Tag: Air Transport

World air cargo volumes slump in June

Posted by | Aug 4, 2008 | |

World air cargo traffic suffered a downturn in June due to the worsening international economic climate, according to the latest figures from international aviation organisations. The figures follow recent comments by global express operators about weak demand in June.

The figures continue the general downward trend seen over the first half of 2008. The key factors include lower domestic volumes in the USA, lower US imports due to the country’s weak economy, and a partial modal shift from air to sea transport as customers seek to reduce overall logistics costs.

According to the Airports Council International (ACI), representing the majority of the world’s airports, total air freight volumes dropped by 3.2% to 4.6 million tonnes in June 2008 compared to the previous year. Domestic freight slumped by 10.9% while international volumes grew just 0.4%. Half-year volumes were up by just 2.2% at 28.6 million tonnes, with domestic cargo down 2.8% and international volumes up by a more healthy 4.7%, it said.

In regional terms, North America saw a 10.9% volume drop in June, including a 14% fall in domestic volumes and a 3.2% decline in international freight. This left overall volumes down 3.6% over the first six months of 2008. Europe had a 1.3% drop in air cargo volumes in June, including a 1.7% fall in international volumes. Half-year volumes were up 2.9%.

Asia Pacific, the world’s largest air cargo market, saw growth slow to just 1% in June, with international cargo growth at 2.5%. The region had 6.6% overall growth in the first half-year. Smaller markets such as Middle East and Latin America also saw low growth in June.

Separately, IATA, representing the world’s commercial airlines, said that international cargo traffic contracted by 0.8% in June. This was the first monthly decline since May 2005 and followed several months of falling manufacturing sector confidence indicators.

Asia Pacific airlines led the freight contraction with a -4.8% year-on-year decline for June traffic, IATA pointed out. European carriers saw freight demand growth fall to 0.7% in June from 1.4% in May. North American carriers also saw freight demand growth slow to 4.0% in June from 4.6% in May.

Middle Eastern carriers delivered the strongest performance with 12.1% growth (up slightly from the 10.7% recorded in May). Latin American airlines recorded the largest contraction (12.7%) as the region’s cargo sector continues to re-structure its capacity.

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U.S. express traffic slows

Posted by | Jul 18, 2008 | |

Air Cargo Management Group reports that revenues for the U.S. domestic air freight and express industry totaled USD 32.81 billion in 2007, a slim 1.0 pct increase over 2006, but nonetheless a new record for the industry. “Gains in 2007 must have come from fuel surcharges, as total market revenue-ton-mile (RTM) traffic and the daily shipment counts of the express carriers both declined,” noted Robert Dahl, ACMG Proj¬ect Director.
Traffic volume for the industry was 14.924 billion RTMs, down 1.5 pct year-over-year, and the number of shipments moving through the major express networks was 6.644 million per day, down 1.8 pct versus 2006. “The industry remains at or near 1999 levels based on both these performance metrics; in other words, this industry has gone through eight years with no net growth,” Dahl said. “Furthermore, part-year data for 2008 gives little hope of any major increase this year. In fact, there are numerous challenges facing the industry, including re¬cord-high fuel prices, a weak U.S. economy and a perceived shift of air shipments to trucks, which could lead to further traffic declines in 2008 and 2009.”

ACMG finds that the US domestic air freight and express industry continues to undergo significant structural changes in both the express and general freight sectors. The players in the express side remain unchanged, consisting of FedEx, UPS, DHL and BAX Global; however, DHL is changing its business model in the domestic U.S. market to eliminate its own contracted air network, instead buying space starting this year from UPS to move its shipments on an airport-to-airport basis within North America. When the DHL shift to UPS is complete in 2009, there will be just three express freighter networks operating within the U.S. (UPS, FedEx and BAX/Schenker), down from eight in the mid-1990s.

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Indian carriers get ready to launch cargo flights abroad

Posted by | Jul 7, 2008 | |

With competition hotting up from big-time players such as FedEx and UPS as well as the established international cargo airlines, two of India’s top express players have chalked out plans to go overseas.

Over the past few years, the number of cargo carriers has gone up significantly. From the lone Blue Dart, the only Indian cargo carrier, there are today at least half a dozen more players.

Blue Dart Aviation, a subsidiary of express cargo carrier Blue Dart Express, has drafted a plan to start flying abroad. The plan, said Tulsi Mirchandaney, formerly senior vice-president, marketing and projects, and now managing director of Blue Dart Aviation, is in
the initial stage.

