JUPITER SEA & AIR SERVICES PVT. LTD,
EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91
98407 85202
Corporate News
Letter for Wednesday April 24, 2024.
:: Today’s Exchange Rates ::
Source : The
Economic Times RATS
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
83.34 |
-0.040001 |
-0.047974 |
83.36 |
83.38 |
83.28- 83.3975 |
|
|
1.0672 |
0.0017 |
0.159542 |
1.0655 |
1.0655 |
1.0639- 1.0695 |
|
|
103.014 |
0.091103 |
0.088515 |
102.9501 |
102.9229 |
102.8217- 103.2287 |
|
|
88.8353 |
0.035294 |
0.039745 |
88.8298 |
88.80 |
88.6971- 89.083 |
|
|
154.781 |
-0.069 |
-0.044559 |
154.84 |
154.85 |
154.661- 154.863 |
|
|
1.2401 |
0.0051 |
0.412956 |
1.235 |
1.235 |
1.2332- 1.2406 |
|
|
106.112 |
0.034996 |
0.032991 |
106.126 |
106.077 |
105.844- 106.241 |
|
|
0.5383 |
-0.0006 |
-0.111345 |
0.5385 |
0.5389 |
0.5379- 0.539 |
/// Sea Cargo News ///
MSC-operated
ship captured by Iranian forces
MSC Aries / Source: VesselFinder.
MSC told Container News that it is working to secure the release of one of its operated ships that was seized by Iran’s Islamic Revolutionary Guard Corps (IRGC) in the Persian Gulf on 13 April.
The 2020-built 15,000 TEU MSC Aries, which the Swiss/Italian liner operator had bareboat-chartered from UK-based Zodiac Maritime for 10 years, was boarded by “Iranian authorities” via helicopter around 2.43 am local time. The ship has been diverted towards Iran.
Security company Ambrey Analytics said it had seen a video of three men fast-roping from a helicopter hovering above MSC Aries, which was originally heading for Jawaharlal Nehru Port after departing from Abu Dhabi’s Khalifa Port on 12 April.
United Kingdom Maritime Trade Operations (UKMTO) stated that an
“unidentified vessel” had been boarded and captured by “regional forces” about
50 nautical miles northeast of Fujairah.
MSC Aries was crewed by 25 men and the Philippines’ foreign
ministry said it is trying to confirm if any of the seafarers are Filipinos.
MSC said, “We’re working closely with the relevant authorities
to ensure their wellbeing, and safe return of the vessel.”
Zodiac Maritime told Container
News’ that MSC is responsible for the MSC Aries’ management
and operations. The company explained, “Title to the vessel is held by
Gortal Shipping Inc as financier and she has been leased to MSC on a long-term
basis. Gortal is affiliated with Zodiac Maritime.”
It is likely that MSC Aries, which has the Portuguese flag of
Madeira, was targeted as Zodiac Maritime is owned by Israeli billionaire Eyal
Ofer. Iran-backed Houthi rebels have been targeting ships with links to Israel
and its ally, the United States, in the Red Sea, causing many ships to reroute
around the Cape of Good Hope.
In November 2023, Houthis captured and detained the NYK
Line-operated car carrier Galaxy Leader, which the Japanese group chartered
from tonnage provider Ray Car Carriers, which is owned by Israeli tycoon
Abraham Ungar.
Several of MSC’s ships have been targeted before, without any
casualties.
On 26 December 2023, the 8,204 TEU MSC United VIII was attacked
while transiting the Red Sea, en route from Saudi Arabia to Pakistan. The crew
notified a nearby coalition taskforce warship and undertook evasive manoeuvres.
More recently, on 7 April, the 4,056 TEU MSC Gina and MSC Grace
F, a multi-purpose vessel, had missiles fired at them, but dodged.
