While ecommerce sales drove a 9% growth in air freight demand in 2017, manual air freight management and sales continued to cost the industry billions annually in changing fees, untapped capacity, and manual labor. This contributes to the average air cargo transit time of six days, while the flight itself is just hours. That’s now changing, with digital connectivity introduced by Freightos WebCargo and Lufthansa Cargo’s application programming interface (API) services, enabling forwarders to instantly look up contracted rates, assess capacity, and book cargo on specific flights in real-time, via the world’s leading air cargo platform for forwarders.
Lufthansa Cargo and Freightos now enable customers to instantly view their contracted price online and secure air freight capacity. This will be expanded globally in coming months, beginning with a rollout in major European markets. Freightos air freight customers, like Röhlig Logistics, are already benefiting from improved visibility, instant booking, and increased data exchange accuracy. Global Airfreight Director of Röhlig Logistics Dirk Schneider explains: “The new functionality enables rapid quoting and booking of our shipments. Röhlig Logistics customers benefit as one of the first through improved information flow and handling of their consignments. We are happy that we joined the pilot and look forward to extending this service further within our network.”
In order to provide the optimal customer experience, Lufthansa Cargo has prioritized technology initiatives, like APIs. “Through Lufthansa Cargo web service, we are driving the digitization of our industry to offer our customers and partners a convenient and fast digital interface to our products and services”, says Peter Gerber, CEO of Lufthansa Cargo.
Freightos WebCargo already has the world’s largest air cargo rate database and now enables real-time pricing, capacity and eBooking for the few airlines like Lufthansa Cargo with the necessary digital capabilities. If capacity is unavailable, the system also supports manual online ad hoc pricing. Together, this means faster air freight.
According to Zvi Schreiber, CEO of Freightos, “Everyone’s talking about air cargo digitization but for most it’s just talk. It’s fantastic to partner with a forward-looking airline like Lufthansa Cargo for this quantum leap in cargo booking. The result of on-demand booking is that goods will move faster, with up to a day shaved off transit time, and tens of dollars saved per shipment.”
Abu Dhabi-based carrier Etihad has agreed to cooperate with a major Chinese holding company on air logistics, procurement and mutual promotion, it recently said in a statement.
Etihad Aviation Group (EAG) chief executive Tony Douglas and Jiangsu Provincial Overseas Cooperation and Investment Company (JOCIC) chairman Luo Hua, during Chinese President Xi Jinping’s three-day state visit to the UAE signed the memorandum of understanding (MoU).
The companies said they plan to cooperate on a wide range of issues supporting the development of the China-UAE Industrial Capacity Cooperation Demonstration Park (China-UAE Industrial Park) in Khalifa Port, Abu Dhabi.
Last year, Abu Dhabi inked an investment deal worth $300 million (Dh1.1 billion) with five Chinese companies via JOCIC.
According to the announcement, the MoU states that Etihad will provide the companies investing in the China-UAE Industrial Park with preferred air transportation and cargo rates on the routes and services between China and other cities on Etihad Airways’ entire network. JOCIC and the companies of the China-UAE Industrial Park will also designate Etihad Airways as their preferred airline.
Under the agreement, EAG and JOCIC, the management company of the China-UAE Industrial Park, say they will jointly explore marketing opportunities in China and the UAE, while seeking to promote the China-UAE Industrial Park, and pushing Abu Dhabi as a welcoming destination for Chinese investment.
In addition, EAG will enjoy special rates on the products produced and manufactured by Chinese companies at the China-UAE Industrial Park.
Etihad CEO Tony Douglas said in a statement: “China is a strategically important market for Etihad. We feel extremely honored to forge such a strategic partnership with JOCIC so as to serve the development of the China-UAE Industrial Capacity Cooperation Demonstration Park, and better foster the Chinese companies within the industrial park.”
Agility, one of the Arabian Gulf’s biggest logistics firms, reported a 20 percent rise in second quarter net profit, thanks to strong performance in its logistics and infrastructure businesses.
Net profit rose to 20 million Kuwaiti dinars (Dh241m) from KD16.8m in a year-earlier period, Agility said in a statement on Monday. The results beat Sico Bahrain’s quarterly estimate of 19.43m dinars, according to a Reuters poll.
Net revenue for the quarter stood at 124.3m dinars, up by 5 per cent from the year-earlier period.
