The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), decreased by 4.5% in September 2019, compared to the same period in 2018. This marks the eleventh consecutive month of year-on-year decline in freight volumes, the longest period since the global financial crisis in 2008.
Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 2.1% year-on-year in September 2019. Capacity growth has now outstripped demand growth for the 17th consecutive month.
Air cargo continues to suffer from:
- the intensifying trade war between the US and China, and South Korea and Japan,
- the deterioration in global trade,
- and weakness in some of the key economic drivers.
Source: IATA
After it ceased operations in March 2019, Iceland’s WOW air had planned to resume flight operations sometime in October 2019. With the month nearing its end, the revived carrier gave an update on its goals: trading passengers for fish.
It was planned to start scheduled flights between Washington DC and Keflavik and Reykjavik, Iceland, in the middle of October 2019. But according to Gunnar Steinn Pálsson, WOW air’s new spokesperson quoted by Icelandic media RUV, preparations have been more time-consuming than initially planned for a “number of undisclosed reasons”, and the company should not take back to the skies before at least a few more weeks.
But the most critical change that the new founder Michelle Ballarin brought to WOW air’s plan is its core business: indeed, it seems that, at least for the beginning, the carrier will transport freight (“fish and other goods”) instead of passengers.
Such flights had already been announced when the revival of the airline was outlined in September 2019, yet they were not supposed to represent its main business. The move is not that surprising, given that Ballarin has experience in the transportation of goods and that it requires less certification from regulators. However, transiting between freight and passengers is a much different kettle of fish that will require heavy conversion of the aircraft and extensive paperwork.
An unexpected return
Established in 2011 by now-former CEO Skúli Mogensen, WOW air expanded quickly, pioneering in low-cost air travel between Europe and North America. However, the airline’s impressive growth was followed by deepening financial losses in recent years.
On March 26, 2019, suspicions of multiple WOW air’s aircraft being grounded surfaced. Two days later, the Icelandic carrier announced it was ceasing operations. To this day, the airline’s official website still displays the travel alert on how stranded passengers could get a refund if they were affected by the sudden bankruptcy.
But surprisingly, WOW air hit the news again six months later with a plan to resume operations. The carrier was to operate under a U.S. air operator’s certificate (AOC) and be based in Washington Dulles International Airport (IAD) with Reykjavik Keflavik (KEF) as its main operations center in Europe, operating just two aircraft, with plans to increase this number to four in summer 2020 and potentially 10 to 12 planes in the long-term.
Source: Aerotime
Henry Ko of Flexport Asia (left), and Keith Ip of SF Express Group
Freight forwarder Flexport is partnering with Chinese logistics specialist SF Express. They will connect data and platforms to provide “smarter and more advanced logistics services” to address the specific needs of Chinese companies.
“We have been increasing our investment in technology and are committed to continuously enhancing the user experience,” said Henry Ko, managing director of Flexport Asia.
“Our collaboration with SF Express will enable us to further improve end-to-end services and operational capabilities, helping us to elevate the user experience to the next level, both within and outside of China. Driven by a shared vision of delivering the most valuable customer experiences possible, this partnership will play a key role in the evolution and development of powerful trade tools.”
Keith Ip, chief executive, international business of SF Express Group, said: “Working with Flexport, we hope to further support Chinese companies’ expansion ambitions in overseas markets. SF Express and Flexport will fully leverage each other’s strengths while continuing to promote future innovation and introduce ever-more competitive logistics solutions. By expanding cross-border B2B business capabilities, we aim to create significant value for our customers.”
Source: Air Cargo News
DHL Express will invest €131m in expanding its hub at Incheon International Airport to meet expected growth in online sales in the Asia Pacific region.
The investment will see DHL expand its Incheon Gateway facility to a gross floor area of 58,700 sq m from the current 20,000 sq m – an increase of almost 200% – with work expected to be completed in the second quarter of 2022.
It will also be equipped with the “latest technology for faster, more secure and efficient delivery handling processes”.
The multi-year investment is expected to support demand growth up to 2032.
The investment also covers technical upgrades including fully-automated X-ray inspection machines, a 4 km conveyor belt, automated sorters, magnetic speed controllers and full CCTV coverage.
The new technology will increase the Incheon Gateway’s total handling volume of parcels and documents by over 150%
Ken Lee, chief executive, DHL Express Asia Pacific, said: “Our Incheon Gateway occupies a vital strategic position along key routes between South Korea and countries like Singapore, Taiwan, Hong Kong and China – all of which are amongst our top ten inbound and outbound markets by express delivery volume.