Xeneta’s chief analyst, Peter Sand, said that the capture of MSC
Aries will threaten Middle East trade lanes. “An already bad situation in the
Red Sea and Gulf of Aden has just got worse and could put ocean freight
container imports and oil exports in the Middle East at risk,” he noted.
Israeli violence ratchets up Middle East threat levels
as Iran responds
Source: RONEN ZVULUN, REUTERS/USA.Events over the weekend of the 13-14 April have seen rising tensions soar as Iran’s pre-publicised action in retaliation to Israel’s Syrian consulate attack took place hours after an MSC ship was hijacked by the Iranian Republican Guard.
Hours before Iran launched a massive and widespread attack on
Israel for the first time, Iranian forces boarded the 15,000 TEU MSC Aries and
forced the ship and its 25 crew into Iranian waters. MSC Aries is owned by
Gortal Shipping Inc, which is affiliated with Zodiac Maritime Shipping Company.
Guy Platten, secretary general of the International Chamber of
Shipping (ICS), said Ships trading in the Gulf region should liaise closely
with the military so that they are fully protected from Iranian forces.
“Iran’s seizure of the MSC Aries is a flagrant breach of
international law and an assault on freedom of navigation. This reprehensible
attack against a merchant ship once again places innocent seafarers on the
front lines of geopolitical conflict,” added Platten who called for the
immediate release of the ship and its crew.
However, Iranian Foreign Ministry spokesman Nasser Kanaani told
reporters that the ship had been arrested after violating “international
shipping regulations and failing to respond appropriately to Iranian
authorities.”
Escalation and broadening of the conflict between Israel and the
Palestinians, following Hamas’s attack on Israeli citizens on 7 October was
seen as unthinkable by western allies, the latest events appear to be bringing
the world closer to just such a conflict.
Xeneta chief analyst Peter Sand told Container News: “This is
another example of nation states attempting to weaponize international supply
chains and that should be a cause for concern for us all.”
Container shipping would be far more concerned if this was the start
of sustained and indiscriminate attacks, but this does not seem to be the case
as container vessels continue to transit the Strait of Hormuz and the Gulf of
Oman.
“Unless the situation deteriorates further, the seizure of MSC
Aries is unlikely to result in the kind of supply chain disruption we have
witnessed recently in the Red Sea and Gulf of Aden where almost any ship is at
risk of attack by Houthi militia,” added Sand.
Regional tensions and uncertainties often see oil prices
spiking, according to Dynamar analyst Darron Wadey, who adds: “We are in
uncertain and frankly concerning territory at the moment.
“Crude was already creeping up in price since the end of last
year, and the duration and strength of any spike will be determined by the
subsequent actions of the players involved, principally Israel and Iran.”
According to Wadey, increased oil prices also raise the cost of
physically moving commodities and products along supply chains and such a
situation would clearly impact inflation negatively.
“Logically then, a sustained spike in the price of oil will
ultimately have a knock-on effect upon demand for all manner of goods: simply
put, there will be less money to go around on buying the ‘wants’ and ‘luxuries’
as more will have to be spent on the ‘essentials’.”
It is a theme that Sand also broached, but he was more upbeat
than Wadey in his summation, although Sand agreed that the unpredictable nature
of the situation made it very difficult to comment.
“Whenever there is uncertainty in the market there is the
potential for ocean freight shipping rates to increase – as we have seen most
recently following the escalation of conflict in the Red Sea. However, oil
prices have not spiked as some feared they may do, and ships are seemingly
sailing through the Strait of Hormuz without issues, so any direct impact on
rates may be limited.”
Reuters reported today that oil prices had “drifted lower” as
the risk of a wider confrontation eased. Brent crude had jumped to over
US$90/barrel after Israel’s attack on Iran’s Syrian consulate, from under
US$81/barrel in mid-March and had settled at a little over US$89/barrel today.
The West Texas Intermediary index showed a similar pattern at lower values.
