Emirates has made a firm order for five new Boeing 777-200LR freighter aircraft, two of which will be delivered in 2024 and three in 2025. The agreement, worth over US$ 1.7 billion at list prices, takes the airline’s total order book to 200 wide-body aircraft.
Chairman and chief executive of Emirates Airline and Group, Sheikh Ahmed bin Saeed Al Maktoum,said: “This order reflects Emirates’ confidence in airfreight demand and overall aviation sector growth. It lays the ground for our continued growth, which is driven by the reach of our diverse global network, the advanced handling infrastructure at our Dubai hub, and the tailored transport solutions that Emirates has developed to serve our varied customers’ needs.”
At last November’s Dubai Airshow, Emirates announced a US$ 1 billion investment to expand its air cargo capacity, including two new 777Fs which have already joined the fleet in 2022 and plans to convert ten Boeing 777-300ERs into freighters, scheduled to begin in 2023.
It currently operates a fleet of 11 Boeing 777 freighters, in addition to bellyhold cargo capacity.
Air Canada Cargo has launched a horse transport service using its new Boeing 767-300 freighter aircrafts. It will use specially-designed stalls provided by Unilode, with up to three animals per unit and attendants will be accommodated on the same flight in upper deck seating. They will be able to check on the animals in-flight, ensuring they have water and are well cared throughout their journey.
The carrier will offer the service in North America, Europe and Latin America via its Toronto hub. Facilities in Toronto include comfort stop barn to hold horses in comfort at any point during their journey.
Earlier this year, Air Canada become the first airline to be re-certified by IATA for the safe transport of live animals.
Air Canada Cargo managing director, commercial, Matthieu Casey, said: “This new highly specialized service is another sign of our continued investment in our facilities and international network to better serve our customers. Air Canada Cargo takes great pride in the safe and humane transport of animals, and our new equine product we offer to our customers, from the facilities and stalls that provide the highest standard of safety and care for these magnificent animals to our ability to accommodate attendants onboard is state of the art from end to end.”
IAG Cargo has revived services from Madrid Barajas Airport to Caracas (Venezuela) and Rio de Janeiro (Brazil). They will operate three times a week using the bellyhold of an Iberia A350 aircraft and an A330-200 to Rio de Janeiro.
Iberia recently says it has now re-established its entire network of flights and destinations in Latin America.
IAG Cargo transports large volumes of perishables out of Central and South America to European markets.
There’s no sign of an early Christmas for air cargo carriers says Xeneta-owned analyst CLIVE as volume carried declined -8% year-over-year in October – the eighth consecutive monthly fall – and there are no current signals to indicate an upturn in 2023.
The drop in demand, measured in chargeable weight, was also -3% below the pre-pandemic level in 2019.
Compared to last year’s levels, global air cargo capacity continued to recover in October but at a slower pace and remained -7% below the pre-Covid 2019 level. This contributed to a more subdued ‘dynamic loadfactor,’ CLIVE’s measurement of airline performance based on both the volume and weight perspectives of cargo flown and available capacity.
As falling demand meets rising capacity, load factors have been declining over the past 18 months. In October, the 61% dynamic loadfactor was -7% pts and -1% pts in comparison to 2021 and 2019 respectively.
October saw a second consecutive month of lower global airfreight spot rates below last year’s level.
Xeneta chief airfreight officer, Niall van de Wouw, commented: “We are six weeks away from Christmas and there is no indication there will be a peak. Demand worsened in October over the -5% reduction we reported in September, but this is not likely to surprise the market given the global economic outlook, although it’s clear that rates remain at a higher level than some observers would have expected in the current conditions.”
But he added: “Airfreight is certainly not currently suffering the decline of ocean, where Xeneta has recorded rate drops of 60%-70% in the last nine months. Ocean freight is responding to the market conditions much faster than air is and normalising quickly from a rates point of view.”
The outlook for air cargo remains uncertain, says Niall van de Wouw. “We don’t see a pressure on capacity, and we don’t see an increase in rates.