“Our second quarter results were in line with expectations and consistent with the previous growth trend the company has been seeing,” said Tarek Sultan, Agility’s vice-chairman and chief executive.
“Agility’s Infrastructure companies performed well, as did our logistics business, which witnessed another quarter of volume and revenue growth despite margin pressure.”
Agility, which used to be the main food supplier to the US army in Iraq, is expanding into new areas and regions to diversify its revenue base to reach a target of $800m earnings before interest, taxes, depreciation and amortization (ebitda) by 2020. The company, which is listed in Kuwait and Dubai, is also investing heavily in Africa, building a mall in the UAE and setting up a logistics park in Saudi Arabia.
Agility’s Global Integrated Logistics division recorded a 5 per cent rise in net revenues to 66.7m dinars, primarily due to growth in freight forwarding and contract logistics, the company said. The infrastructure division saw net revenues rise 9.5 per cent to 97.5m dinars, with a solid performance by all entities in this group, Agility said.
Meanwhile, Agility Industrial Real Estate “continues to improve the efficiency of its operations in Kuwait.” It has also concluded the first phase of a warehouse expansion project in Riyadh, totaling 80,000 square metres of new industrial space, and started phase two, which will deliver an additional 120,000 sqm of space.
Expansion in Africa is also progressing according to plan as the real estate division moves ahead with its development in Ghana and prepares to start new developments in Mozambique, Nigeria and Cote d’Ivoire, Agility’s statement said.
Dubai’s DP World is expanding its footprint in Europe by acquiring Danish logistics company Unifeeder for $765 million. The port operator bought the firm from Nordic Capital Fund VIII and certain minority shareholders.
The acquisition is intended to boost DP World’s presence in the global supply chain and broaden its product offering to shipping firms and cargo operators, the company said in a stock exchange statement.
Based in Denmark, Unifeeder operates a container feeder and shortsea shipping network in Europe, with connectivity to approximately 100 ports—serving both deep-sea container hubs and the intra-Europe container freight market. The company, which was founded in 1977, reported revenues of $591 million last year.
“The ever-growing deployment of ultra-large container vessels has made high-quality connectivity from hub terminals crucial for our customers,” said Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World.
The deal to acquire Unifeeder, which will be financed from DP World’s existing balance sheet, is still subject to regulatory approvals and is expected to close in the final quarter of 2018.
Globally, DP World operates 78 marine and inland terminals, with activities include container handling, cargo, and fleet and logistics services. Recently, the firm has made a push to expand its reach in Africa. In July, DP World announced plans to build inland logistics hubs in both Mali and Ethiopia, which will connect to coastal ports operated by the company in neighboring Senegal and Somaliland, respectively. DP World is also currently locked in a dispute with the government of Djibouti over the seizure of a container terminal operated by the firm.
The UAE’s logistics sector is gaining momentum as more and more startups open their shops offering latest solutions and services, tracking real time shipment, beating turn around time for deliveries and so on. While the UAE may see the blend of conventional logistics players and startups, the challenge now remains how will the existing players face competition from startups who are more equipped in terms of latest technology that offers transparency at a click of a button and the traditional logistic company which is run on years of networking in the industry.
The technology adoption has helped companies to bring buyers and sellers on one platform with much smarter processes easing the cumbersome process of locating vehicles, fleets, tracking delivery points. The Internet boom in the UAE did boost the e-commerce growth in last couple of years but one of the biggest challenge was delivering the goods as promptly as the click on your mouse. The logistics sector sees firms competing to deliver within hours and on same day within the UAE.
A few popular brands like Truxapp, Trukker, Yalla Pickup, Quipqup and RSA Logistics agree that though the industry is becoming very competitive the question remains what innovation are you bringing to table to help capture your market share. According to MAGNiTT’s 2017 State of Mena Funding report industries such as e-commerce, fintech, food and beverage and logistics and transport are the most preferred sectors where startups disrupt the industry. In last five years 8 percent of exits in startups was recorded in the logistics sector.
According to the recent analysis of DCCI, the UAE’s air freight market will expand by a CAGR of 4.8 percent over the 2017-2021 period. Over the same time span, container port traffic in the UAE is expected to rise from 22.4 million TEUs in 2017 to 28.4 TEUs by 2021.
While several industries are becoming digitally enabled, the logistics sector has largely been neglected, or not given the necessary attention, because of its complexities as a B2B service. Currently, the logistics is lagging and this is affecting growth in many other sectors that depend on the efficient movements of goods. Today’s digital savvy, connected consumers expect faster accurate deliveries and an optimal user experience which can make or break brand loyalty, which also has an effect on revenues.
