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2024 at Half-Time: What’s the score?

Really, when it boils down to it, there are plenty of similarities between the air cargo industry and a football game. Both require strategy, teamwork, coordination, and efficient execution to achieve success. As a large part of CargoForwarder Global’s side of the world is currently in EURO 2024 fever plus we have just witnessed the longest day in the year, this is a good time to take stock of the year so far, and how we feel it may pan out. Taking on the role of a sports commentator, here we go!

Welcome, fans, to the half-time recap of the 2024 Air Cargo Industry Cup! Judging by the first half, we’re in for a thrilling year-long match, with the latest prediction standing at double-digit growth, following MAY24’s incredible play with a +12% year-on-year volume score. Let’s recap the action, the goals, the offsides, and look ahead to what strategies will bring victory in the second half.

All eyes on the ball as we head into double-digit growth this year. Image: Imagen AI creation/CFG

Opening Move: E-commerce Surge
From the very first whistle, the air cargo industry took early possession of the year with a rapid e-commerce surge. According to Xeneta, e-commerce demand boosted early volumes, with precise logistics akin to a series of well-coordinated passes setting up early goals. Willie Walsh, IATA’s Director General, commented in MAR24: “This is a strong start to the year. In particular, the booming e-commerce sector is continuing to help air cargo demand to trend above growth in both trade and production since the last quarter of 2023. The counterweight to this good news is uncertainty over how China’s economic slowdown will unfold.”

Key Goal: Efficient Operations
Using AI and advanced logistics, the industry began shifting towards greater efficiency, scoring crucial goals in customer satisfaction and on-time delivery. Ball control in the shape of CargoAi’s CargoQUALITY kick-off as well as increasing cooperation between service as software providers, logistics specialists, airports and airlines to develop cargo community systems, made for more tight-knit team play. More and more players are starting to make use of real-time data analytics to create more successful game strategies.

Offsides and Challenges
The challenges posed by economic uncertainties, fluctuating fuel prices, exploding rates in ocean freight demanded strength and balance from air cargo’s defense, which partly gained from a modal shift from sea to air. Xeneta’s Chief Airfreight Officer, Niall van de Wouw highlighted that the U.S. crackdown on e-commerce shipments out of China, however, coupled with the potentially negative impact of rising costs and increasing transit times on consumer behavior, could lead to a decrease in e-commerce shipments. This could have a knock-on effect of freighter over-capacity bringing air cargo rates down, going forward. Global supply chain issues and geopolitical tensions were major offsides, causing delays and rerouting. However, the industry adapted quickly, showing resilience and maintaining strategic possession.

Strategic Goal: Sustainability Initiatives
One standout goal was the industry’s push towards sustainability. More airlines and forwarders signed SAF agreements, interest in TIACA’s BlueSky initiative grew, and diverse stakeholders pushed for hydrogen and electric solutions to aircraft propulsion. Several major airlines reported reductions in carbon emissions through new fuel-efficient aircraft and other sustainable practices such as ground equipment shifts towards electric vehicles, for example.

Penalties and Fouls
Penalties came in the form of increased regulatory scrutiny and rising operational costs. Safety issues, in particular, posed a concern both on the ground and in the air, Companies had to navigate these challenges carefully, avoiding fouls that could lead to costly delays. Red and yellow cards were metaphorically issued for compliance breaches, maintenance failures, and inadequate training, pushing players to stay within strict regulatory frameworks.