Jebel Ali returns to top-10 busiest container ports
Port of Jebel Ali.Alphaliner's report said the Middle East’s largest container
port, Dubai/Jebel Ali, has re-entered the top 10 ranking of global container
ports, overtaking Europe’s biggest port and demonstrating the scale of the
economic slump in Europe.
Jebel Ali processed 14.47 million TEUs in 2023, up from 13.97
million TEU in 2022, enabling the UAE port to return to the top 10 after
dropping out in 2019. Its rise also knocked out the languishing
Hong Kong port from the top 10 list, as the territory’s container
throughput declined 14% year-on-year, to 14.34 million TEUs.
Hong Kong posted its seventh year of consecutive volume declines
and has now lost a third of its container traffic over the past decade.
Rotterdam had moved ahead of Dubai in 2019, but lost 7% in
container volumes in 2023, having handled 13.45 million TEUs, posting a second
consecutive year of decrease. Due to sanctions, the Dutch port has been hit by
the near-total loss of Russian cargo and Europe’s recession has meant a major
contraction in European consumer demand. Volumes are now 9% below 2019 levels.
China’s ports recorded another strong year of growth with
Qingdao recording the highest increase of any major gateway worldwide. It
handled an estimated 30 million TEUs in 2023 (December 2023 figure estimated
following a change in Chinese reporting rules) and is now vying with Shenzhen,
which handled 29.9 million TEUs, for the position of fourth largest container
port in the world.
Alphaliner remarked, “Chinese growth is not expected to be as
robust in 2024, with Western demand weakening in the fourth quarter, although
exports to Russia remain strong. Nevertheless, China’s grip on the global
market tightened in 2023, comprising more than half (51%) of the top 30 market
throughput versus 49% in 2022. Overall, the top 30 ports recorded average
growth of 1.7% during the year, an improvement in 2022.”
MSC applies new prices from Far East to Europe
Swiss/Italian container carrier MSC will implement the following
new Freight All Kind (FAK) rates from Asia to Europe. Effective as from 1 May but not beyond 14 May
from all Asian ports (including Japan, Korea & Southeast Asia) to North
Europe, the new rates will be as follows:
|
Port of discharge |
New All in Rates |
|
|
20 DV |
40 DV-HC |
|
|
NWC |
US$2,700 |
US$4,500 |
|
EAST MED |
US$4,100 |
US$5,600 |
|
BLACK SEA |
US$4,200 |
US$5,800 |
|
WMED |
US$3,600 |
US$5,400 |
|
ADRIATIC |
US$3,600 |
US$5,400 |
Port of Portland closes container terminal due to financial issues
Terminal 6 of Port of PortlandPort of Portland has decided to halt its container operations in
October due to financial challenges, according to several US media.
The major port in Oregon seems to be facing financial
difficulties and as an agreement with a third-party operator was not completed,
the Port of Portland said it cannot afford to keep the box terminal open past
September. Last week, a previously promising third-party operator ended negotiations
suddenly, leading the US port to decide the closure of Terminal 6.
"The challenge is that this business model is not
financially sustainable for the port," pointed out Keith Leavitt, chief
trade and economic development officer at Port of Portland. "The smaller
local market on a river 100 miles from the ocean is challenging and has cost
the Port millions of dollars each year."
The Port of Portland has lost over US$30 million in the last
three years, including a projected US$14 million shortfall for this year.
However, the Port of Portland will continue to fund this
operation for the next six months to provide transition time, ending container
service on 1 October. "We are now focused on partnering with shippers,
workers, elected officials and our community to help support ways to get Oregon
goods to markets," said the port in an announcement.
It is important to note that after 1 October, Terminal 6 will
remain a working marine shipping terminal, as there is a lot of cargo handled
there, including both imported and exported autos and break bulk – large, heavy
cargo that requires a lot of space to ship. Both the autos and break bulk
businesses will continue normally at the terminal.
