Kale Logistics named IT Systems Provider of the Year at Air Cargo India 2020

Kale Logistics Solutions, a trusted IT Logistics partner for Fortune 500 companies worldwide, was conferred with the IT Systems Provider of the Year Region- India at the coveted STAT Times International Awards organized as a part of the recently concluded Air Cargo India 2020 at Mumbai. 

STAT Times International Awards is an initiative by STAT Media Group to promote excellence in the Air Cargo industry. This is an annual event that sees a confluence of air cargo professionals across the globe. 

Kale Logistics Solutions (Kale) is a pioneer in creating transformational IT systems for the air cargo industry more than a decade. After receiving United Nations awards for creating some of the most comprehensive and value driving cargo community systems including world’s first next generation airport cargo community system at Mumbai and then creating North America’s first airport cargo community system at Atlanta airport, Kale is in the process of developing some pioneering logistics solutions that would further facilitate trade. s. The award recognizes Kale’s contribution to the Air Cargo Industry.

Kale is also the pioneer in setting-up the first block chain powered digital trade corridor between Mumbai, India and Amsterdam, Netherlands. The company is on the accelerated path to catalyze Trade Facilitation, empower ease of doing business, and enable trade through paperless supply chain transactions globally.

Similarly, Kale is also a market leader in developing comprehensive and integrated cargo handling system – GALAXY. It is currently live at more than 80 airports across the world and covers entire operations of import, export and transit.

“Kale has been on an award winning spree since the beginning of 2020. This is a positive sign that the industry has welcomed our solutions widely. This is also opening up new avenues and opportunities for us to grow as we get to raise our stakes high. We have more ambitious projects coming up in the following days and we believe that could help air cargo stakeholders overcome all the challenges and have simplified operations, “said Amar More, CEO, Kale Logistics Solutions.

SAL inaugurates new cargo facility at King Fahad International Airport

The Saudi Arabian Logistics (SAL) Co. has inaugurated its new 37,800sq meter air cargo facility at the Dammam-based King Fahad International Airport in the presence of Abdullah Al-Zamil, Chairman of the Board of Directors, Dammam Airports Company and numerous representatives of the airport’s governmental authorities.

The state-of-the-art facility offers advanced logistics services and boasts spacious facilities for dangerous goods, radioactive substances and cargo in-transit areas as well as designated areas for shipping live animals, heavy-weight shipments and a 24/7 customer service office.

SAL CEO Omar bin Talal Hariri said the new expansion serves to enhance the company’s logistic services at King Fahad International Airport while at the same time makes use of the services provided at the airport through the Cargo Village, the first of its kind all over the Kingdom’s airports. With the new expansion, the level of logistic services will improve whereas the operating capacity will increase to handle 130,000 tons a year. The Dammam station is the second since the launch of SAL facility at the Cargo Village of King Khalid International Airport last January under the patronage of Riyadh Governor His Royal Highness Prince Faisal bin Bandar bin Abdulaziz. Meanwhile, a similar facility is being constructed in Jeddah.

“At SAL, we recognize our tremendous responsibility as a major contributor to Vision 2030 objectives relating to the logistic services and the goals of the National Industrial Development and Logistics Program “NIDLP”. We aim to take advantage of the Kingdom’s strategic and vital location and transform it into a global important hub for cargo transportation and shipment,” Hariri explained.

Hariri spoke highly of the level of coordination between SAL and the government authorities including the Customs Authority, the Dammam Airports Company and security authorities.

“We have constantly worked together with our partners in order to provide more flexible cargo services such as cargo handling, clearance, transportation while linking cargo services with other Saudi airports,” he said. Hariri commended the latest improvements introduced to the procedures, which helped expedite the overall cargo processes and operations.

A Saudi Arabian Airlines Corporation’s subsidiary, SAL is the main cargo gate at Kingdom’s airports and the only logistics entity that connects carriers with airports and provides them with different services including ground handling, e-commerce activities, land transportation, warehouse management, and storage solutions, to mention but a few.

Hellmann Worldwide Logistics has opened a new branch in Szczecin, Poland. The globally active logistics service provider uses the location in West Pomerania to handle its breakbulk distribution within Poland and abroad.

