Virgin Atlantic Cargo has launched a Sustainable Aviation Fuel Certificate (SAFc) programme to help freight forwarders and shippers manage their carbon emissions whilst demonstrating joint commitment to green fuels.
Customers participating in the scheme will receive a SAF certificate for the associated Scope 3 emissions reductions as well as detailed insight into their emissions though Virgin Atlantic Cargo’s air freight carbon calculator. Developed in-house and independently certified, the calculator uses an industry recognised methodology and Virgin Atlantic’s actual flight emissions data, enabling customers to take action on their carbon footprint.
DB Schenker is the first customer to participate in the scheme with the purchase of several thousand tonnes of scope 3 emissions reductions.
Virgin Atlantic is committed to use 10% SAF by 2030 on its way to net zero by 2050 and took delivery of its first 2.5 million litres of neat SAF from Neste Oyi neat at London Heathrow in 2022
Virgin Atlantic vice president and managing director, cargo, Phil Wardlaw, said: “We already have one of the youngest and most fuel efficient fleets in the sky, but after this, SAF represents the greatest opportunity to decarbonise aviation in the short to medium term, but we still require cross industry and Government action to support commercialisation of SAF at scale, particularly in the UK.
“Our fuel programme will help us as we continue to work closely with our sustainability and cross industry partners to find innovative solutions to achieve this goal.”
Freight forwarder DB Schenker is launching a training program in the US for logistics professionals, modelled on the dual training system in its home country, Germany. From the end of August, 16 students will work toward a degree in Freight Forwarding at eight different stations at the company’s Chicago site. At the end of their training, the junior employees receive an Associate in Applied Science Degree in Supply Chain Management as well as a Freight Forwarder Apprenticeship Certification from the Department of Labor. They will complete the theoretical part of their training two days a week at Harper College, just outside of Chicago. The training lasts for two years, and includes a full-time salary and is combined with a benefits package including health insurance and paid vacation for the trainees. DB Schenker also pays the college fees. DB Schenker board chairman Jochen Thewes said: “I am proud that we at DB Schenker have set up a logistics apprenticeship program for young people in the USA modelled on the successful dual training program in Germany. This shows how excellently the cooperation between our teams across the globe works at DB Schenker. The US is an important growth market for us, and this training program can help us attract the best employees to DB Schenker.” President of Harper College, Dr. Avis Proctor, added: “We are delighted to be working with DB Schenker to launch this promising training program for the next generation of logistics professionals. Students will learn while they earn, combining the knowledge they acquire in the classroom with the advanced practical experience they’ll gain at DB Schenker, one of the world’s leading logistics service providers. This apprenticeship program is an excellent pathway to a rewarding career in the logistics industry.”
Hamburg Port Consulting (HPC) is supporting Frankfurt Airport-based air freight logistics services company CHI Cargo Handling International to convert its truck fleet to climate-friendly propulsion.
CHI has commissioned HPC to identify the propulsion technology suitable for the areas of application in a feasibility study, to appoint an efficient truck manufacturer and to compile a funding application for the investment.
The study centres on short-haul transport but the performance requirements for future use of CO2-free trucks in long-distance transport between Frankfurt Airport and Nuremberg Airport were also examined.
HPC also assisted CHI in applying for funding for the procurement of its first electrically powered truck, including charging infrastructure. The project is being funded by the Federal Ministry of Digital Affairs and Transport with around €500,000.
Nippon Express USA has opened a dedicated semiconductor warehouse in Mesa, Arizona. The Mesa Logistics Center is about 15 minutes from Phoenix Sky Harbor International Airport and has ready access to nearby semiconductor plants less than an hour away. The warehouse is compliant with Transportation Security Administration (TSA) requirements and offers temperature and humidity levels, dust, and static controls.
UK-based specialist aerospace logistics company B&H Worldwide has been awarded a two-year extension to manage inventory in Singapore and Australia for end-of-life aircraft and engine firm AerFin. The company manages both aircraft teardown and engine disassembly at sites around the world, B&H will support AerFin’s expansion with storage and 3PL solutions in both countries. The contract was signed at MRO Americas in Atlanta.
The decline in global air cargo volumes eased again in June but the ‘fear-of-missing-out’ created an irrational airline and freight forwarding market as shippers indulged in a 41% year-on-year fall in the general airfreight spot rate, said industry analysts, CLIVE Data Services, part of Xeneta.
Air cargo capacity rose 8% year-over-year in June but despite this surge in availability, the drop in global chargeable weight stayed at -1%, repeating the market performance seen in May. However, the -41% fall in the market average took the global air cargo spot rate down to US$2.31 per kg.
Xeneta chief airfreight officer Niall van de Wouw, said June’s air cargo data demonstrates the jumpiness in the market. “The surprise in June is the difference between the sentiment in the market and what the actual data is showing us. It is getting pretty nasty out there and stress levels among airlines and forwarders are clearly rising, but we see a clear distinction between market sentiment and market fundamentals and sentiment is more negative right now.
“Airlines and forwarders are getting jumpy because of falling rates, not so much the volumes. It’s the fear-of-missing-out that is driving the aggressive drop in cargo rates because no one wants to lose volumes, and they also want to get more of the cargo that’s in the market. We can see forwarders taking big risks,” he said.
A slowing decline in volume and a slowdown of capacity growth versus previous months protected against a big drop in dynamic load factor in June, CLIVE’s market analysis measurement of cargo load factor based on both volume and weight perspectives of cargo flown and capacity available. It fell at a slower pace of 3 percentage points year-on-year to 56%, a 1 percentage point recovery on the May level.
