The world’s leading four airfreight forwarders have all announced a suspension of services covering Russia.
The move comes as transport operations face disruption due to sanctions and restrictions put in place as a result of the Russian invasion of Ukraine.
In a customer advisory, Kuehne+Nagel said that most carriers – across land, sea and air – had stopped services to the Russian Federation. As a result, the forwarder has suspended all import shipments into the Russian Federation pending further notice, except for pharma, healthcare and humanitarian supplies.
“All goods that were booked before and currently still in transit, are managed to the extent possible,” the company said.
“To help our customers navigate the situation, our trade control experts closely observe the development of sanctions imposed by the US, the EU and certain states respectively providing all necessary trade control guidance.”
DSV said that it had decided to temporarily suspend shipments to and from Russia and Belarus.
“This applies to land, air and ocean transport,” the Copenhagen-headquartered company said. “This means that DSV is not taking in new bookings to these countries with the exception of food supplies, medical and humanitarian supplies.
“All goods currently in transit will be managed to the extent possible via open trade lanes.”
The advisory added, “Knowing that today’s decision to suspend transport to and from Russia and Belarus will further add to the supply chain disruption and complexity for our customers, we want to underline that DSV is fully aware of the impact and that we are doing our utmost to alleviate the negative supply chain effects from these measures.
“Our teams continue to have a close dialogue with our carrier partners, and we will keep monitoring any new sanctions imposed.”
DB Schenker said: “We have decided to temporarily suspend all shipments to and from Russia with immediate effect. This applies to land, air and ocean transport.”
DHL said that its inbound services to Russia and Belarus have been suspended and it would not accept shipments to those countries until further notice.
“We are closely monitoring the situation and we will keep you updated about any further developments,” the company added.
Geodis is also stopping its services to and from Russia, as well as Belarus.
“For customers with current shipments going to or passing through the affected areas, our teams will be reaching out to assess possible alternative transport solutions, in accordance with international regulations and sanctions.”
The forwarders have also closed operations in Ukraine.
The sanctions have also bought Russia-based freighter operators Volga-Dnepr’s and AirBridgeCargo’s Asia-Western Europe flights to a standstill.
Geodis said that it would expand its AirDirect airfreight charter operation between Asia and Europe with three additional B747F rotations.
Faced with increasing cargo volumes, Frankfurt Airport has turned to digitalization to make better use of its existing infrastructure and resources while facilitating seamless operations.
The pandemic has accelerated the digitalization of air cargo processes and paved the way for the emergence of tech-ridden and innovative trends to create a seamless movement of goods throughout the supply-chain.
The International Air Transport Association (IATA) pointed out in its 2021 report for global air cargo markets that the demand for digitalization in the industry is on upward trajectory as the world transitions to a more fast-paced digital transactions.
To cope with the rising demand for global e-commerce industry, the distribution of COVID-19 vaccines and other medical supplies, compounded by its main mission of facilitating global trade through the safe transportation of general and special cargo, the airfreight industry is forecast to steadily grow in the foreseeable future.
Against this backdraft and the congestion of shipments at various international ports, digitalization is proving invaluable to speed up the flow of the movement goods.
According to a report published by Allied Market Research, the global digital freight forwarding market generated $2.92 billion in 2020. It is anticipated to reach $22.92 billion in 2030, manifesting a CAGR of 23.1%.
Frankfurt Airport, Europe’s largest and one of the busiest
In 2021, about 261,927 aircraft took off and landed at Frankfurt Airport, up by 23.4 percent year-on-year compared to 2020 but still below the pre-pandemic level in 2019.
While these aircraft movements account for both passengers and cargo, there’s no denying that a significant portion of the volumes account for various goods.
Fraport AG, the operator of Frankfurt Airport, said cargo throughput at the airport in 2021, comprised of both airfreight and airmail, grew by 18.7 percent year-on-year to about 2.32 million metric tons—the highest annual volume ever achieved in the history of Frankfurt Airport.
A breakdown by the two cargo subcategories reveals that airfreight was the main driver behind this growth, while airmail continued to be affected by the lack of belly capacity on passenger aircraft.
