JUPITER SEA & AIR SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.

E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91 98407 85202

Corporate News Letter for Tuesday December 26, 2023.

:: Today’s Exchange Rates ::

Source : The Economic Times. R

CURRENCY	PRICE	CHANGE	%CHANGE	OPEN	PREV.CLOSE	DAY's LOW-HIGH
USD/INR	83.14	-0.139999	-0.168107	83.24	83.28	83.11- 83.2775
EUR/USD	1.1016	0.0005	0.045417	1.1011	1.1011	1.0994- 1.104
GBP/INR	105.6706	0.477303	0.453739	105.6339	105.1933	105.5322- 105.7886
EUR/INR	91.5784	0.437401	0.479917	91.6142	91.141	91.4566- 91.628
USD/JPY	142.496	0.376007	0.26457	142.12	142.12	141.868- 142.662
GBP/USD	1.2706	0.0016	0.126076	1.269	1.269	1.2679- 1.2744
DXY Index	101.81	-0.033005	-0.032407	101.762	101.843	101.742- 101.895
JPY/INR	0.5848	-0.0008	-0.136614	0.5856	0.5856	0.5841- 0.587

/// Sea Cargo News ///

Major box carriers pause container ship traffic through Red Sea

Major ocean carriers have decided that their ships will not transit the Suez Canal due to recent attacks in the region.

The largest container line in the world MSC has announced its vessels will not transit the Suez Canal eastbound and westbound "until the Red Sea passage is safe".

The Swiss/Italian shipping giant mentioned that on 15 December, the 2,500 TEU boxship MSC Palatium III was attacked at approximately 09.37 UTC while transiting the Red Sea under sub charter to Messina Line. "All crew are safe with no reported injuries, meanwhile the vessel suffered limited fire damage and has been taken out of service," said the company.

"Already now, some services will be rerouted to go via the Cape of Good Hope," noted MSC. "This disruption will impact the sailing schedules by several days of vessels booked for Suez transit."

Danish container shipping company Maersk has also stated that all of its ships in the area bound to pass through the Bab al-Mandab Strait will pause their journey until further notice.

Additionally, German ocean carrier Hapag-Lloyd will pause all container ship traffic through the Red Sea until Monday (18 December) and will decide for the period thereafter.

French shipping giant CMA CGM has also announced the suspension of all vessels bound for the Suez Canal via the Red Sea and Bab-el-Mandeb Strait due to safety and security concerns.

"We have decided to instruct all CMA CGM container ships in the area that are scheduled to pass through the Red Sea to reach safe areas and pause their journey in safe waters with immediate effect until further notice," said the Marseille-based carrier in a statement.

Israeli box line ZIM has also made a similar decision.

"It’s too early to determine the impact this will have on international shipping, and is worth noting that the situation is evolving quickly. The Suez Canal is a critical artery in global logistics, and as seen in March 2021 when the container ship Ever Given ran aground, blockages can cause global backlogs of container vessels and shipping delays for everyday goods around the world," pointed out Flexport, a supply chain and logistics solution provider, in a recent analysis.

Furthermore, COSCO-owned container line OOCL announced that due to operational issues, it will stop cargo acceptance to and from Israel with immediate effect until further notice.

CMA CGM applies new FAK rates from Indian Subcontinent to America, North Europe and Med

CMA CGM announced new Freight All Kinds (FAK) rates from India and Pakistan to ports on Central America's East Coast and the Caribbean, as well as Mexico's East Coast, for dry cargo.

The following updated rates will be effective from 1 January 2024 until further notice:

	CURRENT RATES		NEW APPLICABLE RATES
ISC to ECCA + CARIBBEAN:	20'GP	40' GP & 40' HC	20'GP	40' GP & 40' HC
CAUCEDO	US$1,950	US$2,350	US$2,150	US$2,550
PUERTO CORTES	US$1,900	US$3,000	US$2,100	US$3,200
PORT AU PRINCE	US$2,550	US$3,000	US$2,750	US$3,200

