Forward Air Corporation has appointed Jerome Lorrain to its Board of Directors, effective October 1, 2024.
Lorrain brings over 30 years of experience in logistics and transportation, having previously served as COO of CEVA Logistics. He is also a director at Log-Hub and Executive Chairman of FluentCargo.
George Mayes, Independent Chairman of the Board, commented on Lorrain’s appointment: “Jerome’s extensive expertise in the logistics sector will be invaluable as we continue our integration and transformation journey. His insights will benefit our team of over 7,000 employees as we build on the platform established through our Omni transaction.”
Forward Air also announced the departure of R. Craig Carlock from the Board, effective October 15, 2024, as part of its commitment to board refreshment. “We are grateful for Craig’s contributions over the past nine years and wish him the best in his future endeavors,” Mayes added.
Following these changes, Forward Air’s Board will consist of twelve directors, with eleven being independent and seven appointed post-Omni transaction.
MSC Air Cargo, recently rebranded from AlisCargo Airlines following its acquisition by the Mediterranean Shipping Company, has officially launched operations under its new name.
The Milan-based carrier has selected Hong Kong Air Cargo Terminals Ltd (Hactl) as its service partner for cargo handling, ramp services, and documentation.
MSC Air Cargo’s B777 freighters initially arrived in Hong Kong in December 2022, operating on a crewing, maintenance, and insurance (CMI) basis through Atlas Air.
The airline fully acquired AlisCargo in 2024, rebranding it as MSC Air Cargo on September 5. Since July, MSC Air Cargo has operated three weekly flights from Milan to Hong Kong, with Hactl providing comprehensive ground handling services.
Jannie Davel, Senior Vice President of MSC Air Cargo, expressed optimism about the expanded Hong Kong operations, praising Hactl’s service quality and facilities. Hactl’s Joanna Li also welcomed MSC Air Cargo’s rebranding and increased capacity, noting the company’s longstanding collaboration and the mutual growth opportunity within the Asia market.
Jannie Davel, Senior Vice President of MSC Air Cargo, says: “We are excited about the potential for our newly-expanded Hong Kong operation, and are very pleased to extend the successful historic collaboration between Hactl and ourselves. Their extensive facilities for freighter operators and their clear focus on service quality will provide us with a strong base from which to grow our business.”
Adds Hactl Executive Director – Commercial and Business Development, Joanna Li: “We are delighted to welcome back an old friend under its new name, and with its greatly increased capacity. We wish the new MSC Air venture every success, and look forward to playing a key role in its successful development in the Asia market.”
Jettainer, the global leader in Unit Load Device (ULD) management services, has signed the IATA Digitalization Leadership Charter and is now an official member of the Digitalization Leadership Forum.
The signing took place during the IATA Digital Cargo Conference, which was attended by 165 delegates from airlines, system providers, ground handling agents (GHA) and forwarders.
Through this initiative, Jettainer is taking the next step addressing comprehensively the needs and goals of airlines, forwarders, GHAs and IT system providers and developing tailor-made digital solutions for the entire air cargo industry.
A central aspect of the charter is the introduction of the ONE Record standard, enabling efficient and transparent data exchange across the entire supply chain. As part of this, Jettainer will integrate its ULDs into ONE Record as a “Digital Twin”. This would be the first Internet of Things implementation as part of the new ONE Record approach. By combining its own data sets with those of other stakeholders, Jettainer is able to provide highly enriched data sets that offer maximum transparency regarding the location, status and type of ULDs. This data can be seamlessly linked to airwaybills via the ONE Record concept web services. This also creates a new basis for understanding industry requirements better and providing more targeted solutions.
“Our IT solutions are the key to always ensure the availability of ULDs for our customers, while at the same time being as efficient as possible. Collecting and analyzing data intelligently is at the heart of what we do. This, our engagement with ONE Record and our commitment to the IATA Digitalization Leadership Charter show that we are at the forefront of this issue and take our responsibilities seriously. By driving these developments forward, we want to deliver our contribution to the digitalization of air cargo together with our partners and translate the great potential of technology into solutions and added value,” says Dr Jan-Wilhelm Breithaupt, CEO of Jettainer.