Introducing FAIR@Link
Amid increasing volumes of cargo, Fraport introduced in 2015 a neutral data platform known as FAIR@Link, then considered an important milestone of digitalizing the process at Frankfurt Airport.
Today, FAIR@Link already enables more than 700 companies and authorities—handling agents, forwarders, truckers and airlines—to optimize and accelerate their transport and freight processes on the import and export side. The platform has also been running at Hamburg Airport since 2019.
Dirk Gladiator, Director Cargo Communications – DAKOSY AG and Max Philipp Conrady, VP Cargo Development at Fraport AG explains to Air Cargo Update how FAIR@link is further enhanced to support the digitalization growth in their ecosystem.
FAIR@Link is a neutral and cross-industry platform. There are open interfaces for any company that needs/wants to exchange data with FAIR@Link. With the help of the interfaces, the processes can be easily integrated into the company’s own IT.
FAIR@Link has a modular structure and is adapted to the special requirements of the respective airport and its logistics customers. Depending on requirements, customs, security, dangerous goods and SCM processes are also supported – often even automatically.
Software company DAKOSY’s Director for Cargo Communications Dirk Gladiator explains: “FAIR@Link, is used to digitalize air cargo processes and connect the various process partners along the supply chain in order to speed up and foster robust and transparent air freight handling in export and import. It is in general terms, a data exchange platform that brings together all shipment information data exchanged with the relevant process partners. This is not a trivial task, but a basic requirement for future cargo processes and it can be transferred and installed at various airports, On top of that data layer various applications for the various connected stakeholder, like handling agents, freight forwarders but also truckers are already available. These applications have local configuration settings and may underlay certain local limitations or particularities.”
According to Gladiator, a local layer, so-called FRA-OS, was introduced with the implementation of the newest import application at Frankfurt Airport.
1 – FAIR@Link is currently operated in FRA and HAM
2 – FAIR@Link was developed by DAKOSY in close cooperation with the Air Cargo Community Frankfurt e.V. and is distributed and operated by DAKOSY only.
“With the launch of FAIR@Link in Frankfurt we laid the foundation for smooth handling processes and data exchange across the supply chain partners. The basic community platform has been expanded since its launch 2015 for several times and further applications are being developed continuously,” Gladiator continues.
Other milestones With continuously growing volumes, cargo operations at Frankfurt Airport are reaching capacity restraints. Digitalization is one major enabler to make better use of existing resources and increase capacity not only for more cargo growth but also for better performance.
Conrady of Fraport AG said, “The introduction and further development of FAIR@Link has enabled various milestones to be reached in the digitization of cargo processes at Frankfurt Airport. The introduction of FRA-OS/ Import last year deserves special mention. FRA-OS stands for Frankfurt Airport Operational System and is powered by the FAIR@Link data layer”
FRA-OS/ Import, as the first module of FRA-OS, is an important corner stone for EU compliant import processes and essential to preserve the handling of consolidated shipments at Frankfurt
“Another important milestone was the introduction of the ramp control system. This system helps to avoid waiting times in CargoCity South and thus contributes to a smooth flow of traffic. More than 700 truck companies are already regularly using FAIR@Link to book slots with the large handling agents on site. With the upcoming integration of our largest handling agent in the CCS, FCS Frankfurt Cargo Services GmbH, nearly 100% of delivery vehicles will be using the slot booking system. Just a few days ago, we have reached another milestone, connecting FAIR@link and specifically the ramp control system with Fraport’s Click-2-drive automatic license plate detection system.
“As a result, the entry barriers at Gates 31 and 32 of Frankfurt Airport’s CargoCity South will automatically open for vehicles that have a confirmed time slot in the FAIR@Link system for loading or unloading at one of the warehouses operating there. The new interface delivers major time savings for forwarders and truckers who take advantage of the FAIR@Link slot booking system. When booking a slot, they provide all the information needed for Click-2-drive. By connecting both systems, we have succeeded in implementing a faster, leaner process for managing all delivery and pick-up traffic,” Conrady explains further.
Digitization has proved to be important during the pandemic, enabling many contactless processes. Slot booking or registration for entering Frankfurt Airport’s CargoCity South is now possible without personal contact with the help of digital solution. Nevertheless, airfreight is a hands-on industry.