	CURRENT RATES		NEW APPLICABLE RATES
ISC to MEXICO EAST COAST:	20'GP	40' GP & 40' HC	20'GP	40' GP & 40' HC
ALTAMIRA	US$1,950	US$2,250	US$2,150	US$2,450
VERACRUZ	US$1,950	US$2,250	US$2,150	US$2,450
	CURRENT RATES		NEW APPLICABLE RATES
ISC to SOUTH AMERICA WEST COAST:	20'GP	40' GP & 40' HC	20'GP	40' GP & 40' HC
BUENAVENTURA	US$1,500	US$1,900	US$1,700	US$2,100
GUAYAQUIL	US$1,500	US$1,900	US$1,700	US$2,100

Additionally, the French ocean carrier will implement new rates from the Indian Subcontinent to North Europe, the West and East Mediterranean and North Africa.

The new applicable FAK rates will take effect on 14 January 2024.

From North West India to:	Amount in US$ per 20'	Amount in US$ per 40'
North Europe	1,000	1,025
West Mediterranean	1,000	1,025
East Mediterranean	1,050	1,125
North Africa	1,500	2,025

From South East India to:	Amount in US$ per 20'	Amount in US$ per 40'
North Europe	1,050	1,100
West Mediterranean	1,050	1,100
East Mediterranean	1,100	1,200
North Africa	1,550	2,100

From Pakistan to:	Amount in US$ per 20'	Amount in US$ per 40'
North Europe	1,000	1,025
West Mediterranean	1,000	1,025
East Mediterranean	1,050	1,125
North Africa	1,500	2,025

MSC-Adani terminal deal at Ennore poised to boost South India trade flow

MSC's 49% stake acquisition in Adani Group's container terminal at Ennore Port, also known as Kamarajar Port, has the potential to boost direct calls out of India's southern corridor as volumes build.

Ennore is located about 15 miles north of Chennai. Maersk is the main liner customer for the Ennore terminal (AECTPL) at present, with two weekly sailings, while CMA CGM recently added a call there via its NEMO service connecting to North Europe and the Mediterranean.

Under the deal, MSC through its terminal arm Terminal Investment Ltd. (Til) will invest Rs. 247 crore (US$30 million) for the share purchase, according to an APSEZ announcement. MSC already has a terminal joint venture with APSEZ at Mundra Port, known as AICTPL.

“APSEZ enjoys a strong partnership with TiL and MSC, built on mutual trust and transparency, as reflected in our growing alliance. With this second joint venture, we are now further deepening this strategic partnership in one of the fastest growing container terminal markets in the south,” said APSEZ CEO Karan Adani in a statement.

Adani also noted, “We aim to replicate the AICTPL terminal’s success at the Ennore Container Terminal and service the trade needs of the South Indian market,”. He went on to add, “This strengthening of our association with the world’s largest shipping company reflects APSEZ’s robust vision of accelerating sectoral growth through a transparent business approach.”

AECTPL had remained a non-starter for almost a year after commencing operations in 2017, due to carrier concerns over high tariffs there.

MSC has thus far concentrated on expanding service networks out of Nhava Sheva (JNPA) and Mundra, with the latter gaining the most from its regional transhipment activity. “We are highly pleased to strengthen our partnership with APSEZ, India’s largest private sector port operator,” said Ammar Kanaan, CEO of TiL. Kanaan added, “This association will enable us to further improve TiL’s presence in one of the world’s fastest growing economies and strengthen our offering to customers in the Indian subcontinent.”

AECTPL is equipped with a berth length of 400 metres and an annual handling capacity of 800,000 TEUs, going up to 1.4 million TEUs at full build-out. Industry sources believe that MSC's entry at Ennore as a terminal partner for Adani -- known for aggressive marketing strategies -- could dramatically alter supply chain dynamics for southern India shippers who have traditionally used costly transhipment options over Sri Lanka’s Colombo Port in the absence of direct mainline calls.

As more direct, origin-to-destination networks take ground on the Indian coastline, Colombo could lose some portion of its high-stakes transhipment business.

Hapag-Lloyd increases rates from Indian Subcontinent and Middle East to North America

German box carrier Hapag-Lloyd will apply a new General Rate Increase (GRI) or General Rate Adjustment (GRA) for cargo shipments from India to the United States and Canada West Coast on 18 January 2024.

