Swissport Cargo Services Austria has gained TAPA FSR-C security certification at its Vienna International Airport logistics hub. The handler says it further strengthens its position as a trusted partner for handling high-value and theft-sensitive goods.
Plans are also underway to TAPA-certify the whole site including all tenants.
Swissport opened the 8,000sq m (86,00sq ft) air cargo warehouse in Fischamend in 2021 which is connected with Swissport’s on-airport cargo center by a dedicated electric truck.
Dr Gert Pfeifer has been appointed general manager Europe at Unit Load Device (ULD) management company, Jettainer.
Having previously appointed general managers for the Americas and for the Middle East and Africa, Jettainer says the latest appointment is part of its strategic reorganization to respond to regional market trends and needs. Gert Pfeifer’s new responsibilities include developing and implementing a regional sales and operations strategy for Europe and will handle all aspects of customer relations in the region, including sales, operations, and customer service.
Dr Pfeifer joined Jettainer 15 years ago and has held a variety of leadership roles in IT and Operations over the years, most recently as head of operational excellence supply chain. He also played a key role in the development of digital twins, virtual images of real ULDs, to identify any additional potential for improvement.
Global air cargo market demand rose +11% year-on-year for a third consecutive month in March as buoyant e-commerce volumes and concerns over Red Sea ocean freight delivered an unexpected first quarter bonus, according to the latest market data from Xeneta.
In what are typically weaker months of the year for airfreight, the higher volumes outpaced growth in capacity supply in the first quarter of 2024, which increased by +8% year on year. In turn, this produced a jump in the global dynamic load factor, which is Xeneta’s measurement of cargo capacity utilization based on volume and weight of cargo flown alongside capacity available.
Load factor in the opening three months of 2024 rose +2% YoY to 59%, and March has shown similar growth, edging up to 61%.
Xeneta’s chief airfreight officer, Niall van de Wouw, commented: “While this latest monthly data should be balanced against the lower base recorded in the corresponding month of 2023, when we saw weakened global manufacturing activities, Q1 2024 has still seen a surprisingly busy airfreight market. Demand in the first quarter doesn’t indicate a market which is running out of steam so far.
“The question is, should we be surprised by it, or should we get used to it? Although the market didn’t benefit immediately, the Red Sea disruption was clearly a factor in these latest figures. Airfreight growth was primarily driven by increased volumes from the Middle East and South Asia as shippers shifted services from ocean to air to avoid Red Sea delays. We also cannot underestimate the importance of e-commerce growth, which shows no sign of abating on its most prominent lanes.”
Subsequently, the average global airfreight spot rate in March increased +7% from the previous month to US$2.43 per kg.
On the corridor level, as highlighted, the Middle East and South Asia to Europe market continued to lead growth in rates in March as the upsurge in air cargo demand caused by Red Sea concerns squeezed capacity on these lanes. The average spot rate on this corridor jumped +46% over February’s level to $2.82 per kg, up +71% year-on-year. This was especially seen in the India outbound market, where the spot rate to Europe rose 68% month-on-month in March to $3.38 per kg.
In contrast, the average ocean containerized spot rate on the India West Coast to North Europe lanes declined -9% after its peak in February, although this remained +340% above December, prior to the Red Sea disturbance.
The Middle East and South Asia to US air cargo market followed suit. Its average spot rate of $4.03 per kg in March was up +35% month-on-month and +51% year-on-year.
In comparison, the spot rate from Europe to the US increased only marginally by +3% month-on-month to $2.12 per kg as this corridor was less affected by the Red Sea.
China outbound experienced a decline in spot rates versus February 2024 as the market cooled down after the Lunar New Year.
The China to US market spot rate of $4.06 per kg slipped down -2% month-on-month, although, year-on-year, growing e-commerce demand and delayed recovery of belly capacity contributed to a noticeable +15% average jump in spot freight rates. Similarly, the China to Europe spot rate decreased -3% month-on-month to $3.64 per kg. However, it increased +5% over the previous year, boosted primarily by e-commerce demand and the shift away from the Red Sea.
The South America outbound market registered the largest decline among the top air cargo corridors. As demand for flowers eased, the South America to US spot rate dropped -12% from the previous month to $1.25 per kg in March, down -7% on the previous year. South America to Europe experienced a similar trend, with spot rates averaging $1.75 per kg, a fall of -18% month-on-month and -11% year-on-year.
