UPS Supply Chain Solutions (SCS) has opened a facility in Madrid, Spain. The 6,500sq m (69,965sq ft) premises will be a main point of distribution for the Iberian Peninsula for the tech and healthcare industries.
With 7500 pallet positions and 25000 shelf locations, the facility is also LEED Gold certified with solar panels for green energy generation.
Madrid is the fourth UPS SCS facility to open in 2022, which also saw the unveiling of a new building in Roermond, in the Netherlands.
Antonov Airlines and XPO subsidiary RXO Air Transport have moved CNC machinery from Milan, Italy to Hamilton, Canada in two flights on one of the Ukranian carrier’s AN-124-100 aircraft.
The 169-ton cargo consisted of five pieces including three unusually high and narrow machines used to manufacture electric vehicle parts in one of the most technologically advanced facilities in the world.
Two external cranes were used for onloading and offloading as the rigid ramp system designed and manufactured by Antonov`s in-house engineers to load heavy and oversized pieces.
Abu Dhabi Airports has appointed Maureen Bannerman as chief commercial officer. With over 20 years’ experience primarily within the aviation industry, she comes from a successful tenure as chief executive officer and managing director of APM Terminal at the Khalifa Bin Salman Port in Bahrain. She also brings extensive expertise in the logistics and transport fields, having held positions at renowned organizations such as Serco and Network Rail in the UK.
As CCO, she will play a pivotal role in the company’s long-term strategic growth plans in line with Abu Dhabi Economic Vision 2030.
Pharmaceutical thermal protection specialist Tower Cold Chain is opening new office space in Tampines. The facility, close to Changi Airport, will greatly expand Tower’s availability to customers.
It is a base for six industry experts, who are on hand 24 hours a day and will support Tower’s hubs throughout APAC, the Americas and Europe, including recent new hub openings at Chicago.
Tower can supply containers at all pharmaceutical temperature configurations and standards to meet the different requirements of Euro, US, single and double pallets, as well as smaller sub-pallet consignments.
The Singapore site also offers private offices available for customer use.
Coyne Airways is now listing freighter capacity with the Airblox.com online marketplace for standardized electronic block space agreements. The platform currently lists over 2000 lanes.
Larry Coyne, founder and chief executive of the cargo airline, which caters to the pharma, fresh produce, live animals and heavy and oversized shipment markets, said that the move was “an exciting innovation for the airline industry to help airlines and customers optimize capacity and increase efficiency”.
Coyne Airways specializes in services to Armenia, Georgia, Afghanistan, Iraq, and a growing number of African destinations, together with charter services worldwide.
CLIVE Data Services, part of Xeneta, said that the global air cargo market ended December 2022 with a fall in chargeable weight of 8% compared with a year ago while the general airfreight spot rate registered its largest year-on-year decline of 35%. However, overall average rates remained 75% above the pre-covid level it said.
The 8% fall in global air cargo volumes represented the tenth consecutive month of lower demand, down -13% compared to 2019, at a time when available airfreight capacity continued to recover to above last year’s level. Capacity in December 2022 recovered to 93% of the 2019 level. CLIVE’s dynamic load factor declined by 7% pts year-over-year to 57% and was 5% pts below the figure for December 2019.
Chief airfreight officer at Xeneta, Niall van de Wouw, commented: “It would be easy to take a pessimistic view of the global air cargo market’s downturn, but this would ignore where it has come from. There is little use comparing it to the same time last year because then we had no Ukraine conflict, no high energy prices, no soaring interest rates, nor the impact of the subsequent cost-of-living pressures. So, based on the global environment we see right now, airlines are still achieving rates 75% higher than pre-Covid.
“That indicates the glass is very much still half full. If, in January 2020, you had asked airline executives if they’d like to see airfreight rates across the Atlantic or from Asia Pacific 75% higher, we would have heard a unanimous ‘yes’. The difference now is that there’s less pressure if you’re a shipper, even though you’re still paying more. In terms of the long-term sustainability of the air cargo supply chain, this will help.”
Airfreight spot rates on top volume corridors declined more sharply in December. Outbound Asia Pacific spot rates have been falling for eight consecutive months, with spot rates from Asia Pacific to North America of US$5.38 per kg for the final month of the year, down 13% since October. This represented a 58% decline on a year ago but remained 87% above the 2019 level.
On the Asia Pacific to Europe corridor, the average December spot rate dropped 10% compared to October to US$4.67 per kg, -46% year-on-year but, again, remaining 92% above the pre-pandemic level.
Reducing winter flight schedules contributed to some resilience to this year’s market headwinds on the Europe to North America corridor. December’s airfreight spot rate stood at US$3.25 per kg, up 7% over the October level. Replicating the market trends on the other main lanes, this rate was -46% versus a year ago but still 80% up on 2019.
