UPS will become the United States Postal Service’s (USPS) primary air cargo provider, ending the agency’s more than 20-year partnership with FedEx.
“Together UPS and USPS have developed an innovative solution that is mutually beneficial and complements our unique, reliable and efficient integrated network,” UPS CEO Carol Tomé said in a press release.
The financial details of the deal between UPS and the USPS has not been revealed but it is believed to be “significant.
The USPS has been the largest customer for FedEx’s air express segment, despite the postal service moving away from transporting letters and packages by airfreight to road.
FedEx will continue to provide domestic transportation services by air for the USPS, until 29th September, when the current contract expires.
“The parties were unable to reach agreement on mutually beneficial terms to extend the contract, and negotiations concluded in March 2024, following extensive discussions,” FedEx said in a regulatory filing.
FedEx blamed the lack of an agreement on USPS’s proposed “strategic changes to its operations to reduce its reliance on the air network of FedEx Express,” which the carrier felt would have adverse effects on their operations and financial condition.
UPS’ shares rose 1.8% before the stock market opened, while FedEx’s stock fell more than 2%.
Saudia Cargo has announced its expansion into Shenzhen, China, with the introduction of two weekly flights which began in March. This strategic move signifies Saudia Cargo’s commitment to enhancing its presence in one of the most pivotal markets, underlining the importance of expansion and growth in China.
As a key player in the global logistics industry, Saudia Cargo recognizes the significance of China as a crucial market for its operations. The expansion into Shenzhen is a testament to the company’s dedication to meeting the growing demand for air cargo services in the region.
The two weekly flights will operate every Monday and Friday, offering consistent and reliable service to meet the needs of customers in Shenzhen and beyond. This expansion enables Saudia Cargo to facilitate the seamless transportation of goods between Shenzhen and Riyadh, with Riyadh being identified as the most lucrative international market for Chinese businesses.
“We are excited to announce the expansion of our operations in Shenzhen, China, with the introduction of two weekly flights. This expansion underscores our commitment to providing reliable and efficient air cargo services to our customers in China. With Shenzhen being a key hub for e-commerce, we see tremendous potential for growth and are dedicated to serving the needs of our customers in this dynamic market,” said Teddy Zebitz, CEO of Saudia Cargo.
“The introduction of regular flights to Riyadh presents significant opportunities for Chinese businesses, particularly in the e-commerce sector. Shenzhen is widely recognized as a hub for e-commerce, hosting major players such as Alibaba, Temu, and TikTok. By better servicing key clients, Saudia Cargo aims to cater to the increasing demand for air cargo services, especially for e-commerce,” he added.
Saudia Cargo’s commitment to serving the booming e-commerce domain is exemplified by the company’s strategic collaboration with major Chinese players, including Cainiao, the logistics arm of Alibaba. As Cainiao’s largest partner in the Kingdom of Saudi Arabia, Saudia Cargo plays a vital role in supplying both domestic and global e-commerce markets. Saudia Cargo’s expansion into Shenzhen represents a strategic move to continue meeting the growing demand in e-commerce and capitalize on the Far East’s unprecedented network growth. With China firmly established as one of Saudi Arabia’s primary trading partners, the operations in Shenzhen will further strengthen trade ties between the two nations. With a focus on speed, reliability, and customer-centricity, Saudia Cargo is poised to reshape regional supply chains and establish itself as a dominant force across the e-commerce landscape.
Sigma Pharmaceuticals, a leading UK wholesaler and distributor, is partnering with logistics technology innovator, BoxxDocks, to enhance efficiency and sustainability within its warehouse and transport operations.
The partnership will see Sigma become the first company in the pharmaceutical industry to leverage BoxxDocks’ advanced tracking technology to improve asset visibility and management.
BoxxDocks’ technology offers data-driven, granular track and trace solutions – the first of its kind in the supply chain and logistics industry. This solution not only addresses the critical issue of inventory loss but also paves the way for cost savings and environmental benefits.
