WestJet Cargo is to launch a service for high-value freight in January 2024. SafeAir will initially be available between Canada and the US, but will shortly be expanded across the carrier’s entire network for items such as banknotes, jewellery or precious metals and stones.
Security measures prevent tampering, pilferage, and unauthorized access, include third-party oversight, direct supervision, storage protocols and high security containers. Each container bears a unique serial number and is sealed with individually numbered metal seals. All valuable cargo is escorted by security agents and transported separately to and from the aircraft.
The service has been developed in collaboration with specialist freight forwarders and will debut between Toronto Pearson, Calgary, Vancouver and Los Angeles.
Product manager at WestJet Cargo, Nawal Mir, explained: “Every step of the valuable handling process has been painstakingly analysed, potential risks identified and measures implemented to mitigate them. All hands on deck, all eyes on the ball, and absolutely no loopholes allowed. We’ve created a true ‘Freight Knox’ service at four of our stations and will roll it out to other destinations as soon as we are certain they are ready and capable of delivery.”
The high value service is initially available between Toronto Pearson International Airport (YYZ), Calgary International Airport (YYC), Vancouver International Airport (YVR), and Los Angeles International Airport (LAX). All other stations will be launched in priority of customer demand from next year.
Wipro’s New Cargo Management System is being rolled out across the handler’s worldwide network. Following a launch of Menzies’ cargo operation at Bucharest Otopeni Airport in Romania, the MACH system will be deployed initially at ten air cargo locations, with plans to implement the system across Menzies’ global network by the end of 2024.
Wipro says that MACH is a significant enhancement of Menzies’ current cargo management system, with a modern user interface and easy navigation, while its Cloud-based architecture ensures accessibility. It integrates with other systems helping and improves data accuracy as all electronic information is populated automatically across the system.
Menzies will roll out MACH to ten air cargo locations – Macau in China; Wellington, Christchurch and Auckland in New Zealand; Sangster Intl. and Kingston Jamaica in Jamaica; Ontario, Vancouver, Calgary; and Amman in Jordan – by the end of the first quarter of 2024 and plans to implement it across the Menzies’ global network by the end of 2024.
British all-cargo airline One Air has taken delivery of its second Boeing 747-400 freighter. One Air commenced flight operations in July after receiving its Air Operators Certificate from the UK Civil Aviation Authority. The additional aircraft will support its current full charter services connecting Hong Kong and London Heathrow. The aircraft is also expected to offer some further ad hoc capacity for global charter services in addition to the regular operations.
The latest addition to the airline’s fleet, acquired on a long-term lease, is a former Air Canada passenger aircraft which was later converted to a freighter for Air China. Prior to joining One Air, it was in operation with Aerotranscargo.
One Air chairman and chief executive, and the airline’s major shareholder, Paul Bennett, said: “We have enjoyed a positive start to commercial operations and strong interest from the international cargo market, which reinforces our view of the long-term potential for a British all-cargo airline.
“We are extremely proud to be operating the only Boeing 747 freighters on the UK register and to be offering the aircraft’s outstanding cargo capacity.
“Our second aircraft has now entered service and increases our capabilities further – and, subject to gaining the necessary regulatory approvals, our aim is to add a third B747-400F in Q1 2024. We already have sufficient demand for a third aircraft, so our growth strategy at this stage is very much on track.”
One Air, headquartered close to London Heathrow, has built a team of over 100 airline operations, flight crew, and cargo professionals with previous experience with Cathay Pacific, Emirates Airline, CargoLogicAir, Norwegian Airlines, and other major carriers.
Silk Way West Airlines has added two Boeing 777 freighters to its fleet. On April 28, 2021, Silk Way West Airlines signed They are part of a strategic fleet expansion agreement signed with Boeing in April 2021 for five new 777 freighters, followed by a further agreement signed in November 2022 for two 777-8 Freighters. Silk Way West Airlines also agreed the purchase of two A350 Freighters with Airbus in June 2022.
Challenge Group has handled its 1,000th charter since starting flights in 2020. The company says that the milestone is testament to its ability to transport a broad mix of cargo, such as humanitarian aid, cars, live animals and stage equipment, coupled with its end-to-end approach, arranging trucking at origin, building up cargo, loading and unloading it on aircraft and delivering it by truck to its end-destination.