Mirchandaney should know because she was not only instrumental in marketing air cargo products but also involved in route planning and space allocation.

The decision to fly abroad has been prompted by the under-utilisation of Blue Dart’s fleet. Blue Dart has seven planes – four Boeing 737s and three Boeing 757s – that fly around the country for only eight hours at night.

In 2005, DHL Express completed the acquisition of 81.03 per cent of the equity capital of Blue Dart Express. Under the deal, Blue Dart continues to operate as an independent brand and provides a complete spectrum of domestic services through synergies with DHL.

The company is currently in talks with its parent DHL to find out ways in which the two could work together and ensure that Blue Dart planes can be used for international operations.

While Blue Dart firms up its plan, GATI, an express cargo delivery major with experience in distribution and supply chain management solutions, has started its foreign air cargo operations with Air India.

GATI’s managing director and chief executive officer Mahendra Agarwal said that his company had an agreement with Air India to take cargo overseas. This would be a follow-up to GATI’s tie-up late last year with the national carrier.

According to that tie-up, three of AI’s Boeing 727-200 freighters operate with the GATI logo within the country.

Keen to establish its presence globally, GATI has set up offices in China, Japan, Dubai, Hong Kong Thailand, Nepal and Sri Lanka and has plans to foray into other markets. The express major’s revenues have grown from USD 1 46 million to USD 7.04 million over the past three years.

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Copenhagen Airports A/S and FedEx sign partnership agreement

Posted by | Jul 2, 2008 | |

Copenhagen Airports A/S announces that they have signed an agreement with FedEx Express to provide a purpose-build cargo facility, including office space in a partnership which will run through to at least 2023.
At approximately 1,600 square metres, the cargo facility will be tailored to suit the needs of FedEx Express and will have both airside and landside access. In addition, a 770 square-metre office building will be built for FedEx Express.
The contract between Copenhagen Airports A/S and FedEx Express highlights the Copenhagen Airports focus on customers, developing a tailored solution together with the customer, which will also deliver benefits for the airport in the longer term:
“By investing in projects that create value for our customers, we achieve a satisfied customer and a better product specially designed for the customer. In addition, we have better utilisation of the airport’s capacity in the longer term,” said Brian Petersen, CEO of Copenhagen Airports A/S.
“The new facility will boost our service to customers in and around Copenhagen, and will help facilitate Denmark’s growth in the global market” said David Canavan, Managing Director Northern Rim Operations. “Copenhagen is a strategic market for FedEx Express in Europe, and FedEx helps drive global trade by enabling Denmark’s’ businesses to quickly and reliably express deliver their shipments around the world” said Mr. Canavan.
It is expected that the new cargo facility and office building will be ready for use in the spring of 2009.
The 4.1 pct growth in cargo volumes in 2007 emphasised that Copenhagen Airport’s role as Scandinavia’s largest hub for cargo traffic. In 2007, 395,506 tonnes of cargo was handled at Copenhagen Airport, up from 380,024 tonnes a year earlier.

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DHL and TNT boost association of European airlines’ membership to 35

Posted by | Jul 1, 2008 | |

From 1st July 2008, the Association of European Airlines expands its horizons, following the decision of the AEA Presidents’ Assembly in May to welcome the express cargo carriers TNT and DHL, as AEA’s 34th and 35th airline members.

The accession of DHL’s European airlines (European Air Transport and DHL Air UK) and TNT Airways to AEA membership will bring still one more dimension to the Association. The express air carriers’ business model integrates different modes of transport into one system; it is based on network planning and coordination centred around one or more hub airports to which express freight is forwarded either by road or by air.

DHL traces its origins to the early 1970s in the US, but with expanding worldwide operations, Deutsche Post World Net bought the company in 2002. DHL has its main European operating hub at Leipzig in Germany, from where it operates regular direct daily services to 30 European destinations, as well as services to Africa and the

Middle East. DHL airlines operate 33 Boeing 757s and 18 Airbus A300s for the DHL Express network to every major city in Europe.

TNT Airways, founded in 1999, is a Belgian licenced air carrier based in Liège. Its parent company, TNT n.v. has its headquarters in the Netherlands. From its Liège hub, TNT operates 47 aircraft (B747s, A300s, B757s, B737s, BAe146s) to more than 70 European destinations and has traffic rights to 12 intercontinental destinations. For long haul transport, the company also has agreements with commercial passenger airlines.

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