The Digitalization Leadership Charter developed by IATA and the Cargo Advisory Council aims to drive innovation, increase efficiency and promote sustainable and consistent digital transformation. By signing the charter, Jettainer commits to implementing the charter’s five guiding principles. These principles include implementing industry-wide standards, promoting sustainability, ensuring the ethical use of technology and maintaining digital leadership as well as improving resilience and protection against cybersecurity risks.
SATS Ltd, one of the world’s largest providers of air cargo handling services, has signed a three-year agreement with the International Air Transport Association (IATA) to expand the rollout and implementation of DG AutoCheck compliance solution for the safe handling and transportation of dangerous goods shipments at key stations across its international network.
This follows SATS’ acquisition of Worldwide Flight Services (WFS), a global leader in cargo handling, further strengthening its global footprint.
The expanded agreement will facilitate the adoption of DG AutoCheck at both existing and new stations across the combined SATS and WFS network, which now operates over 215 stations in 27 countries.
This extensive network handles trade routes responsible for over 50% of global air cargo volume, enabling SATS to play a crucial role in ensuring the safe transportation of dangerous goods.
“SATS is proud to have signed the first global agreement with IATA to implement DG AutoCheck across our network as part of our commitment to the highest standards of aviation safety and security. We commend IATA for this initiative which is helping to maximise safety and improve efficiency by ensuring clear compliance and visibility of dangerous goods shipments moving by air cargo,” SATS’ Henry Low stated.
DG AutoCheck is an automated compliance solution that optimises dangerous goods acceptance processes to ensure the highest level of safety. Developed in collaboration with airlines, ground handlers, and freight forwarders, it replaces manual cross-references of the Shipper’s Declaration for Dangerous Goods (DGD) and IATA’s Dangerous Goods Regulations (DGR) to help eradicate the chances of errors that may lead to shipment rejections, fines, and penalties for non-compliance.
“We are pleased to support SATS and WFS in the expanded implementation of DG AutoCheck across their global network. This solution significantly enhances the safety, accuracy, and efficiency of dangerous goods handling, which is critical as air cargo volumes continue to grow. SATS’ commitment to adopting innovative safety measures sets a strong example for the entire industry,” David Wall, IATA Director of Safety and Cargo Compliance & Operations Solutions.
The certificate handover from David Wall, Director Safety and Cargo Compliance & Operations Solutions at IATA to Henry Low, SATS’ Chief Operating Officer and CEO-designate Singapore Hub* happened on 27 September in Paris.
Airlines, freight forwarders, and cargo handlers manage the transportation of over 1.25 million dangerous goods annually, and this is forecast to grow by a further 4.9% in the next 5 years, according to the Association.
Using DG AutoCheck, IATA says cargo operations teams can:
IATA says DG AutoCheck users have reported up to a 50% reduction in processing time and a reduction in errors compared to manual processing.
CHAMP Cargosystems has unveiled a groundbreaking advancement in air cargo compliance with the launch of its new sanctions interface service within Cargospot.
This interface, launched with sanctions screening partners e2open and Pandora Intelligence, seamlessly integrates third-party screening results into an airline or handler’s operational workflow, reducing manual work while ensuring higher levels of compliance with ever-changing international regulations.
The sheer volume and dynamic nature of global regulations, combined with the severe penalties for non-compliance, have led some airlines to engage with third-party screening providers.
Screening partners maintain and scrutinize extensive watch lists of goods, countries, organizations, and individuals used by intelligence and law enforcement agencies – a traditionally manual and laborious process. They specialize in this critical area of compliance and are innovating and using AI to reduce the time and cost of keeping pace with the constant changes in these watch lists.
CHAMP’s cargo management system, Cargospot, can now send air waybills to screening providers based on rules including destination and air waybill prefix, to ensure that the right shipments are always screened.
The results are then displayed in Cargospot with clear color-coded flags. Those shipments that are at risk can be automatically put on hold and flagged for flight controllers to review screening results before loading to a flight.
Christopher Shawdon, Head of Business Development at CHAMP comments that this latest innovation marks a significant leap forward in air cargo compliance, providing airlines and handlers with the tools they need to streamline operations, mitigate risks, and ensure adherence to international regulations. It integrates with Cargospot but can also be invoked from TRAXON cargoHUB.
