Middle Eastern airlines’ freight volumes decreased 6 percent in October 2019 compared to the year-ago period, while capacity increased by 0.9 percent, according to figures released by the International Air Transport Association (Iata).
Against a backdrop of operational and geopolitical challenges facing some of Middle East region’s key airlines, seasonally adjusted freight volumes in the region have resumed a modest upwards trend which is a positive development for the region’s carriers.
Iata released data for global air freight markets showing that demand, measured in freight ton kilometers (FTKs), decreased by 3.5 per cent in October 2019, compared to the same period in 2018.
This marks a weak start to the traditional peak season for air cargo and the twelfth consecutive month of year-on-year declines in freight volumes.
Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 2.2 per cent year-on-year in October 2019. Capacity growth has now outstripped demand growth for the 18th consecutive month.
Over the past year, air cargo has suffered from the effects of the trade war between the US and China, the deterioration in global trade, and a broad-based slowing in economic growth.
Alexandre de Juniac, Iata’s director general and CEO, said: “Air cargo’s peak season is off to a disappointing start, with demand down 3.5 percent in October. Demand is set to decline in 2019 overall – the weakest annual outcome since the global financial crisis. It has been a very tough year for the air cargo industry.”
Airlines in Asia-Pacific and the Middle East suffered sharp declines in year-on-year growth in total air freight volumes in October 2019, while Latin American and European carriers experienced a more moderate decline. Africa was the only region to record growth in air freight demand compared to October last year.
Asia-Pacific airlines saw demand for air freight contract by 5.3 percent in October 2019, compared to the same period in 2018. Capacity increased by 0.6 percent. The US-China and South Korea-Japan trade wars have negatively affected the region. And the disruption to operations at Hong Kong International Airport – the largest cargo hub in the world – continues to impact activity. However, the thawing of US-China trade relations and robust economic growth in key regional economies are positive developments.
North American airlines saw demand decrease by 2.4 percent in October 2019, compared to the same period a year earlier. Capacity increased by 3.1 per cent. The underlying strength of the US economy has seen domestic air cargo outperform international which, as noted above, has also been impacted by the trade tensions with China.
European airlines posted a 1.5 percent decrease in freight demand in October 2019 compared to the same period a year earlier – a significant improvement over the 3.5 per cent decrease in September. Better than expected economic activity in Q3 in several of the region’s large economies helped support demand. Capacity increased by 2.8 per cent year-on-year.
Latin American airlines experienced a decrease in freight demand in October 2019 of 2.6 per cent compared to the same period last year. Various social and economic headwinds in the region’s key economies have impacted the region’s air cargo performance. Capacity increased by 2.3 per cent year-on-year.
African carriers posted the fastest growth of any region in October 2019, with an increase in demand of 12.6 per cent compared to the same period a year earlier. Strong trade and investment links with Asia contributed to the positive performance. Freight volumes on key Africa-Asia routes were up 23 per cent annually in September (latest available data). Capacity grew 13.9 per cent year-on-year, it stated. – TradeArabia News Service
Major General Mohamad Ahmad Al Marri, Director General of the General Directorate of Residency and Foreigners Affairs in Dubai (DGRFA Dubai) revealed that a total of 808,025 passengers passed through Dubai’s land, sea and airports during the Martyrs’ Day and the 48th UAE National Day holiday between November 29 and December 3. A total of 709,992 passengers passed through Dubai Airports, while 78,165 passengers used the land ports, and 19,868 passengers crossed the sea ports. Al Marri pointed out that Dubai International Airports received 334,241 passengers in just five days.
Hatta port set a record in the movement of passengers (departures and arrivals) between November 26 and December 3, which coincided with the 49th Oman National Day holiday. Al Marri added that the “Sanad” team at the Hatta Port (Passport Control Department) set an emergency plan in cooperation with the Hatta Police Centre to organize traffic and activate the largest number of counters to handle the rush.
Abu Dhabi Airports and Etihad Cargo, the cargo and logistics services arm of the Etihad Aviation Group, have announced a major project to enhance Abu Dhabi International Airport (AUH) into a state-of-the-art global air cargo center of excellence.
