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Encore settles arguments once and for all

Air cargo quality standards group Cargo iQ has updated its Encore management platform to give ground handling agents visibility over specific time commitments for shipments in their care in order to meet service level agreements.

Technology and product manager Chris Davies (pictured) said that this not only means that shipments are more likely to arrive on time, but it also helps to protect the integrity of time-critical shipments and protect stakeholders from incurring unfair penalties.  

For example, when an airline agrees that a forwarder can collect a shipment within a specified timeframe after landing, this data is input into the system and is used by the Cargo iQ Data Management Platform (CDMP) to create the route map for the shipment’s journey, which can then be monitored.

Discrepancies in actual versus planned process times can lead to disputes between handlers, airlines and forwarders but with GHAs now able to view the service agreement data in ENCORE, there is a single place for referencing offsets, making it easier to meet targets.

FAA certifies compact Opticooler

The US Federal Aviation Administration (FAA) has certified DoKaSch Temperature Solutions’ Opticooler RKN container (pictured, left). It follows earlier certification of the larger Opticooler RAP (pictured, right).

Both containers have already been used for active air cargo transportation on US routes by non-US airlines. First technical approvals are currently in process by US based airlines.

While the Opticooler RAP offers space for four CP 1 pallets (or five Euro pallets), the Opticooler RKN holds one CP 1 pallet (or any standard US pallet, up to max. 48 inch x 48 inch).

Redundant systems for electrification and full air-conditioning enable precise heating and cooling without dry ice.

Silk Way to Houston

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Baku, Azerbaijan-based Silk Way West Airlines is operating new weekly flights to George Bush Intercontinental Airport, Houston, alongside existing regular flights to Chicago and Dallas. Vice president commercial, Fadi Nahas, said: “Our growing presence in the Americas demonstrates our commitment to providing reliable and efficient cargo solutions for our customers in this region. This new route will also enhance our ability to connect customers to key markets in Central Asia and the Middle East.”

Cargo.one offers import airfreight quotes in an instant

The Cargo.one air freight platform has launched a new service that allows import agents to instantly compare and book live import rates. It says that, until now, procuring rates from abroad took import agents hours or even days with the process made more inefficient by agents being located in different timezones,. Shipments can be booked day and night, with instant confirmation, routing and airway bill details.

Cargo.one adds that import agents using cargo.one pro will often be the first to quote their customers, an advantage that could win more business.

Bookings between agents are covered by Cargo.one protect non payment protection.

Tennesa Chetty from Swift Worldwide Logistics, in South Africa, has already booked numerous import shipments using an agent and said: “We often approach three agents and two agents come back the following day. There’s a clear advantage for an agent on cargo.one pro because they are basically the best to meet our turnaround time for quotations.”

Hauke Langert, airfreight chief executive at Germany’s Skyline Express International adopted cargo.one pro and comments: “By using cargo.one pro on both the import and export sides, instead of sending an email to a partner in Asia for example, we are now able to send quotes to clients or to agents within seconds. Since listing our rates on cargo.one pro, we’ve been amazed by the number of our quotes being shared and accepted – it’s a game-changer.”

Cargo.one says that interest from freight forwarder networks has been remarkably strong.

Lufthansa Cargo increases freighter capacity to China

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Lufthansa Cargo increases freighter capacity to China

Lufthansa Cargo is adjusting its freighter route network on both long-haul and short- and medium-haul routes in response to corresponding demand for the 2023 summer flight schedule. Weekly frequencies to destinations in China served by B777F aircraft will be both increased and combined in routing, offering customers more flexible capacity for the fast and direct transport of their shipments. In addition, Lufthansa Cargo is expanding its A321F network on short- and medium-haul routes.
Lufthansa Cargo’s current 2023 summer flight schedule includes a total of 79 weekly intercontinental connections. All long-haul destinations will be served from the international hub in Frankfurt by a total of 16 B777F aircraft. In particular, the route network will be expanded to include flights to China: In the future, Lufthansa Cargo will offer a total of ten freighter flights per week to Shanghai (PVG). On two of these Shanghai connections, Lufthansa Cargo will also fly to Chengdu (CTU), doubling its capacity there. In addition, the number of weekly flights to Hong Kong (HKG) will increase from five to six, including one stop in Almaty (ALA). This destination in Kazakhstan was last part of the route network in 2019 and will now be resumed.
The combined service from Frankfurt via Mumbai (BOM) to Hyderabad (HYD) will also be increased to two flights per week.
Lufthansa Cargo will continue to offer its B777F rotations to destinations in North and South America and on the route to Tel Aviv (TLV) in combination with Cairo (CAI) in the summer flight schedule.
On short- and medium-haul routes, Lufthansa Cargo continues to offer more than 50 weekly connections, using two Airbus A321F aircraft. By the end of July, the A321 freighter fleet will grow to four aircraft. Related adjustments and extensions to the flight schedule on short- and medium-haul routes are currently still being planned.
“Looking at the Chinese market in particular, we are seeing an upturn in economic activity and thus also an increasing demand for a reliable and quality transport solutions by airfreight for sensitive and high value goods. Accordingly, we have specifically adapted the flight schedule to meet the demands of our customers. The extensive capacity of our fleet gives us more flexibility on intercontinental routes as well as in the short- and medium-haul network,” said Ashwin Bhat, Lufthansa Cargo’s Chief Commercial Officer.
The summer flight schedule comes into effect on March 26, 2023. In addition to the freighter offering, Lufthansa Cargo also markets the additional load capacities of some Lufthansa Group airlines, which are growing strongly with the resumption and frequency expansion of numerous passenger connections and thus represent almost half of Lufthansa Cargo’s capacity. In the 2023 summer flight schedule, cargo will be regularly transported on more than 7,000 flights a week operated by Lufthansa, Austrian Airlines, Brussels Airlines, Eurowings Discover and SunExpress.

