Vienna International Airport has gained IATA CEIV certification for lithium batteries. Certification is a globally recognized program that ensures that companies meet the highest standards of safety and quality through training, process controls and regular audits.
Joint chief executive and chief operating officer of Flughafen Wien, Julian Jäger, commented: “The IATA certification once again confirms our position as a reliable and secure cargo hub in Europe… This is an important step for Vienna Airport and a strong signal to the market. At a time when the demand for lithium batteries is growing rapidly, it is crucial that we as a cargo hub ensure that these products are handled safely and efficiently.”
Swissport has opened a dedicated area for unaccompanied pets at Johannesburg’s OR Tambo International Airport in South Africa. Away from the bustle of the general air cargo warehouse it offers a calm environment, with water service, air –conditioning, and calming music.
It also features a dedicated acceptance area for the checking of the animals and their travel documentation, complemented by two separate rooms for pets waiting for their flight, their owner, or a specialized animal handling agent.
The Swissport Pet Lounge is managed by a dedicated team trained to handle animals and complies with IATA’s Live Animals Regulations.
Qatar Airways will launch a new service to Toronto Pearson International Airport from December 11. There will be three weekly non-stop flights from Hamad International Airport in Doha, operated by Boeing 777-300ER aircraft. It is Qatar 14th gateway to the Americas and its second in Canada, alongside Montréal.
Martinair founder and former chief executive, Martin Schröder died on 2 October, at the age of 93.
He founded Martin’s Air Charter, a modest airline in 1958 which quickly grew into Martinair and became a key player in the cargo and passenger market. He also paved the way for the carrier’s close cooperation with KLM and, eventually Air France, to form Air France KLM Martinair Cargo.
Air France KLM Cargo executive vice-president and managing director Martinair, Adriaan den Heijer said: “Martin Schröder will be remembered as a man who pursued his dreams with passion and perseverance. His name will remain closely linked to aviation in the Netherlands and beyond. His vision, courage and innovative spirit will continue to inspire us all. Our thoughts are with his wife Tineke, their children and grandchildren, and the rest of his family.”
September’s global air cargo market lived up to analysts’ expectations, becoming the first month of 2024 not to report double-digit growth due to a strong year-on-year comparison. Demand did rise by 9% on last year, according to the latest industry data from Xeneta.
Airlines and freight forwarders now face a ‘fine balancing act’ between protecting customer relationships and being tempted by short-term gains offered by increasing market volatility, including port strikes on the US East Coast and Gulf Coast.
“September is already old news. October is a whole new ballgame,” said Xeneta chief airfreight officer, Niall van de Wouw. “We could see rates rising very quickly on some trade lanes because of the fear-of-missing-out effect as air cargo capacity leaves the market for the winter, US port workers go on strike, and conflict is escalating in the Middle East, potentially bringing further Red Sea disruption for ocean freight.”
He added: “I have huge respect for the people who, on a day-to-day basis, are trying to make sense of these challenges and keep the world moving in an efficient manner. How much more can the market take, particularly when there’s so little visibility going forward?
“Reports suggest supply chains could take 4-6 weeks to recover from just a one-week US ports strike, which takes us into November, the busiest month of the year for air cargo volumes. It’s a difficult situation. Covid was worse, but this is an accumulation of many events and things can change very quickly. FOMO is a powerful force,” he said.
As expected, September’s global air cargo demand growth showed signs of easing a little, up 9% year-on-year, reflecting the strong peak in demand which commenced in September 2023. The latest monthly volumes, however, were sustained by persistent e-commerce demand, ocean-to-air shift due to container shipping disruptions, typhoon disruptions, and a cargo rush ahead of China’s Golden Week holidays on 1-7 October.
Global air cargo supply grew by only 3% year-on-year in September – its slowest rate this year as airlines began their flight schedule adjustments in preparation for winter. Xeneta expects a 20% reduction in cargo capacity across the Atlantic this winter, to reflect lower passenger demand.
Dynamic load factor – Xeneta’s measurement of capacity utilisation based on volume and weight of cargo flown alongside available capacity – continued to rise due to the persistent imbalance between supply (+3%) and demand (+9%) year-on-year growth. It increased by 3 percentage points year-on-year and 2 percentage points month-on-month, reaching 60% in September.
As a result, September’s average global spot rate increased +26% to US$2.71 per kg, the fourth straight month of double-digit growth and the highest increase this year. And this occurred against a backdrop of jet fuel prices showing a -37% year-on-year decline in the same month.
Zooming into the corridor level, spot rates from Asia to North America and Europe topped the chart in September, exceeding the other major global corridors by over $2 per kg. Most Asia to North America and Europe rates showed single-digit month-on-month increases in September, except for a slight dip from Southeast Asia to North America. All year-on-year trends registered double-digit growth.
The Middle East and Central Asia to Europe market saw the most striking rise in rates in September. Boosted by continued Red Sea disruptions, this traditional backhaul route saw a +112% year-on-year increase.
Spot rate on the Europe to North America trade was on par with a month ago but is expected to come under severe upward pressure if US East and Gulf Coasts and Canada port strikes are not resolved quickly. In terms of year-on-year comparison, the corridor showed a +5% increase.