Abu Dhabi Airports and Etihad Cargo will implement a multi-phased cargo infrastructure development strategy, starting with the imminent upgrade of Etihad’s existing air cargo terminal facilities on the Southside airport perimeters. The program will culminate with the inauguration of Etihad Cargo’s future home, a new state-of-the-art air cargo terminal in the East Midfield section of the airport, an area designated by Abu Dhabi Airports for future integrated cargo, logistics and integrator activities.
The plans revealed that the first phase, the upgrading of the Southside Etihad cargo facilities, will commence immediately and is due for completion in phases between fall 2019 and end of Q3 2020. The scope includes the enhancement of RFS loading docks with levelers, insulation and floor works for faster and more efficient loading with stricter temperature controls, increased storage space and additional build-up and breakdown zones to improve production workflow, and upgraded cool chain facilities for both its fresh and pharma handling and storage operations.
This phase will not only increase efficiency and productivity in the existing facilities to support air cargo growth at Abu Dhabi International Airport for the coming five years, but it will also enhance Etihad’s pharmaceutical logistics capability through a dedicated Southside Pharma Terminal, adding 3,500 sqm’s of space for temperature-controlled handling and storage across both 2-8 degrees Celsius and 15-25 degrees Celsius categories. This further complements Etihad Cargo’s recent success in the domain, having become the first airline in the Middle East to gain CEIV Pharma certification for both its airline and terminal operations in January.
Furthermore, with a focus on continued growth mid and long term, Abu Dhabi Airports and Etihad Cargo have agreed as a next step to designate a plot of land at the East Midfield site. The team will soon be inviting expressions of interest to bid for the design and construction of Etihad Cargo’s state-of-the-art, next generation facility that will mark the creation of one the world’s most advanced and automated air cargo terminals. The facility will be designed to handle incremental UAE import and export demand, boost Etihad’s growing cargo network flows as well as cater for the significant rise in E-commerce and express mail and cargo operations.
Bryan Thompson, Chief Executive Officer of Abu Dhabi Airports, commented: “Geographically, Abu Dhabi is situated at the heart of the east to west trade routes. Additionally, the transport and logistics fabric of the Emirate of Abu Dhabi is well planned and structured to create undeniable potential to grow the cargo traffic exponentially.”
“Today we are putting in place the right foundations and frameworks for our future cargo activity, which in a few years will re-shape this industry for the Emirate of Abu Dhabi. Abu Dhabi is the future’s cargo hub for the region and the world.”
Tony Douglas, Group Chief Executive Officer, Etihad Aviation Group, said: “Today’s announcement is a major milestone in the development of Etihad Cargo’s logistics strategy that will see our hub continue to grow as one of the world’s most important trade facilitators connecting East and West.
“The immediate investment in the Southside terminal will deliver a step change in the efficiency and capability of our existing facilities while the announcement of the development of a new facility reinforces Etihad’s commitment to develop Abu Dhabi as a world class hub for the logistics of the future.”
In addition, Abu Dhabi Airports is setting the groundworks for the first phase of a bonded, non-bonded and free zone area adjoining the airport designated as “Al Falah Free Zone”, which it will develop as a prime location for E-commerce fulfilment and Logistics warehousing. The goal is to transform the nation’s capital into a globally recognized, multi-modal cargo hub driving sustainable economic growth in the Emirate.
LUG air cargo handling will serve Delta Air Lines at Frankfurt Airport from 15 January 2020.
The American airline operates three flights a day from Frankfurt to Detroit, Atlanta and New York using Airbus A330s and Boeing 767s.
The USA is an important export market for Germany, especially in the automotive, machinery and pharmaceutical sectors.
Germany is the USA’s second biggest European market after the UK.
LUG expects a considerable increase in throughput at its terminal in Frankfurt’s CargoCity South in 2020.
The ground handling agent has been working with Delta in Munich for over five years.
LUG has also renewed its contract with Uzbekistan Airways for two to three flights a week between Frankfurt and Tashkent using 767s and 787s.
Kerry Logistics has expanded its footprint in the Middle East by setting up a new office in Bahrain and opening a bonded logistics facility in Dubai.
The Bahraini office focuses on the automotive, oil and gas, fashion and lifestyle and electronics and technology verticals with air, ocean and road freight, customs clearance and warehousing services.
