Ukraine-owned, Germany-based heavylift carrier Antonov Airlines has moved 95 tons critical oil and gas equipment Stavanger, Norway to Changi, Singapore in partnership with Golden Aviation.
An oil company chartered the Antonov-124-100 for the complex 7,700-mile mission, which required specialized loading equipment at both the departure and arrival points. Despite the logistical challenges, the flight departed and arrived precisely on schedule.
The global air cargo market’s hot summer continued in August with average spot rates showing their largest year-on-year growth of +24%, according to the latest weekly analysis by Xeneta.
Global average air cargo spot rates of US$ 2.68 per kg in August were boosted by continuing supply and demand imbalance. August’s global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%. The increase was further supported by ocean-to-air shift due to Red Sea disruptions and e-commerce demand.
E-commerce continued to show strong growth as the market continued to cruise towards its hotly anticipated peak season. According to Trade and Transport Group, e-commerce and low-value goods exports from China in the first seven months of 2024 increased +30% year-on-year. Notably, shipments to Europe and the US showed +38% and +30% growth respectively.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” said Xeneta chief airfreight officer, Niall van de Wouw. “Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red hot peak season materialises.”
It is worth noting that the growth momentum of global air cargo volumes did slow in August compared to earlier this year. This, however, was anticipated, with the following months likely to follow suit. This is in part because demand in the corresponding months earlier in 2023 was weaker compared to the peak in volumes in Q4 2023.
In terms of dynamic load factor – Xeneta’s measurement of capacity utilisation based on volume and weight of cargo flown alongside available capacity – the supply/demand imbalance led to the global load factor increasing +4 percentage points year-on-year to 58% in August.
Rate update
Looking at month-on-month developments, the global air cargo market saw spot rates soften (-1% month-on-month) in August, likely reflecting a slight cooling of ocean-to-air shift due to ocean shipping frontloading of imports.
Zooming into the corridor level, inbound North America air cargo rates, among selected global corridors, registered the largest increases from a month ago during what is usually considered to be the industry’s traditional slack season.
Topping the list, Europe to North America air spot rates rose +7% from a month ago to $1.77 per kg in August. In addition to a low comparison base, the increase in Transatlantic rates could be a result of the surging transhipments originating from Asia. This is followed by Southeast and Northeast Asia to North America rates, which increased +6% and +4% to $6.15 per kg and 4.68 per kg respectively.
Europe to the Middle East and Central Asia rates, the last corridor in Xeneta’s selected list to show growth, ticked up +2% from a month ago to $1.58 per kg.
For the inbound Europe air cargo market from Asia and the Middle East, summer breaks and respite from Red Sea disruptions led to softened air cargo rates, down -1-2% month-on-month.
Lastly, inbound Northeast and Southeast Asia spot rates from North America and Europe experienced the largest decreases up to -4% from a month ago. This is mainly due to the increased trade imbalance between fronthaul and backhaul trades.
Dynamic load factor from Asia Pacific to both Europe and North America stood at 86% and 87% respectively in August. In contrast, their return legs were below 45% in the same period.
Nervousness over peak season
According to van de Wouw, September will be a ‘good indicator’ of what Q4 will bring. Let’s see if the peak surcharges some carriers plan to implement will hold,” he said. “Freight forwarders are more prepared this year and, based on what we hear, are spending a lot of time with shippers on how to manage the unpredictable nature of these market conditions. We see financial and operational de-risking going on but, if the heat is on, let’s see what happens with all the contracts that are being negotiated.
“We’ve seen rates increasing throughout the summer, which is not typically the case. Q4 will be busy in terms of volumes, but how busy? E-commerce demand will play a big role and with +30% growth already this year ex-China and a reported 37 million new downloads of just the TEMU app in July, the indicators already suggest strong demand for capacity and this will impact the entire market on major corridors.
“I said to a shipper last week if you are not already a little bit nervous, I would recommend you get a little bit nervous for Q4 when you look at all the signals out there.”
Van de Wouw added: “Especially out of Asia, we should not be surprised if the market really heats up again in Q4. We expect to see a seller’s market out of Asia and across the Atlantic due to the latter’s reduction in winter capacity. We’ve had a hot summer, and we may have an even hotter autumn ahead.”
Temperature-controlled equipment specialist Envirotainer has completed the integration of va-Q-tec’s pharma business, advancing the future of pharma cold chain
It says that as the pharmaceutical industry faces growing demands for more reliable and flexible cold chain solutions, it has strengthened its portfolio with the addition of advanced passive cooling technology.
It adds that its extended range of solutions allow pharmaceutical companies to transport products at any temperature, size and at any stage of the product lifecycle, spanning the entire range of pharmaceuticals, from precision medicines and advanced cell and gene therapies, to commercial distribution of vaccines and chronic disease treatments to even the most challenging regions.
Services include real-time monitoring, predictive analytics and 24-hour customer assistance, supported by an expanded global network.
Envirotainer chief executive, David Simonsson (pictured), said: “This integration marks a significant step forward for our customers and company. By combining the best of active and passive technologies, we’re better equipped to meet the evolving needs of the pharmaceutical industry, helping vital medicines reach patients safely, no matter where they are.