Ian Hedges, Group VP Product Management at e2open: “At e2open, we believe in empowering businesses with end-to-end visibility and control over their supply chains in today’s complex and ever-changing landscape. E2open’s Cargo Compliance Screening reduces the risk of non-compliance with automated AI-based denied and restricted party screening. Our collaboration with CHAMP provides air carriers with the tools they need to navigate the complexities of global air cargo compliance and helps ensure a seamless flow.”
Gaetan van Diemen, VP of Product at Pandora Intelligence “Pandora Intelligence’s AI-powered Cargo Intelligence solution, trusted by major carriers, delivers a data-led risk assessment of cargo shipments, detecting sanctioned entities, strategic goods, and undeclared dangerous goods. We are excited for this to be a part of CHAMP’s Cargospot software as the most effective compliance solutions extend beyond the sanctions department, seamlessly integrating into existing workflows.”
B&H Worldwide, the global leader in aerospace and aviation logistics, is pleased to announce the expansion of its agreement with aviation asset specialist AerFin, which buys, sells, leases and repairs aircraft, engines and parts to maximise value for owners and provides a lower-cost supply of material to its airline, lessor and MRO customers.
This extension will see B&H Worldwide’s Hong Kong station provide a range of logistics services, including freight forwarding, packing, dangerous goods handling, customs brokerage, storage, and inventory management to support AerFin’s acquisitions of aircraft in the region.
Under this agreement, B&H Worldwide will manage the assets in Hong Kong, enhancing AerFin’s operational reach across the Asia-Pacific region. The services provided by B&H Worldwide will include the coordination of cargo at the teardown facility and on-site packing, the transfer of all stock to B&H Worldwide’s secure facility in Hong Kong, where parts will be meticulously recorded in B&H Worldwide’s proprietary software, FirstTRAC, before being sold, sent for servicing, or retained in storage. This collaboration builds upon the existing partnership between B&H Worldwide and AerFin following an agreement signed during Aviation Week’s MRO Americas 2023 which covers similar operations in Australia and Singapore strengthening the organisations’ regional partnership in APAC.
Stuart Allen, Group CEO of B&H Worldwide, expressed his enthusiasm about the expanded partnership: “We are delighted to continue our successful collaboration with AerFin and to further extend our services into APAC. Our team is committed to providing the highest level of logistics support to ensure that AerFin can optimise its operations in the region. This contract extension is a testament to the strength of our relationship and the trust AerFin places in our ability to deliver tailored aerospace logistics solutions.”
Paul Ashcroft, SVP Asia Pacific, AerFin added: “With our decision to extend our global reach into Asia Pacific, the expansion of the B&H agreement strengthens the work we have already been undertaking within Singapore. Our strategic inventory holdings at B&H Worldwide’s warehouse in Singapore have increased significantly this year with the decision to add more A320, Boeing 737 and A330 family stock within the region. Placing key inventory in Singapore provides confidence in our ability to serve our regional clients better than ever before. Demonstrating our continued growth in Asia, today’s announcement now enables AerFin to provide a similar reliable inventory solution from Hong Kong, the gateway to China.”
September’s global air cargo market lived up to analysts’ expectations, becoming the first month of 2024 not to report double-digit growth due to a strong year-on-year comparison, but demand still rose +9% on last year, according to the latest industry data from Xeneta.
Airlines and freight forwarders now face a ‘fine balancing act’ between protecting customer relationships and being tempted by short-term revenue gains offered by increasing market volatility, including this week’s strikes at ports on the US East Coast and Gulf Coast.
“September is already old news. October is a whole new ballgame,” said Niall van de Wouw, Xeneta’s Chief Airfreight Officer. “We could see rates rising very quickly on some trade lanes because of the fear-of-missing-out (FOMO) effect as air cargo capacity leaves the market for the winter, US port workers go on strike, and conflict is escalating in the Middle East, potentially bringing further Red Sea disruption for ocean freight.”
“I have huge respect for the people who, on a day-to-day basis, are trying to make sense of these challenges and keep the world moving in an efficient manner. How much more can the market take, particularly when there’s so little visibility going forward?
