Deutsche Post DHL Group says its third quarter earnings before interest and tax (EBIT) rose by 15% to around €2.040 billion. Group EBIT for the first nine months of this year reached around €6.5 billion (compared with €5.765 billion for the same period in 2021).
It added that 2022 EBIT guidance will be increased with the formal release of full third quarter 2022 earnings on 8 November.
E-commerce volumes are coming closer to strongly elevated levels delivered last year, after volumes recorded a more pronounced decline in the first half of 2022. The capacity situation in the ocean and air freight markets has eased. EBIT in Global Forwarding stood at around €585 million in the third quarter of 2022, clearly ahead of previous year’s quarter of €372 million.
EBIT in the Express division reached around €1,010 million in the third quarter of 2022 compared to previous year’s quarter of €971 million.
EBIT in Supply Chain came in at around €220 million in Q3 2022, also well above last year’s quarter result which stood at €142 million. E-commerce Solutions recorded EBIT of around €85 million in the third quarter 2022 compared with €91 million in the third quarter of 2021.
Air Canada Cargo is to expand its freighter network into the US for the first time in November, with flights to Dallas and Atlanta from its Toronto hub.
Air Canada Cargo is also expanding its presence in Latin America with a service to Bogota.
In addition to the eight converted Boeing 767 freighters already announced, two factory-built 767-300F will enter service in 2023 and two Boeing 777 freighters in 2024.
Managing director, commercial, Matthieu Casey, said: “These additional routes allow us to expand the reach of our freighter network to key US markets, and conveniently connect cargo in the US to Canada, Europe, Latin America and Asia-Pacific with our freighter service.
“The additional growth of our freighter fleet allows us to continue to expand to better serve our global customers and we remain committed to supporting global economies and supply chains with reliable transportation moving critical goods.”
The International Air Transport Association (IATA and its Cargo Network Services (CNS) subsidiary have deployed their modernized CASSLink invoicing system in the US. It will be rolled out to all other CASS markets later in 2022 and in 2023.
The new CASSLink offers an improved user interface, self-service functions for data processing, reports and user management, real-time reporting and on-line dispute resolution, accommodation of bilateral commercial arrangements as well as IATA resolutions requirements, a new tax calculation mechanism, a risk assessment tool and new payment options. CASSLink handles billings and payments between airlines and freight forwarders which are participating in the Cargo Accounts Settlement System (CASS) and is used by over 15,000 freight forwarders.
Air France KLM Martinair Cargo has formed a partnership with the Cargo.one digital marketplace. Through its partnership with cargo.one, AFKLMP Cargo intends to continue expanding its digital presence and offer customers an additional booking option alongside its own myCargo online booking portal.
The French-Dutch airline offers 295 destinations in 110 countries on its 500-strong aircraft fleet via hubs at Paris Charles de Gaulle and Amsterdam Airport Schiphol.
Implementation will proceed market-by-market, based on customer demand. The expanded offering will make progressively capacity available digitally to more freight forwarders.
The carrier’s senior vice-president sales and distribution, Gertjan Roelands, said: “We are investing significantly in our digital offering and expect to launch some unique new services soon in myCargo. Based on customer traction, we have decided to extend our cooperation with cargo.one by connecting our booking option. We believe this channel compliments our own online platform. We have been cooperating with third-party portals for some time now and we are delighted to add this new partnership. For us, it is key to be where our customers are.”
SEKO Logistics has signed an international partnership with US-based direct-to-consumer fulfillment platform, Airhouse.
Launched in June 2020, Airhouse software automates workflows and integrations through a customizable solution. Once connected with a brand’s ecommerce platform, Airhouse’s software evaluates store data to create a holistic view of the business and where its customers are. Brands are then matched with warehouses in Airhouse’s partner network to ensure inventory is shipped to the partner facility as quickly as possible, including the same day. From there, as new orders come in Airhouse manages the fulfillment process.
Airhouse co-founder, Kevin Gibbon, explained: “Over the past few years, a surge in ecommerce has brought us to a critical tipping point. While tools have emerged to run nearly every aspect of a consumer product business, how those products actually get to customers hasn’t kept pace.