Unlike traditional tracking systems that offer limited visibility, BoxxDocks provides real-time data on asset location and movement, enabling B2B distributors to map their entire supply chains with unprecedented accuracy and efficiency. This capability can significantly enhance operational efficiency and reduce costs by optimising asset utilisation and minimising loss.
In addition, the technology offers enhanced security for items in transit, thereby reducing waste and supporting a circular economy, by facilitating a shift towards reusable assets, instead of single-use cardboard and plastic, lowering both environmental and financial impacts.
Rajiv Shah, Procurement and Innovation Officer at Sigma, commented: “This partnership with BoxxDocks will help accelerate our commitment to sustainability and NHS net zero objectives. By having the ability to track our assets, we’ll be able to minimise our environmental footprint by significantly reducing single-use materials, cutting down on the use of disposable packaging, while streamlining our distribution processes.”
Alessandro Attanzio, CEO of BoxxDocks, said: “Our mission is to help enhance B2B distribution through our smart, sustainable and cost-saving solutions. We’re delighted to be working with Sigma Pharmaceuticals, which is a forward-thinking company with a passion for innovation that rivals our own. We look forward to continuing our journey of innovation together, demonstrating a model of best practice for pharma distribution.”
He added: “Through this collaboration, we have further refined our technology to meet the specific needs of the pharmaceutical sector. It is a shining example of how our technology can transform operations, reduce cost and environmental impact, and help drive the industry forward to meet efficiency and sustainability goals.”
After more than 63 years, Deutsche Post has stopped carrying letters by plane to cut costs and reduce its carbon footprint, and the last plane took off from Berlin shortly after midnight and flew to Stuttgart.
Among the last flights, the early hours of March 28 saw the last overnight flights by Eurowings and Tui Fly transporting letters to and from northern and southern Germany on the routes Stuttgart-Berlin, Hanover-Munich and Hanover-Stuttgart.
Marc Hitschfeld, Chief Operations Officer of DHL Group’s Post & Parcel Germany division: “We conclude the era of overnight letter airmail with mixed feelings.
“In times of climate change, airmail for domestic letters within Germany can no longer be justified – also because there is no longer the same urgency associated with letter mail as in decades past.
“So, on the one hand, the end of domestic airmail is good news for the environment. On the other hand, the end of overnight airmail closes a chapter of postal history which many Deutsche Post employees have identified with for decades.”
E-commerce and perishables business helped soften the blow of a drop in airfreight volumes for Kuehne+Nagel (K+N) in the fourth quarter.
Airfreight volumes at K+N dropped 2.2% to 533,000 tonnes in the fourth quarter of 2023 compared to the same quarter in 2022.
Net turnover in Kuehne+Nagel’s (K+N) air logistics division in the fourth quarter was CHF1.9bn, down 27% year on year. Gross profit was down 34% and earnings before interest and taxes (EBIT) was down 52%.
K&N reported full year 2023 net turnover of CHF6.9bn for the air logistics division, down 41% on 2022. Gross profit was down 40% and EBIT was down 61%.
Nearly 2m tonnes of airfreight were handled by K+N in 2023. In its fourth quarter and full-year results document, K+N said business “normalised” in 2023 following the pandemic boom years.
However, it added: “Volume recovery into year-end (was) driven by e-commerce and perishables.”
K+N also noted that in November it completed the acquisition of South African freight forwarder Morgan Cargo, specialised in the transport and handling of perishable goods. The acquisition could help boost 2024 results for the company.
Meanwhile, the Group’s fourth quarter net turnover in 2023 was CHF5.7bn, down 35% year on year. Gross profit was down 18% and EBIT was down 50%.
Group net turnover for the year was CHF23.8bn, down 40% year on year. Gross profit was down 21% for the year and EBIT was down 49%.
“Kuehne+Nagel’s business results normalised in 2023 following the special economic situation in the years 2021 and 2022,” said the company.