“With online retail sales in Asia Pacific expected to reach $2.5trn by 2023, our latest investments in the Incheon Gateway will align our infrastructure to what Asia’s e-commerce generation needs.
Since the opening of its Gateway in 2008, DHL Express has seen a growth of over 45% in shipment volume, indicative of the growing role which the Gateway plays in global and intra-regional trade.
The expanded facility is also aligned to Deutsche Post DHL Group’s mission of net zero logistics-related carbon emissions by 2050.
It will incorporate a range of ‘green’ features such as the use of solar power and energy-efficient lighting systems to achieve CO2 reduction of up to 1,500 tons per year.
When completed in second quarter 2022, the Incheon Gateway will be DHL Express’s largest gateway in Asia Pacific.
Source: Apex Insight
WeCargo | Airport Innovation Lab & Summit is an initiative of Liege Airport & Leansquare. The event has the mission to inspire the global air cargo community: digitalization, unmanned vehicles, drones, blockchain, AI, etc. are hot topics that will create next opportunities for (cargo!) airports and air freight stakeholders.
Those 10 days are fully dedicated to start-ups, hackathon, investors funds, key cargo players to create deal flows, partnerships and inspiration.
More information: WeCargo
Fevzi Gandur Logistics opens new hub at Istanbul Airport.
Turkey-based transport firm Fevzi Gandur Logistics has opened a warehouse at the new Istanbul Airport.
The facility measures 2,700 sq m and is one of only four warehouses located at the airport’s cargo city area.
A spokesperson for Fevzi Gandur Logistics said that the facility would provide a range of services including consolidation, re-packaging, storage and delivery.
The company will target the e-commerce, automotive, healthcare and technology sectors.
Istanbul Airport opened in April this year to become the main hub for the city.
Source: Air Cargo News
Turkey has expressed interest in the Ukrainian An-178 aircraft, which was presented at the Teknofest 2019 exhibition in Istanbul, and praised cooperation with Ukraine in the aviation industry.
This was discussed during a meeting between Ukrainian Interior Minister Arsen Avakov and Turkish Interior Minister Süleyman Soylu on September 21, the press service of the Ukrainian Interior Ministry reported.
“An-178 is a very good aircraft. In addition, our Mi-17 helicopters [transport version of Mi-8] are modernized in Ukraine, six of which we have already received. For us, this is an example of a very successful cooperation with you,” Soylu said.
In turn, his Ukrainian counterpart noted that the Ukrainian Interior Ministry planned to purchase 13 An-178 aircraft for the State Emergency Service to eliminate fires and for the National Guard of Ukraine.
Avakov also invited Soylu to visit Ukraine at the end of the month to see upgraded models of the Mi-8 helicopter.
The An-178 short-range medium-airlift military transport aircraft was presented at the Teknofest 2019 aerospace and technology festival in Istanbul. An-178 is the first aircraft with Ukrainian and European components but without Russian ones.
Source: UKRINFORM
The event will attract delegates from all over the world, from specialists to leading practitioners in the areas of digital cargo. If you are responsible for digital cargo, e-freight, e-AWB, technology, innovation or strategy in your organization, this is an event not to be missed.
Location: Geneva, Switzerland, IATA Conference Center
Fees & Registration
IATA Member Airlines, Strategic Partners – $550
Non-IATA members, others – $610
Source: e-cargo
time:matters, special speed logistics services provider, has added urgent transports of dangerous goods, to its offering.
The expansion of services means that the company can now facilitate the transportation of time-critical goods in hazard classes 2, 3, 4, 5, 6, 8 and 9.
A statement from the company said that with this new offering, it is meeting the demands of industries that absolutely require both fast and reliable transport of dangerous goods. These include the automotive, aviation and aerospace, and machinery and components industries as well as companies in the life and health sector.
Dangerous goods can now be transported worldwide on passenger and cargo aircrafts operated by Lufthansa, Lufthansa Cargo, Austrian Airlines and Brussels Airlines from a total of ten markets. In addition to Germany, these also include the US, India, China, Hong Kong (Special Administrative Region), Japan, Thailand, Hungary, France and Portugal. Further markets are expected to follow.
“We are setting new standards in the industry with our fast and secure transport of dangerous goods,” commented Alexander Kohnen, CEO of time:matters.
Source: Stattimes