GEODIS continues IATA CEIV program with eight sites in Europe now certified

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By the end of 2022, GEODIS had received the IATA CEIV Pharma certification in 7 additional sites in EUROPE on top of the already existing site in Amsterdam, Netherlands.
Having this certification ensures that facilities, equipment, operations and staff comply with the appropriate applicable standards, guidelines and regulations expected from a pharmaceutical manufacturer. This industry-wide standard aims to extend industry best practice and achieve a globally acceptable standardization. By forming a common baseline from existing regulation and standards, this certification ensures international and national compliance to safeguard product integrity while addressing specific air cargo needs in pharma logistics.
Pharma projects for GEODIS are looking extremely promising entering 2023 and will benefit further from IATA CEIV certification at the following sites in the EUROPE region: London, UK; Manchester, UK; Frankfurt, Germany; Arlanda, Sweden; Budapest, Hungary; Warsaw, Poland; Brussels, Belgium; and the already validated site in Amsterdam, Netherlands, which gained certification in December, 2021.
Thomas Kraus, GEODIS’ President & CEO of the EUROPE Region said, “Having 8 sites CEIV-certified within 1 year demonstrates the commitment of the EUROPE Region of GEODIS to pharma logistics excellence. Our goal is to be an essential part of the growing GEODIS pharma network worldwide for the sole benefit of our pharma customers and the patients using their products.”