Hellmann is now represented in Poland with a total of 14 of its own and seven partner branches, and offers the entire range of logistics services locally – from land transport, air and sea freight to contract logistics.

“Hellmann has been active in Poland for 29 years, and, as one of the leading logistics service providers, employs more than 500 people there today. The Polish market offers enormous potential, especially in the area of breakbulk logistics, which we intend to fully exploit with this new branch in Szczecin,” says Jens Tarnowski, regional CEO Europe Hellmann Worldwide Logistics.

DWC annual traffic exceeds 1.6 million

Dubai World Central (DWC) registered a surge in customer numbers in 2019 with annual traffic exceeding 1.6 million (+81.5%) during 2019. The sharp increase in customer numbers was primarily the result of the relocation of operations by a number of international carriers during the 45-day closure of Dubai International’s (DXB) southern runway for rehabilitation in April-May 2019. 

Year on year traffic also increased in the final quarter of the year compared with 2018 as DWC welcomed 363,626 customers in Q4 (+38.2%), mainly due to seasonal operations by chartered airlines. 

Regions contributing to traffic growth at DWC during 2019 were CIS (583,763), followed by South Asia (380,000), and the GCC (281,244).  Russia was the top country destination with 549,806 customers followed by Saudi Arabia (201,138) and India (193,900). The top cities served by the DWC network included Moscow (253,092), Budapest (60,098) and Jeddah (55,873)

There were 8,871 flights during Q4 bringing the annual total to 36,949 movements (+23.3%). 

With a total of 234,741 tons of freight in recorded in Q4, DWC’s annual cargo volume reached 911,571 tons (-7.7%).

DWC is currently served by six passenger airlines which operate an average of 30 weekly flights to 45 international destinations around the world. DWC is also home to 17 cargo operators that operate to as many as 45 cities globally.

ME airlines revenue loss up to $100m due to coronavirus

The current coronavirus crisis has cost Middle East airlines up to $100 million, according to the International Air Transport Association (IATA).

Gulf countries have all suspended flights to Iran, while the UAE has limited flights in China to just Beijing. Airports in the region have also restricted arrivals from countries hardest hit by the deadly virus, in an attempt to reduce its spread.

The IATA, which represents around 290 airlines, said that a forecast growth of 4.6 percent in passenger demand in the Middle East for this year is likely to be halved to just 2.3 percent, should conditions persist.
The current number of confirmed coronavirus cases in the UAE stands at 21, although there are 1,681 reported cases in the Middle East, with 66 deaths, all in Iran.

The IATA’s estimates do not include the additional impact to regional carriers forced to stop flights to Mecca and Medina, where Saudi Arabia suspended issuing visas to Muslim pilgrims to try to stop the spread of the virus.
Recently Emirates announced that staff had been asked to take voluntary paid or unpaid leave due to the “difficult business conditions” caused by the onset of the coronavirus.

Since being discovered in the Chinese city of Wuhan towards the end of last year, the coronavirus has spread to 76 countries, with almost 91,000 cases confirmed and over 3,000 people killed.

The IATA has said that if the spread of the virus continues, the aviation industry globally can expect a $30 billion revenue loss and a 4.7 percent reduction in global air traffic for the year.

flydubai lands in Krabi

flydubai’s inaugural flight has touched down in Krabi in Thailand, becoming the first UAE-based airline to offer flights to the popular holiday destination. The daily flights are operated via a short stop in Yangon, Myanmar and are codeshared with Emirates.

Sudhir Sreedharan, Senior Vice President, Commercial Operations (UAE, GCC, Subcontinent and Africa) at flydubai said, “Over the past ten years we have shown our commitment to opening up underserved markets and enabling millions of passengers to travel to more places more often.  This new route will present more travel options for passengers from the UAE and beyond, while giving people from Thailand direct access to Dubai’s travel hub”.
flydubai has become the first carrier in the UAE to operate flights to Krabi and with the new daily service from the UAE, the GCC and those connecting from Europe and the USA on the Emirates network now have more options to explore Asia and the Far East. Passengers from Thailand have more opportunities to benefit from direct flights to Dubai and beyond.