Looking ahead, he expects more challenges over the next 12 months: “I see very few signals that would support an increase in general airfreight in 2023 – be that because people have higher personal bills or because people are spending more on services relatively to goods.
“It is also fair to assume that even if consumers in Europe and North America were to buy exactly the same amount of goods in 2023 as in 2022, which is unlikely, then a higher portion of the transportation in support of that, whether it’s the finished products or the hard materials to make those products, is likely to move by ocean as a response of the higher reliability returning on the sea.”
Airfreight received a boost in the last two years because of the “incredible mess” in ocean freight, but shippers are now likely to feel more comfortable moving back to ocean from a reliability point of view. With all these factors combined, I don’t see where a lot of general freight growth demand drivers will come from.
“On the supply side, the opposite is true. People are becoming more comfortable about flying again and routes are opening up, leading to a rise in belly capacity, and the freighters being ordered and cargo conversions will also be coming to the market.
“The only development I can see that would slow down the decline in rates is supply on the ground. If airlines and cargo handling companies continue to struggle to hire people and remain short-staffed, then the bottlenecks will create an upward pressure on rates because it will be difficult to get your goods through the value chain.”
Airfreight rates on top volume corridors from Asia to Europe and Asia to the US continued to fall in October, while general rates fell more substantially on inbound US corridor routes than inbound Europe. This is attributed to added costs for EU routes, due to the closure of Russian airspace and lower spending by US consumers.
Europe to US airfreight spot rates stood at USD 3.11 per kg in October, down 27% from the 2021 level, while Asia to Europe spot rates fell USD 5.09 per kg, down 25% year-over-year. Asia to US registered the sharpest decline among the three top volume corridors, with the average spot rate down 45% from October last year to USD 5.87 per kg.
In comparison, the Latin America to US corridor showed more resilience to market headwinds, although its airfreight spot rate slid 11% to USD 1.38 per kg in October.
Shippers, however, may not be seeing long-term gains from falling airfreight rates right away, Niall van de Wouw says: “There is a lot of uncertainty, so this is not a period where shippers will get an ‘attractive’ deal for the next year or two years, they will get lower rates for the next one to two quarters, but who knows what will happen beyond that.”
Air France KLM Martinair Cargo (AFKLMP Cargo) and Jan de Rijk Logistics have joined forces to operate a Long Heavy Vehicle (LHV) which, moreover, will run on Hydrotreated Vegetable Oil) (HVO).
LHVs with a maximum gross weight of up to 60 tonnes and up to 25.25 metres long are allowed by a number of European countries under controlled conditions. AFKLMP Cargo says its LHV can carry six unit load devices (ULDs) compared with only four for a standard truck, substantially reducing CO₂ emissions.
The new LHV will be used exclusively between Amsterdam Airport Schiphol and Frankfurt am Main, two major AFKLMP Cargo hubs.
HVO fuel, also known as “blue diesel” can reduce CO₂ emissions by as much as 89% and, say the partners, is the first of its kind.
AFKLMP Cargo and Jan de Rijk will continue their research including development of electric trucks and the use of hydrogen as a sustainable fuel.
AP Moller-Maersk’s Maersk Air Cargo arm has launched scheduled flights between Greenville-Spartanburg, South Carolina (GSP) and Incheon, Korea (ICN).
They will fly twice-weekly with the first of three newt Boeing 767-300 freighters that have recently been purchased by Maersk Air Cargo, operated by Miami-headquartered cargo airline Amerijet International. It is the first scheduled air cargo operation between South Carolina and Asia.
Maersk Air Cargo was launched in April as an integrated in-house air cargo carrier for the Danish-owned shipping and logistics giant. Maersk Air also operates controlled capacity from Europe into the US, Mexico, South Africa, and Singapore.
Maersk also recently opened a new Chicago Air Freight Gateway facility to add more supply chain integration opportunities for customers using Chicago O’Hare International and Rockford International.