“You will always need highly trained staff to successfully ship goods via airfreight. This became especially visible during the pandemic when high sickness rates challenged the whole industry. Digitalization can compensate at least for some of these absences. But we are still witnessing that digitalization has not progressed so far to fully substitute manual work – it probably never will, and this is important. Digital solutions can only work if you have people using it properly,” said Conrady.
“With Fair@Link we have a solid cornerstone of valuable information, that we would like all local process partners to make use of in order to provide more fluent and more robust cargo operations at Frankfurt airport,” he added.
FAIR@Link cargo community platform is now digitally linked with the Click-2-drive automatic license plate detection system.
The result: starting immediately, barriers at Gates 21 and 32 at Frankfurt Airport’s CargoCity South will automatically open for vehicles with confirmed time slot in the FAIR@Link system for loading or unloading at one of the forwarders operating there.
The Intelligent networking of automatic license plate detection with FAIR@Link cargo community platform is a major time saving for forwarders and truckers who take advantage of its slot booking system.
When booking a slot, they provide all of the information needed for Click-2-drive. Fraport installed the Click-2-drive automatic license plate detection system at gates 31 and 32 last year. Now, when a registered vehicle drives up to the entrance barrier the system not only scans its license plate but also queries FAIR@Link to see if there is a corresponding slot booking.
If so, the barrier opens to let the vehicle through. In case the license plate number isn’t recognized or the driver isn’t using the vehicle specified when booking the slot, they can scan the QR code received when registering to gain admission.
“FAIR@Link has a modular structure and is adapted to the special requirements of the respective airports and their logistics customers. Depending on individual needs, it can also support Customs, security, dangerous goods and SCM processes – and in many cases can even be automated,” said Gladiator.
According to Conrady, at the moment, too many processes in airfreight handling are fractured – they are neither data-driven nor integrated. The air cargo industry will benefit from digital solutions more and more. Here, collaboration and data sharing will be the success factor. With this kind of network, all authorized persons along the supply chain will get access to the information needed so that things will be more predictable and at the same time as flexible as now.
To achieve this, a trustworthy cooperation is essential. On the other hand, digitalization on its own would not work. To achieve the right balance between digital and physical infrastructure, high skilled talents will always be needed to interfere in special processes and support a smooth cargo handling.
Conrady noted, “The cargo community platform was already introduced in 2015. Already back then, we recognized the need to network the supply chain partners on site and pushed ahead with the development of FAIR@Link together with leading freight forwarders, freight handlers and DAKOSY. Since then, FAIR@Link allows the exchange of shipment data across companies and thus helping to guarantee smooth and reliable processes in the air freight process chain. It therefore is the basis for further digitalization.
“In an ideal world, airports will develop to digital transfer hubs with worldwide standardized messages and interfaces, so that everyone speaks the same language. Industry representatives accept and trust in data sharing so that everyone understands the benefits from sharing information. In this world, technical solutions will improve fast, and we will work in a global digital ecosystem for efficient and secure data exchange.
“Following there would be almost no unpredictable disruption of operations, but rather well-prepared processes, pre-planned what-if scenarios, new collaboration models and automation at its best. The industry has already reached a lot of these goals, but we all have a long way to go to fully adopt digitalization.
Kerry Logistics Network Limited’s joint venture with Hengan International Group Company Limited, Karrion Development Limited (‘Karrion’), is launching a new SARS-CoV-2 Antigen Rapid Detection Kit (Colloidal gold method) (‘rapid detection kit’) named “BandiCheck” under the Banitore brand in Hong Kong today to help check the spread of COVID-19 and protect the public.
The ‘BandiCheck’ rapid detection kit contains nasal and oral swabs and is proven to be able to effectively detect the COVID-19, including the Omicron and Delta variants. According to the test results of Germany’s Paul-Ehrlich Institut (PEI), the overall sensitivity of the “BandiCheck” nasal swab ranked in the top ten among a total of 199 comparable products as at 31 January 2022. Furthermore, the oral swab is not only an innovative product, but is also designated for the Hong Kong market. Optimal to use in conducting large scale screening tests, the rapid detection kits can provide results within 15 minutes and are easy to use, highly stable as well as at a lower cost.
