NEWS FROM FREIGHT
HANDLERS GLOBALLY CARGO SHORTS
IATA Cargo Outlook
According to IATA, the average cost of
air cargo in May was six times more expensive
than sea freight, compared with
12 times more expensive pre-crisis.
“There’s all these indicators that show
that that demand is going to continue and
shippers are under a lot of pressure to
get the goods in and try to get them back
on the shelf.”
FedEx also indicated it is not expecting
a full recovery in air cargo capacity until
2024.The express giant said that trade
volumes have surpassed pre-pandemic
levels and are on course for the fastest
year of growth in over a decade.
IATA says 2021 cargo demand to exceed
2019 levels by 8 percent and 13 percent
in 2022with strong continued growth.
Indicators such as inventory levels and
manufacturing output are favorable, world
trade is forecast to grow at 9.5 percent
this year and 5.6 percent in 2022, e-commerce
continues to grow at a double-digit
rate, and demand for high-value specialized
cargo is rising.
Boeing back better
Boeing Co. may partner with specialists
including Israel Aerospace Industries
Ltd. and Mammoth Freighters to convert
its passenger jets for cargo use to keep
up with soaring demand for those planes.
Boeing has forecast demand for 2,610
wide-body freighters by 2040, with 1,720
of them being conversions from older passenger
aircraft, and the rest new production.
To this end it is opening three new
freighter conversion lines and has orders
for eleven 737-800BCFs.
K+N & SAF
Kuehne+Nagel becomes the first air
logistics provider to offer its customers
the option to purchase Sustainable Aviation
Fuel (SAF) for shipments. Customers
can easily opt for SAF to be used instead
of fossil fuel for air transport and benefit
from net zero carbon emissions airfreight
services thereby minimizing the environmental
impact of their shipments.
Alliance Ground
International
(AGI) has expanded its operations
at John F. Kennedy International Airport
(JFK), New York AGI has moved into JFK’s
Cargo Building 22 adding 11,960 square
feet of office space and 82,153 square feet
of warehouse space to its existing facilities
at the airport. Operations from the new
facility are due to begin on December 1st
2021. The handler is also relocating from
its existing facilities at Building 339 at EWR
to a 24,000-square-foot on-airport facility
to handle outbound/export cargo
Dnata
dnata has joined the IATA gender diversity
initiative. The initiative aims to
advance gender diversity in the aviation
industry committing to increasing the
number of women in senior positions and
under-represented roles with a target to
AIRPORT V 24 OICE, NOVEMBER 2021
Down with the old....JFK Buildings 259, 260. 261 coming down for new Aeroterm cargo warehouse with prime tenant WFS.
reach a minimum representation of 25%
or increase current levels by a minimum of
25% by 2025 across all divisions.
Prices, Up, Up
As addition international passenger
flights come in with cargo, as a result of
relaxed covid restrictions, prices will likely
go up as the complex issue of shortage
of warehouse space, workers, drivers
and seaport congestion plague the supply
chain. CLIVE Data Services statistics
show that spot rates to New York JFK from
Western Europe are currently up 237%
against two years ago at $4.23 per kg with
dynamic load factors at 85%.
Amazing Amazon
In August, the company opened its
$1.5 billion Amazon Air Hub in Kentucky.
Around the same time, Amazon announced
it was expanding its same-day
delivery service to six new cities.
The retail giant is now shipping 72%
of its own goods, compared to 46.6% two
years ago, with a global transportation
network that includes 400,000 drivers,
40,000 trucks, 30,000 vans and over 70
planes.
But while the company has begun
moving cargo for the U.S. Postal Service,
one researcher says Amazon won’t try to
replicate all the services offered by UPS
and FedEx.
WFS Acquisition
Ground handler Worldwide Flight Services
(WFS) has acquired Pinnacle Logistics
as it looks to expand its presence
in North America. Fort Worth-based Pinnacle
specializes in express cargo handling
for e-commerce customers at Dallas
Fort Worth, Houston, Austin, San Antonio,
Allentown (PA), Minneapolis and Bradley
(CT). It also has a trucking operation
based out of Texas. Michael Simpson,
WFS’s executive vice president Americas,
said: “The acquisition of Pinnacle Logistics
enhances our core cargo and express
cargo handling value proposition to customers,
and Pinnacle’s established trucking
logistics business further expands our
service offering.
Cathay reduces losses
Cathay Pacific revealed it was able to
reduce losses by approximately 25% owing
to cost-cutting measures and a strong
air cargo demand. Air cargo alone accounts
for 80% of the airline’s revenue
generated during the past months. They
believe air cargo demand is likely to continue
to drive the airline’s revenue “as the
market indicators suggest a strong peak
season driven by the need for inventory
replenishment”. In August 2021, the airline
brought in two additional Boeing 777 “preighters”,
taking its total to six and providing
the airline with more cargo capacity.
UPS
UPS’ revenue and operating profit continued
their upward climb during the third
quarter, reporting $23.2 billion in total revenue,
up 9.2% year over year, and $3 billion
in operating profit, a 23.4% increase
from Q3 2020. For the first nine months of
the year, UPS generated more operating
profit than any full year.
TIACA Sustainability
The International Air Cargo Association
(TIACA) has published the industry’s
first Air Cargo Sustainability Roadmap,
as a part of its sustainability agenda. This
comprehensive publication is designed
to support the air cargo industry through
what will be a period of transformation.
Released to coincide with COP26 discussions,
the roadmap illustrates the role
air cargo stakeholders are playing today
and will continue to play going forward.
Access the PDF here: https://tiaca.org/
wp-content/uploads/2021/11/TIACA-Air-
Cargo-Sustainability-Roadmap-FINAL-
04November2021.pdf
American>India
American Airlines Cargo introduces
New Delhi to its service, expanding its
international network starting today November
12, 2021. This will be the first time
American has served the country since
2012 as American marks its return to the
Indian capital city with a daily passenger
service from John F. Kennedy International
Airport (JFK) to New Delhi Indira
Gandhi International Airport (DEL).
AirBridge’s Lithium
AirBridgeCargo Airlines (ABC) has obtained
approval from the Civil Aviation Administration
of China (CAAC) for commercial
transportation of lithium batteries over
35 kg. The company said it had become
the first airline to receive SP A99 approval
in China, which comes after two years of
preliminary works, testing, and collaboration
with stakeholders.
The first commercial shipment of 113
kg was launched on October 20 from
Shanghai Pudong Airport to Frankfurt.
Shipper CMA CGM
The 3rd largest container ship company
in the world, CMA CGM, augmented
its nascent new cargo airline, CMA CGA
Air through the addition of two B777
freighter aircraft with anticipated delivery
in 2022. The Boeing 777 has a maximum
payload of 102 tons and a range of 9,200
km. which will put a slight dent into the
current seaport cargo crisis. “The Boeing
777 will provide CMA CGM Air Cargo the
flexibility to operate the airplane across its
growing airfreight network while helping to
deliver on its sustainability objectives as
the CMA CGM Group pursues its commitment
to offer its customers a complete
range of transportation and logistics solutions,”
the company said.
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