Air Cargo

Cargolux’s net profit was squeezed to $3 million in 2014 from $8.4 million in 2013 by a $40 million impairment on its 747-400 freighter fleet and a provision for potential anti-trust fines.

Lufthansa Cargo says it is delaying the construction of a new freight center at its Frankfurt hub “by at least two years.”

As the U.S. economy came screeching to a halt in the first quarter — at least those parts that contribute to gross domestic product growth — UPS improved revenue, shipment volumes and profit, a sign that things may not be as bad as the economic indicators seem to say.

The bull run enjoyed by Asian air cargo since the last quarter of 2014 could not last forever, and after a robust first two months of the year, sharply slowing demand in March brought the business back to Earth with a bump.

Frankfurt airport handled 6.4 percent less freight in March than a year ago as strikes by Lufthansa pilots resulted in the cancellation of intercontinental flights.

Regulators must continue to work closely with all members of the air cargo supply chain to ensure impending advance data regulations enhance security without impeding cargo flows, according to a new position paper from The International Air Cargo Association (Tiaca).

China’s slowing exports put the brakes on runaway volumes at the world’s largest air cargo carrier in March as throughput on Cathay Pacific-Dragonair tumbled into the single digits after a robust start to the year.

Cathay Pacific today became the latest airline to suspend the carriage of all lithium batteries in bulk on both passenger and freighter aircraft until improved packing and shipping requirements can be developed.

A sharp increase in first quarter imports helped Shanghai’s largest air freight terminal to yet another record and follows on from its best ever annual performance in 2014.

Russia’s AirBridgeCargo Airlines boosted freight tonnage by 20 percent in the first quarter as its rapidly expanding international network offset the impact of sanctions and an economic downturn in its domestic market.

TNT Express said it will open talks shortly with potential buyers of its cargo airlines following FedEx’s agreed 4.4 billion-euro ($4.8 billion) takeover.

Air cargo shippers using Chicago O’Hare International Airport are experiencing delays because of major road construction around the hub and inconsistent service from third-party handlers. A surge of cargo from shippers unwilling to brave West Coast port congestion isn’t helping.

AirBridge Cargo, the only Russian carrier in the Hong Kong market, will be the main beneficiary of fifth freedom traffic rights out of the city that were granted to Russian air freight carriers following a new round of bilateral talks that concluded last month.

Global air cargo traffic soared by 11.7 percent in February, driven largely by the timing of the Chinese lunar New Year and the congestion at U.S. West Coast ports, the International Air Transport Association reported.

Thai Airways exited the freighter business this week, unable to benefit from the robust volumes on U.S. routes being generated by its Asian peers and without the scale of capacity required to drive a profitable air cargo network.

Air freight carried by Asian carriers grew by a solid 12.8 percent in the first two months of the year compared to the same period in 2014, according to data from the Association of Asia Pacific Airlines (AAPA).

Kerry Logistics plans to build a regional express delivery platform in China and across the Asean region to capitalise on a rapidly growing segment of the logistics business, but it will be a cautious entry into a difficult market.

Qatar Airways Cargo is launching a freighter service between its Doha hub and Los Angeles International Airport, its fourth all-cargo service to the U.S.

Martinair, Air France-KLM’s all-cargo unit, announced it is laying off 330 employees, including 110 pilots, as it downsizes its freighter fleet in a bid to return to profitability.

Cathay Pacific reported a 20 percent increase in net profit for 2014 as a strong second half recovery in the cargo market helped drive up earnings to $403 million.

The government of Hong Kong has approved the building of a third runway at Hong Kong International Airport (HKIA), announcing that it would fund the $18.2 billion expansion through internal funds, external borrowings and higher user fees.

Cathay Pacific and sister carrier Dragonair carried almost 30 percent more cargo in February than during the same month last year as the Hong Kong-based airlines added capacity to cope with the lunar new year surge in demand.

The air cargo industry is in a difficult transformation period as it struggles to adapt to a changing cargo mix and rising demands from customers for better shipment visibility and a more reliable service.

Lufthansa Cargo’s operating profit surged nearly 27 percent in 2014. The German carrier remained in the black for the fifth consecutive year despite a weak global air freight market that has pushed many of its rivals into the red.

The behavior of a handful of mega shippers in China completely defines the market, and any analysis of imports and exports must take this into account, advised Seabury Group managing director Gert-Jan Jansen.

Ericsson head of distribution logistics Robert Mellin took a swing at the air cargo industry that he said was delivering service levels well below expectations and was failing to evolve at the same pace as other modes of transport.

There were 221 kilograms of lithium ion batteries in the belly hold of Malaysia Airlines Flight 370 that vanished in March last year, according to the first comprehensive report into the disappearance of the Kuala Lumpur-Beijing aircraft.

With the air cargo industry under increasing competition from ocean carriers for certain cargoes, especially perishables, more sophisticated software and technology tools are helping drive the migration from ocean to air.

DB Schenker, the logistics unit of German railroad Deutsche Bahn, has reached agreement with three airlines involved in a global price-fixing cartel but is still seeking damages from three other carriers.

The global air cargo market got off to a sluggish start in 2015, with traffic up 3.2 percent year-over-year in January as lower volumes on European and North and South American routes offset strong growth in the Asia-Pacific region.

Air cargo leaving India has been hit with severe delays because of poor weather and the lingering impact of U.S. West Coast port congestion on world trade, according to a U.S. freight forwarder specializing in air and ocean freight in the Far East.

International Airlines Group’s cargo revenue declined 7.5 percent in 2014 from the previous year, largely because the owner of British Airways and Iberia quit freighter operations.

Trans-Pacific air freight markets will continue to benefit from shipper demand as U.S. ports take several months to clear the backlog of containers that stacked up during the protracted waterfront labor dispute between terminals and the union.

Air France-KLM’s cargo losses widened to 212 million euros [US $242 million] in 2014 from 202 million euros in the previous year as a two-week pilots’ strike compounded the impact of a weak global airfreight market.

TNT Express slumped to a 137 million euros [US $156 million] net loss in the fourth quarter of 2014 from a 32 million euros profit in the same period in 2013, driven mainly by restructuring charges tied to an abortive takeover bid by its larger rival, UPS, two years ago.

Solid freight demand from North American markets saw Cathay Pacific and sister airline Dragonair get the year off to a good start and allowed the carrier to operate an almost full freighter schedule in January.

Shippers between Nairobi and the global flower hub of Amsterdam chartered at least 1,500 tons of additional air freight capacity in the two weeks leading up to Valentine’s Day to ship in flowers from Africa.

With less than a week to the Chinese New Year factory shutdowns and congestion delays frustrating trans-Pacific shippers, DHL is ensuring it has enough air cargo space on its U.S. routes to handle the rising demand.

DHL Global Forwarding has opened its new Shanghai warehouse with an $18 million investment in 17,200 square feet of cold storage facilities for life sciences and healthcare customers.

Spain’s state-owned airports operator Aena will make its debut on the Madrid Stock Exchange Wednesday in the country’s biggest initial public offering since 1997.