Etihad Cargo, Etihad Airport Services and Abu Dhabi Airports are preparing to launch a new pharmaceutical cool chain facility which will significantly expand capacity at Abu Dhabi International Airport.
Etihad Cargo’s customers will gain expanded CEIV Pharma-certified space and temperature-controlled solutions across its global network.
The additional 3,000sq m facility comprises the latest technology and features, including bulk loading docks with levellers, high-speed roll-up shutters, insulation and a real-time temperature monitoring system, which will enable faster and more efficient loading with stricter temperature controls.
It will also feature new X-ray screening for customs inspections within a fully temperature-controlled environment and new dedicated thermal covers.
In the past 12 months Etihad Cargo transported over 50,000 tonnes of cool chain products, including pharmaceutical and healthcare on its PharmaLife and CEIV-certified FreshForward services. The dedicated pharma hub will double Abu Dhabi Airport’s cool chain storage capacity and enhance the airport’s capabilities.
PharmaLife provides solutions from -80 to 25°C using active and hybrid along with traditional containers for temperatures of 2 to 8°C and 15 to 25°C.
Senior vice president global sales and cargo at Etihad Aviation Group, Martin Drew, said: “The expanded infrastructure will offer best-in-class pharmaceutical shipment solutions to Etihad Cargo’s customers and is the latest step in supporting Abu Dhabi’s vision to cement its position as a global pharmaceuticals and life sciences hub.
“This joint venture located at Etihad Cargo’s hub at Abu Dhabi International Airport provides the perfect location to link the Middle East to not only Asia and Europe, but also the US and Africa, so life-saving medicines and the latest treatments can be transported seamlessly around the world to those that need them the most.
“Investment into the carrier’s infrastructure and Abu Dhabi hub will enable Etihad Cargo to meet the future challenges of the pharma supply chain and will play a significant role in co-creating a robust and future-proof healthcare ecosystem here in the UAE and around the world.”
Vice president of business development and regulatory affairs at Abu Dhabi Airports Free Zone (ADAFZ), Steven Polmans, added: “The upcoming launch of this dedicated pharmaceuticals storage and handling facility will enhance AUH’s capabilities as a cargo hub and aligns with Abu Dhabi’s vision of becoming a global business, pharmaceutical and life science hub. The strong collaboration between Etihad Cargo, Etihad Airport Services and Abu Dhabi Airports will continue to increase pharmaceutical cargo volumes and further position Abu Dhabi as a major solutions provider in the logistics supply chain.”
General manager for ground and cargo at Etihad Airport Services, Jubran Al Breiki, pointed out: “In addition to offering a fully equipped pharmaceuticals centre, temperature-controlled rooms and 24/7 end-to-end cargo support, the innovative systems within the facility enable pharmaceuticals to be effectively tracked and traced. This benefits Etihad Cargo’s customers and all other stakeholders with greater transparency, real-time status updates and makes the transportation of cargo quicker and more efficient.”
To meet the requirements of personalised medication and treatment, including cell and gene therapies, Etihad Cargo is exploring the utilisation of artificial intelligence to improve forecasting and automation to enhance the carrier’s current capacity and capabilities.
It will also invest further in sustainable solutions to make the transportation of pharmaceuticals more environmentally friendly, in line with Etihad Aviation Group’s sustainability plans and pledge to achieve net-zero carbon emissions by 2050. It has already replaced 3,000 containers from its original ULD fleet with a more environmentally friendly, lightweight version and has signed a memorandum of understanding with B Medical Systems to develop and launch the world’s first airline-specific passive temperature-controlled container.
In the coming months, Etihad Cargo will be participating in Pharma. Aero’s green pharma lane project, expanding on the successful launch of Pharma Corridor 2.0.
SEKO Logistics has appointed Hans Hickler as president of the Americas. Hehas worked with the company for the past seven years in an advisory role through Ellipses Advisors, a company he started in 2012 and his previous experience includes chief executive positions multinational ocean, express and 3PL companies. Prior to starting his own business, Hickler served as CEO of Asia Pacific for Agility Logistics.