Challenge Group adds that its charter operations growth is in line with its overall fleet growth of over 60%.
International airfreight generals sales agency group ECS has acquired one of Ireland’s largest and oldest established agents, International Airline Marketing (IAM).
Founded in Dublin, in 1989, by Sean McCool, father of current managing director, Ian McCool, IAM has grown from initially representing Air Canada to serving over 15 carriers and accounting for over a quarter of Ireland’s annual air cargo exports.
With the acquisition, ECS Group will increase its own market share in Ireland to 30%.
It has a main office close to Dublin city centre, and the company also has senior sales representatives in Cork and Belfast.
It added a trucking division in the mid-1990s and expanded into handling support and air cargo dangerous training in the early 2000s.
Ian McCool said: “Our rapidly changing air-cargo industry landscape demands a solid global presence and innovative and flexible service solutions. In ECS Group, IAM sees a partner with an international reputation as a market leader, and one that recognizes the importance of growing its global business via a network of well-established local market representative offices.
“We are proud to become part of a group that is forward-looking, technologically advanced, and known to be a highly supportive business partner that is committed to promoting sustainability in the industry.”
ECS Group executive chairman, Adrien Thominet, added: “IAM is the absolute leader in the Irish market, with more than 30 years of experience and an outstanding reputation. It is the perfect example of a family business that has remained true to its founding credo of service excellence and continuous improvement – one that very much aligns with our ECS Group philosophy. We share commercial synergies too, in the companies represented across our network, and similar business acumen. When two winners join forces, everyone wins – in this case, our joint customers.”
IAM will gain access to ECS Group’s in-house digital tools and revenue management solutions.
Cathay Cargo has ordered six new Airbus A350F freighters along with options for 20 more. The first aircraft will be delivered from 2027. They will be used on routes between Hong Kong and the Chinese mainland to North and South America and Europe.
The agreement brings the Cathay Group’s new aircraft deliveries to 77 with an order book that includes 21 Boeing 777-9 wide-body passenger aircraft scheduled to be delivered from 2025 and 49 Airbus A320neo and A321neo aircraft expected to be delivered by 2029.
Cathay Cargo’s current freighter fleet consists of 20 Boeing 747 freighters, including 14 B747-8Fs and six B747-400ERFs, along with extensive belly capacity.
Cathay Group chief executive Ronald Lam said: “This order marks another major component in our investment for the future. It reflects Cathay’s confidence in the Hong Kong hub as we look ahead to the opportunities provided by the Three-Runway System. These highly fuel-efficient, next-generation freighters will provide important additional cargo capacity, expand our global network and contribute to our sustainability leadership goals.”
A surge in e-commerce volumes from Hong Kong and China inflated global air cargo demand by +5% year-over-year in November as US and European consumers splashed out on low-cost products, said says Oslo-based analyst Xeneta in its report published in December. However this growth failed to disguise the underlying subdued nature of the market nor did it quell concerns over its sustainability heading into 2024
E-commerce behemoths Shein and Temu almost single-handedly accounted for the rise in volume and rates out of Hong Kong and China in November, creating some welcome ‘havoc’ in an air cargo market devoid of a traditional peak season.
China to the US spot rates outpaced their October growth of +10%, climbing +11% month-over-month to US$4.46 per kg. Spot rates from China to Europe followed a similar upward trend, rising to $3.96 per kg, up 9% from a month ago.
These increases contributed to an overall +7% month-on-month improvement in the global air cargo spot rate, which averaged US$2.45 per kg in November, compared to +2% in October. Available capacity rose +3% year-on-year.
Demand slightly outpaced supply and helped to push the global dynamic load factor to 60%, which is on a par with its corresponding level of a year ago.
This though must be seen in context due to comparison with the state of the global air cargo market in November 2022, says Xeneta’s chief airfreight officer, Niall van de Wouw.
He said: “We don’t see November’s data as a fundamental shift in the economy nor the outlook for 2024 for the global air cargo market.
“Seasonality means volumes are up, admittedly slightly more than we expected, but the figures also look better than they really are because November last year was disappointing for airlines and forwarders alike. More than anything else, what we saw this November was air cargo’s growing dependency on e-commerce.”
