German forwarder Hellmann’s Calipar Healthcare Logistics (HCHL) arm has opened a dedicated distribution center for global medical device company, Boston Scientific in Dubai to serve emerging markets. HCHL is a joint venture between Hellmann Worldwide Logistics and an affiliate of an Indian-based Parekh Integrated services.
The center will serve distributors and a number of warehouses across the Europe, Middle East and Africa (EMEA) region. Hellmann Calipar will also customize products for specific market needs at the multiuser facility in Dubai South. Its 5400 square meters (58,125sq ft) offer a capacity for 1,900 pallets and 5,500cu m (194,000cu ft) of shelving storage, all compliant with GSDP and local regulations.
Hellmann Worldwide Logistics, regional chief executive, Madhav Kurup, said: “Our state-of-the-art infrastructure, globally recognized systems, and 14 years of expertise as a healthcare vertical leader have ensured the seamless implementation of this project. We look forward to contributing to the success of Boston Scientific in the region and anticipate a successful and enduring collaboration based on our shared values.”
Hellmann Calipar Healthcare Logistics managing director, Anna Mansurova, added: “The new multi-user facility is our 3rd expansion and is a testimony of Hellmann Calipar long-term commitment to providing advanced healthcare solutions in the region. As a market leader, we recognize the importance of delivering high-quality services.
Independent ground handler Hong Kong Air Cargo Terminals Limited (Hactl) has become the first in Asia to receive an IATA Enhanced GSE Recognition Program certificate.
The programme encourages the installation of anti-collision systems on new and existing ground support equipment (GSE), to prevent expensive damage to aircraft on the ramp.
Hactl began installing anti-collision equipment to its fleet in 2017. Its collision avoidance systems trigger an audio-visual alert to operators when GSE is close to aircraft.
IAG Cargo has launched a route between Dublin and Denver for the first time in its history. The route, operated by IAG’s Irish arm, Aer Lingus, will have a frequency of four times per week, using an Airbus 330-200 aircraft.
Services between Dublin and Toronto will also be boosted by a wide body Airbus 330-200 four times a week.
IAG Cargo’s Dublin hub now has over 80 weekly wide-body rotations, especially important for the movement of pharmaceutical products for which Ireland is a major manufacturing centre.
IAG Cargo chief sales and marketing officer, Camilo Garcia Cervera said: “We are really pleased to be introducing additional direct routes for our customers, connecting Ireland and the US. Ireland’s strategic location and business friendly environment have established it as a key hub for the pharmaceutical industry. The additional capacity adds to our strong network offering in North America, giving local businesses a vital connection to global markets.”
American Airlines is to suspend or reduce several of its long-haul routes during the winter, blaming delayed deliveries of Boeing 787 aircraft. A number of summer seasonal flights will end early, on September 3 including those between New York and Athens, between Chicao and Athens and from New York to Barcelona. Routes will however be resumed in the summer. Services from Dallas-Fort Worth International Airport (DFW) to Dublin and Rome Fiumicino will end for the winter on 26 October, will New-York-Rome services will have a reduced frequency.
Alaska Air Cargo has launched its freighter service from Anchorage to Los Angeles through Seattle.
The new twice-weekly freighter service is the carrier’s first beyond Seattle in the lower 48, and will meet growing demand on the West Coast:
Over the past year, Alaska Air Cargo says it has been moving more retail goods and perishables from Southern California including ecommerce from the Bay Area – to Anchorage and communities across Alaska. The northbound freighters are timed to provide same-day or next-day service to all stations across Alaska.
Southbound, the new freighter service gives more options to fly fresh seafood to Southern California.
The increased capacity also provides new opportunities for larger, palletized parts and supplies for aerospace, biotechnology and other industries.
The carrier has expanded its Los Angeles station hours to 24/7.
Later in May, the route will be served by larger 737-800BCF freighters, which have 10,000lbs more capacity per aircraft than the existing 737-700s.
Regional sales manager for California, Mike Narowski, said: “The freighter gives us the capacity to carry large machinery and other bulky shipments that just weren’t possible in the past. With more expansions coming this year in belly-cargo routes serving LAX and other markets, we are poised to be the largest passenger cargo network on the West Coast.”
The impact of air cargo’s ‘black swan’ event – the conflict in the Red Sea that has disrupted shipping – showed signs of easing in April but volume growth still registered the fourth straight month of +11% increases in global air freight demand, according to the latest weekly data analysis by Xeneta.
Alongside easing in global air freight demand, the injection of extra cargo capacity as airlines launched their summer schedules boosted supply by +5% year-on-year in April. This put downward pressure on the dynamic load factor, which dropped from 62% in March to 59% in April.