Deutsche Post DHL Group concludes 2022

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Deutsche Post DHL Group, the world’s leading logistics company, once again grew profitably in the past financial year. With revenue of EUR 94.4 billion, the Group exceeded its record from previous year by 15.5%. The jump in revenue resulted entirely from the international business of the DHL divisions, despite the fact that global trade and e-commerce normalized in 2022 as expected with slowing momentum in the final quarter. Consequently, shipment volumes were slightly below the all-time high of 2021.
Thanks to flexible structures, the Group was nevertheless able to continue utilizing its global networks efficiently throughout the year. The company also benefited from the increasing demand for resilient supply chains in contract logistics and, particularly in the first half of the year, from high freight rates in the forwarding business. Overall, Deutsche Post DHL Group achieved a new record with operating profit (EBIT) of EUR 8.4 billion (2021: EUR 8.0 billion). The key driver was the positive earnings development in the internationally operating DHL divisions, which generated EBIT of around EUR 7.6 billion (2021: EUR 6.6 billion). With EUR 1.3 billion, EBIT of Post & Parcel Germany declined by around EUR 500 million compared with the prior-year result. The Group-wide EBIT margin was 8.9% (2021: 9.8%).
“We have demonstrated resilience and innovation capability in a challenging environment. Our course and strategy remain well on track. Once again, our thanks go to our employees for their extraordinary commitment in a challenging year,” said Frank Appel, CEO of Deutsche Post DHL Group.
Group invests more than ever before and exceeds free cash flow guidance
Last year, Deutsche Post DHL Group invested a record sum of EUR 4.1 billion (2021: EUR 3.9 billion) in its operating business as well as in digitalization and sustainability. The Group made progress in expanding its electric vehicles fleet, which grew by 7,000 to more than 29,000 e-vehicles worldwide. Further investments were made to modernize the Express division’s aircraft fleet and to build new CO2-neutral delivery bases in Germany. Investments were also made in sorting capacities and e-fulfillment solutions for the growing e-commerce business. There was an increase in efficiency due to investments in additional automation solutions.
Excluding acquisitions, free cash flow reached a new all-time high at EUR 4.6 billion (2021: EUR 4.1 billion). Free cash flow was therefore above the most recent expectation of EUR 4.2 billion and exceeded the guidance initially provided in March 2022 by around EUR 1.0 billion. Free cash flow including acquisitions and divestments amounted to EUR 3.1 billion. Payments for acquisitions and divestments totaling EUR 1.5 billion (2021: EUR 0.0 billion) focused primarily on the acquisition of the ocean freight specialist Hillebrand, whose subsidiaries were seamlessly integrated into the DHL Global Forwarding, Freight division.
The exceptionally good result is also reflected in higher net income. Deutsche Post DHL Group increased its net profit after non-controlling interests to EUR 5.4 billion (2021: EUR 5.1 billion). Basic earnings per share thus amounted to EUR 4.41 (2021: EUR 4.10).
Guidance: Group expects further growth in the medium term
In light of the continuing uncertainty about the course of an economic recovery, the Group’s 2023 EBIT guidance contains three scenarios and ranges from EUR 6.0 billion to EUR 7.0 billion:
• In the favorable case of a recovery starting around mid-year (‚V-shape‘ recovery) the Group expects EBIT of around EUR 7.0 billion.
• In case of a recovery starting more towards year end (‚U-shape‘ recovery) the Group anticipates EBIT of around EUR 6.5 billion.
• In the least favorable case of no significant recovery in 2023 (‚L-shape‘ recovery) the Group predicts EBIT of at least EUR 6.0 billion.
“The slowing macroeconomic growth momentum is reflected in our EBIT outlook. That is why we are acting particularly prudent in the first half of 2023 and focusing on our yield and cost management,” said Chief Financial Officer Melanie Kreis.
For 2023 the company foresees a gross capital expenditure in the range from EUR 3.4 billion to EUR 3.9 billion and predicts free cash flow of around EUR 3.0 billion independent of the macroeconomic scenarios. Investments continue to focus on organic growth, strengthening global networks and expanding the product range of climate-friendly transport solutions.
With the presentation of its Annual Report, Deutsche Post DHL Group again issued a medium-term guidance. The Group expects to be able to increase EBIT relative to 2023 again. The EBIT target for 2025 is set to more than EUR 8 billion. The Group anticipates to generate cumulative free cash flow of EUR 9 to 11 billion in the period from 2023 to 2025. Over the same period, the company forecasts cumulative capital expenditure (capex) in the magnitude between EUR 10 and 12 billion.
Earnings driven by international logistics business of DHL divisions
DHL Express: Revenue increased to EUR 27.6 billion (2021: EUR 24.2 billion). Pricing measures, exchange rate effects and increased fuel surcharges were the drivers of this development. The increase in average weight per shipment also had a positive impact on revenue development, while revenue growth was slowed by a decline in international time-definite express (TDI) shipments. Nevertheless, network capacities were efficiently utilized over the course of the year thanks to the high degree of flexibility. EBIT decreased by 4.6% year on year to EUR 4.0 billion. This was mainly due to higher costs and negative exchange rate effects. Profitability remained at a high level with an EBIT margin of 14.6% (2021: 17.4%).
DHL Global Forwarding, Freight: This division achieved a significant jump in revenue and earnings in 2022 thanks to operational improvements and high freight rates. EBIT increased significantly to EUR 2.3 billion (2021: EUR 1.3 billion). Revenue jumped sharply to EUR 30.2 billion (2021: EUR 22.8 billion). Air freight volumes were down 9.3% year on year, while road freight shipment volumes declined by 4.8%. In ocean freight, transport volumes grew by 4.8% due to the integration of the beverage logistics company Hillebrand. The division’s EBIT margin improved to an exceptionally high level of 7.6% (2021: 5.7%).
DHL Supply Chain: Demand for reliable supply chains increased once again in 2022. The division recorded its strongest ever figures for new business, which amounted to annualized revenue of approximately EUR 1.5 billion in 2022 (2021: EUR 1.4 billion). High demand pushed revenue up to a total of EUR 16.4 billion in 2022 (2021: EUR 13.9 billion). EBIT reached a strong level of EUR 893 million (2021: EUR 705 million) and the EBIT margin increased to 5.4% (2021: 5.1%). The division continued to standardize its processes, and implemented additional digitalization and automation projects, thus achieving further efficiency improvements. DHL Supply Chain has also further strengthened the establishment of dedicated e-fulfillment sites. The acquisition of a majority stake in the Dutch company Monta in the fourth quarter 2022 is intended to further accelerate growth in e-commerce.
DHL eCommerce Solutions: Following strong growth in the previous year, the division was able to maintain revenue in 2022 at the new level. Revenue climbed to EUR 6.1 billion (2021: EUR 5.9 billion), driven mainly by pricing measures. The expected normalization of shipment volumes materialized, with a 6.3% decline in parcel volumes. India recorded an encouraging increase in parcel volumes. Network utilization remained good. However additional inflationary driven cost increases had a negative impact. The division nevertheless closed the year profitably, with an EBIT margin of 6.3% (2021: 7.0%). At EUR 389 million, EBIT was moderately below the previous year (2021: EUR 417 million).