“Reports suggest supply chains could take 4-6 weeks to recover from just a one-week US ports strike, which takes us into November, the busiest month of the year for air cargo volumes. It’s a difficult situation. Covid was worse but this is an accumulation of many events and things can change very quickly. FOMO is a powerful force,” he said.
Growth eased (a little) in September
As expected, September’s global air cargo demand growth showed signs of easing a little, up +9% year-on-year, reflecting the strong peak in demand which commenced in September 2023. The latest monthly volumes, however, were sustained by persistent e-commerce demand, ocean-to-air shift due to container shipping disruptions, typhoon disruptions, and a cargo rush ahead of China’s Golden Week holidays (1-7 October).
Global air cargo supply grew by only +3% year-on-year in September – its slowest growth rate this year as airlines began their flight schedule adjustments in preparation for winter. Xeneta expects a 20% reduction in cargo capacity across the Atlantic this winter, to reflect lower passenger demand.
Dynamic load factor – Xeneta’s measurement of capacity utilisation based on volume and weight of cargo flown alongside available capacity – continued to rise due to the persistent imbalance between supply (+3%) and demand (+9%) year-on-year growth. It increased by 3 percentage points year-on-year and 2 percentage points month-on-month, reaching 60% in September.
As a result, September’s average global spot rate increased +26% to USD 2.71 per kg, the fourth straight month of double-digit growth and the highest increase this year. And this occurred against a backdrop of US Gulf Coast Kerosene-Type jet fuel prices showing a -37% year-on-year decline in the same month.
Zooming into the corridor level, spot rates from Asia to North America and Europe topped the chart in September, exceeding the other major global corridors by over two US dollars per kg. Most Asia to North America and Europe rates showed single-digit month-on-month increases in September, except for a slight dip from Southeast Asia to North America. As for year-on-year trends, all registered double-digit growth.
The Middle East and Central Asia to Europe market saw the most striking rise in rates in September. Boosted by continued Red Sea disruptions, this traditional backhaul route saw a +112% year-on-year increase.
As for Europe to North America trade, the spot rate was on par with a month ago but is expected to come under severe upward pressure if US East and Gulf Coasts and Canada port strikes are not resolved quickly. In terms of year-on-year comparison, the corridor showed a +5% increase.
Several backhaul corridors from North America and Europe to Asia showed notable month-on-month spot rate growth: Europe to Southeast Asia (+11%), North America to Northeast Asia (+6%), and North America to Europe (+4%). In terms of year-on-year comparison, the largest decline was observed on the Europe to Northeast Asia trade, which decreased by -11% due to increased trade imbalances.
A testing time in Q4
Global events, van de Wouw says, will now put preparations for this year’s peak season to the test.
“As we’ve said before, companies are more prepared this year and the rules of the game have been clarified between airlines and forwarders as well as between forwarders and shippers. There are now more precise agreements in place on how to navigate the storm the market is likely entering.
There are agreements around rates, surcharges, and the timeframes in which they can be applied, but there’s going to be a fine balancing act between maintaining relationships and being tempted by the short-term benefits these market conditions are creating,” he said.
“The macroeconomic outlook for 2025 is not fantastic, particularly as it impacts the general freight market. That may make the current volatility and opportunities for rate increases very tempting for carriers. We are already picking up signals that peak surcharges are being accepted by forwarders and shippers because the capacity providers clearly have the upper hand.
“The rules that have been agreed upon mean there’s less room for the temptation of large rate increases during a hot peak. But we do see a piece of the market where you’ve got to ‘pay to play’ and that could become a potential ‘wild west’. Shippers or forwarders may end up there due to unforeseen demand and it could be an expensive game,” van de Wouw added.
An enduring US ports strike, he says, may produce a significant bonus for airlines across the Atlantic from the US to Europe, where load factors would otherwise likely remain below 65% even after the removal of surplus summer capacity. “Because of the low base, there’s a lot of room for those rates to go up if conditions become tougher and goods absolutely need to be shipped. Then we could see rates tripling.”
These factors combined, van de Wouw says, continue to support a potential double-digit growth rate for the global air cargo market across 2024.