Looking into major freight corridors, Xeneta’s latest market data shows that the average spot rate level from Northeast Asia to the US remained 70% above its pre-pandemic.
The Europe to the US air cargo spot rate experienced a large decline of 14% month-over-month to US$1.92 per kg in June, down 45% from a year earlier. It is the only corridor among the three sectors referenced where the air spot rate (valid for up to one month) fell below its seasonal rate (valid for longer than one-month).
The air spot rate from Northeast Asia to Europe of US$3.25 per kg in June was down 1% from a month earlier, and 55% down year-on-year. The Northeast Asia to US air spot rate, in contrast, rose 3% from a month earlier to US$4.19 per kg, but this still represented a fall of 49% from a year ago.
Sentiment on the seller side of the market appears to remain pessimistic. Some freighter airlines are currently undertaking major reviews of their route and capacity strategies as demand for all-cargo aircraft returned to pre-pandemic levels due to the recovery and availability of belly capacity.
Freight forwarders still ‘handcuffed’ by high airfreight rates locked under BSA (blocked space agreements) with airlines, are also facing growing pressure from shippers pushing to relaunch tenders to negotiate freight rates down to the new market level, inspired by the aggressive pricing policies of other forwarders trying to gain their volumes.
This can be seen in the shipper contracts negotiated in the second quarter. Xeneta saw 6-month and 6+ months contracts gaining more ground as the airfreight market continues to normalize. The 6-month contract remained the most preferred option for shippers, accounting for over one-third (37%) of all valid contracts existing in Q2. The 6+ months contract also gained in popularity, with a share of 28%. The most time-consuming spot market negotiation option shrank from 25% in the second quarter of last year to only 14% in the corresponding period in 2023.
Looking ahead, the summer months air growth will likely remain muted, given the continuing uncertainties around the market. The possibility of no peak season in the ocean freight market could provide a boost to air cargo’s recovery later in the year if shippers need urgent shipments or consumer spending suddenly picks up. However, Xeneta expects any airfreight peak will be short-lived and not at the level seen previously.
“The air cargo market is a toxic mix at the moment. We see some forwarders agreeing to 12-month fixed rates with shippers, including fuel, that are lower than the rates we see in the market overall. That is nearly ‘going to Vegas’ in terms of risk, but forwarders are anxiously looking to secure volumes in the face of fierce competition. Shippers we are talking to are, in general, not looking for a massive overhaul of their supplier base, but they do want to see a benefit because rates and market conditions are so much lower than they were 6-9 months ago.
“The big question now for carriers is do they go for margin or volume? No one wants to be flying empty, and even the most respected airlines seem to be recognizing they have to join the game because if they keep their rates at a high level, they just won’t get the volume. Two years ago, airlines were asking ‘what am I going to do with my belly aircraft’ and now it’s a case of ‘what am I going to do with my freighters?’ It’s going to be a long summer for airline cargo departments, and it looks as though it will take a few quarters for the market to move away from the current irrational pricing environment,” van de Wouw added.
Airfreight container operator Jettainer has put the first fully certified fire-resistant containers into service with Lufthansa Cargo. The AMX containers are manufactured by US-based Satco and are certified in accordance with the Federal Aviation Authority (FAA)‘s latest Technical Standard Orders (TSO) C90e specifications. They can contain a fire for up to six hours, making them the safest certified ULDs on the market, says Jettainer. Lufthansa Cargo will be the first Jettainer customer to use then and has been providing the carrier with 50 of these containers for this purpose since the beginning of June. Jettainer adds that the Satco containers are made of sustainable materials and are lighter, durable, and long-lasting.
German owned forwarding and logistics company Dachser has moved its Texas and Boston branches to larger premises. In Dallas, the new facility is only minutes away from Dallas Fort Worth International Airport in a modern complex with an office space three times as big as previously.
The new Boston branch is located in the city of Peabody in the Greater Boston areaand has the capacity to double the number of employees.
Founded in 1974 in New York, Dachser USA Air & Sea Logistics currently has 11 branches and around 240 employees, with a headquarters in Atlanta.
Hong Kong Air Cargo Terminals Limited (Hactl) is using robot patrols to beef up site security at its SuperTerminal 1 facility.
The first security robot is about to enter service, initially patrolling car- and truck parking areas, and export goods handling areas, mainly at night.
.As well as helping to reduce theft, the robots will also monitor the condition of cargo throughout the site, and will record any incidents of damage, to provide video evidence in the event of claims investigations.
The robot features a thermal imaging camera, a high-resolution camera with a wiper for outdoor use, a LiDar technology sensor for navigation and multiple ultrasonic sensors for collision avoidance. It can operate on any paved surface.
AIPUT (Airport Industrial Property Unit Trust) has let its newly completed ‘Black Arrow’ warehouse at Poyle Trading Estate near Heathrow as the first UK base for international freight forwarder, EFL Global.
The new warehouse building will be operationally net zero and incorporates a range of environmental initiatives including roof-mounted photovoltaic panels and other low and zero carbon technologies, which together will deliver a 30% reduction in CO₂ emissions.
The 27,760sq ft warehouse occupies a 1.2 acre site and will primarily handle stock imports for clothing retailers.
EFL Global president – Americas region, Evan Rosen, said: “We are elated to expand our business and operations in England. EFL Global continues to invest in key regions that are most important to our clients, which includes strategic planning and expansions in the European region. This market is a critical part of our journey to provide unparalleled logistics and supply chain services across the globe.”