Based in Fort Lauderdale, Florida, Hickler will report directly to James Gagne and Steen Christensen, SEKO’s chief operating officer – International.
Ukraine-owned Antonov Airlines has carried a civil telecommunication satellite on one of its AN-124-100-150 aircraft from Toulouse, France, to the US for Elon Musk’s SpaceX company.
The heavylift airline, Antonov Airlines a division of Antonov Company, headquartered in Kyiv, has been temporarily relocated to Leipzig, Germany to allow continued operation of its fleet of five AN-124-100 Ruslan aircraft with payloads of up to 150 tonnes. The Antonov Airlines base at Hostomel, near Kyiv, came under heavy bombardment at an early stage of the Russian invasion, resulting in the destruction of the unique Antonov 225 freighter.
The satellite was moved in cooperation with Bollore Logistics Space to the Nasa Shuttle Landing Facility in Titusville.
The cargo weighed a total of 50 tonnes including a special container measuring 14.69 m in length, 5.45 m in width, and 4.22 m in height, designed by Airbus Defence and Space specifically for moving safely these types of satellites to the Space Center.
The SpaceX programme is developing the Starlink communications system which has played a vital role in Ukraine’s battle with Putin’s forces.
Bollore Logistics projects department manager, Yorann Marc, said: “As permanent users of this type of aircraft, we are pleased to welcome the “Ruslan” on the market to perform the sensitive transports like the movement of the satellites to the different launch pads. The communication channel stayed always active in last months, and we were impressed by Antonov Airlines agility to maintain continuity of service after painful events occurred their home-base in Hostomel.”
Antonov Airlines commercial executive, Sergii Bilozerov, added: “The expertise of the Antonov Airlines technical crew and engineers guarantees the smooth and efficient transport of this delicate and unique cargo. An external crane in conjunction with the onboard crane and winch of the AN-124-100-150 was used to load and unload the container CTH04, as well as special loading equipment designed and manufactured by Antonov’s in-house engineers.”
UPS is to open its first dedicated healthcare facility in Dublin in late 2023. It will offer nearly 6,000sq m of space to support Ireland’s pharmaceutical and medical device industries in delivering next generation biologics, critical vaccines and vital healthcare equipment to patients around the world. The facility will create 30 jobs initially, and comes at a time when 80% of pharmaceutical drugs in the EU require cold-chain logistics and transportation. More than 50% of all new drugs in the global pharmaceutical pipeline are cutting edge biomedical drugs – such as vaccines – that tend to be temperature-sensitive.
Recently appointed UPS Healthcare vice president for international sales, Cathy O’Brien, said: “This is a significant investment by UPS in Ireland and a demonstration of our commitment to enabling truly global healthcare supply chains.
“Our new facility supports the quality and regulatory needs of manufacturers, many of whom are providing critical upstream activity, and we provide them with resiliency and scale. UPS Healthcare is now offering the first truly dedicated freight, small parcel and logistics offering in Ireland, including cold chain management services. Ireland is a world leader in research, biologics and healthcare innovation, and we are confident that our clinical to commercial service offering will drive value for the Irish healthcare and economic ecosystem in the years to come.”
UPS recently announced its planned acquisition of the Bomi Group, which has temperature-controlled facilities in 14 countries in Europe and Latin America, adding nearly 3,000 highly skilled team members. With the approved completion of this acquisition by 2023, UPS Healthcare will have more than doubled the footprint of its facilities since 2020.
UPS is also investing in UPS Premier, a technology-enabled express delivery service, that upgrades small packages with advanced sensor technology as well as ensuring a priority lane in UPS’s global network. Earlier this year, UPS Healthcare expanded its specialized temperature-controlled fleet across Benelux and Italy, adding to existing cold chain transport services in the UK, Italy, Hungary, and Poland.