Hapag-Lloyd will implement an additional charge of US$200 per container for 20’ and 40’ dry, reefer, and special containers, including high cube equipment.

Additionally, the Hamburg-based shipping line has announced a rate increase of US$1,500 per box for the following routes:

· Indian Subcontinent and Middle East to United States East Coast and Gulf Coast, effective from 19 January

· Indian Subcontinent and Middle East to Canada East Coast, effective from January 01, 2024.

HMM announces US$1,500 GRI from India to East Coast of Latin America

South Korean ocean carrier HMM has announced a new general rate increase (GRI) from India to the East Coast of Latin America on its Far East India Latin (FIL) service.

HMM will increase its rates by US$1,500/TEU with an immediate effect "to ensure it can handle the increased cargo volume efficiently".

The shipping company said that "due to the ongoing security concerns and attacks on vessels transiting through the Suez Canal, most shipping lines have made the decision to cease passage through the Suez Canal and opt for the route via the Cape of Good Hope."

HMM added, "This change in routing will indirectly affect our FIL service, which is moving directly from Kattupalli to Latin not via the Suez Canal."

Carriers still sending ships via Suez

Red Sea and Bab el-Mandeb / Source: US Energy Information Administration

Vessel tracking shows over 80 container ships still transiting the Red Sea and Suez Canal even after the raised threat from the Houthi Movement, which has warned it will target vessels connected to Israel.

Houthi leaders have reportedly said that they would target shipping until Israel allows aid into Gaza and stops bombing its population, with the latest news from the UN that a vote will take place on a ceasefire. Although the UN proposal is supported by the US, it remains to be seen whether this will be enough to stop the Houthi group from targeting commercial shipping in the Bab al-Mandeb strait. With a large number of container ships still operating in the region, many from the top ten carriers, including COSCO, ONE, Wan Hai, Maersk, CMA CGM and MSC and some ultra-large container vessels (ULCVs), the Houthis will not be short of targets.

Container News contacted the three largest container vessel operators, all of which have vessels in the Suez Canal or the Red Sea, as tracked on VesselsValue AIS. A spokesman of CMA CGM said the French shipping company “is working in close co-operation with the appropriate authorities and is working on the appropriate safety measures with them.”

He pointed out that while it would be difficult to outline the security measures under discussion, the actions being taken are to protect crew, vessels and freight on board its ships. Maersk also responded to requests for clarification following its announcement, like CMA CGM and others that all its vessels would be re-routed until the Suez Canal route was again safe.

Pointing to Maersk’s 19 December statement which said, “Having monitored developments closely and retrieved all available intelligence, Maersk has decided that all vessels previously paused and due to sail through the region will now be re-routed around Africa via the Cape of Good Hope for safety reasons.”

However, a Maersk spokesman also highlighted that some of its vessels operate under the trading name of Maersk Line Limited, which handles freight for the US Government and “is not part of Maersk Line’s overall offering”.

The US has assembled a multi-national naval force to protect commercial shipping in the Gulf of Aden and Bab al-Mandeb, in what it calls Operation Prosperity Guardian. Greece and Denmark are the most recent additions to the force, which includes Spain, Italy, the United Kingdom, Canada, the Seychelles and others.

Air Force Maj. Gen. Pat Ryder at a Pentagon press conference said, "It's very important to understand that the Houthis aren't attacking just one country, they're really attacking the international community."

He added, "They are attacking the economic well-being and prosperity of nations around the world. So, in effect, they really become bandits along the international highway that is the Red Sea." Greece has sent a frigate to join the international force with the Greek defence minister, Nikos Dendias, saying, "The frigate will participate in the multinational operation 'Prosperity Guardian', for the protection of merchant ships, the lives of seafarers, and the global economy."

Shipping gears up to meet 5-10% low carbon fuel target, but will fuels be available?

Red Sea and Bab el-Mandeb / Source: US Energy Information Administration

CMA CGM announces new Panama Canal surcharges

Panama Canal

French container shipping company CMA CGM has announced new Panama Canal surcharges for several routes worldwide.

In particular, CMA CGM will implement a surcharge of US$150 per TEU for all types of cargo from the US West Coast ports of Los Angeles, Long Beach and Oakland to North Europe, Scandinavia, Poland and Baltic, effective from 12 January.