Second Half Predictions: July to December
As we move into the second half of 2024, the air cargo industry must stay adaptable, leverage technological advancements, and maintain a strong focus on sustainability to secure a win. Play strategy should include the expanding into emerging markets such as Southeast Asia and Africa. Establishing reliable networks and forming strategic partnerships will help to create strong offensive play. Managing high volumes while maintaining quality will test the industry’s stamina and strategy, and innovations in cargo handling and last-mile delivery will be pivotal.
Xeneta’s Chief Airfreight Officer, Niall van de Wouw, foresees a similar end of year peak to last year, and feels that the industry is in a better position to cope with the increase in passenger belly capacity over this summer.
IATA predicts that total air cargo volumes may reach 62 million tons in 2024. “The global economy counts on air cargo to deliver the USD 8.3 trillion of trade that gets to customers by air. Without a doubt, aviation is vital to the ambitions and prosperity of individuals and economies. Strengthening airline profitability and growing financial resilience is important. Profitability enables investments in products to meet the needs of our customers and in the sustainability solutions we will need to achieve net zero carbon emissions by 2050,” Willie Walsh, IATA’s Director General, commented, at the recent IATA General Meeting.
Teams capable of executing these strategies with precision and resilience will emerge victorious, navigating the challenges and seizing the opportunities that lie ahead.

A freighter full of Yaks

Flying to new green pastures. Image: Silk Way West Airlines

Weighing in at between 225 kg (small female) to 585 kg (large male), the total weight (undisclosed in the press release) of the 116 yaks recently transported, must have been pretty impressive. An unusual shipment that Silk Way West Airlines was selected to carry, as it is not every day that such large and hairy animals board a plane. Though the airline has seen its fair share of extraordinary animal shipments, including the transport of alpacas, kangaroos, European bison, alongside more regular horse and dog shipments.
This mission was on behalf of the Azerbaijan’s Ministry of Agriculture, which purchased the yaks from Kyrgyzstan as part of its breeding program in Kalbajar. Kyrgyzstan’s native cattle breed has been domesticated and raised there over the past hundred years or so. Yaks are characterized by their undemanding nature, their adaptability to conditions in extreme climates; and the fact that they live outdoors all year round and can thrive at altitudes of up to 4.500 meters. Their use is very versatile – not only do they provide basic nutrition such as milk and meat, but also leather and wool for clothes, tools and housing. Kyrgyzstan has long supported yak husbandry, and Azerbaijan, too, is now seeking to promote and support this type of sustainable agricultural development.
The yaks, vital to the agricultural biodiversity of Azerbaijan, traveled over 2,000 kilometers aboard a Boeing 747-400F from Bishkek Manas International Airport to Ganja Airport. To ensure the highest welfare standards, the yaks were accommodated in custom-designed crates that provided protection from injury and stress. The aircraft was equipped with advanced ventilation and temperature control systems to maintain an optimal environment throughout the journey,” the release described. Once at destination, the animals continued their journey by truck to Kalbajar, where they will “enhance the genetic diversity of the region’s livestock.” Vugar Mammadov, Vice-President CIS and Central Asia at Silk Way West Airlines, commented: “We are honored to support sustainable agriculture and biodiversity through expert handling and transportation of live animals. This collaboration with the Ministry of Agriculture underscores our commitment to enhancing local ecosystems and contributing to global sustainability efforts.”

An established Solar Challenge partnership

The solar vehicle looks more impressive with each challenge. Image: AFKMLP Cargo

The Nuna12 picture in the image, here, is the descendent of Delft University of Technology’s original Nuna that won the sixth World Solar Challenge in Australia back in 2001. At the time, the university’s Solar Team was the first amateur team to win the race, outstripping 43 other competing teams. They had been inspired to enter the race after having watched a film called “Race the Sun,” and asked Wubbo Ockels, first Dutch astronaut and professor at the TU Delft, to be their team coach.
The World Solar Challenge was created soon after Danish inventor, Hans Tholstrup built the first solar-powered car and drove it across Australia in 1983. His invention was a reaction to the global oil crisis in 1973, which led to people seeking alternative and more sustainable energy sources. His car demonstrated the potential of solar energy. Delft University has been participating in the challenge over the years to contribute to sustainable innovation. “Today, solar racing continues to drive technological innovation and raise awareness for the environmental impact of fossil fuels. It challenges teams to develop and refine new technologies, contributing to advancements in sustainable technology that will eventually benefit commercial industries,” the release states.
Since Air France KLM Martinair Cargo also follows a sustainability strategy, it has partnered with the Dutch Brunel Solar Team in previous years, too. Now, the 2024 Sasol Solar Challenge is on in South Africa, and AFKLMP has again stepped up to assist the Brunel Solar Team with its logistics as it prepares to participate in the challenge 13-20SEP24. “As partners, we hope to help the team win this prestigious solar race for the fifth time!” the release states. “We will handle air transport and related logistics for the team’s solar vehicle, the Nuna 12s. To minimize environmental impact, AFKLMP will offset the fuel required to transport the Nuna 12s from Amsterdam to Johannesburg with SAF (an alternative aviation fuel), significantly reducing the carbon footprint of this journey.” GertJan Roelands, SVP Commercial at Air France KLM Martinair Cargo, stated: “Air France KLM Martinair Cargo is inspired by and aligned with the mission of the Sasol Solar Challenge. The airfreight industry faces the challenge of reducing its carbon footprint. Our goal is to lead innovation in this area by spearheading initiatives that involve all industry stakeholders.”