Several backhaul corridors from North America and Europe to Asia showed notable month-on-month spot rate growth: Europe to Southeast Asia (+11%), North America to Northeast Asia (+6%), and North America to Europe (+4%).
In terms of year-on-year comparison, the largest decline was observed on the Europe to Northeast Asia trade, which decreased by -11% due to increased trade imbalances.
Testing time in fourth quarter
Global events, van de Wouw says, will now put preparations for this year’s peak season to the test.
“As we’ve said before, companies are more prepared this year and the rules of the game have been clarified between airlines and forwarders as well as between forwarders and shippers. There are now more precise agreements in place on how to navigate the storm the market is likely entering.
There are agreements around rates, surcharges, and the timeframes in which they can be applied, but there’s going to be a fine balancing act between maintaining relationships and being tempted by the short-term benefits these market conditions are creating,” he said.
“The macroeconomic outlook for 2025 is not fantastic, particularly as it impacts the general freight market. That may make the current volatility and opportunities for rate increases very tempting for carriers. We are already picking up signals that peak surcharges are being accepted by forwarders and shippers because the capacity providers clearly have the upper hand.
“The rules that have been agreed upon mean there’s less room for the temptation of large rate increases during a hot peak. But we do see a piece of the market where you’ve got to ‘pay to play’ and that could become a potential ‘wild west’. Shippers or forwarders may end up there due to unforeseen demand and it could be an expensive game,” van de Wouw added.
An enduring US ports strike, he says, may produce a significant bonus for airlines across the Atlantic from the US to Europe, where load factors would otherwise likely remain below 65% even after the removal of surplus summer capacity. “Because of the low base, there’s a lot of room for those rates to go up if conditions become tougher and goods absolutely need to be shipped. Then we could see rates tripling.”
These factors combined, van de Wouw says, continue to support a potential double-digit growth rate for the global air cargo market across 2024.
A director at broker Air Charter Service says that a major airlift is possible as the US east coast port strike takes hold.
Group cargo director, Dan Morgan-Evans said that with tens of thousands of dockworkers across 14 ports striking indefinitely, Athere could be major airlifts in the coming weeks if the strike is not resolved in the next few days, as manufacturers could attempt to keep production lines running. “The strike causes real headaches for shippers, particularly from Europe. Unless President Biden changes his mind and steps in, the delayed cargo and the backlog will have to be flown in. Scheduled freighters will get booked up extremely quickly, so the charter industry will need to step in to help. We are already receiving enquiries, and we expect the first few to book soon, as some cargo shipments simply cannot wait. During the West Coast port strike in 2012, we saw a huge amount of charter flights to, but mainly from, Asia, both during and after, to ease the backlog.”
The Austrian capital and its airport will host two get-togethers for the air cargo and pharmaceutical sectors in October. Vienna Cargo Day takes place on 22-24 October and the FlyPharma Conference will be held directly afterwards. The Cargo Day will include a presentation Prof. Sebastian Kummer, head of the Institute for Transport and Logistics Management at Vienna University on the increasingly complex global developments and current challenges facing the sector, while Michael Mottl, head of customs and documentation at Flughafen Wien will provide an overview of cargo handling operations at the airport and its future perspectives.
FlyPharma on 23-24 October will cover market trends, innovations, legal requirements, security technologies and promoting collaboration.
ECS Group’s subsidiary AVS GSA, in collaboration with Thai Vietjet and Lactasoy, has provided crucial support to flood-affected communities in Chiang Rai, Thailand. The disaster affected over 8,000 families in the northern part of the country. AVS GSA’s team collaborated with Lactasoy to donate 900 boxes of soybean milk, delivered by air on September 18 and 19.
Menzies Aviation is to open a facility at Western Sydney International Airport’s Cargo Precinct in late 2026.
It will operate a 22,500sqm (237,000sq ft) facility for the next two decades, specializing in pharmaceutical and cool chain products, e-commerce and heavy cargo. With an elevating transfer vehicle (ETV) system capable of handling over 150 main deck ULD’s, it is expected to handle in over 150,000 tonnes a year.
It will have direct airside access, multiple freighter bays adjacent to the warehouse and compatibility with autonomous vehicles and robotic solutions.
Air Cargo handler SATS has signed a three-year agreement with IATA to expand the rollout and implementation of DG AutoCheck compliance solution for dangerous goods shipments at key stations. It follows SATS’ acquisition of Worldwide Flight Services. The expanded agreement will facilitate the adoption of DG AutoCheck across the combined SATS and WFS network, which now operates over 215 stations in 27 countries. DG AutoCheck is an automated compliance solution that optimises dangerous goods acceptance processes. It replaces manual cross-references of the Shipper’s Declaration for Dangerous Goods and IATA’s Dangerous Goods Regulations to help eradicate errors that may lead to shipment rejections, fines, and penalties for non-compliance.
David Wall (right), director safety and cargo compliance & operations solutions at IATA, handing over SATS’ DG AutoCheck certificate to Henry Low, SATS’ chief operating officer and chief executive-designate Singapore hub.