Samuel Lau, Deputy Managing Director – Integrated Logistics of KLN, said, “Building upon KLN’s established logistics network and Banitore’s reputation as a trustworthy healthcare brand, Karrion will deliver this in-demand solution efficiently and with abundant supply to meet the present need for a quick and easy to use detection kit in bulk to help contain the fifth wave and for the public’s peace of mind.”
Martin Li, Executive Director & Chief Financial Officer of Hengan Group, said, “To support the government’s call for voluntary testing, Karrion and Banitore are a perfect fit to bring the ‘BandiCheck’ rapid detection kit to the public at this challenging moment. Our collaboration with KLN was formed during the first wave of the pandemic in 2020, and it is only fitting that we are doing our part to help curb an even more ferocious outbreak.”
More flexibility in Europe: time:matters, the expert in time-critical express transports, has further expanded its Sameday Air network in cooperation with Air Europa. Additional cargo capacity is now available via the airline’s Madrid hub. As a result, several daily flights can now be offered to a total of 14 stations between Madrid and Germany, the Netherlands, Portugal and Italy as well as within Spain. This provides a unique network density.
time:matters ensures the guaranteed consignment of time-critical shipments with a chargeable weight of up to 38 kilograms within the entire global Sameday Air network. This is achieved thanks to short handling times of 60 minutes or more and consistently fast and flexible transport solutions. Quick transit times of just 60 minutes at the Madrid hub also guarantee rapid distribution of shipments across Spain as well as to and from other countries, not only via the Air Europa network but also in partnership with various other airlines. Shipments can also be picked up and delivered on request.
As usual, customers can submit transport requests via the time:matters website in just a few clicks to get a real-time quote. Prior registration is not required. From the options displayed, the cheapest quotes or fastest transport solutions can be compared and directly booked. In this way, time:matters ensures a high degree of efficiency, transparency and flexibility. What’s more, Customer Service teams are available around the clock to provide advice and support as well as look after all steps along the transport chain.
Lars Krosch, COO of time:matters, stated: “By expanding our unique network once again in cooperation with our new partner Air Europa, we can offer our clients fast and highly efficient transport solutions within Spain and a multitude of other countries. In this way, we are helping customers from a wide range of industries to maintain and optimize their supply chains as best as possible and avoid time-consuming and expensive direct delivery. Through the global Sameday Air network with more than 200 stations and over 20 airlines, we ensure the fastest transports, guaranteed capacity access and the greatest possible flexibility.”
Adjusted EBIT of 1,493 million euros, revenue of 3.80 billion euros. Lufthansa Cargo thus makes an important contribution to stabilizing the Lufthansa Group – The modernization of the long-haul fleet completed in 2021 and the use of sustainable aviation fuels enable a significant reduction in the carbon footprint.
In the financial year 2021, Lufthansa Cargo achieved the best result in the company’s history to date. Revenue rose to EUR 3.80 billion (previous year: EUR 2.76 billion), while adjusted EBIT amounted to EUR 1,493 million (previous year: EUR 772 million). A total of 7.2 billion freight ton kilometers were sold last year (previous year: 6.5 billion). The average load factor improved by 1.7 percentage points year-on-year to 71.0 percent, while the supply of capacity increased by 8.7 percent to 10.1 billion freight ton kilometers offered.
“We owe this result in particular to our employees, customers and partners. Together, we have managed to effectively maintain global supply chains even in times of pandemic. In addition to good revenues, the successful completion of our cost reduction program was a key factor in the good result. In 2022, we will continue to invest in customer focus, airfreight innovation and sustainability,” said Dorothea von Boxberg, Chairman of the Executive Board and CEO of Lufthansa Cargo.
“In 2022, Lufthansa Cargo will focus on sustainability and the ongoing decarbonization of airfreight logistics. We are pleased to welcome numerous interested parties to our sustainable aviation fuel offerings and aim to expand the use of sustainable aviation fuels with various customers. In 2022, we will also begin to equip our freighters with Sharkskin technology, which will help us save fuel. In the area of digitalization, we are working at full speed to convert to fully electronic air waybills, among other things.”
