Air Cargo

It was no surprise to find air cargo executives at the WCA Worldwide forwarders conference in Hong Kong lobbying for more shippers and forwarders to send their cargo via air, but the U.S. port congestion provided a helpful marketing tool.

Global air cargo traffic grew by 4.5 percent in 2014, boosted by a rebound in trade that ended several years of stagnation, the International Air Transport Association said.

Nippon Express Co., Japan’s top international freight forwarder, posted a big jump in group net profit in the first three quarters of fiscal 2014, as revenue from overseas operations grew robustly, helped by a weaker yen.

The highly public spat between Alibaba Group and China regulators over allegations of counterfeit or misdeclared goods being sold via the Internet giant’s online platform has again highlighted supply chain safety and security concerns faced by logistics providers and airlines transporting the e-commerce products.

Blue Dart Express, India’s leading air express and logistics service provider, reported a 19 percent rise in net income to Rs. 27.13 crore (US $4.4 million) for its third quarter, which ended Dec. 31.

Shrugging off the economic downturn in its home market, Russia’s AirBridgeCargo Airlines boosted traffic 17.6 percent in 2014, its 10th anniversary, even as leading Western airlines continued to downsize their freighter operations.

Japan Airlines reported a 3.1 percent year-over-year drop in group net profit for the first three quarters of fiscal 2014, to 119.684 billion yen (US$1.01 billion), despite a nearly double-digit rise in international cargo revenue.

ANA Holdings’ international cargo revenue surged 20.9 percent year-over-year in the first three quarters of fiscal 2014, helping the largest Japanese airline group post a jump in profit for the April-December period

Apple has released its smartphone data for the fourth quarter of 2014, and while soaring sales of the iPhone 6 doubled its market share in China, the numbers also illustrate the close correlation between the air cargo industry and the constantly evolving mobile phone business.

Greece’s new radical left wing government is set to freeze the planned sale of the state’s stakes in Athens airport, the port of Thessaloniki and rail companies as it seeks to tear up some of the conditions of its 240 billion euro ($271 billion) bailout agreement.

Cathay Pacific’s new air cargo terminal in Hong Kong handled 1.45 million tons during 2014 in its first full year of operation.

The sharply divergent fortunes of the air and ocean cargo sectors in Hong Kong are illustrated in a chart from CBRE Research on container and air freight throughput during 2014.

Hong Kong Air Cargo Terminals Ltd. (Hactl) ended a solid 2014 by recording its strongest quarter of the year as Asia’s air freight sector continued its robust recovery.

Alitalia unveiled plans to increase its cargo operations as part of a strategy to return to profitability in 2017 following years of losses, billions of dollars of state subsidies and a narrow escape from bankruptcy.

Amsterdam Schiphol airport said cargo traffic got off to a slow start this year because increased trans-Pacific shipper demand for air cargo services due to U.S. West Coast port congestion is diverting freighters from Asia-Europe routes to the Pacific.

The air cargo industry had its longest peak season in years in 2014, driven by massive demand for new products, most notably the iPhone 6 that sold more than 40 million units in the third quarter alone. But the big question that has airline executives frantically polishing their crystal balls is whether airlines and air freight forwarders can count on the strong performance continuing through this year.

Frankfurt airport’s freight traffic increased just 1.7 percent in 2014, lagging growth at its main European rivals, as pilots at Lufthansa, its biggest customer, staged nine strikes through the year.

Cathay Pacific and its sister airline Dragonair carried 1.72 million tons of cargo during 2014, a 12 percent increase over the previous year as the strong second half performance continued into December.

Lufthansa Cargo is “cautiously optimistic” about its performance in 2015 after filling nearly 70 percent of its capacity in a fiercely competitive market last year, CEO Peter Greber said.

London Heathrow increased air freight traffic by 5.3 percent in 2014, driven by a surge in shipments to key emerging markets, but capacity restraints are threatening to slow growth at Europe’s fourth largest cargo hub.

Larger international shippers increasingly use UPS's expedited freight service as a strategic "cushion" or aid in supply chain planning, as well as for urgent shipments.

Record December throughput took Shanghai Pudong International Airport Cargo Terminal Ltd. (Pactl) past its annual 2014 target of 1.45 million tons as healthy demand kept air freight flowing through China’s busiest airport.

International air freight demand accelerated late last year, driven by strong growth in shipments of electronic goods going into the year-end festive season, the Association of Asia Pacific Airlines (AAPA) said today.

Following a strong end to 2014, global air freight demand will rise 4.5 percent in 2015, outpacing the growth of world trade, the International Air Transport Association says.

Another two high-ranking China Southern Airlines executives have been axed on suspicion of “job related crime” following investigations by the state owned carrier’s parent company.

Cargolux management and the Luxembourg labor unions continue to be locked in a stalemate, unable to reach a collective work agreement (CWA) despite the carrier’s belief that it is key to ensuring the airline’s survival.

China Southern Airlines’ executive vice president and chief operating officer for flight operations have been axed on suspicion of “job-related crime”.

The air freight business has just completed its best peak season in years, but the International Air Transport Association (IATA) has presented a sobering picture of an industry enjoying a cyclical upturn while struggling to overcome structural problems.

Strong air cargo volume on Asia-U.S. routes in the last quarter has seen airlines raising rates faster than forwarders can pass them on to customers, placing margins under pressure.

Records are tumbling at Asia’s air freight hubs of Shanghai and Hong Kong this year, with double-digit growth reported at the main terminals in November and for the year-to-date.

The German government has drawn up a draft law to curb the power of small but powerful niche labour unions than have mounted frequent strikes, mainly in the transport sector, paralyzing the nation’s economy throughout this year.

Cargolux continued its robust performance in November, flying a record volume of freight and bucking the downward trend in the European air cargo market.

Trans-Pacific shipments between Hong Kong and fast recovering North American markets drove up Cathay Pacific cargo throughput in November, with the strong demand expected to last deep into the final month of the year.

The long running investigation into Asia forwarders fixing fees and surcharges on Japan-Singapore routes between 2002 and 2007 was finally brought to a close with the Competition Commission of Singapore (CCS) handing out $5.4 million in fines.

Global air cargo revenue will rise to $63 billion in 2015 from an estimated $60 billion this year, but will remain roughly 5 percent lower than in 2010, according to the International Air Transport Association.

Lufthansa Cargo managed to increase traffic in November despite ongoing strikes by pilots, while its leading European rivals posted lower volumes as they prepare to downsize their freighter operations.

Five straight quarters of continued growth and a supply-demand balance has led to a turnaround in the air freight business this year, with more solid growth still to come, believes Atlas Air’s Michael Steen.

FedEx and UPS have boosted their on-time delivery performance to 91 to 95 percent, compared with 83 to 89 percent a year ago, bolstering hopes for a happier holiday season.