The future remains uncertain. After a surprisingly strong start for the air cargo market in January 2022, 2023 will likely be impacted by the earlier Chinese New Year and growing concerns over Covid which, in China, is already impacting some factory production.
Van de Wouw added: “Of course, we wish the air cargo industry a very happy New Year, but it’s clear it remains in a very unpredictable state given world events. We don’t see demand recovering quickly because of what is happening around the world, but we do expect to see supply continuing to come back into the market. This, of course, will put further pressure on load factors and rates.
“So, we struggle to see where the tailwinds will come from, but looking at the broader perspective, we still see a very efficient air cargo market, especially when compared to the 70-80% fall in ocean rates in the past 8-9 months. The fact that the airfreight domain is more competitive and more fragmented on the supply side meant rates didn’t go as crazy as we saw with ocean container prices, so the decline, now airfreight volumes are lower, is more gradual. Air cargo is much stronger than it was pre-Covid, but the current direction of the market means there is some degree of good news for everyone.”
Dubai-based airfreight handler Dnata has broken ground on a 20,000sq m cargo warehouse at Erbil International Airport in Iraq. The foundation stone for the US$ 14 million building, scheduled for completion in September 2024, was unveiled by dnata’s senior vice president for UAE and Iraq airport operations, Jaffar Dawood.
The facility will be capable of processing 100,000 tonnes of cargo annually, including perishables, pharmaceuticals and dangerous goods. Dnata will also implement its ‘OneCargo’ digital system at the facility which will also have thermal insulation to reduce the building’s environmental impact, a water harvesting system, low energy skylighting and an all-electric forklift fleet.
Dnata’s latest expansion follows the opening of a new, advanced cool chain facility and a bus maintenance facility in 2022 at Erbil where it provides ground handling and cargo services to over 25 airlines.
Jaffar said: “We are delighted to expand our operations in response to the growing demand for our reliable and safe cargo services in Erbil. Our new facility will incorporate cutting-edge technologies and the latest carbon reduction initiatives in design and operation, ensuring the highest level of operational and environmental efficiency for our customers.
“We stay committed to the Iraqi aviation industry and continue to invest in our operations to contribute to the development of Erbil as a regional cargo hub.”
American Airlines Cargo has appointed Indy Bolina as head of global sales. Reporting to Vice President Commercial Roger Samways, he will lead the carrier’s global sales team supporting the carrier’s extensive customer base.
Having started his career with American Airlines in London in 2017, Bolina has led people development and resource teams that work in partnership with multiple organizations across the airline, including cargo.
Bolina’s appointment follows the promotion of Brian Hodges to managing director, strategy and planning in October of this year.
Cargo president, Greg Schwendinger, said: “These appointments are not only well deserved for both leaders, but strategically enable our business to deliver on our promise to our customers and modernize our business in a way that makes a real difference. I look forward to seeing Indy and Brian pave a strong path forward toward our business goals next year.”
Etihad Cargo is to add three more weekly passenger flights between its Abu Dhabi hub and New York (JFK) from 24 April increasing total cargo capacity to over 600 tons out of the US per week. The flights will be operated with Airbus A350 and Boeing 787-9 Dreamliner aircraft.
Etihad Cargo currently operates 11 flights per week to JFK, as well as daily flights to Chicago O’Hare International Airport and Dulles International Airport, Washington. It also operates two dedicated Boeing 777 freighter flights per week to Chicago via Amsterdam.
Senior vice president global sales and cargo, Martin Drew, said: “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.
“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.”
Ukraine’s Antonov Airlines has been named Best Cargo Charter Operator of the Year in the ACA awards. The Air Charter Association’s recognises and rewards companies for excellence in our industry, in nine categories by the association’s 330+ global member companies, alongside a panel of independent industry judges.
Antonov Company acting general director, Ievhen Gavrylov, said: “Winning this award is a great honor and at the same time a pleasant surprise for our company. We sincerely grateful to the international community for the high recognizing of our work. Remaining the largest operator of An-124-100 aircraft in the world, we are responsible for meeting the needs of the international market in the sector of air transportation of oversized and superheavy cargo.”
ACA chairman, Kevin Ducksbury added: “After an extremely difficult year for Antonov Airlines, and the whole of Ukraine, suffering first hand from the effects of the destruction of the world’s largest aircraft, the AN225 Mriya, Antonov Airlines has continued to deliver for its customers. The company and staff have carried on, through relocation of staff and aircraft, and maintained an excellent level of service to their customers, while living through the most atrocious of times. Their tenacity and determination is remarkable and I am truly delighted to recognise the airline in this way.”
