Tag: Air Transport

Japan Post and Sankyu to form Joint Venture

Japan Post has announced that it will establish an international air cargo joint venture with Sankyu Inc.

The as yet unnamed joint venture, which will be owned by Japan Post Service (60%) and by Sankyu (40%), is expected to begin operations in July.

Sankyu will transfer its international air cargo operations to the joint venture.

The JV partners also plan to set up subsidiaries overseas.

Japan Post and Sankyu have co-operated on parcel services between Japan and the rest of Asia since 2004, with Sankyu collecting parcels overseas and Japan Post delivering in Japan.

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Japan Post Service, Sankyu to form air cargo venture

Japan Post Service and transport services company Sankyu will create a joint venture in July to launch international air cargo services mainly in Asia.

The joint venture will be owned 60 percent by Japan Post Service and 40 percent by Sankyu.

Sankyu will spin off its air cargo division, with current annual sales of around USD 89 million, and Japan Post will invest in the spinoff.

The joint venture will arrange cargo transportation including for parcels and will prepare Customs clearance documents. Its cargo collection and delivery services will be based on Sankyu’s existing overseas network and Japan Post Service’s network in Japan.

Japan Post Service is one of four firms owned by Japan Post Holdings. The five firms were created when the Japanese postal system was broken up for privatisation last October.

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January Traffic Could Signal Start of Slowdown

The International Air Transport Association (IATA) released international traffic data for January.

Year-on-year international passenger demand grew by 4.3pct in January. This is sharply down from the 6.7pct growth recorded in December and the 7.4pct recorded for the full-year of 2007. Capacity growth of 4.2pct saw load factors inch up to 75.1pct . International cargo demand growth remained sluggish. At 4.5pct for January it was largely unchanged from the 4.7pct year-on-year growth recorded in December.

Steady year-on-year air freight growth of 4.5pct was recorded in January. This runs contrary to downward trends in many leading indicators including semi-conductor shipments and manufacturing business confidence levels.
Air cargo has been growing at half the rate of global trade expansion, indicating a loss of market share to shipping which has benefited from faster ships and cheaper fuel costs. While aviation fuel rose 300pct between 2002 and the first half of 2007, residual fuel for ships increased by 200pct. During the last half of 2007 the gap narrowed with the sharp increase in prices. Both modes are experiencing a 500pct increase in fuel costs compared to 2002. The result is that air cargo has clawed back some lost market share, masking any early impacts from the downturn in the US economy.

In the larger freight markets there is continued strength. Asia Pacific airlines saw demand increase 6.5pct , up from 6pct in December, boosted by the booming economies in China and India. European airlines saw freight slump to 0.4pct in a pattern very similar to passenger traffic. Most of the air freight is carried on long-haul markets where business for the European airlines has suffered from the strong Euro.

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IPC’s The Future of Mail by Air is featured at IATA World Cargo Symposium in Rome

If you want to learn more about the IPC initiative on The Future of Mail by Air and how posts and carriers are working together towards paper free transport of mail by air, piece ID level tracking, booking and electronic accounting of mail, the IATA World Cargo Symposium is the place to be.

The World Cargo Symposium will be held March 3-6 in Rome. The ”Airmail Management” event at the next IATA World Cargo Symposium will focus on the challenges for posts and airlines to meet growing customer demands and explore the opportunities to effectively manage the increasing volumes of mail.

Over 800 cargo professionals from around the world participated in the first International Air Transport Association (IATA) World Cargo Symposium, which took place last year in Mexico City. This one-week global mega-conference featured 140 speakers, 28 exhibitors and 12 sponsors in one single gathering.
IPC will take the lead in addressing some misperceptions when it comes to mail.

Mail is perceived by some to be a traditional letter product, difficult to manage and insignificant in terms of volumes. Perceptions are that multi-media and internet alternatives are replacing mail; when in fact, multi-media and internet have become drivers of mail growth. Direct mail advertising is growing and driving the expansion of the packages and parcels market. Even though merchandise is being purchased via the internet, the packages and small parcels purchased are delivered by traditional mail channels, increasing the need for capacity on the airlines.