K+N chief executive Stefan Paul said: “Kuehne+Nagel closed the financial year 2023 with an overall good performance in a persistently challenging environment. We adjusted our cost base to market conditions by intensifying restructuring measures in the fourth quarter. At the same time, we succeeded in gaining market share in Sea Logistics, especially in the SME segment. We signed two important acquisitions with Morgan Cargo from South Africa and Farrow (customs broker) from Canada. We are making solid progress toward our Roadmap 2026 goals.”
Kerry Logistics Network has acquired a majority stake in French freight forwarder Business By Air SAS (BBA) to strengthen the firm’s position in the Europe, Middle East and Africa region.
Kerry said that BBA specialises in industrial clients covering verticals such as automotive, aerospace and pharmaceuticals and has acted as its agent in France since 2016.
BBA was founded in 1978 and is headquartered in Roissy-en-France, with four other offices in Orly, Nice & Le Havre, as well as an office in Pointe-à-Pitre, Guadeloupe.
“In addition to multimodal freight forwarding, customs clearance and nationwide trucking, BBA also offers a complete suite of supply chain solutions covering express, on board couriers, project cargo, as well as logistics for fine arts, perishables and personal effects,” Kerry said in a press release.
Vic Cheung, group managing director of Kerry Logistics Network, said: “The acquisition is a natural progression in our strategic pursuit of enhancing our IFF service offerings in the EMEA region.
“With France’s position as one of the world’s top exporting countries, the addition of BBA will significantly strengthen our foothold in the country.
“We are looking forward to the synergies created between KLN’s ocean freight capabilities and BBA’s airfreight expertise, and the extension of our service into the niche verticals of fine arts and perishables, which will further boost our global coverage and competency to offer comprehensive and flexible solutions to customers.”
International Cargo Logistics (ICL), has opened a new office in Rotterdam, the Netherlands, as part of a global growth plan, which will see a focus on developing its perishables operations in Europe.
The Heathrow-headquartered forwarder, which this year marks its 20th anniversary, already operates in over 207 countries and has over 50,000 metres of logistics and storage facilities, offering comprehensive supply chain and Customs solutions.
“We are pleased to establish our presence in the Netherlands, leveraging Rotterdam’s position as a logistics hub,” said Yoav Izhari, Chief Executive Officer (CEO), ICL.
“This move aligns with our commitment to better serve our clients by providing localised support and streamlining our operations.”
Rotterdam provides ICL with proximity to key transportation hubs, including Amsterdam Airport Schiphol and major seaports such as Amsterdam, Rotterdam, and Antwerp.
“Our presence in Rotterdam represents an exciting opportunity to deepen our connections with existing clients, and foster new business relationships across western Europe,” said Ron Rombout, CEO of ICL’s new Netherlands offices.
“Our expertise, joint with our location in Rotterdam, will allow us to continue delivering exceptional service, while contributing to ICL’s global success.”
ICL will further extend its global reach this year, and plans to expand into South East Asia, starting with a new office in Vietnam.
The CMA CGM Group has completed its largest acquisition since its formation with the takeover of Bolloré Logistics from the Bolloré Group.
This follows the European Commission’s recent approval of the acquisition, which has an approximate purchase price of €4.850bn.
The transfer of Bolloré Logistics Sweden to the CMA CGM Group remains subject to the latter obtaining foreign investment clearance in Sweden.
CMA CGM said this deal is its largest acquisition since its creation in 1978 and constitutes a major step in the CMA CGM Group’s logistics development strategy, complementing its historical maritime transport line of business.
Rodolphe Saadé, chief executive and chairman of the CMA CGM Group, said: “I would like to thank the Bolloré Group for the trustful dialogue we have established over the last few months to successfully finalize this acquisition. Within the CMA CGM Group, we are proud to welcome a French flagship built on years of work and experience.
“The new entity, made up of CEVA and Bolloré Logistics, is the world’s number 5 in its sector. We will now be able to offer our customers a complete range of services and extend our expertise to new businesses.
“On behalf of the CMA CGM Group and my family, I would like to welcome the 14,000 employees who are joining us today. Together, we will combine our talents and accelerate our development!”