UK-based startup, Quiqup offers technology that businesses can tap into in minutes and a service to deliver goods in minimum time. Dani El-Zein, general manager UAE, Quqiup, said, “The movement of goods across countries and within cities has to be increasingly streamlined to power next day, same day, and even same hour deliveries. The only way logistics companies can stay competitive with so many players vying for customers is through tech and service excellence. The industry is moving very quickly and the players that will survive and thrive our those who will stay ahead of the curve, anticipate ever-growing consumer needs, and develop the technology and customer operations necessary to fulfill those needs. Those who don’t, won’t.”
According to Frost & Sullivan, in 2016, the size of the logistics sector in GCC was estimated to be $ $107 billion of which the road transportation sector accounted for $26.9 billion growing at a conservative rate of 5 percent year on year. This indicates that there is room for growth for several players.
Naseer Ahmed, chief executive officer & general manager, Truxapp, said, “Start-ups who have right blend of robust technical capabilities, strong industry experience and thorough geography knowledge, not only will be able to cross the entry barrier effectively, but also sustain over long run. Lastly, as the technology adaptation curve across B2B sector is relatively more spread out than B2C sector adaptation; investors, users and other stakeholders will realize the worth in due time frame; patience pays off.”
According to a report published by BMI Research, the Middle East is one the fastest growing e-commerce markets in the world. The report projects that the sales volume of in the region will expand to $22.3 billion in 2020 from $15 billion in 2015, indicating 50 per cent growth over a period of 5 years, presenting growth and opportunity to the logistics industry which will have to re-invent itself to cope up with the demand for services.
Elie El Tom, Founder and CEO of Yalla Pickup, said, “The market is growing fast, and we are here to assist each other in serving the clients. I believe in collaborations among all players as there is room for everyone; a perfect example would be our collaboration with Wing.ae where we push to them all parcels deliveries and they push to us the large consignment ones. Collaboration is key in this market if we all wish to have a sustainable growth.”
Echoing similar positive sentiment, Sandeep Ponnappa, general manager, contract logistics and transportation at RSA Logistics, said, “Dubai is a fertile logistics hub for companies who want to offer supply chain services, and as service providers strive to create new solutions for their customers, this ensures constant cargo traffic through the region, albeit with some ups and downs in volume. Mega events such as Expo 2020 are also designed to generate logistic activity. The industry is competitive and inevitably, the natural selection process will favor companies who are agile and tech-friendly.”
DHL Global Forwarding and Ethiopian Airlines, has recently signed a new agreement to form a joint venture company – DHL-Ethiopian Airlines Logistics Services Ltd., to build the Leading Cargo Logistics provider JV company in Africa; the company will be based in Ethiopia and do business in the entire continent of Africa, enhancing Ethiopia’s logistics infrastructure and connections.
Ethiopian Airlines, which assumes a majority stake in this joint venture, will provide regulatory and operational support as DHL Global Forwarding establishes air, ocean, and road freight connections between Ethiopia’s main trade hubs and the rest of the world. Pramod Bagalwadi, a DHL veteran with over two decades of experience in management roles within the logistics industry, has been appointed to lead the new organization. This will be an additional portfolio for Pramod, who currently leads the Industrial Projects Team for DHL in Sub-Saharan Africa and a strategic business partner for the company in the region.
“With its GDP growth, Africa is stepping into the spotlight as production hub. Recent moves to open up the economy will continue to boost Ethiopia’s position as the fastest-growing economy in Africa, and under Pramod’s leadership, the company will be able to provide a scalable and durable logistics infrastructure to safely handle the sensitive needs of its core industries”, said Amadou Diallo, CEO, DHL Global Forwarding Middle East and Africa,
“Logistics is key to support Africa’s fast economic growth and industrialization drive. Ethiopian has, therefore, partnered with DHL who has a proven expertise and experience in the logistics sector, with a view to avail the right logistics solutions in terms of cost, time and quality. We have had a longstanding and mutually rewarding partnership with DHL, and with this JV we aim to make the country a logistics hub for Africa,” said Tewolde GebreMariam, CEO, Ethiopian Airlines Group.
Cargo volumes at Dubai World Central, DWC, has grown to 475,190 tons in the first half of the year, a year on year increase of 7.1 percent compared to 443,835 tons recorded last year, according to the traffic report issued by operator Dubai Airports.