Worldwide air cargo rates and tonnages edged up further in the final full week of September and the month as a whole, ahead of what is expected to be a strong peak season, according to the latest weekly figures and analysis from WorldACD Market Data.
After contracting by -2% the previous week as a result of national holidays in China, South Korea, and Chile, total global chargeable weight rebounded in week 39 (23-29 September) with a +2% week-on-week (WoW) increase, raising worldwide tonnages in week 39 to around +10% above their equivalent levels this time last year. That WoW increase in week 39 included traffic rebounding from Asia Pacific (+6%) and from Central & South America (CSA, +4%) – a recovery effect from the holidays the previous week. Combined with an increase from Middle East & South Asia (MESA, +2%) origins, these increases more than compensated for -2% WoW declines from Europe and North America.
Analysis of the Asia Pacific to Europe market highlights some big WoW tonnage increases in week 39 from individual countries including China (+9%), South Korea (+26%) and Taiwan (+16%), but these mostly reflect a rebound following last week’s mid-autumn festival holidays. However, tonnages from Hong Kong to Europe have risen consistently in the last five weeks (+19% compared with week 34) to their highest levels for several months. Meanwhile, tonnages from China and the wider Asia Pacific market to the USA were both up by +5%, WoW, and there were big WoW increases to the USA from MESA (+11%), including from India (+16%) and Bangladesh (+12%).
On the pricing side, average worldwide rates – based on a full-market average of spot and contract rates – in week 39 edged up slightly (+1%, WoW) to US$2.61 per kilo, taking them +10% higher, year on year (YoY), based on the more than 450,000 weekly transactions covered by WorldACD’s data. But the changes to spot rates are more pronounced, for both WoW and YoY comparisons. For example, average global spot rates rose, WoW, by +4% in week 39 to $2.86 a kilo, which is +20% above last year’s levels. The biggest WoW increase came from North America (+6%) and Europe (+5%) origins, although there were notable further increases from Asia Pacific (+3% to $4.14) and MESA (+2% to $3.62 per kilo), taking spot rates from those two regions +26% and +86% higher, respectively, YoY.
MESA and Bangladesh disruptions continue
Whereas demand and rates from most MESA origins have been highly elevated for much of this year, bolstered by the disruptions to ocean freight supply chains caused by the attacks on shipping in the Red Sea, Bangladesh continues to face additional major challenges, resulting from ongoing political instability and logistics disruptions. For example, tonnages flown to Europe from Bangladesh in September were down by around -15%, YoY, and Bangladesh to Europe spot rates have remained extremely high throughout the month, at well above US$5 per kilo. Although they eased slightly in week 39 to $5.11 a kilo, they remain easily more than double last year’s levels (+138%). Meanwhile, Bangladesh to USA tonnages are up substantially, YoY (by around +50% in September), and Bangladesh to USA spot rates of more than $7 per kilo throughout September have been more than three times their equivalent levels last year.
Amid rising tensions in the Middle East, continuing disruptions to container shipping in that region, and anticipation of US port strikes, tonnages flown from the whole MESA region to the USA have risen in the last four weeks by around +13%. In addition to the higher volumes from Bangladesh, tonnages from multimodal hubs such as Colombo and Dubai to the USA are up very substantially, YoY. For example, in the last two full weeks of September, tonnages to the USA from Colombo were around double their levels last year, and from Dubai they were around three times last year’s levels.
Full-month and quarterly increases
Provisional full-month figures for September indicate that chargeable weight rose by a further +1% compared with August, taking tonnages +9% above last year’s levels. That’s a slightly smaller YoY percentage tonnage increase compared with most months this year, although tonnages last September had already begun picking up significantly driven by rising cross-border e-commerce air cargo levels. Full-month average worldwide rates in September, meanwhile, rose by a further +3%, MoM – a stronger MoM increase than in previous months. Compared with September 2023, average worldwide (combined contract and spot) rates were up +14%, YoY, with spot rates up by +22%, YoY, to US$2.80 per kilo in September.
Analysis of the third quarter (Q3) of 2024 indicates that worldwide chargeable weight rose by a further +1%, compared with Q2 (quarter on quarter, or QoQ), and by +11%, YoY. That’s broadly in line with YoY comparisons in Q1 and Q2, which were both up, YoY, by +12%. Average worldwide rates, meanwhile, also recorded a QoQ rise of +1%, with a YoY increase of +10%.