Etihad provides extra cargo capacity this summer

100 new passenger flights with cargo capacity. Image: Etihad Cargo

This month sees the UAE carrier expand its belly capacities for cargo. Eight new destinations have joined the schedule: Antalya, Bali, Al-Qassim, Jaipur, Malaga, Mykonos, Nice and Santorini, and 100 new weekly passenger flights in total are now being offered. Among them are increased passenger flight frequencies to Europe, the Middle East and Asia. U.S. services were already increased back in MAR24 with the launch of a fourth US gateway: Boston.
In Europe, from 02JUN24, the airline will offer cargo capacity on three weekly passenger flights to Malaga and two flights per week to Nice. Athens flights increase to 14 per week, two of which will operate via Mykonos, and two others via Santorini. New destination, Antalya in Türkiye, will be served thrice-weekly, complementing 14 (instead of 10) weekly flights to Istanbul from 22JUL24. Dublin will also see an increase come 23JUL24, with 10 flights per week, as opposed to seven.
In the Middle East, Saudi Arabia’s Al-Qassim joins as a new destination (thrice-weekly). Flights to Amman double to 14 per week, while Kuwait flights increase from 21 to 28 per week. Bahrain, Beirut and Muscat all see an increase of two flights per week, Doha is connected with five more weekly flights, whilst Cairo flights increase to 28 per week. Over in India, Jaipur is the new destination with four weekly flights, complementing Thiruvananthapuram’s ten weekly flights (up from seven since the 2023 winter schedule). Ahmedabad and Bengaluru are now each served 17 times a week, the Kolkata service increases to eight per week.
New route, Bali, sees four weekly flights, while services to Bangkok are increased to 18; Colombo to 27; Karachi to 17; and Seoul to 11.
Stanislas Brun, Vice President Cargo at Etihad Cargo, said: “With the launch of its summer schedule, Etihad Cargo will deliver significant benefits to its partners and customers, thanks to the added belly hold cargo capacity and enhanced connectivity to key markets. The expansion of the airline’s passenger network, in combination with Etihad Cargo’s regular and charter freighter services, will substantially increase cargo capacity across Europe, the Middle East and Asia. Introducing new routes and increased frequencies will reinforce the connections between Abu Dhabi and major global markets, effectively meeting the growing demand for cargo capacity.”