The Dubai facility is located three kilometres from Al Maktoum International Airport and 20 minutes from Jebel Ali Port.
The bonded facility has an area of 70,000 square feet, offering services to electronics and technology customers and e-commerce fulfilment services.
Mathieu Biron, managing director – global freight forwarding of Kerry Logistics says: “Our new office in Bahrain and the logistics facility in Dubai are substantially boosting Kerry Logistics’ capabilities in serving customers in the Middle East. We foresee that Kerry Logistics will continue with further expansion in the GCC region.”
Aerotuf showcased its latest ULD innovation, the AeroTHERM Extra Cool on Boeing’s ecoDemonstrator 777 last month.
The ecoDemonstrator program showcases Boeing’s latest innovations, and the 777 flew to Germany where it was greeted by over 1,000 people keen to explore the latest aviation technologies.
The AeroTHERM Extra Cool Temperature Protective Container was provided for testing and recording temperature and performance.
Romar Frazier of BCA Advanced Concepts says: “Sustainability is fundamental to the ecoDemonstrator programme. We collaborate with partners such as Aerotuf to test technologies under real-life conditions in the air to accelerate innovation for the future of aviation.”
Adam Barrington-Spencer, vice president sales and marketing of Aerotuf says: “Today a third of the world’s food produced goes to waste, with 40% directly lost through the air cargo supply chain. This new Extra Cool AeroTHERM container will help to reduce that waste, whilst improving handling times and saving on materials cost.”
Tom Pherson, president of Aerotuf adds: “This new Extra Cool AeroTHERM model, further expands our temperature protective range, delivering even greater insulation to help keep perishable cargo cooler for longer, further reducing material and food waste, whilst maximizing durability, thanks to patented foam-core technology, standard in all AeroTHERM containers from 2020.”
Two SF Airlines Boeing 747-400ERFs each carried 103 tons of cherries from Chile to China on flights on 26 November and 4 December.
The flights from Santiago took 31 hours and after arriving in Hangzhou, each pallet of cherries was packed and documented for customs clearance and delivery to shops and homes.
Carried on SF Airlines’ 747-400ERF, the SF Express subsidiary tailored the Chile – China delivery to pursue providing clients with customs and flexible solutions for their businesses and customers.
SF Express modified its US-China air route, adding Santiago as a stop.
The route was established for export-import deliveries between North America and China, and is now approved to stop in New York, Santiago, Miami and Anchorage.
Kevin Zhao, manager of SF Express US sales team says: “Time is critical when it comes to perishable logistics, so we carefully arrange each step of the process to ensure rapid transit and minimal turnaround times.”
He adds: “The US-China airline of SF Express, coupled with a wide portfolio of service packages tailored to the specific needs of seasonal products, delivers a premium logistical service. From customs clearance to import duties and border inspection to last-mile-to-door delivery, our staff plans every step of the way to avoid delays.”
AG Cargo has successfully trialled autonomous drone technology within its warehouse facility in Madrid to automate freight checks.
Conducted using technology developed by drone software start-up FlytBase, the trials came after IAG Cargo found it was spending an average of 6,500 hours each year recording barcodes and location data of freight across individual warehouses.
With the drones’ use of the 3D space, degree of autonomy and continuous advancement in intelligent automation software, IAG Cargo identified a viable solution to increase accuracy within the warehouse.
Carly Morris, head of innovation at IAG Cargo says: “Watching our autonomous drone take off, navigate our warehouse, collect valuable location and barcode data, and then return itself to an origin point for self-charging is an incredible sight, and shows the huge potential drones have in the aviation and logistics sectors.”
Morris says the trial is one aspect of IAG Cargo’s programme of innovation and investment to change how logistics works.
She says: “We have more exciting new technology tests and trials in 2020 that will help change the way our industry approaches some age-old problems.”
Two separate trials have been completed where the technology completed tasks including navigating across multiple racks by flying over-the-top; accurately detect and reads AWBs and identify empty slot locations; and automatically return itself to charging doc for self-charging.
The three-day AIR CARGO INDIA 2020 conference will host an exclusive Air Shipper Forum on Automotive to track the trends and address the concerns shaping the automobile industry. Topics relevant to industry stakeholders will be discussed in great detail at AIR CARGO INDIA 2020, to be held from 25 to 27 February 2020 at Grand Hyatt in Mumbai.