After a robust growth of nearly 9 percent in first quarter, cargo volumes at DWC reached 245,359 tons in the second quarter, up 5.4 percent compared to 232,691 tons during the same period last year.
Passenger traffic at DWC totaled 517,813 passengers in the first half down 6.7 percent compared to 554,993 passengers recorded in the first half of 2017. In terms of passenger volumes, the top regions for DWC during the first half were Commonwealth of Independent States, CIS, with 271,000 passengers, from Eastern Europe 98,633 passengers, Western Europe 89,559, and the Middle East 49,671 passengers.
Flight movements during the first half totaled 16,069 compared to 18,373, down 12.5 percent recorded during the corresponding period in 2017. The average passenger per flight movement during the first half was 163 compared to 121 during the first half in 2017, an increase of 34.7 percent.
During the period under review DWC was served by eight passenger carriers, operating an average of 95 flights weekly to 14 international destinations and 26 scheduled cargo operators flying to as many as 70 destinations around the world.
Dubai International (DXB) airport passenger traffic grew 1.6 percent in the first half of 2018 to 43.7 million, mainly due to increased passenger traffic from the CIS states and Eastern Europe.
Industry analysts believe that DXB is on track to beat last year’s 88.2 million passenger traffic numbers and will meet its 90 million target.
“Dubai International had forecast modest growth to about 90 million passengers this year and it looks like they’ll hit that target. So yes, they’ll beat the 2017 figures. But going forward, the real long-term focus has to be developing Dubai World Central and expanding its true capabilities,” said Saj Ahmad, chief analyst, StrategicAero Research.
Last year, DXB was ranked the world’s third largest airport in terms of passenger traffic after Atlanta International Airport and Beijing Capital International Airport. But Tokyo’s Haneda Airport and Los Angeles International Airport were catching up fast, recording 85.4 million and 84.55 million passenger traffic in 2017, respectively.
Ahmad said it might be a few years before Los Angeles becomes a serious contender, by which time, runway improvements and other multi-billion dollar investments at Dubai will mean that the UAE city may move on and expand even further, especially given the rate of convergence and expansion between Emirates and flydubai.
“Los Angeles may well take the lead when the transition period between DXB-DWC occurs, but that’s a while off yet.”
According to Dubai Airports, passenger traffic in June surged 11.7 per cent to 6.795 million compared to 6.08 million recorded in June 2017. Passenger traffic from CIS states grew 50.6 per cent, followed by Eastern Europe at 33.6 per cent, Africa at 20 per cent and North America at 16.9 per cent in the month of June.
India was the top destination country with 968,931 passengers, followed by Saudi Arabia (504,968), the UK (454,477), Pakistan (349,633) and the US (291,391). London topped the list of top city destinations with 280,941 passengers, followed by Mumbai (195,213 passengers) and New Delhi (173,820).
“Notwithstanding the annual date changes for Ramadan, Dubai International’s strong June performance underscores the robust demand that exists for travel so soon after the Eid period. And with the summer season in full swing, it’s no surprise to see that CIS routes have surged up to 50 percent, driven by demand as well as new city pairings that have been established by the likes of flydubai and Emirates alike,” Ahmad said.
Flight movements in June totaled 32,805 compared to 30,841 recorded during June 2017, up 6.4 percent. The average number of passengers per flight during the month stood at 213 compared to 203 during the same month in 2017, a growth of 4.9 percent.
The airport handled a total of 214,612 tons of cargo during June, a marginal contraction of 0.5 percent.
Gulf Air, recently celebrated the introduction of the airline’s new Boeing 787-9 Dreamliner double daily service to and from London. Marking the occasion, the airline hosted a celebratory event at the Arts Club in Mayfair, with guests including Ambassadors and members of the diplomatic corps in the United Kingdom, of countries served by Gulf Air, owners and managing directors of some of the biggest UK travel companies, leading British trade partners and media representatives.
Gulf Air Chief Executive Officer Mr. Krešimir Kučko and members of the airline’s executive management including its UK Country Manager Mr. Rashid Al Gaoud welcomed the guests, sharing information about Gulf Air’s latest products and services and the many improvements Gulf Air’s Boeing 787-9 Dreamliner passengers will experience.