“We know that this terminal is a critical statewide asset — it
is worthy of further discussions to come up with a financially sustainable
business model for container service that has significantly more state funding
and investment,” wrote Leavitt in an email to industry stakeholders, adding
that “For now, we have run out of financial options and must take this step.”
Hapag-Lloyd
unveils its new Strategy 2030
Hapag-Lloyd announced its Strategy 2030, which is a
roadmap for the company's pursuit in quality leadership, sustainability,
innovation, and operational efficiency.
Hapag-Lloyd said that over the past five years, it has made
progress in customer satisfaction, financial stability, and market expansion,
particularly in key growth regions such as India and Africa.
The German carrier said that Strategy 2030 is the result of
in-depth market analysis and customer insight, as well as extensive internal
collaboration, including input from the company’s global experts. Additionally,
it is dedicated to delivering outstanding customer service, while prioritising
environmental responsibility and innovative digital solutions to navigate the
ever-changing global landscape.
Hapag-Lloyd’s Strategy 2030 is built on five core pillars;
Fleet, Service Network and Terminal Portfolio Upgrade, Solidifying Standing
among Top-5 Global Container Lines, Service Quality Enhancement, Sustainability
and Performance.
The Hamburg-based box line aims to continue its investments in
fleet, service network and terminal portfolio, while it wants to increase its
share of inland transport in direct support of its core business.
Additionally, Hapag-Lloyd aims to cement its position among the
top-5 global container lines and reinforce its presence in key markets,
including Africa, India, Southeast Asia, and the Pacific trade.
Moreover, Hapag-Lloyd said it will double down on its quality
strategy, aiming for an on-time delivery rate of more than 80% and
strengthening operational excellence, customer care, and ease of doing
business. "The Gemini Cooperation with Maersk will be an important step
towards this goal, as will the strengthening of internal processes,"
stated the company.
Furthermore, the German liner operator noted it is committed to
reducing absolute greenhouse gas emissions by around one third by 2030 and
achieving net-zero fleet operations by 2045.
Last but not least, Hapag-Lloyd aims to remain an industry
frontrunner by leveraging cutting-edge IT solutions, increasing productivity,
maintaining a razor-sharp focus on performance and cost optimisation,
developing the workforce, and attracting talents.
“We are very proud of our Strategy 2030, a testament to our
unwavering dedication to quality, sustainability, and customer
satisfaction," highlighted Rolf Habben Jansen, CEO of Hapag-Lloyd.
He went on to add, "We operate in a very dynamic industry
marked by shifting customer needs, so a resilient strategy is essential.
Strategy 2030 positions us to thrive and lead as one of the top global
container lines. With it, we will not only enhance the value we deliver to our
customers and partners, but also make a meaningful contribution to the
decarbonisation of our industry. It is our most ambitious strategy to date.”
/// Air Cargo News ///
United Cargo opens new EWR facility
United team hosted a ribbon-cutting ceremony for their brand-new state-of-the-art, 165,000-square foot cargo facility at Newark Liberty International Airport (EWR). Several United leaders, state and local elected officials and other stakeholders gave remarks to emphasize the importance of what the space means for us and the community.
“We are the
number one cargo carrier in the world, and with warehouses like this one, we
can truly outperform even more,” said Cargo President Jan Krems. “With this new
space, we will successfully serve the Newark area and customers worldwide even
better than before.”
EWR is
especially vital to the United cargo operation and represents nearly 30% of
their global tonnage and revenue. The new facility increases their cargo
availability to a net gain of more than 77,000 sq. ft. in facility space,
giving one of their highest revenue entities even more space to manage their
busy cargo operations. Their cargo facility on airport property is 154,000
square feet, giving a total of 319,000 square feet of extra cargo space at EWR.
“This
investment in EWR is incredibly important because it’s such a critical hub for
us across the network.,” said EWR and IAD Airport Operations SVP Mike Hanna.