March data shows freight forwarders continuing to purchase a larger share of volumes on the spot market as they kept their options open pending an anticipated cooling down of the Red Sea disruption, and to benefit from the traditionally more imbalanced demand/supply ratio caused by the influx of airline belly capacity at the start of summer schedules. In the first quarter of 2024, spot market share accounted for 43% of the total – compared to 31% in the corresponding pre-pandemic era – as expectations of ‘normalization’ prompted forwarders to take short-term risks in the spot market in the hope of longer-term gains.
Similarly, in the first quarter of 2024, more shippers pivoted away from longer-term global air cargo contracts to short-term capacity commitments, with three-month contracts accounting for 41% of all newly negotiated contracts in this quarter, up +18% pts from the previous quarter. The preference for six-month contracts declined 23% pts versus the previous quarter.
Wouw concluded: “The air cargo market has clearly enjoyed a stronger-than-anticipated start to the year, but there’s a different quarter coming along and more capacity coming in, so we do expect an overall downward pressure on load factors and rates, aside from selected corridors where the continuing rise of e-commerce and the residue of the Red Sea uncertainty will continue to boost rate levels.
“But this is now six months in-a-row that the air cargo market has been stronger than we expected. When is it going to slow down? Only time will tell but, right now, airfreight demand is surprisingly resilient.”
Etihad Cargo has operated its inaugural service from its Abh Dhabi hub to Boston, Massachusetts. The flight arrived on 31 March, the first of four flights per week. Boston is Etihad Cargo’s fourth US destination and will be operated by a Boeing 787-9 Dreamliner offering cargo capacity of 50 tonnes per week. Etihad Cargo will offer tailor-made solutions for commodities including perishables, medical instruments, pharmaceuticals, and aircraft parts.
Etihad Cargo says its expansion into this market will significantly enhance trade in lobsters and other seafood, as well as critical pharmaceuticals, including medical devices and oncology treatments, from Boston to Abu Dhabi and the rest of the world.
Etihad Cargo’s US network already includes double daily flights to New York JFK, daily services to Chicago O’Hare and Washington DC and a weekly freighter to Chicago. The Boston route brings total flights to the US to 33 per week.
Etihad Cargo vice president, Stanislas Brun, said: “Boston is an important destination for food and pharmaceuticals, as well as a centre for innovation and development. Etihad Cargo’s Abu Dhabi-Boston service will support the region’s export economy, particularly in facilitating the global distribution of its world-class seafood and breakthrough medical products, and further strengthen trade ties between the US and UAE.”
Etihad Cargo also expanded its network with Worldwide Flight Services (WFS), a member of the SATS Group, to incorporate all the carrier’s stations in the US. The carrier said this would allow it to deliver consistent, high-quality, end-to-end air cargo solutions for its CEIV-certified products, including PharmaLife, FreshForward and specialised services like LiveAnimals and SkyStables.
Ukraine’s Antonov Airlines has flown an AC75 yacht and equipment for the American Magic team from Providence, Rhode Island, to Barcelona, Spain for the Louis Vuitton 37th America’s Cup.
Logistics partners GAC Pindar and Solent Freight Services charted an An124, the world’s largest transport aircraft to deliver the yacht, 22 meters long, 5 meters wide and 3.5 meters high on a special cradle.
The AC75 is a modified version of the mono hull yacht built for the 36th America’s Cup, which antonov Airlines transported from the US to New Zealand in 2020.
Antonov Airlines is a division of Antonov Company, headquartered in Kyiv, Ukraine, operating a fleet of cargo aircraft including five AN-124-100s from a temporary base in Leipzig, Germany.
Delta Cargo is now offering its capacity on Freightos’ WebCargo-7LFreight platform, allowing customers can now book air freight and end-to-end trucking in one place.
The collaboration also broadens the range of products and services available for booking on the Freightos platform, including Delta Cargo’s DASH Heavy for the US domestic market, as well as their General Freight and Express Heavy products for US export shipments.
Delta Cargo’s general products and tariffs have been available for eBooking on WebCargo since 2020and the airline is now expanding the availability of its services on the platform. WebCargo customers now have access to real-time quotes and capacity for Delta Air Lines’ network out of the US, reaching more than 250 destinations worldwide.