Van de Wouw continued: “November’s growth was strongly influenced by ex-China volumes driven by two companies. You rarely have a conversation with an airline or forwarder right now that doesn’t reference Shein or Temu because these two e-commerce behemoths seem to be upsetting the market by themselves, supposedly accounting for some 80% of airfreight volumes ex-Hong Kong on certain days.
“In a tight market, you only need a slight imbalance to push rates up because of the ‘fear of missing out’ that we have referenced previously. This seems to be happening out of China and Hong Kong, which are experiencing quite a boost in rates.
“The big question is: how long can this last? Airfreight is a key part of the e-commerce model because it relies on speed. This need for capacity is creating quite a bit of havoc in the market – but this is a local shift and not a bellwether for a changing global economic tide. It is more related to US and European consumers buying more lower value goods from these vendors.
“The improvement is not being driven by an increase in shipments of higher value products, and this is a worry for airlines and forwarders. E-commerce produces big volumes but how can you, in a sustainable manner, deliver an $8 t-shirt to someone’s doorstep from China to the US and make money across the entire supply chain? Even the vendors delivering these goods question its long-term viability.”
Xeneta’s latest analysis of the general cargo market shows continuing weak demand, extending a downward trend since the last week of September this year.
Aligned to this, global general cargo spot rates (valid for up to one month) have been staying below seasonal rates (valid for over one month). Under the backdrop of a still-subdued general cargo market, air cargo spot rates for outbound Asia markets grew more slowly compared to October, while the growth of Southeast Asia to Europe and Southeast Asia to US air cargo spot rates slowed down to 6% and 8% respectively, reaching US$2.66 per kg and US$3.90 per kg respectively.
While air cargo spot rates from Europe to the US rose – up +10% month-over-month to US$2.04 per kg in November – the increase was mainly driven by the reduction of belly capacity during carriers’ winter season.
Global airfreight capacity will likely continue to outpace market demand next year. This is due to anticipated weak consumer spending at least in H1 2024 and a continuing recovery in belly capacity for certain markets next year, boosted by improving passenger travel.
The Civil Aviation Administration of China, for example, expects international passenger flights to be restored to 70% of their 2019 level in this winter season ending in March 2024, from the October level of 51%. And, the temporary visa exemption for citizens of five European countries starting from 1 December may accelerate passenger travel further and fuel the recovery of belly capacity between China and Europe.
The music industry’s favourite forwarder, Rock-it Global is to rebrand itself to its former name Rock-it Cargo to mark its 45th anniversary. To mark its 45th years, Rock-it Cargo hosted the Welcome Party during THE Conference Live at Lititz on 6 December in Pennsylvania, where it revealed plans for its back-to-its-roots rebrand, including the relaunch of its original logo.
Since 1978, the Rock-it team has pulled together the logistics for some of the world’s largest concerts including Live Aid, Bruce Springsteen, Madonna and Lady Gaga.
One event unlikely to be repeated in the foreseeable future is Billy Joel’s tour of the former Soviet Union in 1987. Rock-it also helped Metallica become the first band to play all seven continents
While the forwarder has its roots in 70s Rock ‘n’ Roll, over the decades it has expanded into sporting events, theatrical sets, and arena spectacles.
These included supporting major productions such as Harry Potter and the Cursed Child, Cirque du Soleil, Walking with Dinosaurs, and Les Misérables.
Chief executive of parent company, Global Critical Logistics, Daniel Rosenthal, said: “We felt it was fitting that we should mark the occasion by going back to our roots and taking the best that Rock-it has to offer. This includes reembracing the original name of the company, and relaunching a visual mark that so many employees and clients alike have found memories and nostalgia for.”
On February 26 2024, Rock-it will also be sponsoring the TPi Awards, which recognise achievement across the live touring industry.
IAG Cargo has started a route between Madrid and Doha, Qatar. The new daily direct service will be operated by an Iberia A330, from 11 December and will offer connections from Asia Pacific through to 17 destinations in Latin America. It also provides a link from Latin and North America to the Middle East, particularly for food products.
IAG Cargo chief sales and marketing officer, Camilo Garcia Cervera, said: “This new route means that we’re able to increase our customers’ trans-shipment route options, by offering an additional gateway linking Asia Pacific destinations to our extensive European and Latin American network. Moreover, it presents customers in Latin America and North America an extra gateway to connect with their shippers in the Middle East and Asia Pacific, leveraging our established partnerships in the region.”