Dynamic load factor is Xeneta’s measurement of cargo capacity utilisation based on volume and weight of cargo flown alongside capacity available.
In April, year-on-year growth in the global air cargo spot rate turned positive for the first time since August 2022, rising +5% due to a combination of Middle East conflicts and strong e-commerce demand. As a result, the average global spot rate rose to US$2.59 per kg, its highest level this year. However, this year-on-year growth in global spot rate should be viewed in the context of a weak market in April 2023.
“In absolute terms, the levels of demand and supply growth are what we expect to see in April after what was a typically strong month of March at the end of Q1. April may well represent an interlude to a quieter period for the air freight market,” said Xeneta chief airfreight officer, Niall van de Wouw.
He continued: “The growth in the spot rate was very much driven by regional developments as well as a case of market sentiment tending to follow market fundamentals. This is what happens in jumpy market conditions. The freight rate in April was a reaction to high first quarter volumes, but we expect rates to ease.”
Shippers and forwarders coming to terms with delays in ocean freight services due to diversions from the Red Sea will also have an impact on air cargo demand, according to van de Wouw: “We have clearly seen a push for airfreight capacity around the Indian subcontinent because of the Red Sea disruption, but this impact is easing as businesses which depend on ocean freight are now planning in longer lead times. So, we expect the recent surge in demand for airfreight in this region to lessen.”
Xeneta began to see a downward trend in air freight spot rates emerging in the third week of April from this region.
The China to US market led in terms of freight rate growth in April, jumping +20% month-on-month to $4.87 per kg. This was followed by outbound freight from the Middle East and Central Asia region. In April, average spot rates to Europe and the US grew at a similar rate of +18% month-on-month, reaching $3.29 per kg and $4.79 per kg respectively.
The outbound Southeast Asia market followed suit as it is highly sensitive to events in nearby regions. The Southeast Asia to Europe spot rate in April rose by +14% month-on-month in April to $3.06 per kg, while the rate to the US increased +12% to $4.66 per kg.
Conversely, the only major region to see a significant decline in freight rate was the Europe to US market, with the April spot rate falling -8% month-on-month to $1.93 per kg.
The Asia Pacific to North America market experienced the largest spot share decline in April at -10% pts compared to a year ago, shrinking its gap with the pre-pandemic level to just +1% pt. Xeneta’s spot rate share refers to the proportion of cargo volumes sold in the spot market.
In contrast, the Europe to North America market only saw a modest spot share decline of -5% pts. Its spot rate remained +20% pts above the pre-pandemic level for the same period. This reflects the market expectation of milder freight rate adjustments for the transatlantic market thanks to adequate cargo capacity and freight rate levels getting closer to their pre-pandemic levels.
April typically marks the beginning of the traditional slack season for the global air cargo market. A slowdown in global cargo demand growth became apparent in the air freight rate trend in the final weeks of April.
Xeneta also saw more freight buyers shifting away from the spot market, in which freight rates are valid for up to one month. In April, the global spot share averaged 41%, down 4% pts from a year earlier. However, it remained +10% pts above the pre-pandemic level for the same period.
Attention is now turning to the fourth quarter as shippers and forwarders make an early start to their peak season planning after the market experience of 2023.
Van de Wouw said: “There’s the reality of now, where you will see load factor decline on markets because of the increase in capacity, sitting alongside the preparations already under way for Q4. That’s top of mind for shippers, forwarders and, to a lesser extent, airlines, and they are jockeying for position after a ‘strong’ peak season last year.
“Before then, there was no prior experience of the order of magnitude of the e-commerce behemoths and their impact on air cargo’s traditional peak season market. This year, the traditional market is looking to de-risk and will plan to be better prepared.
“Q4 is just around the corner in planning terms and freight forwarders are already looking beyond the summer to secure market share because they are concerned about what e-commerce is going to do out of southern China and Hong Kong later in the year.”
One surprise, van de Wouw adds, is the price validity periods of new contracts between shippers and forwarders. “We see a big swing from agreements increasing in length to a reversed trend of more short-term contracts as shippers look to buy a bit of time because of the black swan event in the Red Sea. We also see more agreements between shippers and forwarders which contain a mechanism to deal with market rate changes throughout the validity of their contracts. This reflects how the need to manage market volatility is surpassing the typical wheeling and dealing over the last few cents in contracts.
“Shippers will prefer longer-lasting relationships with freight forwarders that know their business, delivering good operational performance at a competitive rate level. Freight forwarders want predictability of their revenues to avoid having to go to tender each quarter to secure the business. So, these mechanisms can work for both parties,” he said.
But, while forwarders are looking to buy more longer-term capacity, airlines face ‘a balancing act’. Van de Wouw added: “If airlines think Q4 is going to be busy again, they’re not going to sell all their capacity now. They must decide how much they want to commit now, knowing they can possibly get up to 50% more revenue for that same capacity on the short-term market in Q4.”
