Air Cargo

Cathay Pacific and sister carrier Dragonair reported flat growth in air cargo during August as the Hong Kong-based airlines limp into the slack period before what is hoped will be a last-quarter peak season.

The Australian Federation of International Forwarders has expressed concern that a change of insurance agent by the International Air Transport Association in the country is forcing its members to come up with huge bank guarantees, sometimes running into millions of dollars.

Airlines and rechargeable battery makers are preparing to launch a joint campaign aimed at lobbying governments to clamp down on the counterfeit battery business that is posing a growing threat to aviation safety.

The likelihood of UPS pilots striking is low, but while shippers will likely dodge service disruptions, they could be hit by higher costs if the parcel giant gives into union demands, analysts told JOC.com.

Lufthansa’s long-haul and freighter flights out of Germany will be grounded by an all-day pilot strike in Tuesday, Sept. 8, as the cockpit crew union calls its 13th walkout in 18 months.

Prepare for a rough ride in the last quarter, was the warning from the International Air Transport Association (IATA) as it released data for global air freight markets in July that as expected revealed a fall in air cargo demand amid turmoil in the world economy.

AirBridgeCargo, which has so far outperformed its European rivals this year, has begun operations connecting Moscow to Singapore's Changi Airport.

No one expected good news to come out of July’s air freight business and each new set of data serves to further confirm the dismal state of the world’s air cargo industry.

China Southern Airlines reported a stunning first half with cargo volume rising 10 percent overall and belly hold freight growing 27.6 percent compared to the first half of last year.

Strong passenger demand among airlines is working against air cargo as it drives up capacity that cargo divisions are unable to fill in a weak air freight environment and creates strong downward pressure on rates.

Weak Asian demand pulled down cargo traffic at Amsterdam Airport Schiphol in the first six months of the year, another sign of how China’s slowing economy is curbing shipments of high-value products such as electronics and auto parts.

The International Air Transport Association director general and CEO Tony Tyler will retire in June next year after serving five years in the position.

Air cargo demand among Asian carriers weakened in July as demand for exports fell along with global trade, according to the latest data from the Association of Asia Pacific Airlines (AAPA).

Air China Cargo turned around its financial fortunes in the first half of the year with a 23.5 percent increase in freight carried on the airline’s network taking the mainland’s flag carrier to a $17 million net profit.

Nippon Express Co., Japan’s largest international freight forwarder, is investing heavily in Southeast Asia, particularly Vietnam, to position itself favorably ahead of the inauguration of the ASEAN Economic Community at the end of the year.

Shura Bary, principal at The Bary Group, a public relations firm that represented some of the largest airfreight companies in the industry, died Aug. 6 in his San Francisco home from complications of Type 1 diabetes. He was 85.

Nippon Express Co., Japan’s largest international freight forwarder, has reached a key milestone in its Asia strategy with the launch of a time-saving truck service between Kunming, the capital city of Yunnan province in southern China, and Bangkok, Thailand’s capital.

London Heathrow’s cargo traffic decreased by 5.4 percent in July from a year ago but the airport urged the government to approve an expansion of the airport to keep pace with growing trade with emerging markets.

Nippon Express Co., Japan’s largest international freight forwarder, said that it has bought the remaining 5 percent of Nippon Express (China) still held by a Chinese partner to speed up the decision-making process. Those decisions center on adjusting to China's rapidly changing logistics business environment, wherein manufacturers are shifting their operations further inland, necessitating greater inland penetration by international logistics firms.

Perishables and pharmaceuticals — among the most lucrative segments of the air cargo because of the time-sensitive nature of their delivery — are at the forefront of air carrier plans to bolster revenue.

Frankfurt airport, Europe’s largest air freight hub, posted another monthly decline in traffic in June, tracking slowing growth at its largest customer, Lufthansa Cargo.

Expeditors International made more gains in air freight and ocean container volume in the second quarter, despite the fading impact of the West Coast port crisis, which gave trans-Pacific air cargo more lift. That helped the forwarder boost both net revenue and profit.

IAG Cargo has indefinitely extended the capacity partnership agreement with Qatar Airways that marked the Anglo-Spanish carrier’s exit from freighter operations a year ago.

The slowing growth rate in global air cargo demand continued into June with volume inching up just 1.2 percent from a year ago, according to the International Air Transport Association.

Lufthansa Cargo and its affiliate Swiss WorldCargo are introducing a new simplified pricing system for the winter season in response to “the volatility of external cost factors.”

Nippon Express Co., Japan’s largest international freight forwarder, saw its group net profit soar in the first quarter of fiscal 2015 on the back of robust international revenue growth driven by the weak yen and increased air cargo traffic.

China’s HNA group is in a bid battle for Avolon, one of the world’s largest aircraft lessors, just days after agreeing the $2.8 billion acquisition of Swissport, the world’s largest airport cargo handler.

Of the top-50 air cargo traffic streams outside the trans-Pacific market, only three city pairs recorded a positive revenue development in the first half: Nairobi-Amsterdam, Chicago London and Mumbai-London, according to the latest market information from WorldACD.

IAG Cargo’s revenue grew 8.8 percent in the second quarter as favorable exchange rate movements offset lower traffic and a flat load factor.

Japan Airlines Corp.’s revenue from cargo operations grew faster than overall revenue in the first quarter of fiscal 2015, helping the carrier’s net profit surge 120.7 percent in the April-June quarter from the same three-month period last year to 32.6 billion yen ($263 million) on a consolidated basis.

Blue Dart Express, India’s leading air express and logistics service provider, posted a big jump in net earnings in the first fiscal quarter, as income from operations increased significantly, driven by new business strategies.

Lufthansa Cargo’s five-year winning streak ended abruptly in the second quarter as it slumped to a 68 million euros ($74.8 million) operating loss from a 20 million euro profit a year ago.

ANA Holdings Inc. saw its group net profit more than double year-over-year in the first quarter of fiscal 2015, which started in April, despite weaker revenue from cargo operations.

IAG Cargo and Finnair Cargo have signed an agreement to share space on a freighter service between London Luton and Helsinki airports as the two carriers map out a new strategy following their decision not to operate their own cargo aircraft.

TNT Express posted a 6.2 percent increase in second-quarter revenue, driven by a stronger dollar and growing business from small and medium-sized customers.

Air France-KLM’s cargo business is sinking deeper into the red as its second-quarter operating loss soared to 78 million euros ($86 million) from 45 million euros a year ago despite desperate cost-cutting measures.

The slack season has hit the air cargo business hard this year with no sign of any improvement on the major trades as momentum steadily drains out of the market and freight rates tumble to new lows.

China’s busiest air cargo terminal in Shanghai continued its record-breaking run this year, posting the strongest first-half result in the company’s history.

UPS expanded the insurance and logistics services it offers shippers of high-value cargo such as jewelry by acquiring Insured Parcel Services from G4S, a global integrated security company.