Additionally, the ocean carrier will introduce the same surcharge from South America West Coast to Canada East Coast on 1 January.

Moreover, CMA CGM will apply a US$150 Panama Canal surcharge to South America West Coast from Central America East Coast, the Caribbean, Leeward, Windward and French West Indies on 1 January, excluding shipments ex-Puerto Rico and Virgin Islands for which the surcharge will be effective from 20 January.

NYK to install air compression systems on LNG-fuelled car carriers

NYK is set to implement a cutting-edge Variable Compression Ratio (VCR) system in the construction of LNG-fuelled car carriers by Shin Kurushima Dockyard, with the first vessel anticipated for delivery in 2026.

The VCR system has the capability to dynamically adjust the air compression ratio within the engine combustion chamber, ensuring an optimal balance tailored to engine power and the specific properties of LNG fuel.

This fine-tuned adjustment is poised to enhance fuel efficiency during operation, realising approximately a 3% improvement in LNG gas mode and about 6% in diesel oil mode. Beyond immediate advantages, the system is expected to play an important role in reducing GHG emissions from existing ships and optimising engine efficiency as the industry transitions to decarbonised fuels.

Leveraging its expertise in large low-speed marine engines, Mitsui E&S DU collaborated with Winterthur Gas & Diesel Ltd, a Swiss engine licensor, to develop this innovative VCR system.

NYK Group said it is dedicated to robust collaboration with partners both in Japan and internationally, actively driving initiatives focused on energy-saving technologies.

Shippers should expect more disruption in 2024 as lines seek to manage oversupply and limit losses: Drewry’s analyst

Akadimos / Source: VesselFinder

Container lines will use a variety of methods to minimise losses due to the oversupply of vessels in 2024, according to Philip Damas, managing director of Drewry Shipping Consultants and head of Drewry’s Supply Chain Advisors practice.

“There will definitely be oversupply,” he highlighted on the latest episode of The Freight Buyers’ Club podcast. “It's a question of trying to control the level of oversupply. So definitely there will be more blank sailings. We think there will be industrial use of cancelled sailings which will significantly reduce the predictability of container ship departures.

“We also think there will be further reductions in the speed of ships. [Container lines] may also scrap the slowest, oldest ships. So that will result in longer transit times for shippers, which is also a negative. And then there may be, significant suspensions or cancellations of entire services or loops.”

Damas predicted that box lines would collectively record profits of around US$20 billion this year, but the oversupply of vessels would result in a collective loss of US$15 billion in 2024. How individual lines manage supply will largely depend on whether management’s priority is protecting market share or the bottom line.

“If they want to sacrifice some cargo volumes, and sacrifice some market share to protect the bottom line, they'll do this. If they don't want to do that, then we will continue the system where there will be structurally significant oversupply for quite some time,” noted Philip Damas.

He predicted that the next year would be an ocean freight buyer’s market, and shippers would be able to secure significant rate cuts next year, but not as large as the reductions most negotiated in 2023. “But,” he warned, “there will be a price to pay which is that the service reliability and service level of carriers will probably worsen.”

According to Damas, shippers looking to renegotiate ocean freight contracts in the current low freight environment should not only be securing freight rate reductions but also searching for additional efficiencies and savings from carriers “beyond the freight rate rates”. This includes examining all surcharges, reducing detention and demurrage costs, and not including too much ‘free time’ in contracts.

“This name free time is misleading,” he pointed out. “Free time is not free. You pay for it through your base rates. You also have to have the right contract terms, so if you go over your free time, you are not penalised unfairly.”

In 2024, shippers will also need to contend with new EU Emission Trading System (ETS) surcharges from carriers. Damas said beneficial cargo owners (BCO) at present had very little transparency as to how ETS would be fairly passed on by container lines.

“There's no clarity about whether they are negotiable,” he added. “It appears that some carriers are not willing to negotiate their unilateral surcharges. It's not clear at all how they are calculated. It's not clear how frequently they will be adjusted. “I think it's too early to say where this will end. For example, one of our customers has refused to pay in January and pushed this to February.”