Mediterranean Shipping Company’s MSC Air Cargo arm has joined the Cool Chain Association (CCA), a group of companies working together to improve the temperature-controlled supply chain. CCA members collaborate on initiatives to drive quality and innovation in the cool chain, helping to reduce food loss and improve the pharmaceuticals supply chain.
Stavros Evangelakakis, CCA chairman and head of global healthcare at Cargolux, said: “CCA members continue to work together to find new ways to improve the temperature-controlled supply chain, and MSC Air Cargo brings immense knowledge and experience to help us achieve those goals.”
German-owned global forwarder DB Schenker has an onboard courier (OBC) service for urgent small and high-value shipments as part of ‘white glove’ portfolio.
After an initial trial period, DB Schenker has set up an OBC service team operating from three different continents to guarantee round the clock availability. Customers receive a quote within minutes and a human courier is dispatched at short notice to personally accompany the cargo as a passenger on a commercial flight.
Real time tracking is available and insurance and customs clearance are available if required and the service is available for all types of shipments except dangerous goods. Demand is expected to be especially from the automotive, electronics, high-end fashion and healthcare industries.
Global board member for air and ocean freight,, Thorsten Meincke said: “Whether urgent automotive parts need to be shipped from Germany to China to prevent a line stoppage, or a medical device from Canada is instantly needed in a hospital in South Africa – we are now able to take care of any unforeseeable and very short-term requirements of our customers.” Vice president of global air freight strategy and development, Stefan Pargfrieder, added: ” Sometimes the high value of an item is not related to its purchase price but rather to the costs adding up for every minute the item is not available. While we have already taken care of individual OBC customer requests in the past, we are now rolling out a standardized product offering across all continents.”
FedEx Express has opened a new logistics facility at Kabelsketal, northwest of Leipzig and close to Leipzig/Halle Airport to cater for an increased volume of consignments, particularly in the larger customers’ segment.
The site includes a 3,400sq m warehouse, six loading bays for lorries, 63 for vans and six for 7.5-tonne trucks. Twelve charging stations have been installed for the vans and six for employees’ cars. Sorting capacity is doubled compared to the previous facility while a new loading and unloading concept has reduced traffic in the warehouse and thus the risk of accidents at work.
Vice president ground operations Germany, Austria, Switzerland and Nordics, Stefan Dries, said: “We are supporting our customers in the region with their growth ambitions,” The site in Kabelsketal is well equipped for increasing shipment volumes in both freight and parcel.”
The new building in Kabelsketal is the fourth location in Germany that FedEx Express has opened in the 18 months. Following the opening of the Nufringen station in early summer 2022 and the modernisation of the air gateway in Stuttgart in spring 2023, the company expanded and modernised the site in Karlsruhe at the end of January.
The partnership will increase capacity, particularly for time-sensitive shipments such as perishable goods.
Vice president of Etihad Cargo, Stanislas Brun, said: “The successful inaugural flight from Nairobi to Abu Dhabi is just the beginning of Etihad Cargo’s ambitious journey with Astral Aviation. Together, Etihad Cargo and Astral Aviation will offer air cargo solutions that cater to the dynamic needs of partners and customers, especially in the fast-growing African market.”
Wilson Chan, senior vice president – freezone cargo and logistics of Abu Dhabi Airports, said: “Expanding cargo operations to and from Zayed International Airport is a key component of our plan to ensure Abu Dhabi continues to strengthen its global standing as an air cargo hub.,
Astral Aviation chief executive Sanjeev Gadhia, added: “The partnership between Etihad Cargo and Astral Aviation marks a significant milestone in trade between Africa and Abu Dhabi, as the new flight will enable the efficient transportation of perishables including flowers, fresh fruits, vegetables and meat from Astral’s hubs in Nairobi and Johannesburg into Etihad’s Abu Dhabi hub and onto their network. On the return, the freighter will carry cargo from Etihad Cargo’s network in Asia, the USA, and Europe into Astral’s Intra African network, which will result in new opportunities for our respective clients.”
Astral Aviation will resume weekly operations from Abu Dhabi from 28 March.
In addition to the weekly flights launched in partnership with Astral Aviation, Etihad Cargo will provide additional belly capacity to its partners and customers on its daily passenger flights to Nairobi from 1 May. It also operates a weekly freighter service that connects Nairobi to Amsterdam via its Abu Dhabi hub.