Attaporn Nuang-udom, the Director of Krabi Airport said, “the opening of the new route (Krabi) is a great opportunity to promote and facilitate the connection between Thailand and the Middle East. Also, it is a good chance for enhancing tourism in Southern Thailand. Your dedication and support for the Thai travel market means a great deal to all of us. Thank you very much. ”

Krabi is a popular holiday destination for beach goers and adventures alike. While limestone cliffs, dense mangrove forests and the famous Phi Phi Island will amaze nature enthusiasts, Krabi also offers activities like diving, hiking or exploring the Huay Toh Waterfall in Phanom Bencha National Park. 

Emirates SkyCargo, Accuity to automate compliance screening operations

Emirates SkyCargo, recently announced that it is working with Accuity, the leading global provider of financial crime compliance, payments and Know Your Customer (KYC) solutions, to help automate and streamline its regulatory compliance screening operations, increase efficiency and improve the speed of service to its customers.
Emirates Sky Cargo has implemented Firco Trade Compliance, an Accuity solution that efficiently screens shipment documentation (such as airway bills) against sanctions, dual-use goods and regulatory watch lists, within a single interface.

The new solution enhances Emirates SkyCargo’s current process, enabling the business to automate approximately 6 million compliance checks each month. This will significantly improve efficiency, while enabling Emirates to uphold the extremely high compliance standards that sit at the heart of its ethos.
Henrik Ambak, Emirates Senior Vice President, Cargo Operations Worldwide said, “Our top priority is to continue to adhere to regulatory requirements and manage our screening obligations accurately. Working with Accuity has enabled us to screen our very high volumes of shipments more efficiently ensuring that we comply with all international regulations.”

Firco Trade Compliance is an award-winning solution that was originally developed to enable banks to detect sanctions risks in trade finance transactions. Through collaborative innovation with clients, Accuity has adapted the offering to cater to the freight industry’s large-scale and highly complex operational requirements.
Cargo operators are responsible for conducting due diligence on the parties and items involved in every shipment they facilitate. This includes verifying the legitimacy of the sender and recipient, checking for dual-use or controlled goods (for example, those that could have a military purpose), and ensuring the shipment is not going to or coming from a prohibited location.

Emirates will now be able to screen shipment documentation against a variety of regulatory lists, such as the OFAC sanctions list and the EU dual and controlled goods list. Firco Trade Compliance also allows the analysis of bespoke datasets so, for example, Emirates will be able to screen goods against an endangered wildlife list, all within the same system.

“Emirates SkyCargo is firmly committed to the prevention of illegal wildlife trafficking and with the functionality of the Firco Trade Compliance system, we will now also be able to more effectively identify any wilful mis-declaration of wildlife goods that are shipped illegally,” commented Ambak.

Sophie Lagouanelle, Vice President of Financial Crime Screening at Accuity said, “This project marks a significant milestone for Accuity in our strategy to expand our screening offering to the cargo industry. By working in close partnership with Emirates SkyCargo, we are redefining best practice and setting a new standard of compliance for other cargo operators to follow.”

Etihad Airways announces 32% improvement in core operating performance

Etihad Airways has announced an encouraging 32% improvement in core operating performance for 2019, on revenues of US$ 5.6 billion (2018: US$ 5.9 billion). Losses were significantly reduced to US$ 0.87 billion (2018: US$ -1.28 billion). This result is better than Etihad’s internal plan for 2019. The airline’s transformation program has seen cumulative core operating performance improved by 55% since 2017.

Passenger routes were rationalized at the end of 2018 to optimize the network and improve revenue quality. However, passenger demand to and from Etihad’s ten gateways in India remained strong, despite the removal of capacity and feeder services previously provided through Jet Airways, and the airline added seats in these markets early in 2019.
Etihad carried 17.5 million passengers in 2019 (2018: 17.8m), with a 78.7% seat load factor (2018: 76.4%) and a decrease in passenger capacity (Available Seat Kilometers (ASK)) of 6% (from 110.3 billion to 104.0 billion). Yields increased by 1%, largely driven by capacity discipline, network and fleet optimization and growing market share in premium and point-to-point markets. Due to the capacity reduction, passenger revenues slightly decreased to $4.8 billion (2018: $5 billion), but route profitability improved.