He said while current ETS surcharges on most trades were not high, Drewry was concerned not so much about costs in 2024, but whether surcharges are “set at a justified, reasonable level”, not least because ETS surcharges were likely to more than double in 2025 and 2026. “It’s important to get more clarity and more evidence about the level of charges,” he added. “Some of the shippers point blank refuse to discuss the ETS surcharges [with container lines] and they’re saying, ‘If there's a surcharge, put it on the base rate’. That's one approach.

“And then the other approach which we recommend is to try and document and scale a justified level of specified surcharges which you ask carriers to put into your tender sheet, so that you have clarity on what's the surcharge, and you can track it and negotiate it in the future.”

Panama Canal drought could boost New Year rates

Drought in Panama and war around the Red Sea and Suez is a slow-burning but developing crisis for the container shipping industry as both canals become choke points that could see freight rates double.

As the rainy season in Panama comes to an end, and notwithstanding the announcement that rain has raised water levels allowing the Panama Canal Authority to increase the number of daily transits, the outlook for next year remains tight.

Chief analyst at Xenata, Peter Sand, said the dry season could see services for the US East Coast diverted via Suez though with the security situation in the Red Sea deteriorating the industry may face some tough choices regarding the routeing for services.

“Rates could easily double as a consequence,” said Sand, adding, “There are seven weekly services that transit the Panama Canal, if they were all to be re-routed via Suez that would require an extra three ships on each service to maintain the weekly calls.”

He qualified that saying that vessels would have to operate at current speeds, but if they increased speeds by a single knot it could reduce the requirement to two ships, while slowing down could raise the number to four extra ships.

“Shippers had been hoping for a period of lower rates but now with both canals becoming choke points the upshot could see delays to cargo, higher costs and greater uncertainty,” claimed Sand, “I call it a slow-burning disaster”.

With July the next rainy season in Panama there will be a need for the canal reservoirs to be replenished, but if the rains fail to lift the water levels sufficiently in the next rainy season the delays and restrictions could last into 2025, said Sand.

One source also pointed to the fact that the demand on the Panama Canal reservoirs is not only from the maritime sector but the water is supplied to the growing population in the canal region, putting further pressure on the water levels and probably adding to ship delays said a maritime source, who preferred to remain anonymous.

VesselBot, an Athens-based tech company, has analysed the current number of vessels waiting to transit the Panama Canal, with the extra emissions from extended waiting times included.

CEO and founder at VesselBot, Constantine Komodromos, said, “The peak for vessels entering the [Panama Canal] anchorage concluded in October, and there was a bottleneck in November. As shown in graph 1, in October, 404 vessels entered both anchorages and resulted in an average of 32.55 hours waiting at anchorage in November, making it the peak anchorage waiting time through the year.”

Due to the peak of shipping vessels entering the anchorage concluded in October, there is a bottleneck in November. As shown in the graph, in October, 404 vessels entered both anchorages resulting in an average of 32.55 hours waiting at anchorage in November, making it the peak anchorage waiting time through the year. Source: VesselBot

November arrivals had already decreased at the entrances to the canal, explained Komodromos, because of the waiting times, with some vessels re-routing via Cape Horn. However, he added fewer ships are arriving precisely because of the transit delays.

“Vessels when anchored consume fuel for a number of operational reasons, mostly for auxiliary engines. Therefore, the increased waiting time and the higher number of vessels waiting in the anchorage led to the highest emissions produced at anchorages around the Panama Canal,” noted Komodromos.

November saw a spike in emissions to 12,000 tonnes in greenhouse gas emissions, an increase of more than 5,000 tonnes since January of this year, according to Komodromos.

An increase in the emissions from shipping is expected to be seen as both the limitations on the Panama and Suez Canals persist.

SeaRoutes, an emissions tracking tech company, has calculated that vessels transiting the African Cape, rather than heading via Suez will substantially increase fuel consumption and therefore emissions.

Source: SeaRoutes

In its calculations, SeaRoutes estimates the emissions for a vessel operating from Shanghai to New York via Panama, Suez and the Cape, with the shortest route via Panama and the distance via Suez around 40% longer adding more than half a tonne of CO₂/TEU plus more than 30% to the journey time.