IAG Cargo has invested €1.5 million in expanding its temperature-controlled perishables facility in Madrid, part of a €12 million investment in its Spanish hub over the last six years. It will increase capacity of the facility by 45%, offering the largest cooling chambers at the hub.
It will benefit customers importing fruit and vegetables, including asparagus from Peru and Los Angeles, papayas from Brazil, and mangos from Dominican Republic, as well as meat from Argentina and Uruguay, and fish, such as hake and salmon, from Chile.
Director of Spanish hub and operations, Fernando Terol Armas, said: “With the expansion of our temperature-controlled space and state-of-the-art cooling chambers, we can now offer even greater capacity for perishable goods, ensuring their integrity is maintained throughout the supply chain. This investment will enable us to continue to serve as a vital link between Latin America and Europe, and we look forward to supporting our customers’ growth in this region.”
Swiss International Air Lines head of cargo, Lorenzo Stoll, is to leave the company after 11 years. He will be taking on a new professional challenge as the chief executive of a Swiss-based healthcare company.
Stoll has guided Swiss’ airfreight division through highly challenging times over the past three years – during the COVID-19 crisis in particular.
He joined the carrier in 2013, initially as head of western Switzerland where he oversaw the turnaround of the Geneva-based business and operations, bringing earnings back into the black and creating over 200 new local positions.
The search for a new head of cargo is under way.
Chief financial officer, Markus Binkert said: “With his innovative flair and his keen customer focus, Lorenzo Stoll has had a huge and lasting impact on both our Geneva operations and our Swiss WorldCargo division. He was also instrumental in ensuring during the COVID pandemic that, at a time of low passenger numbers, Swiss WorldCargo made a vital contribution to our revenue results.”
He continued: “At the same time, sustainability has always been one of Lorenzo’s prime focuses and concerns. And it’s thanks to him and his Swiss WorldCargo team that our SWISS airfreight business is so well equipped and prepared today for the challenges of tomorrow. With his vision and his perspective, Lorenzo has set key processes in motion within our airfreight organization that will enable even greater and more permanent use to be made of the various cargo synergies within the Lufthansa Group.”
Qatar Airways has renewed its partnership with the UN Refugee Agency, UNHCR for another two years, to 2025
Under the agreement, the carrier will support the shipment of relief items to vulnerable refugees and internally displaced people worldwide.
For the past two years, Qatar Airways Cargo has been working closely with UNHCR to help provide humanitarian aid to better the lives of people worldwide and will now provide another 400 tonnes of free capacity to deliver crucial aid via its hub at Hamad International Airport.
East Midlands Airport could create tens of thousands of new jobs and billions in economic value from growth in its cargo operation, according to a study by air travel consultants York Aviation –
The report said that EMA would be well placed to support increased demand for air freight in the years ahead. Its advantages include its central location and closeness to major road and rail networks. Some 80% of all large warehouse sites are within 125 miles of EMA, compared to only 53% for Heathrow. More logistics developments close to the airport are expected to come in the coming years, with some investors attracted by the Freeport status and incentives attached to neighbouring sites.
EMA also specialises in the handling of express air freight carried in dedicated aircraft, not bellyhold passenger capacity which, the report says, is the fastest-growing type of air cargo. The three major cargo integrators – DHL, UPS and Fedex – have their main UK hubs at EMA and the airport handles a number of transatlantic flights for them. The airport’s single runway also has direct access to cargo integrator hubs.
EMA also has the capacity to accommodate an increase in cargo flights as the economy grows, while other key airports in the market face constraints.
The airport authority added that a recent example of this growth in action was the move by British cargo airline One Air from Heathrow to East Midlands Airport.
York Aviation said that air cargo growth at EMA will support between £687m and £1.8bn in additional economic activity and between 2,700 and 12,600 extra jobs by 2030.
The report also notes that Heathrow’s market share has fallen by 3% between 2012 and 2022, while EMA’s has grown by 7%.
EMA currently contributes around £443m to the regional economy, handling around 400,000 tonnes of cargo every year.
EMA’s managing director Steve Griffiths said: “This report confirms EMA’s status as the UK’s most important express air freight hub, powering seamless trade for the whole of the country. It highlights how some of our unique attributes, including our central location and ability to offer a 24-hour service, allow us to punch well above our weight.
“What’s really encouraging is that it spells out the potential for EMA to meet growing demand for air cargo as London airports, whose cargo operations rely on passenger flights subject to greater restrictions, become congested and reach capacity. This growth in our share of the air cargo market will add significantly to the substantial contribution we already make to the regional and wider economy.”