AviAlliance sells Budapest Airport

BUD CargoCity was inaugurated in NOV19 – photo: CFG/hs

It had been a long time coming, but now it’s done: Budapest Airport is changing hands. New owner is a consortium consisting of Hungarian Corvinus Zrt. (80%) and the French co-investor Vinci Airports (20%). According to local sources, the total equity value of the deal is EUR 3.1 billion, with net debt of EUR 1,2 billion to be added to the amount. Originally, AviAlliance did not want to sell its stakes, as airport ownerships are an important source of income for its parent, Quebec’s Public Sector Pension Investment Pension Fund, to finance pensions. However, constant pressure from the Orban government has now prompted it to sell its majority stake (55,44%) in BUD.
Following the inking of the sales agreement, Gerhard Schroeder, Managing Director of AviAlliance, stated: “Since our initial investment in 2007, Budapest Airport has grown significantly. Together with our co-shareholders, we have invested a total of more than 700 million EUR in the expansion and development of the airport. Thanks to this and to the dedication of its excellent management team and employees, the airport has been internationally recognized for its high-quality service. We are convinced that our investments and development plans provide a solid foundation for continued success under the new ownership.”
Under the ownership of AvíAlliance, Budapest Airport experienced substantial growth in passenger and cargo traffic. In 2023, 14.7 million travelers departed or landed at BUD while air freight throughput surpassed 200,000 tons.
One of AviAlliance’s most important investments was the development of the BUD CargoCity, the first phase of which was inaugurated in 2019 followed by subsequent enlargements. With its numerous handling facilities and office wings for freight forwarders and ground operators, it has put Budapest on the international cargo map. The constant increase in shipment volumes since then is impressive proof of this.

Qatar Airways Cargo and MASkargo sign partnership MoU

Choosing to leverage each other’s strengths. Image: Qatar Airways Cargo/MASkargo

Qatar Airways Cargo and MASkargo have agreed to join forces and benefit from each other’s cargo strengths as laid out in their recently signed Memorandum of Understanding. On the passenger side, the two airlines already signed a codeshare agreement back in 2004, which was expanded in 2022 to a total of 62 destinations. They have long been partners under the oneworld umbrella. The latest MoU will see their cargo carriers achieve operational synergies and improve connectivity through each other’s international networks operating out of their respective hubs: Hamad International Airport in Doha, Qatar, and Malaysia’s Kuala Lumpur International Airport. While MASkargo customers will have access to Qatar Airways Cargo’s global network and benefit from the cargo airline’s growing handling capabilities at its expanded Cargo Terminal, Qatar Airways Cargo customers will benefit from greater capacity opportunities and new destinations in the APAC market. On the fleet side, too, both airlines are set for growth. Qatar Airways Cargo is the launch customer of the Boeing 777-8 freighter, and will take delivery of 34 aircraft. Malaysian Airlines purchased 20 new A330neo aircraft for its passenger flights, and will offer their bellies for cargo.
Qatar Airways Group Chief Executive, Engr. Badr Mohammed Al-Meer, explained: “Our new MoU with Malaysia Aviation Group is testament to our deepening relations with Malaysia and the integral APAC market. This strategic cooperation with our oneworld partner will serve to link our freighter and belly-hold networks with our cargo product offering and capacity, allowing us to further cement our relationship and foster the close links between our airlines.” Group Managing Director of Malaysia Aviation Group, Captain Izham Ismail, added: “Expanding our partnership with Qatar Airways Cargo marks a significant milestone for MASkargo. This collaboration will not only enhance our product offering and operational capabilities but also solidify our position in the global cargo market. By leveraging each other’s strengths, we are poised to deliver unparalleled service to our customers and achieve remarkable growth together.”

Air Canada Cargo opts for Rotate’s Sales Cockpit

Digitally enhanced sales through Rotate’s Sales Cockpit. Image: Lemon Queen

Air Canada is the second airline after Etihad to soon benefit from Rotate’s digitally enhanced sales processes, and there will be more to follow as the tech company plans to deliver its CargoTech solution to more airlines in future. Rotate’s Sales Cockpit is designed to support an airline’s sales teams in all sales aspects from uncovering sales opportunities, to monitoring agreements/quotes and tracking their performance. The web-based software, which is integrated in Air Canada Cargo’s own CRM tool, continuously analyzes the airline’s data to automatically identify and open customer-specific potentials. All information required is stored in one place, equipping sales teams with everything they need to carry out customer communication and discussion. The implementation of the Sales Cockpit is part of Air Canada Cargo’s broader digitalization strategy, aimed at enhancing the overall customer experience.
Matthieu Casey, Managing Director – Commercial at Air Canada Cargo, commented: “This partnership with Rotate and the roll-out of the Sales Cockpit will enable our Sales teams to provide more personalized and timely service to our customers while maintaining a consistent approach globally. This consistent approach allows us to work collaboratively and proactively as our customers’ needs change.”
Ryan Keyrouse, CEO at Rotate, stated: “We are thrilled to support Air Canada Cargo in its digitalization journey. Our collaboration has enhanced the Sales Cockpit, making it a more effective tool for their sales teams. The feedback from Air Canada Cargo has been important in refining the solution to better meet the needs of the industry.”

