Logistics and Supply Chain Management students from Auburn University got a behind-the-scenes air cargo familiarisation tour at Atlanta Airport on 25 March. They were given a tour of the Swissport warehouse and then taken airside to witness the arrival of a Qatar Airways Cargo flight from Doha and its subsequent offloading and reloading.
Hitting the spot in Malaysia
Kargo Xpress has become the first Malaysian carrier to implement CHAMP’s Cargospot portal to manage its capacity and provide control and visibility of flight profitability. It also provides cargo agent customers with real-time flight availability and price requests, booking requests and e-AWB submissions.
Second freighter conversion for Turkey’s MNG
Turkish-owned MNG Airlines is converting a second A330-300 aircraft into a freighter at theElbe Flugzeugwerke base in Dresden,Germany. It follows introduction of the operator and Turkey’s first passenger to freighter aircraft in November last year.With a 61-tonne payload the A330-300P2F aircraft offers higher capacity than older generation aircraft with a reduced carbon footprint. Conversion involves stripping the passenger cabin completely, reinforcing the fuselage and floor structure, plugging passenger doors and windows and installing a new wide cargo door.
Handler extends Heathrow site
Dubai handling company dnata has extended off-airport cargo centre at London Heathrow airport with a 10,500sq m Phase II extension to its existing 22,500sq m Phase 1 facility which opened in September 2019.
It forms part of the company’s ‘dnata City East’ complex which dnata says is by far the largest off-site cargo handling operation at Heathrow.
Dnata will handle all Virgin Atlantic Cargo and Delta Cargo freight at dnata City East with exports remaining at the Phase I facility while the new Phase II site will cater for imports, significantly increasing handling capacity.
Both facilities offer carbon reduction initiatives, including the use of solar PV panels, air-source heat pumps and electric vehicle charging.
Union warns of Heathrow chaos
The Unite trade union is warning of possible disruption to cargo handling at Heathrow Airport in the UK after announcing a strike ballot for members at Worldwide Flight Services (WFS) on 13-27 April, in a dispute over a pay freeze.
Unite is calling on WFS to match the pay awards of competitors, such as dnata and Menzies.
Unite members build up and break down freight pallets and containers and then truck them to or from the airport for loading onto airlines including Air China, American Airlines, Etihad, Singapore and Thai.
Unite regional officer Kevin Hall said: “Any industrial action will cause chaos to the freight operations of WFS’ clients, which include a number of prestige international airlines, such as American Airlines.”
Broker recruits for Midwest growth
Broker Air Charter Service is planning a recruitment drive later this year as part of its expansion plans for the US Midwest.
It moved into a new office in Chicago on March 25 with six times the space.
Chief executive of the office, Caitlin Uhlmann, said: “O’Hare Airport is currently hugely expanding its cargo storage and shipping capability and is already the fifth biggest aviation shipper in the US, so the cargo business in the region is only likely to grow further.”
Airfreight market buffeted by geopolitics
The war in Ukraine, resulting sanctions and lockdowns in China muted growth of general air cargo volumes and capacity in March, causing a sudden interruption to the recovery trend of recent months said analyst CLIVE Data Services.
Weekly data for March, and up to 3 April 2022, shows volumes compared to the pre-Covid level in 2019 fell 6.5% last month and were 4.5% lower than March 2021. Similarly, general air cargo capacity stood at -14% versus March 2019 and at -4% compared to the same month a year ago. This was exacerbated by the closure of Russian airspace and the immediate cancellation of some airline capacity, which led to a rapid 20% fall in Europe-NE Asia capacity.
CLIVE’s ‘dynamic load factor’ – which considers both the volume and weight of cargo flown and capacity available to produce a true indicator of airline performance – was largely unchanged month-over-month at 66%. This was the same level seen in the same month of 2019, but 6% points lower than March 2021 after record load factor levels in the opening weeks of last year.
Overall airfreight rates remained at similar high levels to February, averaging +141% compared to March 2019 and +27% higher than March 2021. CLIVE also identified a rise in the amount of airline cargo capacity being placed on the short-term spot rate market. Spot rates and spot share continued to rise on the Europe to Japan trade lane, for example, with spot rates from Japan to Europe climbing in the last week of the month to around €5.00 per kg, nearly 50% higher than in the weeks preceding the Ukraine war.
Niall van de Wouw, chief airfreight officer at CLIVE’s parent company, Xeneta, said: “In overall air cargo market terms, March was a step back from the trend we saw late last year and earlier this year. We have been reminded of how the limited control the general airfreight market has over its own destiny and how it is impacted by passenger traffic trends, disruption in the oceanfreight market, and geopolitical events.”
At 83%, the North Atlantic dynamic load factor from Europe to North America in March was 5% points lower than in March 2021, when it reached record levels of close to 90%, despite a 40% increase in capacity on this trade lane. The only marginal decrease in load was mainly caused by the 25% increase in volumes from Europe to North America compared to the same weeks last year. The continually declining schedule reliability of shipping had prompted shippers resort to airfreight.
Dubai handler moves on Germany
Dubai-owned handling company dnata is moving into the German market with the planned 100% acquisition of Wisskirchen Handling Services, subject to government approval, dnata’s entry into the German market will further develop its position as a leading global cargo services provider. Wisskirchen is the exclusive operator of the 12,000sq m Cologne Bonn Cargo Centre, moving over 85,000 tonnes of cargo annually.
Turkish Cargo gives vaccines a boost
Turkish Cargo says it carried 335 million doses of the Covid-19 Vaccine to 61 countries during 2021, giving it an 8% share of the medical products market. Board chairman, Dr Ahmet Bolat, added that the carrier made it a priority to move vaccines to Africa, served by only a limited number of airlines. It delivered over 1 million doses to countries including Mauritania, Madagascar, Rwanda and Congo. It also carried 100 million doses to Brazil. Turkish Cargo adds that the country is on its way to become a global centre for medical product transportation following the opening of the SmartIST cargo facility at the new Istanbul Airport.
Fulfilment firm triples Ohio site
James and James Fulfilment has expanded its Ohio fulfilment centre by nearly three times to support eCommerce firms selling into the US market.
Recent increases to international shipping costs into the US have highlighted the benefits of domestic shipping for eCommerce firms, says James and James, which operates sites in the UK, US and the Netherlands.
The expanded Ohio facility, now 80,000 sq ft, will protect customers from changes in international shipping costs by increasing the options on where to ship from. It can also reduce delivery times, and offer greater reliability.
James and James customers include Frenchie Bulldog, Crafted London and Lisa Eldridge.
The company has recruited 15 new employees in the US, including a goods in manager, inventory operations manager and inventory team leader.
Chief executive Emma Dempsey said: “The US provides a great additional market for UK retailers, with many shifting their focus from the EU to US after Brexit. This new fulfilment centre provides the certainty and cost benefits of domestic shipping to businesses who are trying to reach or grow in that region. Ohio is not only well-placed to serve the East Coast population but is also within a one-day drive to most major populaces.”
She added: “Offering clients access to a strong technology platform and multiple sites from which to trade and ship internationally provides greater protection from changes in international trade, and reduces shipping costs and time to market for those trying to scale.”
James and James Fulfilment is also looking to open a new fulfilment centre on the West Coast, among other regions.