“As we continue to innovate, sustainability remains central to our mission, and we’ll continue to offer solutions that not only protect the efficacy of medicines but also align with environmental best practices. This is the beginning of a new era for us, one where we can make an even greater impact on global health.”
Hong Kong carrier Cathay Pacific’s says its A350 fleet will resume full operations by 7 September after 14 of the aircraft were temporarily withdrawn from service after fuel line faults.
Six aircraft have already undergone successful repairs and are cleared to operate and the remaining nine will be repaired and expected to resume operation by Saturday (7 September).
Cathay Pacific was forced to cancel a number of flights between 5 and 7 September. But does not anticipate any further cancellations will be required.
SATS Group’s Worldwide Flight Services’ (WFS) arm has gained a multi-year contract to handle Magma Aviation freighters at Belgium’s Liege Airport.
Starting in September WFS will provide ramp and warehouse cargo handling for a minimum of five regular Boeing 747-400F flight rotations a week.
WFS will also handle cargo onboard charter flights and the overall contract is expected to generate over 50,000 tonnes of cargo a year.
WFS operates two warehouses at the growing airfreight hub of Liege with a total of 24,000sq m.
WFS managing director, Belgium, Nathan De Valk, said: “This is a significant contract gain for WFS in Liege. We look forward to working closely with the Magma Aviation team to jointly develop handling solutions suited to the products and services they offer.”
Magma Aviation head of operations, James Le Poer Trench, added: “This collaboration strengthens Magma Aviation’s supply chain and enhances our ability to deliver exceptional products and service to our customers. By leveraging WFS’s expertise and innovative solutions, we expect to drive increased efficiency, improve quality, and unlock new growth opportunities.”
Glasgow Prestwick Airport (GPA) has appointed Colin Dai as its country sales director for China. He brings over 25 years of experience in aviation and e-commerce, having work for carriers including Qatar Airways and Virgin Atlantic.
GPA aims to foster business relationships across China, including the e-commerce industry. It recently launched an e-commerce solution in partnership with British postal company Royal Mail Group and has invested over £2 million (US$2.6m) in new cargo equipment, and now claims one of the fastest turnaround times for air cargo in the UK.
Dai said: “With the rapid growth of Chinese e-commerce and demand for it across the UK, there is an increasing need for efficient and reliable international logistics solutions. My focus will be on meeting these rising business needs by introducing GPA’s services to Chinese companies, leveraging the airport’s strategic location, state-of-the-art facilities, and partnership with Royal Mail.”
GPA business development director, Nico Le Roux, added: “China represents one of the most dynamic e-commerce markets globally, and we are excited to have Colin on board to spearhead our efforts in the region. We are committed to providing cost-effective, efficient solutions for e-commerce companies looking to access the UK market, and Colin’s new role is a testament to this.”
GPA will be participating in the Shenzhen Logistics and Supply Chain Expo in September, and the TIACA Air Cargo Forum 2024, from 11-14 November in Miami.
IAG Cargo has appointed Group Concorde as its general sales agent (GSA) in Cambodia, Philippines, Myanmar, Malaysia, Indonesia, Vietnam, Australia, and New Zealand.Group Concorde started in business since 1985 in India and has expanded to 14 countries within Asia Pacific. Over the next three months, Group Concorde will assume responsibility for cargo sales operations in the markets.
Elodie Berthonneau is to take over as vice president Asia-Pacific at Lufthansa Cargo from 1 October. Based in Singapore, she will head sales and handling in markets including China, Japan, South Korea, Thailand, Vietnam, Singapore, Malaysia, Indonesia, Philippines and Oceania. Berthonneau joins Lufthansa Cargo from Qatar Cargo where she was vice president network planning and strategic partnership.
In 25 years, she has held management positions at Qatar Airways and Air France KLM.
Head of global markets at Lufthansa Cargo, Anand Kulkarni, said: “The Asian region is one of our most important markets and is expected to become even more relevant in the coming years. Combining her expertise and experience within the industry and the Lufthansa Cargo brand and knowledge, she will set new accents in our Asia Pacific organization and in the dialogue with our customers.”
Worldwide Flight Services Holland, a member of the SATS Group, is expanding its presence in Amsterdam Airport Schiphol (AMS), with the proposed acquisition of Menzies World Cargo (Amsterdam) B.V., Menzies Aviation’s general cargo handling operations at the main international airport in the Netherlands.
It would increase warehouse capacity and cargo handling capabilities for WFS in one of Europe’s busiest air cargo locations.
WFS has served Schiphol since 2000 and is now operating at close to maximum capacity.
The proposed acquisition is subject to certain conditions including local works council consultation.
The CargoAi online platform has appointed Olivier Veyrac as senior vice president of its CargoWALLET arm. Launched in February 2023, CargoWALLET facilitates payments in over 47 currencies and inthe last 18 months has been adopted by over 5,000 airlines, freight forwarders, handlers and logistics service providers.
