pinch.
Adding to market uncertainty, Purchasing Managers’ indices in the big exporting economies fell in August, and American consumer sentiment also softened.
Elsewhere, exports from Vietnam and Taiwan to the US have surged by double digits this year, while e-commerce demand has fuelled a boom on routes from North East Asia to Europe. Latin America-to-Europe flows are also on the rise. A broader revival may be sensed from any pre–Golden Week rush in China, ahead of the national holidays in 1-7 October. For now, however, the skies remain unsettled.
E-commerce to the rescue?
The rise of the Chinese e-commerce behemoths driven by unrelenting consumer demand for quick deliveries of lower-priced goods, especially in the US and Europe, came to the rescue of the air cargo market in Q4 2023, and steered double-digit, month-on-month demand growth throughout 2024 – but the removal of the de minimise threshold for duty free goods entering the US may have a profound effect of 2025’s ‘peak season,’ van de Wouw believes.
“A lot of people think of de minimis as being about B2C, but the de minimis changes now in effect are also a big thing for B2B into the US and we are already seeing some SME businesses reacting to, and challenging, this impact.
“The starting point for closing the de minimis threshold was mainly politically motivated against the big Chinese ecommerce platforms. But the widening of this legislation is levelling the playing field again for all e-commerce shipments entering the U.S, and I would now expect to see lower e-commerce volumes moving by air from Europe to the US If anything, observers suggest this will now benefit China because of its lower production cost base.
“So, I see this having a bigger impact on B2B business and less on B2C. It adds another barrier of administrative procedures, and cost to the supply chain,” he stated.
Van de Wouw concluded: “In terms of disruption to world trade, the uncertainly seems set to remain with so many questions unanswered. What has been formalised and what hasn’t? What will the removal of de minimis mean for cross-border e-commerce?
“And the biggest question still – how bad is it going to get? The predictions are concerning but, because of all the uncertainly, the hurt for airfreight has been softened and delayed. But, for how much longer is anyone’s guess.”
American Airlines Cargo has enhanced its ExpediteTC cold chain service for life sciences shipments. It has extended 24/7 live tracking and monitoring to include shipments transported in active temperature-controlled units. In the event of disruptions, the control tower proactively intervenes to uphold the delivery commitment made at the time of booking, ensuring shipments arrive on time. New and existing team members are also receiving enhanced ExpediteTCtraining.
In July, the carrier introduced online booking for ExpediteTCpassive shipments cooled by dry ice or gel packs.
American Airlines’ 25,000sq ft CEIV-certified life sciences-handling facility at Philadelphia International Airport offers Controlled Room Temperature space maintained between +15°C and +25°C, refrigerated space between +2°C and +8°C and deep-frozen space from -10°C to -20°C. It also has an Active Container Management area, advanced monitoring technology validated to an accuracy of 0.25°C and full backup power generation.
Other CEIV-certified hubs include Miami, Luis Muñoz Marín (Puerto Rico), Dallas Fort Worth and New York JFK.
Federal Express has officially inaugurated its new global air transit facility at Istanbul Airport (IST). Operational since August, it connects Türkiye with 30 weekly FedEx flights to and from the US, Europe and the Middle East and provides capacity for future network growth.
The 25,300 sq. m facility brings together key operations under one roof, including air gateway functions, integrated customs clearance teams, and essential office support. It also features an automated sorting system with three times the previous able to process up to 7,000 packages per hour, high-speed security screening, and capabilities to handle dangerous goods.
DHL Express Finland has inaugurated its new logistics gateway at Helsinki-Vantaa Airport. It boasts direct access to the apron , an automated sorting system capable of processing 6,500 parcels per hour and 90 direct loading bays with electric vehicle charging.
The facility will be carbon-neutral with geothermal heating, solar panels, and energy-efficient technologies, alongside robust security measures including TAPA A certification and advanced X-ray scanning equipment. It the largest investment in DHL Express’s history in Finland—totalling approximately €100 million in new facilities and technology.
It will handle international, European, national, and local parcels transported via air or road, ranging from urgent to less urgent deliveries. The first customer deliveries from the facility are set to begin in October 2025.
Silk Way West Airlines has taken delivery of its third Boeing 777 Freighter at Heydar Aliyev International Airport from Boeing in Seattle. It is part of an order for ten similar aircraft, to be fulfilled by 2030 which will gradually replace older models in the fleet.
Founded in 2012 in Baku, Silk Way West Airlines operates to over 40 destinations worldwide. Its current fleet includes Boeing 777F, 747-8F, and 747-400F aircraft. It expects the delivery of two Boeing 777F, two Boeing 777-8F, and two Airbus A350F aircraft by 2030.
Korean Air has signed a five-year contract with Swissport to operate its freight facility at Cargo Building 9 at New York JFK.
The handler will take on full management and sublease responsibilities for the terminal and will extensively modernize Korean Air Cargo’s 232,500 square-foot freight facility. Investment will include automation and infrastructure upgrades including an ETV system overhaul and new temperature-controlled storage , and increasing the site’s annual throughput capacity from 200,000 to 295,500 tons. Dedicated Korean Air Cargo operations will begin with a team of around 80 staff, eventually growing to over 390 employees once Cargo Building 9 reaches full capacity.
Swissport is investing in new electric GSE and working closely with the Port Authority to equip the building with a strong and reliable charging infrastructure, making Swissport the first handler at JFK to operate an all-electric fleet for all freighter operations from warehouse to ramp. Swissport is also introducing Bionatur biodegradable products across North America to reduce plastic waste in day-to-day cargo operations, including packaging and handling.
Chief executive of Swissport North America and Canada, Nelson Camacho, said: “We are delighted to partner with Korean Air Cargo on this historic contract, marking our first large-scale collaboration at a single location. Swissport is strongly committed to raising and further fine-tuning the standard of cargo handling at New York JFK airport and is therefore investing significantly in establishing high-tech quality automation, transparent systems and enhanced safety measures, while also pursuing IATA CEIV and GDP certifications.
Executive vice president and head of the cargo business division at Korean Air, Jaedong Eum, added. “Air Cargo ground quality comes along with operational excellence beyond efficiency. And continuous investment in state-of-the-art equipment and training is crucial for successful and sustainable operations. Together with Swissport, we will establish a blueprint at JFK for a highly successful Cargo Path Forward over the coming years.”
Icelandair Cargo has launched operations in Turkey with four weekly 737 Max flights between Istanbul and Keflavik with ECS Group subsidiary Globe Air Cargo Turkiye as local general sales and service agent. The flights will also provide connections to the US and Europe, for traffic such as textiles, automotive parts, and machinery.
Canadian carrier WestJet has promoted Sabir Ebrahim to head of cargo operations. His responsibilities include ensuring smooth, effective services while maintaining safety and security compliance. Sabir and his team will identify areas for improvement in day-to-day operations and operational performance.