However, Dorothea von Boxberg also puts customers in the mood for continuing challenges in logistics for the time being: “The issue of scarce capacity will continue to occupy us and our customers this year. With the marketing of the capacities of our first A321 freighter, which has just started, we want to offer customers new options for the ever-growing e-commerce sector, especially in the medium-haul segment. In addition, belly capacities on Lufthansa Group airlines will again increase significantly this year. We are currently examining further options to increase our capacity offering. At present, however, we also see that the situation in airfreight remains dynamic and that we have to react to developments on the world market at short notice and remain flexible.”
Last year, Lufthansa Cargo successfully implemented important projects of its corporate strategy. For example, the fleet modernization to a pure, highly efficient B777F freighter fleet was completed. This currently comprises fifteen aircraft, two of which were newly flown last year. The twin-engine Boeing 777F is considered the most efficient, modern freighter in its class. In addition, Lufthansa Cargo distributes the additional load capacities of Lufthansa, Austrian Airlines, Brussels Airlines, Eurowings Discover and SunExpress. Sustainable aviation fuels were also a focus at Lufthansa Cargo in 2021: In addition to weekly CO2-neutral freight rotations between Europe and Asia, customers have been able to use the “Sustainable Choice” add-on service since last summer and thus have their freight transported in a CO2-neutral manner. Lufthansa Cargo also became a pilot customer for the first industrial power-to-liquid (PtL) plant to promote the development and research of synthetic PtL aviation fuel.
Lufthansa Cargo started the past financial year with positive expectations. Due to the continuing effects of the pandemic, freight capacities remained scarce worldwide despite increased demand. Marked by a noticeable cooling of the airfreight market prior to the Corona pandemic, the cargo airline had already launched a structural cost-cutting program in 2019, which is also contributing to the current result.
Cainiao and Qatar Airways Cargo have partnered up to support the growing e-commerce market in South America. The two-year strategic partnership sees the launch of a weekly B77X freighter service linking Hong Kong, China and Sao Paolo, Brazil.
The first Cainiao chartered Boeing 777X departed Hong Kong Airport on March 5, headed for Guarulhos Airport Sao Paolo, Brazil, via Qatar Airways Cargo’s hub in Doha.
“We hope to expand our partnership in future as e-commerce between China and Latin America is growing rapidly,” says Dandy Zhang, commercial director of global line haul, Cainiao’s cross border business.
“Over the past few years, especially during the pandemic, e-commerce growth spiraled and Latin America was not immune to this growth,” explains Guillaume Halleux, chief officer cargo at Qatar Airways.
“As per research, Latin America has very strong potential where e-commerce traffic is growing fast, so we will see a demand for increased services in future.
“With our existing extensive fleet as well as the new order for freighters, we are perfectly placed to serve the current and future e-commerce demand.”
Cainiao has been serving Brazil for six years. It is one of its most important emerging markets with huge potential for e-commerce. The country is Cainiao’s preferred gateway to Latin America, along with Chile on the West Coast and Mexico in Central America.
Zhang says: “We offer cross-border, clearance, and last-mile delivery services for AliExpress’ merchants and customers in Brazil. In September 2021, Cainiao’s parcel volume to Brazil surged by over 200% compared to the same time period in the year of 2020.”
Halleux also notes that Latin America is a ‘key market’ for the carrier. “We operate a mix of passenger aircraft and Boeing 777 freighters from Doha to Mexico City, Bogotá, Quito, Campinas, São Paulo, Santiago de Chile and Buenos Aires,” he says.
Aircraft charter specialist, Air Charter Service, has pledged to invest further in Australia as it announces the opening of a new office in Brisbane.
Paul Crook, CEO of ACS Australia, commented: “We have been looking to invest further in the country after such a successful first six years for our Sydney operation. It was clear that Brisbane would be the focus, as we already have a strong client base there. This new office will help to serve those clients even better and we have brought in a strong management team, with huge amounts of experience to lead the office.
“We have been very fortunate to appoint the experienced Melissa Rogers, who will be director, ably assisted by Matthew Haigh as assistant director. Between the pair they have extensive experience in the industry are well-respected by clients and airlines alike. Melissa
Rogers said: “I’m delighted to be heading up this new office – we have a lot of plans to expand our business in the region and I’m looking forward to getting started.”
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