Cargojet and Great Vision HK link China and Canada

Cargojet to operate at least three weekly flights between YVR and HGH. Image: Cargojet

Flights already began on 22MAY24, between Hangzhou, China to Vancouver, Canada, and back, but news of the three-year agreement between Cargojet and Great Vision HK Express was published on 10JUN24. Cargojet will deploy a Boeing 767-300 freighter and operate at least three scheduled charter flights per week on behalf of China-based Great Vision HK. The regular routing caters to China’s e-commerce business and is expected to generate more than CAD $160 million (around EUR 109 million) over the course of the agreement. While Cargojet secures the airport-to-airport segment for Great Vision HK, the Chinese end-to-end integrated logistics solutions provider covers the rest on both ends of the route: pick up, pre-sorting, international air freight, customs clearance, distribution, last-mile delivery and after-sales services.
Jamie B. Porteous, Co-Chief Executive Officer, said: “Leveraging Cargojet’s industry-leading record of on-time performance and reliability, together with the connection opportunities from Vancouver to fifteen other cities in Canada, will allow Great Vision HK to provide enhanced services for China-based e- Commerce service providers, to their customers across Canada.”
Pauline Dhillon, Co-Chief Executive Officer, stated: “We continue to explore opportunities to maximize asset and aircraft utilization and look forward to a strong partnership with Great Vision HK.
Christine Cheng, Co-Founder and Chief Operating Officer at Great Vision HK, added: “This is an important milestone for Great Vision HK, and we’ve partnered with Cargojet, another industry-leader in Canada, to provide top-quality transportation services to our customers in Asia. International air freight is a key part of this logistical chain, and we believe through this strategic partnership with Cargojet that we can offer extremely reliable and efficient services to our customers, while continuing to promote trade between the two countries.”

WestJet and Virgin cement cargo partnership

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Following a decade of absence, Virgin Atlantic will resume air services to Canada. From the upcoming summer flight season onwards, beginning 30MAR25, the UK carrier will add the route London Heathrow – Toronto Pearson to its transatlantic network. Although the decision is mainly based on passenger demand the go-ahead for the daily services has also consequences for the cargo business, including Virgin’s cooperation with WestJet.

Virgin returns to Toronto, deepening its cargo collaboration with WestJet – courtesy Virgin Atlantic Airways

Virgin Atlantic will operate the route with an Airbus A330neo. According to Airbus, this variant can accommodate up to 33 LD3 containers underfloor or 9 pallets plus 5 LD3. But Virgin points out that other aircraft might be deployed on the London – Toronto sector as well, depending on passenger demand. Official travel data show that 1.1 million passengers booked this route in 2023 flying either on board Air Canada jetliners or British Airways long haul aircraft.

New horizons
In addition to the route announcement, Virgin Atlantic and WestJet plan to expand their collaboration enabling transit passengers seamless travel options through their respective hubs Calgary and London Heathrow to beyond destinations. In the case of Virgin these include predominantly the Indian destinations Bangalore, Delhi and Mumbai, in Africa Cape Town, Johannesburg and Lagos and Dubai in the UAE. Conversely, WestJet offers Virgin clients commuting flights to key domestic Canadian destinations and abundant cross border connections to and from the States. 

Sharing belly capacity
The capacity provided by Virgin Atlantic’s upcoming Toronto flight strengthens the cargo partnership existing between the UK carrier and its Canadian associate, emphasizes WestJet Cargo when asked by CargoForwarder Global. “WS and VS already use each other’s cargo belly network via LHR today. With this closer collaboration we are reviewing more lanes to cooperate i.e. India and Southeast Asia,” reads the statement delivered by WS management.

