NEWS FROM FREIGHT
HANDLERS GLOBALLY CARGO SHORTS
Cargo lo-growth. Air cargo globally
is sagging amid the increased tariffs,
eating into cargo airlines’ profits.
Air freight volumes measured in
freight-ton kilometers, fell 3.6% in the
first half of the year from the same
period in 2018, the International Air
Transport Association said earlier
this month. International air cargo
volumes from the Asia-Pacific region
fell more than twice as much at
8.1%. Cargo Slowing. In July, the Cass
Freight Index, which measures North
American rail and truck volumes, fell
0.8% from June, marking its eighth
month of declines, and a drop of nearly
6% from a year ago.
The Dow Jones Transportation
Average, which tracks 20 companies
in package delivery trucking, rail
and airline segments — including
FedEx, CSX and American Airlines
— is up 10% this year, compared
with nearly 17% gain for the broader
S&P 500. The DJTA, considered an
economic bellwether, has dropped
by about 5% in the last month, compared
with an almost 2% decline in
the broader market.
Delta and Virgin Atlantic are both
increasing flights between the two
continents beginning in the summer
of 2020, and Delta will have a presence
at Gatwick Airport for the first time in
over five years. This expanded flight
network will provide cargo customers
better choices when it comes to trans-
Atlantic capacity, routes and frequencies,
according to a joint media release
from the airlines.
Gatwick will become Delta’s seventh
trans-Atlantic destination served
nonstop from Boston when flights begin
next May. During the same month,
Virgin Atlantic will launch a daily
flight to New York-JFK from Gatwick.
DHL expands. DHL has completed
a $4m expansion of its Hartford service
center in Connecticut, US. 16,000
sq. ft. of warehouse space was added
allowing the 38,000sf warehouse to
double its inbound sorting capacity for
international shipments and speeding
deliveries. DHL JFK International
Airport Gateway will benefit from
the DHL network globally through
direct flights to and from the company’s
Americas Hub at the Cincinnati/
Northern Kentucky Airport.
Amazon is the top third-party logistics
carrier globally employing
more workers (648,000) than either FedEx
(450,000), UPS (481,000) or USPS
(497,000) - up from just 117,000 in 2013.
They gave not-renewed contracts
with FedEx and And they’ve built 390
warehouses, have 50 planes, 300 truck
power units and 20,000 delivery vans.
PANYNJ. The Port Authority of NY
& NJ moving forward on converting old
AIRPORT V 24 OICE, SEPTEMBER 2019
fuel technologies with electric power
through its e-GSE program providing
some subsidies for infrastructure,
some grants from the VW settlement
and Vale grants for diesel conversion..
Fore more information goto:
Lufthansa Cargo at JFK currently
handles the flights of most Lufthansa
Group airlines (Lufthansa, Austrian,
Eurowings and as of September 1 also
Brussels Airlines) plus acts as handling
agent for Cathay Pacific, Qantas,
CAL, Royal Air Maroc and Kuwait
Airways. In order to accommodate
all future growth, their cargo facility
expanded the footprint to a total of
176,000 square feet of warehouse space,
3 aircraft parking positions behind the
building and 31,000 square feet of office
space through a 12.5 year lease at
Building 23.
Tariffs. Economists and executives
alike are trying to assess the impact
of tariffs and the overall health of the
economy, amid mixed signals such as
steady consumer spending, weak manufacturing
data and volatile stock and
bond markets.
J.P. Morgan wrote in a note this
week that the average American
household will lose $1,000 a year
because of new tariffs. Economists
and executives alike are trying to
assess the impact of tariffs and the
overall health of the economy, amid
mixed signals such as steady consumer
spending, weak manufacturing
data and volatile stock and bond
markets.
Qantas Airbus. Aircraft lessor Vallair
has confirmed that it is the owner
of the first of three A321 converted
freighters (P2F) that will be provided
to Qantas. Vallair said that Qantas
would become the first airline in the
world to operate an A321P2F when the
aircraft (MSN835) is delivered in 2020.
The aircraft will provide an extra
50% more capacity compared with the
existing B737Fs.
Airbus, ST Aerospace and EFW
have extended their strategic partnership
and launched the development
of the OEM supported A320/A321P2F.
Airbus states that the A320 singleaisle
jetliner family (composed of
the A318, A319, A320 and A321) is the
world’s best-selling single-aisle aircraft
family. The A321P2F is targeted
to enter service in 2018 followed by the
A320P2F in 2019.
Agile Agility. Logistics and infrastructure
firm Agility saw net profits
increase by 8.1% year on year in the
second quarter despite its airfreight
business coming under pressure. Results
were driven by its Agility Global
Integrated Logistics (GIL) division.
Tarek Sultan, Agility vice chairman
and chief executive, said: “We had a
good second quarter despite the tough
environment we operate in. GIL reported
very good results and continues
to implement its strategy to drive
operational efficiency. Agility’s Infrastructure
companies performed well,
and key initiatives in each business
unit are moving ahead according to
plan.”
Atlas Air Rules. A recent judge’s
ruling came out in favor of Atlas Air
(AAWW). Atlas Air Worldwide Holdings
said in a statement that the August
26 arbitration decision “affirms
that the merger provisions of the collective
bargaining agreement (CBA)
apply in connection with Atlas Air’s
acquisition of Southern Air in April
2016.”
But a statement from the Airline
Professionals Association, Teamsters
union Local 1224, steadfastly
affirmed that the union will “pursue
all remaining legal options” to
avoid a contract resolved by an arbitrator.
Airglades Int’l Airport. Hendry
County, Florida and Airglades International,
LLC (AIA) announced
today that: (i) the U.S. Federal Aviation
Administration had deemed its
application under the Airport Investment
Partnership Program (AIPP) to
be “substantially complete.” AIA selected
AvPORTS as airport operator
and Star America as a private investor
and equity provider in a new allcargo
and perishable goods airport
to be located at the current General
Aviation Airglades Airport in South
Florida. “ these actions represent a
major boost to our long-term plans to
develop a new state-of-the-art logistics
complex that will dramatically
reshape the efficient flow of perishable
goods from Latin American producers
to U.S. consumers, said Fred
Ford, AIA President.”
OFFICE & WAREHOUSE SPACE
At JFK: Offices & Warehouses Small & Large
Attractive Rental Rates in Professionally Managed Buildings - Have a Lease within ONE DAY!
175 Broadhollow Road, Suite 175, Melville, NY 11747
tel 631 270 3000 • fax 631 270 3087 • nailongisland.com
For Information:
Brian Pinnola
office: 631.270.3027 | cell: 516.456.0433
bpinnola@nailongisland.com
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