Speaking at the event, Mr. Kučko said, “Gulf Air has had strong ties with the United Kingdom since we commenced our operations to London in 1970. London is a key destination for our customers traveling for either business or leisure, and I am delighted to introduce our newest 787-9 Dreamliner double daily service on this route. I look forward to receiving passenger feedback on this exciting addition to our fleet, which allows our UK travellers to travel across Gulf Air’s expanding network in superior comfort. I would also like to take this opportunity to thank our key industry partners in UK who are integral to the growth and success of our London operations.”
Gulf Air’s new 787-9 Dreamliner double daily service connects London, Heathrow and Bahrain International Airport. Gulf Air’s Boeing 787-9 Dreamliner offers 26 Falcon Gold Class seats and 256 Economy Class seats with greater pitch, larger IFE screens, enhanced onboard comforts and greater entertainment choices. Onboard the state-of-the-art aircraft, passengers can enjoy the largest windows of any jet, air that is cleaner, more humid and at a higher pressure for greater comfort, large overhead bins with room for everyone’s bag, soothing LED lighting and technology that senses and counters turbulence for a smoother ride.
Gulf Air’s double daily nonstop flights connecting Bahrain and London Heathrow Terminal 4 provide excellent two-way connectivity. Regional passengers can seamlessly connect via Bahrain to London while UK-based travellers can fly non-stop to Bahrain, with onward connections to key cities throughout the Middle East, Africa, India Subcontinent and the Far East, all on-board one of the airline’s newest Boeing 787-9 Dreamliner aircraft.
In 2018, Gulf Air’s network will serve 49 cities in 26 countries. Gulf Air is committed to being an industry leader, continually enhancing its services and tailoring a product offering that best fits its passengers’ needs. The airline is famous for its traditional Arabian hospitality, evidenced by its signature family and business friendly products. Today, Gulf Air operates double daily flights or more to select destinations across the GCC, MENA region, Indian Subcontinent and Europe while its network spans the GCC, MENA region, Indian Subcontinent, Europe and the Far East. The airline provides seamless connectivity for passengers travelling across its network via its efficient Bahrain International Airport hub.
Emirates and Trenitalia, Italy’s national railway company, recently announced a new codeshare agreement which will enable Emirates customers from across its worldwide network to discover new destinations across Italy.
With just one easy-to-book ticket, travellers will be able to fly on Emirates and reach some of Italy’s most picturesque cities and towns using high speed, modern and comfortable trains that leave from Emirates’ four Italian gateways – Bologna, Milan, Rome and Venice.
“This codeshare agreement with Trenitalia opens up new possibilities for our customers and complements our current services to Bologna, Milan, Rome and Venice. With Trenitalia, travelling to the Far East from Foggia, or to Padova from Sydney has never been easier,” said Hubert Frach, Emirates’ Divisional Senior Vice President, Commercial Operations, West.
“Emirates already flies more than 1.6 million passengers to and from Italy every year. With this codeshare agreement, we’re connecting Italian regions to our global network, significantly boosting the Italian tourism industry,” added Mr Frach.
“The agreement signed by Trenitalia and Emirates is a pivotal step towards the increase of effective and comfortable integration between train and airplane,” said Gianpiero Strisciuglio, Director of Trenitalia Long Haul Passenger Division. “Our customers will now be able to buy one single solution for their train and flight journey, departing and arriving from 27 Italian stations and enjoying the comforts and the best commercial facilities offered by Trenitalia and Emirates,” he added.
Customers can now start booking their codeshare trips via Emirates’ website and travel onwards to these destination and benefit from the convenience of holding a single ticket. First Class and Business Class passengers will automatically be booked in First Class on board Trenitalia’s trains.
Emirates customers will be able to board Trenitalia trains directly without the need to exchange their boarding pass for a separate ticket. As with their flight, they will be assigned a seat number and car number, which will be on their e-ticket.
Trenitalia tickets will be booked in the cabin class that matches the class of travel on the Emirates ticket. Depending on the type of train, these cabin classes on Trenitalia range from Executive, Business, Premium and Standard. Passengers travelling in Emirates First Class and Trenitalia Executive Class will also be able to access, where available, the lounges of each partner by presenting their boarding passes.
Emirates’ baggage allowance will also apply for train journeys, as well as baggage dimension restrictions. Customers will need to collect their checked bags from the arrival hall at the airport and take them to the train station.
Technology has made the world smaller and faster.Real time communication with people from all over the world at different time zones through phones and gadgets