Even with the evidence of higher costs for the carriers diverting traffic to avoid the canal choke points, shippers remained unimpressed with the “price signalling” from Xeneta.

James Hookham, director at the Global Shippers’ Forum, pointed out that there are alternatives to the Panama Canal. “We may well see cargo from Asia to the East Coast returning to the Californian ports and using rail to ship to the Midwest,” he said.

Hookham forecasts that should Houthi missiles target gas and oil tankers the US and European nations will need to act to protect commercial shipping, if only to prevent energy prices from spiralling out of control and forcing inflation up again.

That forecast has now come to fruition with escorts led by US forces likely to start in the near future.

Panama Canal to increase daily transits

Panama Canal

The Panama Canal will increase the number of daily transits to 24, starting in January, from the current 22 vessels, which are divided into six neopanamax and 15 panamax ships.

"This restriction [for 22 vessels transiting the canal] is in response to the challenges posed by the current state of Gatun Lake, which is experiencing unusually low water levels for this time of the year due to the drought induced by the El Niño phenomenon,".

October 2023 marked the driest October on record for the Canal Watershed. In anticipation of a potential worsening of the situation in November and December, Panama Canala decided to adjust the number of daily transits to 22 in December, 20 in January, and 18 in February.

This year marks the first time the Canal has ever had to restrict transits.

However, as rainfall and lake levels for November proved to be less adverse than expected, coupled with the positive outcomes from the Canal’s water-saving measures, Panama Canal proceeded with the latest adjustments.

Additionally, the Panama Canal will allow one booking slot per customer per date, with some exceptions for quotas offered to vessels competing through the reservation system. "These measures allow the majority of vessels that want to transit the Canal to have a better chance of obtaining a reservation," said the Canal. The latest measures, published in the Advisory to Shipping, will go into effect on 16 January 2024 and remain in effect until conditions warrant changes.

As 2023 is the second driest year in recorded history of the Panama Canal Watershed, the Canal has implemented an operational strategy focused on water conservation and transit reliability in the face of low rainfall and the consequent decrease in lake levels.

/// Air Cargo News ///

Silk Way West continues fleet expansion with latest 777 freighter

Source: Silk Way West Airlines

Silk Way West Airlines has taken delivery of a second Boeing 777 freighter as it looks to capitalise on growing demand. The freighter is the second of an order for five production 777Fs made by the cargo airline in April 2021.

The first was delivered in October and the remaining three are due to be delivered gradually until 2027. “This investment comes in response to the increasing demand for air cargo services and underscores the airline’s commitment to providing efficient and reliable transportation solutions around the world,” the carrier said in a statement.

“The expanded fleet represents a substantial increase in cargo capacity, allowing the carrier to meet the growing needs of its customers across various industries, including e-commerce, pharmaceuticals, and manufacturing.”

Following delivery of the freighter, the carrier now operates two 777Fs, five 747-8Fs and seven 747-400Fs based at Heydar Aliyev International Airport.

The carrier has also ordered two 777-8Fs and two A350Fs. Wolfgang Meier, president of Silk Way West Airlines, said: “We continue to reimagine the air cargo experience by adding these environmentally friendly aircraft to our fleet.

“This expansion is a pivotal step in ongoing efforts to provide world-class cargo services, reflecting our dedication to meeting the evolving needs of customers while maintaining a focus on sustainability and efficiency.”

The Baku-based airline’s annual cargo turnover exceeds 500,000 tons, and its network covers over 40 destinations across Europe, the CIS, the Middle East, Central and Eastern Asia, and the Americas. In line with its fleet expansion, the carrier is also planning to build a new cargo airport in Azerbaijan.

Atlas and Cathay working on 747 inspections after lightning protection concerns

Photo: Atlas Air

Two of the world’s largest operators of Boeing 747 aircraft have already started work on inspecting their freighter aircraft after concerns emerged over the early degradation of the lightning protection systems.

Earlier this month, the US Federal Aviation Administration (FAA) issued an airworthiness directive ordering all US-registered 747 operators to carry out inspections. Boeing has also issued a multi-operator message on November 13 recommending that the inspection work is completed.

An Atlas Air company spokesperson told Air Cargo News that it had been aware of the inspection order and had got ahead in carrying out the work. “At Atlas, the safety of our employees and aircraft are always of the highest priority,” the spokesperson said.