“Partnering with a global 3PL like SEKO is exciting for us and the smaller, emerging brands we’re working with because SEKO is one of the best direct-to-consumer 3PLs in the world. Our customers will now benefit from access to modern warehouses across the globe that have historically been out of reach due to high order minimums. We’re leveling the playing field for these emerging brands to access such a high-quality partner.”
Ultimately, Airhouse clients will have access to SEKO’s millions of square feet of warehousing in Europe and Asia as well as in North America. “For small and fast-growing brands, working with traditional 3PLs is extremely time-consuming and takes up a lot of operational resources. Airhouse solves for the host of inefficiencies brands traditionally face: outdated and inefficient software, inconsistent and non-transparent pricing, poor and mismanaged quality control, and a fractured and unscalable fulfillment process.”
Airhouse will start its partnership with SEKO in the UK to be followed by other prime ecommerce markets in Europe and Asia.
Senior vice president of SEKO Ecommerce, “David Emerson, said: “The market potential is vast. Airhouse estimates that only 10-15% of the thousands of brands it is working with are shipping internationally. Together, we are going to empower them to grow globally. It will allow UK customers to buy from these predominantly US based brands as if they were based in the UK because their shipping prices will be significantly lower.”
Kevin Gibbon added: “Instead of smaller brands having to graduate to become a customer of a quality global logistics player like SEKO, they can start this relationship on day one through Airhouse. Brands will now be in a position to charge local shipping rates on international orders—bringing shipping costs down from as much as $40 to as little as $5. And their customers won’t be stuck waiting for an international item to cross customs. Working alongside SEKO means our brands’ products can be shipped locally and arrive in as soon as 1-2 days.”
General air freight spot rates fell 9% year-over-year in September, to below the 2021 level for the first time this year, according to CLIVE Data services in its weekly data published on 5 October.
The analyst, part of Xeneta, said that returning global cargo capacity continued to outpace air cargo volumes.
Spot rates have been falling gradually since the beginning of this year, pointing to a deteriorating air cargo market. In September, general cargo spot rates continued to plunge below seasonal rates, although continuing regional capacity constraints outbound from East Asia showed more resistance in comparison to the ocean spot market. In September, ocean spot rates from East Asia to Europe fell 49% from the January level, while air freight spot rates were 19% lower. The market, however, will be strongly influenced by returning air cargo capacity.
Taking Japan as an example, routes to Europe have been impaired by the Ukraine war, causing a 12% reduction from the first to the second quarter of the year. In June, Japan began easing part of its severe Covid travel restrictions and, since then, passenger aircraft belly capacity to Europe improved by 7% in Q3, recovering to 38% of pre-pandemic Q3 2019 levels. In line with this, Q3 air freight spot rates declined 28% compared to Q2. Looking ahead, the further removal of travel restrictions for individual tourists will further boost the capacity recovery from long-haul widebody flights.
Overall, global air cargo demand in September, measured in chargeable weight, remained a negative trend, falling 5% and 2% on the same months of 2021 and pre-pandemic 2019. The overall decline in general air freight volumes came as airlines reintroduced passenger and cargo capacity from East Asia, most notably at the end of the month ex Hong Kong, Japan and Taiwan after their governments announced plans to lift coronavirus restrictions.
Global cargo capacity last month recovered by 5% versus September 2021 to now sit just 7% below the 2019 level, CLIVE reports.
Declining demand and increasing capacity had the expected impact with CLIVE’s ‘dynamic load factor’ dropping 7% pts over the same month last year to 59% and it was 2% pts adrift of the level recorded in September 2019.
Xeneta chief airfreight officer Niall van de Wouw explained: “What we see is a very ‘jumpy’ air cargo market which responds very quickly to global events, whether this is the escalation of the conflict in Ukraine, rising inflation, the pressure on Sterling, or the stronger US dollar. It’s still early to judge how such events will be reflected in the air freight market over the rest of this year but we see no indications that demand will pick up from a macroeconomic perspective.
“We also see the ocean market changing very rapidly and we expect its reliability to go up, which will see certain volumes pushed to air cargo by necessity go back to ocean. We see a flat air cargo market in terms of demand, but the fall in general air freight rates and load factor are likely to be exacerbated by the continuing return of capacity, even as we head towards a winter season when, traditionally, we would expect to see cargo space in the prime Europe and North America markets cut back.