IPC, as an operator’s association representing 24 of the world’s leading posts and 140 participating posts, wants to attract attention to the expanding business of this mail category and the growing business opportunities mail transport provides to the airlines.

If you are interested in this topic, you may follow the link below to register for the IATA World Cargo Symposium online. Make sure you register for the MAIL TRACK event. You will meet the mail industry leaders and airlines that are working to provide visibility to meet increasing customer demands and working together towards a reliable and sustainable, paper free mail transport by air!

http://iata.com/events/wcs08/index.htm

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The shifting cargo scene is spreading out distribution of cargo operations along the North American east coast.

Of the top 25 North American East Coast airports reporting cargo figures for 2006, less than half reported greater than 1 percent growth. Eleven reported declining business while three, including John F. Kennedy International, reported less than 1 percent.
As with most statistics, the broad figures can be misleading, disguising changes below the surface. Virtually all of the airports are being hamstrung by a very stagnant domestic market, which has become divided into an integrator market, which is showing some growth, and the non-integrator market, which is contracting.

The major growth from the express carriers is being driven to some degree by what some call DPIJ – Domestic Portion of International Journey. This is throwing cargo traffic to the secondary and tertiary airports along the Eastern seaboard that are heavily supported by the express carriers, such as Piedmont-Triad International Airport, serving Greensboro, High Point and Winston-Salem, N.C..

Triad is already showing growth from the planned opening of a FedEx regional hub in mid-2009. “The catalyst for cargo growth starts with FedEx,” said Triad Executive Director Ted Johnson. “Even though FedEx has not opened up yet, there will be some industries moving into the area to use FedEx.” Triad reported a 3.8 percent growth in 2006.

Most of the express package deliveries will be probably be plane-to-truck, rather than plane-to-plane as is normal at the main FedEx hub in Memphis, Johnson said. A prime reason for the airport being selected for the regional hub was its road network, with five interstate highways passing nearby, providing fast delivery times north and south along the Atlantic seaboard, he said.

Another issue hitting secondary and tertiary airports along the east coast is the mass migration of industrial manufacturing from Europe to Asia in general and China in particular.

Consumer goods manufacturing has long since moved to Asia. Now industrial goods that were manufactured by companies in Europe are also being outsourced to Chinese or other Asian manufacturers.

While a lot of those goods obviously will be shipped by ocean transport, air cargo should grow following the air service accord signed between the United States and China last May. That accord will significantly increase flights allowed between the two countries, with flight frequencies to be doubled over the next five years. All restrictions will be lifted for cargo flights by 2011.

A lot of those manufactured goods will enter North America via the West Coast or into Chicago, and then head east by truck or train. However, airports such as Washington Dulles International, Atlanta’s Hartsfield-Jackson International or Toronto’s Lester B. Pearson International are showing strong growth from both freighter and belly capacity from Asia.

A major factor in that growth comes from U.S. carriers, which are increasing emphasis on international traffic, primarily United, Delta and US Airways.

Dulles is a secondary cargo airport that, on paper, has grown marginally over the past 10 years. In 1997, Dulles handled 350,000 tonnes of freight. In 2006, it handled just under 350,827 tonnes. After declines in the wake of September 11, the airport posted a 6 percent growth in 2006 over 2005.

Dulles handled 191,000 tons of international freight in 2006 compared to 120,000 tons in 1997, with a large part due to United’s increased international service. Today, United accounts for 42 percent of the cargo passing through Dulles, strictly through belly capacity, said Richard Norris, head of air cargo development for Dulles.

Atlanta’s Hartsfield-Jackson International is being heavily impacted by Delta’s increased emphasis on international traffic, said Warren Jones, Hartsfield-Jackson’s aviation development manager. While mail has dropped 80 percent and domestic cargo slid 9 percent during 2006, partly as a result of Delta’s shift to narrowbody aircraft for its domestic routes, internat

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