“The company has been aware of the FAA’s requirement to perform inspections on fuel-tank lightning-protection features on all Boeing 747 variants for some time now.

“Accordingly, we have proactively, with Boeing and the FAA, performed these inspections on several our 747 aircraft already, and we will continue to do so for all 747s in our fleet, in accordance with the FAA’s airworthiness directive.

“We do not expect this to result in disruptions to our operations.”

Air Cargo News sister title FlightGlobal said that Atlas Air Worldwide Holdings and its affiliates operate 56 747s, more than any other US carrier.

Cathay Cargo, which has a fleet 20 freighters – six 747-400ERFs and 14 747-8Fs, has also already started carrying out the checks.

“Following the FAA’s mandate issued on November 30, which directs checks to be conducted on all 747 aircraft within 120 days, Cathay Cargo is working through the impact of this and expects to adjust its schedules in order to comply with the mandate.”

The FAA directive gives freighter operators 120 days to comply, while operators of passenger 747s have 90 days.

Freight forwarders have expressed concern that the inspections and any corrective work may disrupt operations.

One forwarder contact had been told that each aircraft would be out of service for four to five days while the inspections and work is carried out, while Boeing said the process would take two or three days.

“Boeing supports the US Federal Aviation Administration’s Immediately Adopted Rule, which makes mandatory the guidance we have provided to operators. We remain in communication with the FAA and our customers on this matter,” the airframe said.

Thai AirAsia X and Unilode extend ULD management partnership

Unilode Aviation Solutions, the market leader in outsourced unit load device (ULD) management, repair and digital services, and Thai AirAsia X, a low-cost medium-haul carrier based in Bangkok, announce the early extension of their full-service ULD management partnership until 2029.

Thai AirAsia X awarded the full-service management of its ULD fleet to Unilode in 2014. Unilode supplies a digitised ULD fleet from its global pool to Thai AirAsia X for its current fleet of seven Airbus A330 aircraft. As part of Thai AirAsia X’s expansion plans, the total aircraft fleet size will grow to 20 widebody aircraft with new routes being added over the next few years.

Captain Pittinun Intarasak, Chief Operations Officer of Thai AirAsia X, said: “Thai AirAsia X is thrilled to return to a stabilised operation mode after the pandemic and strengthen its leading position in the low-cost medium-haul market in the Asia Pacific region. We are delighted to continue partnering with Unilode for ULD solutions as the expansion of our widebody fleet creates significant revenue-generating opportunities for our cargo business. ULD availability is crucial for the success of our passenger and cargo operations, and we will continue counting on Unilode’s excellent support over the next six years and beyond.”

DHL diverts freighter flights from strike at CVG

DHL plane at CVG. Photo: RDNichols/ Shutterstock

DHL Express has confirmed it diverted freighter flights away from Cincinnati/Northern Kentucky International Airport (CVG) to avoid air cargo operational disruption ahead of a strike by more than 1,100 workers.

The strike action began on December 7 and is being undertaken by DHL Express workers in the International Brotherhood of Teamsters union.

This industrial action has coincided with the traditional peak period for air cargo volumes, but DHL Group said in a statement it was able to “maintain our operations at full capacity across our US network”. CVG is the main international hub in the US for DHL Express. The hub facilitates 130 daily DHL flights and is home to a fleet of 60 DHL aircraft. At CVG, DHL handles shipments bound for the US, Canada, Mexico and Latin America, and processes approximately 50m international shipments annually.

“DHL Express is in ongoing contract negotiations with the US Teamsters representing a portion of our employees at our Cincinnati (CVG) Global Hub. In an attempt to influence these negotiations, the Teamsters have initiated job actions in CVG and a number of other pick-up and delivery locations in the US,” said the statement.

“DHL was fully prepared for these actions and has enacted contingency plans, including moving flights and volume away from CVG to other key strategic DHL locations, and deploying replacement staff in other locations to ensure we maintain full-service capabilities for our customers.