Etihad Cargo remained committed to its transformation strategy in 2019, despite challenging market headwinds. Total cargo handled stood at 635,000 tons (2018: 682,100 tons), with total revenues of $0.70 billion (2018: $0.83 billion). This decline is mostly attributable to the full-year effect of belly-hold and freighter capacity rationalization undertaken in the fourth quarter of 2018, combined with adverse market conditions that resulted in yields dropping by 7.8%. Despite strong cost control, cargo profit contribution was lower year-on-year. Underlying transformation results were visible in the fourth quarter, having recorded a 5.6% increase in FTKs over the same period in 2018, with 1.7 percentage points higher load factors.

Total operating costs were significantly reduced, driven by a continuous focus on cost control and favorable fuel price trend. Financing costs remained flat despite the delivery of new aircraft to the fleet.

Tony Douglas, Group Chief Executive Officer, Etihad Aviation Group, said: “Operating costs were reduced significantly last year and both yields and load factors were increased despite passenger revenues being down due to network optimization. An improvement to the cost base significantly offset the cost pressures faced by the business, giving us headroom to invest in the guest experience, technology and innovation, and our major sustainability initiatives.

“There’s still some way to go but progress made in 2019, and cumulatively since 2017, has instilled in us a renewed vigor and determination to push ahead and implement the changes needed to continue this positive trajectory.”
On-time performance was the best in the region at 82% for flight departures and 85% for arrivals in 2019, completing 99.6% of scheduled flights across its network.

In 2019, Etihad continued its fleet renewal program and took delivery of additional fuel-efficient, technologically advanced aircraft, including eight Boeing 787-9s and three Boeing 787-10s, while retiring its Airbus A330s from the mainline fleet. The airline’s fleet count at year-end was 101 (95 passenger aircraft and six cargo freighters), with an average age of only 5.3 years.

In December, Etihad signed an agreement with Seattle-based aviation finance company Altavair, and investment firm KKR, for the sale of the retired Airbus A330 fleet, and the sale and lease-back of the airline’s in-service Boeing 777-300ER aircraft.

Etihad’s global route network stood at 76 destinations at the end of 2019. Frequencies were increased on key routes such as London Heathrow, Riyadh, Delhi, Mumbai, and Moscow Domodedovo. The Airbus A380 was introduced on Seoul flights and the Boeing 787 Dreamliner was introduced to Hong Kong, Dublin, Lagos, Chengdu, Frankfurt, Johannesburg, Milan, Rome, Riyadh, Manchester, Shanghai, Beijing and Nagoya.

In October 2019, Etihad and Air Arabia announced a new joint venture named Air Arabia Abu Dhabi, which will cater to the rapidly-growing demand for low-cost travel options in the region. Air Arabia Abu Dhabi will begin operations in the second quarter of 2020, and will operate independently, complementing Etihad’s network of routes from the Abu Dhabi hub.

Etihad continued to expand its global reach through 56 codeshare partnerships, creating a wider choice for air travelers on a combined network of approximately 17,700 codeshare flights to almost 400 destinations worldwide. In 2019, Etihad signed new and expanded partnerships with Saudia, Gulf Air, Royal Jordanian, Swiss, Kuwait Airways, and PIA.

In November, Etihad and Boeing launched a first-of-its-kind ‘eco partnership’ known as the Greenliner program. The initiative kicked off with the arrival of a specially-themed flagship Boeing 787-10 Dreamliner which will be used, along with other aircraft in the 787 fleet, and together with industry partners, to test products, procedures and initiatives designed to reduce carbon emissions.

In December, Etihad became the first airline globally to secure funding for a project based on its compatibility with the Sustainable Development Goals of the United Nations. Through a partnership with First Abu Dhabi Bank and Abu Dhabi Global Market, the airline is borrowing 100 million Euros (AED 404.2 million) to expand the Etihad Eco-Residence, a sustainable apartment complex for its cabin crew.