Challenge Handling: The Air Cargo Horse Whisperer

Seven thousand horses made their way through the Horse Inn at Liège Airport in 2022, and onto carefully planned charters flying to the world’s equestrian events at destinations such as Doha, Mexico, Miami, New York, or Shanghai. From racehorses to dressage or thoroughbreds, Challenge Handling has handled them all.
The Challenge Group subsidiary has been running the Horse Inn since the state-of-the-art facility was opened in 2016. It is the sole operator serving the entire Liège cargo community and enjoys an excellent standing among leading specialized horse shippers, forwarders, and international airlines, alike. That reputation reaches beyond the Belgian borders. European horse transports to the world’s leading events primarily pass through the Wallonian airport.
“The infrastructure we have at the Horse Inn is unique within Europe,” says David Alexis, General Manager of Challenge Handling in Liège. “Every aspect, from the size of the 55 individual horse stalls to the specific type of feed and cleaning products, is in alignment with the strict regulations and requirements stipulated by leading equestrian bodies. Horses are highly sensitive and valuable, requiring complex handling and ultimate comfort, particularly if they are being flown to compete in prestigious events. Our specialized staff ensure top quality, VIP service.”
Not only does the Horse Inn serve as a place for horses to rest prior to their flight or further road transport, but it also offers affordable accommodation for their accompanying grooms, with good connections to restaurants and other facilities in the vicinity. Around-the-clock access to vets and dedicated customs procedures complete the service. Liège’s proximity to Europe’s largest airports such as Amsterdam, London, Paris, and Frankfurt, adds to its suitability.
“The wellbeing of any animal is in our corporate culture. Respect and the correct care and protection is ensured by assiduous, trained staff, who are experts in handling all kinds of animals – with the strict exception of any animals intended for laboratory use, as per Challenge Group’s ethical code of conduct,” says Hay Sasson, COO of Challenge Group. “Our expertise has meanwhile established Liège as one of the best gateways in the world for horses. Not only is Challenge Handling an Olympics partner for horse transports to locations outside Europe, but we were also proud, in 2022, to be appointed to continue to run the Horse Inn for another five years. And our Challenge Airlines, too, are regularly entrusted with some of the world’s most valuable horse transports. In 2022 we carried around 5000 horses on our own aircrafts.”
Several Challenge Handling customers wrote reference letters to Liège Airport when the management of the Horse Inn came up for renewal in 2022: “We would highly recommend and request the airport authorities not to change winning teams and to keep Challenge Handling as operator of the facility, and even to make the use of the Horse Inn compulsory for all live equine shipments through Liège Airport. This is in the interest of animal safety and wellbeing” was Belgian-based European Horse Services’ recommendation. Others, such as Janah Management Company Ltd, commended the professional expertise of the staff, and the cleanliness of the facility.
Challenge Group’s many years of specialized equine experience in the air and on the ground, has led it to invest in and develop its own horse stalls as well as a unique, horse trailer prototype to transfers the animals from the Horse Inn to the aircraft and vice versa. While Challenge Airlines IL was awarded CEIV Live in September 2022, Challenge Handling’s separate, official certification is due to be presented later this year.

Etihad Cargo expands capacity offering to US

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Etihad Cargo is reinforcing its commitment to the US market with the introduction of an additional three weekly flights to JFK starting April 24, 2023. The additional flights will bring Etihad Cargo’s total cargo capacity to over 600 tons out of the US per week.
The flights will be operated with both Airbus A350 and Boeing 787-9 Dreamliner aircraft, two of the most efficient in the world, with significantly less fuel burn and CO2 emissions than previous-generation twin aisle aircraft.
“The introduction of double-daily direct flights from our Abu Dhabi hub to New York comes in response to increased demand from customers, and Etihad Cargo will continue to explore opportunities to expand its global network and introduce the required capacity,” said Martin Drew, Senior Vice President Global Sales & Cargo, Etihad Aviation Group. “The addition of more flights per day to New York combined with Etihad Cargo’s services to other key US destinations and comprehensive road feeder service network will enable Etihad Cargo to fully support its customers in the transportation of their cargo to online and offline locations throughout this key market.”
Etihad Cargo currently operates 11 flights per week to JFK, which will increase to 14 weekly flights on April 24, 2023, and daily flights to Chicago’s ORD and Washington, DC’s IAD. Etihad Cargo also operates two dedicated B 777 freighter flights per week to Chicago via Amsterdam, supported by an offline network.