However, the collaboration does not include a sales agreement enabling WestJet Cargo selling Virgin lower deck capacity actively and vice versa on the YYZ > < LHR sector and beyond.

Deepened WS-AF ties
Up to now, it is a confined partnership based on an interline agreement but with upgradable prospects, explains WestJet management.

Currently, WestJet offers services to seven European destinations. Only three weeks ago, the carrier announced year-round flights between Calgary and Paris CDG, complementing its year-round services on the Calgary-London Heathrow sector.  The Paris flights deepen WestJet’s longstanding codeshare partnership with Air France, including its cargo division.

Türkiye flies into space

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Elon Musk owned Space Exploration Technologies, dubbed SpaceX, will launch Turkey’s first domestically built satellite on board a Falcon Heavy rocket into orbit, Turkish operator Turksat said on Tuesday (11JUN24). Last week, the space capsule was flown from Ankara to Florida on board an Antonov Airlines operated AN-124-100 freighter, with charter broker Proair managing the demanding mission.

The designers estimate the service life of Türksat 6A to be at least 15 years  –  courtesy: construction consortium

With the construction of Türksat 6A, Turkey joins the club of almost a dozen countries worldwide that have proven their technical ability to produce communication satellites on their own. Provided all goes well, the space capsule will be positioned at a geocentric position 35,786 km above earth. It will cover an area stretching from the British Isles in the west, Scandinavia in the north, Pakistan in the east and the northern part of Africa, including the Arabian Peninsula. It will significantly improve the supply of information in these regions, as it offers excellent voice quality and high data transfer rates.

Challenging mission
The operating time of Türksat 6A is estimated to be 15 years. It was constructed by a consortium headed be the Tübitak Space Technologies Research Institute in close cooperation with Turkish Aerospace Industries, Aselsan A.Ş. and CTech Bilisim Teknolojileri A.Ş.

The satellite was fixed in a special container and pulled by hydraulic winches through an external ramp into the big freighter aircraft, supported by cranes. The entire project took 39 hours, including the transcontinental flight. Asked about operational specifics, the Turkish office of broker Proair denied providing information. The responsible state authorities in Ankara have not yet published any specifics on this project like the costs of the charter or the exact launching date of the satellite, Proair’s Turkish office told CargoForwarder Global.

High flying ambitions
In a press meeting held at Ankara prior to the AN-124 freighter’s takeoff to Florida, Turkish Industry and Technology Minister Mehmet Fatih Kacır proudly announced further strengthening the national production program for low-orbit satellites. “We will support public, academic and private sector projects in this field. And we are determined to ensure that Türkiye is among the countries that have a say in this field.” In addition to this he announced that his government has decided to erect and establish a Space Technology Development Zone in Ankara. But Turkey’s space ambitions go much further than low orbit, where Turksat A6 will soon be positioned.

At the same meeting, Abdulkadir Uraloğlu, Minister of Transport and Infrastructure, said that the satellite will not only improve communication, but also perform important security tasks by monitoring Turkey’s territory and that of the neighboring areas. The project, which has cost USD 250 million to date, represents an important step for Turkey’s extraterrestrial ambitions, the politician emphasized.

Next stop – the moon?
His cabinet colleague, Mehmet Fatih Kacır, announced that Türkiye’s space ecosystem will further grow, based on two decades of technological advancements coupled with research centers that have been set up supported by industrial efforts. The official said that plans for developing launch rockets are on the government’s table as is spaceport based on international cooperation to be introduced by 2030. This is coupled with an ambitious national Moon Program whose centerpiece is a spacecraft with a propulsion system, developed, designed and produced by Turkish scientists and engineers. Until then, the country’s satellite ambitions will advance with the support of Musk’s Space X. “I think, we’ll start off with Falcon Heavy missions and do great work there and then potentially move on to the next vehicle,” SpaceX’s President and Chief Operating Officer Gwynne Shotwell told Anadolu Agency.