Cyrille Bolloré, chief executive and chairman of the Bolloré Group, added: “This is the beginning of a new chapter for Bolloré Logistics’ employees. I am very pleased that they are joining the CMA CGM Group and the Saadé family.
“They will bring unique expertise and know-how, which have long made the pride of the Group and which will be the pride of CMA CGM tomorrow. It is also a great opportunity for our customers around the world and I would like to take this opportunity to thank them for their trust and loyalty.”
A major transport and logistics company, France headquartered Bolloré Logistics is built around expertise covering five services areas: multimodal transportation, customs and statutory compliance, logistics, global supply chain, industrial projects. The business has a presence on five continents and in 111 countries.
The company achieved a turnover of €7.1bn in 2022, and transported 710,000 TEUs of ocean freight and 390,000 tons of airfreight.
Bolloré Logistics’ contract logistics subsidiary, Bolloré Solutions Logistiques (BSL) has just this week announced it has acquired STEF Logistique Santé (SLS) to grow its contract logistics business and strengthen its expertise in the pharmaceutical industry.
With CMA CGM’s acquisition, Bolloré Logistics will now be combined with that of CMA CGM’s CEVA Logistics to create a powerful airfreight forwarder.
Traditionally operating in shipping, CMA CGM has been diversifying its operations in recent years.
Its biggest acquisition in the logistics sphere came in 2018 and 2019 when over a period of several months it acquired a majority shareholding in CEVA Logistics.
Business park Tallinn Airport City and Maru Construction have signed a contract for the design and construction of a new cargo terminal on the southern side of the Estonian airport.
The new €8m terminal will measure 5,250 sq ms, with 1,450 sq m of office space and 3,800 sq m of warehousing. It will also feature loading bays for 57 vehicles and 123 parking spaces.
Work is scheduled to commence this spring and should be completed by summer 2025.
Tallinna Airport founded Airport City at the beginning of 2023 to develop and manage commercial real estate in the immediate vicinity of the airport.
Chairman of the management board of Airport City Teet Raudsep said: “This is a notable milestone in the broader plans for Airport City, as the cargo terminal is the first project we’ll be working on as part of the diverse, long-term development of the business park.
“What will make Airport City so special is its unique location so close to the runway at Tallinn Airport.”
Margo Dengo, chairman of the management board of Maru Construction, added: “Our mission is to build the sort of tomorrow we ourselves want to live in. For us, that’s based in innovation and sustainability.”
The developers hope the new facility will achieve a LEED Silver certificate for environmental performance.
Luis Muñoz Marín Airport (SJU) operator Aerostar Airport Holdings has invested in new road infrastructure to improve connectivity across the hub’s cargo facilities.
The operator invested $4.6m in the new road connecting cargo facilities at SJU, which currently handles over 90% of airfreight for the island – a major manufacturing hub for the pharma industry.
The new road links Puerto Rico’s main Baldorioty Highway with SJU’s cargo district replacing temporary access.
The road system features speed awareness measures and will help make the road safer and reduce wear and tear to vehicles.
It will also be lit by solar-powered LED lamps and is part of ongoing investment at the airport to “drive quality in the air cargo supply chain”, the operator said.
Elsewhere, Aerostar is also installing new ULD Racks at SJU and is also in talks with a “major freight operator” to develop new cold storage facilities in the cargo district, with work planned for later this year.
Aerostar has also joined the Board of the Puerto Rico Life Sciences Air Cargo Community, which was launched last year.
“The road improvements mark a crucial milestone in our ongoing commitment to elevate cargo operations at SJU,” said Varlín Vissepó, executive of cargo operations at Aerostar.
“We are dedicated to providing a safer and more efficient environment for our cargo operators.
“Our investment ensures immediate benefits in terms of safety and efficiency, and also lays the foundation for additional improvements for the cargo community.”
Adrián Dominicci, executive assistant of strategic sectors, department of economic and commercial development, added: “Puerto Rico is the number one bioscience manufacturing hub in the US by export volume, and the industry is looking to further expand.
“Aerostar’s investment, combined with the commitment of PR Life Science Air Cargo Community members, will ensure just that.”
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