“Thanks to these preemptive and proactive steps, we can confirm that we have been able to maintain our operations at full capacity across our U.S. network. Our staffing levels at CVG have remained at a high level and we anticipate no significant disruptions to our service during the coming week.” The Teamsters union confirmed to Air Cargo News that the strike is ongoing.

DHL Group added that DHL Express is continuing to work with the Teamsters Union on contract negotiations, but there is “no agreed deadline” for negotiations. The Teamsters union represent more than 6,000 members at DHL across the US.

Aside from DHL Express, cargo carriers operating at CVG include Alaska Air Cargo, American Cargo, Delta Cargo, FedEx, Southwest Cargo, and United Cargo.

ECS Group expands in Latin America with latest acquisition

Photo: Travel mania/ Shutterstock

Sales agent ECS Group has expanded its presence in Latin America with the purchase of Americas GSA.

Americas GSA employs 42 members of staff across 13 offices and has contracts with LATAM Airlines, MAS, Turkish Airlines, Lufthansa, Swiss, Korean Air, and Ethiopian Airlines, pushing the group’s airline portfolio up to more than 40 airlines.

The deal expands ECS’ presence in the Americas to Bolivia, Costa Rica, El Salvador, Guatemala, Nicaragua, and Panamá alongside its existing network covering Argentina, Brazil, Canada, Chile, Colombia, the Dominican Republic, Ecuador, Mexico, Peru, and the US.

Americas GSA chief executive Pablo Canales said: “Our vision is to become one of the largest air cargo GSAs in Latin America, not just in terms of network, but specifically as the GSA of choice for comprehensive international solutions delivered with local finesse.

“This partnership with ECS Group brings together a highly professional air cargo organization with a strong global vision, and an established team with in-depth knowledge of the Latin-American market and close relationships with the largest customers in the region.

“Within this new alliance, Americas GSA will be able to offer even higher quality service, more opportunities tailored to the specific needs of our partners, airlines, and customers, and enjoy a firm technological and financial foundation on which to continue growing.”

ECS Group executive chairman Adrien Thominet added: “Americas GSA not only greatly augments our coverage in Central America, significantly adding to our strong network of committed, local air cargo experts operating across the continent, but since it shares a very similar corporate culture and likewise places great value on professional expertise, it offers a highly promising basis for solid organic growth.”

The deal is ECS Group’s second takeover in the latter stages of the year.

In November, the company announced that it had acquired GSSA International Airline Marketing (IAM) to expand its market share in Ireland to 30%.

Swiftair to add A321P2Fs to its fleet

Source: EFW

Spanish airline Swiftair is introducing Airbus freighters into its fleet for the first time with the signing of lease agreements for two A321 Passenger to Freighter (P2F) aircraft with AerCap. Both aircraft will undergo conversion by Germany-based Elbe Flugzeugwerke (EFW), a joint venture by ST Engineering and Airbus, at ST Engineering Aerospace in Singapore.

The freighters will then be delivered to Swiftair in April and June 2024, respectively, said Dublin, Ireland-headquartered AerCap. Swiftair will use the freighters to operate services across Europe and Africa on behalf of its international logistics customers.

“We are pleased to announce our agreement to lease two Airbus A321P2F aircraft to our long-term customer, Swiftair,” said Rich Greener, the head of AerCap Cargo. “The A321P2F is a best-in-class narrowbody freighter solution, offering superior economics in terms of fuel-efficiency and flexibility, and will allow Swiftair to continue to grow their route network. We look forward to working with the Swiftair team as these aircraft deliver.”

“In line with our commitment towards more efficient and sustainable growth, we are delighted to be taking delivery of two of the most quiet and economical freighter aircraft in the world today,” added Salvador Moreno, Swiftair chief executive. These aircraft mark a milestone in our fleet renewal program, allowing our customers to meet their carbon reduction targets and access to the most effective and reliable products in their class, available in the market today.”

In 2022, AerCap announced it had placed a firm order with EFW for 15 A321-200P2F aircraft conversions and secured an option for a further 15 conversions.

Madrid-based Swiftair operates passenger and cargo ACMI and charter flights across Europe and Africa. Its active cargo fleet includes 14 Boeing 737Fs, three Boeing 757Fs, 11 ATR 72Fs, four ATR 42Fs, and one Embraer EMB-120 Brasilia.

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