Cathay Cargo becomes first carrier to offer seamless sea-air shipments from GBA

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Cathay Cargo has become the first carrier to offer customers in the Greater Bay Area (GBA) direct multi-modal links for upstream cargo acceptance, allowing flight-ready exports to be accepted and built up in Dongguan, then transported directly to Hong Kong International Airport (HKIA).
Thanks to an agreement with the Airport Authority Hong Kong (AAHK), shipments can be security screened, built up and accepted as cargo for flights at the HKIA Logistics Park in Dongguan, before being loaded onto ships to a secured area at HKIA. When they arrive, pallets and ULDs can be towed straight to waiting aircraft.
Cathay Pacific Services Ltd (CPSL), which operates the Cathay Pacific Cargo Terminal, is also the first Hong Kong cargo terminal operator to sign an air cargo service agreement with AAHK to operate in the pilot scheme. It has established its own upstream bonded facility – Cathay Cargo Terminal Dongguan – located at the Logistics Park Pilot Scheme in Dongguan.
‘We are delighted to join hands with AAHK to promote the economic growth of Hong Kong and the region, while further strengthening HKIA’s status as an international aviation hub by using this first and only upstream facility of its kind,” says Director Cargo Tom Owen. “The business is looking forward to offering this new option to the Hong Kong logistics industry For Frank Yau, Cathay Cargo’s Head of Cargo Sales, Hong Kong & GBA, the project tackles several issues that will help to maintain Hong Kong’s status as the top international air-cargo hub.
“From a macro point of view, resources like land and labor come at a very high cost in Hong Kong, so this is a great way to support our future airport growth,” he says. “This scheme also means that we can provide more opportunities and provide a better service to our customers in the GBA. In the same way that Cathay Pacific provides multi-modal options for our passengers in the GBA with connections direct to airside by boat, bus and limousine, we can now offer something similar to our cargo customers.’ and developing exports from – and then over the coming months, imports into – the GBA, which is a focus area for the airline.”
The scheme is open to Hong Kong freight forwarders that are ‘regulated agents’ (RAs). They will need to obtain acceptance from the Hong Kong Civil Aviation Department (CAD) for their application of Supplementary Pages to Regulated Agent Security Program (RASP), which extend the RAs’ remit to upstream operations. The HKIA Logistics Park in Dongguan uses CAD-approved X-ray machines and Explosive Trace Detectors, which provides Hong Kong’s aviation security services.
“The HKIA Logistics Park offers a cost-effective and efficient end-to-end solution to our freight forwarders and shippers in moving cargo to and from the GBA,” says Owen. “Our customers can benefit from competitive rates on screening, palletization, and terminal charges. The project is a tremendous opportunity to further develop an important regional market and demonstrate the strength of Hong Kong as the leading air cargo hub, as well as strengthening Cathay Cargo’s attractiveness to customers.”
For Frank Yau, Cathay Cargo’s Head of Cargo Sales, Hong Kong & GBA, the project tackles several issues that will help to maintain Hong Kong’s status as the top international air-cargo hub.
“From a macro point of view, resources like land and labor come at a very high cost in Hong Kong, so this is a great way to support our future airport growth,’” he says. “This scheme also means that we can provide more opportunities and provide a better service to our customers in the GBA. In the same way that Cathay Pacific provides multi-modal options for our passengers in the GBA with connections direct to airside by boat, bus and limousine, we can now offer something similar to our cargo customers.”
Cissy Chan, Executive Director, Commercial at AAHK, adds: “The HKIA Logistics Park brings our extensive air network, enormous handling capacity and efficient services to the doorstep of air cargo customers in the GBA, contributing to the supply chain and economic development of the region. We are delighted to have keen support from industry partners, especially the Cathay Pacific Group, which has pioneered the successful implementation of the pilot scheme of this strategic initiative with us.”
Cathay Cargo and CPSL had previously been involved with the AAHK pilot program, which enabled cross-border movements of cargo exports from the GBA during a moment when trucking services were severely limited because of COVID-19 restrictions.