The YoY increases in both tonnages and rates – in September, Q3 and throughout this year – have clearly been largely driven by Asia Pacific and MESA markets, and these two origin regions look set to be key factors in the final quarter of 2024. It’s unclear to what extent the still unresolved US port disputes will contribute to air cargo demand, but further disruption to container shipping there can only add to the pressure on an already stretched air cargo system – facing very strong expected demand and limited available capacity from both of those regions in Q4.
New international certification for Vienna Airport: For safety reasons, the handling of air cargo shipments with lithium batteries is subject to particularly high requirements.
Vienna International Airport has now received the CEIV certification for lithium batteries from the International Air Transport Association (IATA) for its processes, infrastructure and trained staff. This step underlines Vienna Airport’s commitment to meet the growing demand for high-quality handling services for these product groups reliably, quickly and safely.
“High level of security and service in cargo handling at Vienna Airport: The IATA certification once again confirms our position as a reliable and secure cargo hub in Europe. Vienna Airport is an important cargo hub with shipments from all over the world – we want to further expand this position. To this end, we are continuously expanding our range of services and at the same time contributing to minimize risks in air cargo traffic,” explains Julian Jäger, joint CEO and COO of Flughafen Wien AG.
“The new certification shows once again that we are very successful in implementing the highest standards. This is an important step for Vienna Airport and a strong signal to the market. At a time when the demand for lithium batteries is growing rapidly, it is crucial that we as a cargo hub ensure that these products are handled safely and efficiently,” says Michael Zach, Senior Vice President Ground Handling & Cargo Operations at Flughafen Wien AG.
Vienna Airport offers the highest level of expertise and security in the handling of lithium batteries
From laptops and mobile phones to electrical appliances of all kinds – lithium batteries are contained in many consumer goods which are distributed by air freight via the Vienna hub to many parts of Europe. If not handled and transported properly, they pose an increased risk due to their chemical properties. The handling of shipments of lithium batteries, which as dangerous goods require special attention in air cargo traffic, is therefore associated with high safety and quality standards. As part of an audit, Vienna Airport has demonstrated that it fulfils all requirements for carrying out these demanding tasks safely and in compliance with regulations.
IATA CEIV lithium battery certification – a guarantee for safe transport
The IATA CEIV Lithium Battery Certification is a globally recognized program specifically designed for the safe transportation of lithium batteries. It ensures that companies transporting lithium batteries meet the highest standards of safety and quality through extensive training, rigorous process controls and regular audits. This certification is not only a sign of compliance with global regulations, but also an important step towards improving safety in the air cargo industry. It helps minimize risk and increase efficiency throughout the supply chain.
Marissa Sanchez has been appointed as the Chief Capital Development Officer for Ontario International Airport (ONT), where she will oversee all planning, design, and construction efforts aimed at enhancing infrastructure and improving the passenger experience.
Sanchez joins the rapidly growing Southern California airport with extensive expertise in project management, facilities maintenance, grant and contract administration, and community relations. Previously, she spent 11 years at the City of Dallas, serving as Assistant Director in the Infrastructure & Development Department of Aviation. There, she managed a $450 million capital budget and played a significant role in the development of airside, terminal, and land-side projects.
In addition to her role in infrastructure, Sanchez was also the Assistant Director of Internal Services in the Department of Aviation, where she contributed to the development and execution of the Dallas Executive Airport and the downtown Dallas heliport.
Atif Elkadi, CEO of the Ontario International Airport Authority, welcomed Sanchez, stating, “Her experience in managing major aviation projects makes her an ideal fit to help ONT meet the needs of this vibrant and dynamic region we serve.”
Sanchez expressed her enthusiasm for her new role, stating, “I look forward to implementing great projects to help facilitate travel and safety for our passengers, employees, and community.”
She holds a Master of Business Administration from Texas Woman’s University and a Bachelor’s degree in Business Studies from Dallas Baptist University. As a mother of three daughters and a proud owner of three German shepherds, Sanchez enjoys traveling with her husband, and they are excited to explore their new home state of California.
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