According to the Society of Indian Automobile Manufacturers (SIAM), in fiscal 2018-2019, over 4.6 million units of vehicles (passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycle) have been exported. This is a rise from the nearly 4 million units exported in the previous fiscal.
While the automobile industry in India is currently facing a slowdown, it is an apt time for retrospection of business ideas and policies so as to rev up the profits in the future.
The Air Shipper Forum on Automotive is supported by Frankfurt Airport and will be held on Day 2 (26 February).
Commenting on coming onboard as a supporting partner for the Forum, Max Conrady, senior vice president for cargo, Fraport said: “India is an extremely important cargo market for us, especially when it comes to the automotive sector. We attach great importance to further develop our partnership with India. Therefore, we are very pleased that Air India provides a new flight connection between Mumbai and Frankfurt since 2018 and we are looking to a possible frequency increase in 2020. AIR CARGO INDIA is a considerable event for us, not only to establish and strengthen trade contacts but also to encourage the exchange with major representatives of the Indian air cargo sector.”
Apart from the Forum on Automotive, AIR CARGO INDIA 2020 will also give delegates a chance to engage in discussions on forums in other sectors including Perishables, Pharma and eCommerce.
For Conrady, the conference offers versatile benefits. “Of course, our focus is on the automotive sector, but temperature controlled shipments play an important role, too. Frankfurt is Europe’s leading pharma hub and we are seeing a strong growth in the Indian pharma sector over the last few years. We are convinced that there will be a strong focus on the Indian pharma sector in the next years.”
Frankfurt Airport views the Forums as one providing opportunities for future cooperation and growth which will benefit both ends of the trade lane – India and Germany.
The growth in exports coupled with concrete initiatives by the Government of India and the major automobile players in the Indian market are set to cement India’s position as a leader in the two-wheeler and four-wheeler market in the world by 2020. AIR CARGO INDIA 2020 will tap into this optimism to pave the way for leaders to meet and deliberate on the overall growth of the industry.
“The Air Shipper Forum is a great opportunity for us not only to present the strengths of our airport as Europe’s leading cargo hub, but also to establish important business contacts, strengthen partnerships and learn more about the latest developments and trends of the Indian cargo sector,” concludes Conrady.
The last edition of AIR CARGO INDIA witnessed participation from 2,354 visitors, 74 exhibitors and 478 delegates. The 2020 edition is expected to be bigger and better in terms of networking opportunities and knowledge exchange.
AIR CARGO INDIA has onboard Zeal Global Group as the Platinum Sponsor, GMR Cargo as the Gold Partner, Atlas Air as the Exhibitor Lanyard Partner, Skyways Group as the Visitor Lanyard Partner, CargoFlash as the Delegate Bag sponsor and Cathay Pacific Cargo as the sponsor for Cafeteria & Visitor Bags. IBS Software and Unisys have come onboard as Track Sponsors.
Antonov Airlines flew four Apache AH-64E Attack Helicopters on behalf of Boeing, from Phoenix Mesa Gateway Airport (AZA), Arizona, USA, to Hindan Airforce Base (VIDX) in India.
An Antonov Airlines AN-124-100, which can accommodate up to five Apache helicopters, transported the aircraft, with a total payload of 39 tonnes including their dismantled rotor blades.
“The Antonov Airlines team was responsive and willing to support deadlines while applying for the complex overflight permits required for military cargo,” said Jon Roland, Boeing Program Manager.
“Antonov Airlines partnered with us to secure the required clearance and permissions, creating a cooperative environment to ensure a smooth delivery.”
The Antonov and Boeing engineers collaborated closely on mission planning in real-time during the loading process.
“We worked out how to best use the available space during loading to safely transport the cargo,” said Amnon Ehrlich, Commercial Director, Antonov Airlines USA.
“We also took into consideration the high summer temperatures in Arizona while planning the move.
“The loading started in the early hours to avoid the high temperatures. Following a night-time departure, the mission was completed 24 hours later.”
Boeing has already contracted Antonov Airlines for further Apache helicopter shipments later this year.
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