“Shippers who have held their nerve and not shipped their peak season goods early by air are likely to find themselves in a stronger buying position.”
Lödige Industries is to install an automated cargo system at John F. Kennedy International Airport‘s new 350,000-square-foot cargo facility for property developer Aeroterm. The system will be exclusively used by Worldwide Flight Services, the main cargo handler at JFK.
The new cargo facility, which is being built on a 26-acre site, will include greater ramp capacity to handle three large freighters simultaneously. It will also have more than 50 dock doors for the efficient transfer and tracking of goods through the facility.
Lödige’s system will feature two elevating transfer vehicles with a ULD storage rack for 218 ULD positions and three-level ULD racks for high storage density and free up space for other handling activities. The equipment also includes three truck docks, a castor deck area and 14 elevating workstations.
When completed in early 2024, JFK’s new cargo facility is expected to handle about 350,000 tonnes a year.
Aer Lingus – part of the IAG Group of airlines – is to launch a new route between Dublin and Cleveland in Ohio in the summer 2023 season, the only nonstop route between Europe and the US city, reports the routes Online website. Flights from Dublin to Cleveland Hopkins International (CLE) will start on 19 May 2023, operating four times per week with Airbus A321LR aircraft.
The International Air Cargo Association (TIACA) has revealed launch customers for its BlueSky sustainability verification program.
Following its launch at its March Executive Summit, it ran a successful pilot program with airline and ground handling companies.
The TIACA BlueSky program, open to the entire industry, not just TIACA members, is now ready to launch live operations with the first wave of participants representing organizations from the airline, airport, freight forwarder, ground handler and GSSA sectors.
The launch participants are: Amsterdam Airport Schiphol; Astral Aviation; Brussels Airport; CHI (Cargo Handling International); Edmonton International Airport (pictured); Etihad Cargo; Flexport; HACTL (Hong Kong Air Cargo Terminals Limited); Strike Aviation; and Swissport
TIACA chair Steven Polmans said: “This program will enable all participants to assess where they are on their sustainability transformation journey which will collectively demonstrate the leadership of the air cargo industry in tackling this important topic.”
Phase 1 of the program is an evidence-based desktop verification process designed to assess the applicants’ progress against eight critical sustainability criteria: decarbonisation; waste elimination; biodiversity protection; support for local economies and communities; society improvement ; efficiency and profitability; employee engagement, retention and development; and partnership building.
The assessment process is tailored to each industry sector to ensure peer assessments and progress tracking provide maximized value. Upon completion of the assessment by an independent organization the participants receive a personalized dashboard highlighting where they currently are against the assessed criteria. A subsequent phase will include a full onsite audit option with an in-depth report describing areas of improvement.
TIACA Director General, Glyn Hughes, said: “Sustainability is an increasingly important topic for businesses globally and as an industry which connects the world it is critical that we all have strategic plans in place to ensure our sustainability credentials are demonstrated in an evidenced and neutral fashion. The TIACA BlueSky program aims to provide that solution. We are excited to see the program launch and invite all industry stakeholders to take a look.”
Emirates SkyCargo and United Cargo have signed a Memorandum of Understanding mirroring the broader commercial agreement between the two airlines.
Under the MoU, signed at the World Cargo Symposium (WCS) in London by the carriers will expand cargo interline options and blocked space agreements, pending regulatory approvals. This will build on existing cargo interline arrangements between them and offer freight customers access to more capacity on a larger combined global network.
United Cargo will gain access to Emirates SkyCargo’s network through the belly-hold of passenger flights to over 100 global destinations and 11 freighters, whilst Emirates SkyCargo will have access to over 200 cities in the US and 300 cities across five continents through United Cargo.
Nabil Sultan said: ” Cooperating with United, which is a leading airline in its own right with strengths and a network that are complementary to our own, will allow us to add value for our customers and help them reach new markets more speedily.”
Jan Krems added: “As one of the leading carriers worldwide, Emirates SkyCargo is an important player in the industry, and our supplementary capabilities allow us to provide new service offerings to our customers worldwide. We share a common commitment to providing industry-leading solutions for our customers and we look forward to working together in the future.”