“It’s not only one of our most important hubs, but a gateway to the world as we
serve 61 international destinations. As one of the largest employers in New
Jersey, we want to invest in the fabric of the community — making sure we
partner with local companies across the tristate area. We’re continuing to make
great investments in this hub as the New Jersey hometown airline.”
As part of
the plan to fly more widebody aircraft at EWR, this facility, located at 100
Frontage Rd. just several minutes driving from the airport, builds on their
opportunity to have a competitive cargo operation in the region.
The
facility officially opened its doors for operation on Monday and the United
team is excited to further service our customers in EWR.
Embraer embarks on the freighter avenue
The Brazilian aircraft manufacturer, Empresa Brasileira de
Aeronáutica S.A., better known as Embraer, wants to convert its C-390 military
transporter into an aircraft designed for commercial purposes.
Partner is the Brazilian
state-owned postal service, Correios. Both companies have signed a Memorandum
of Understanding (MoU), to jointly drive the conversion project. This intent
complements the Brazilian manufacturer’s plans to transform its production
series E190 and E195 passenger aircraft into an all-cargo configuration.
Embraer
military C-390: Soon flying without armament in Correios colors? – Courtesy:
Embraer.
Big company, small cargo fleet
Correios is the largest postal service in South America, but its freighter
fleet is very small. It consists of one B737-300F and two B737-400Fs – older
aircraft models that are long past their prime. Given the size of the country,
air transportation of mail and smaller packages is essential.
The distance between Sao Paulo and Manaus is around 2,700 km, and
Fortaleza in the northeast of the country and Porto Alegre in the south are
about 2,100 km apart. Therefore, Correios’ own three freighters only complement
the supplier’s utilization of lower deck capacity offered by local passenger
airlines. Otherwise, nationwide and timely mail deliveries would be
impossible.
Filling a niche in the freighter market
However, the postal company now wants to become more involved in the freighter
business to gain greater independence and completely manage the postal business
by itself. This led to the inking of the MoU with Embraer. Their common goal is
to conduct a study to find out if the conversion of the C-390 ‘Millennium’ from
military to commercial would fit the operational demands of the postal service,
and what the cost structure would be. Originally built for the armed forces,
the aircraft offers payloads of 26 tons, with a civilian version likely to have
a similar capacity. It can cover distances of up to 6,200 km nonstop, so could
cross the entire South American sub-continent without the need to refuel.
“We are very pleased to collaborate with Correios in studying a
more efficient logistics network for the transport of goods, both in Brazil and
internationally. Embraer has a consolidated aircraft portfolio, and the
solutions to be studied together will allow Correios to expand its service
offering to its customers with high reliability and efficiency,” said Bosco da Costa
Junior, President and CEO of Embraer Defense & Security.
Correios dominates the cargo business in Brazil – in volume
State-owned Correios has the largest logistics infrastructure in any Latin
American country. Its network comprises of 10,000+ branches spread all across
Brazil, more than 8,000 operational units, 23,000 vehicles, and 87,000 direct
employees.
Thanks to the MoU
and the collaboration with Embraer, “we will be able to bring more efficiency to
our logistics network and thus benefit the Brazilian population, which is our
greatest mission as a public company and representative of the federal
government. We are the largest air cargo operator in the country; no other
logistics company has even half of the cargo volumes handled by Correios,” stated
Fabiano Silva dos Santos, President of Correios while inking the Memorandum of
Understanding.
Others are watching the outcome of the MoU
With Correios as the likely launching customer for the civilian version of the
C-390, Embraer could achieve a breakthrough in the class of freighters
currently available in the category of 20 to 30 tons. Above all, other
countries are also closely watching the outcome of the joint Correios-Embraer
project, as they operate military C-390s. These include Portugal, Hungary,
South Korea, the Czech Republic, and the Netherlands.
Maybe sales
managers of the Brazilian aircraft manufacturer will soon be knocking on their
doors, praising the remodelled C-390 in its commercial outfit.
Air Cargo Data has become the “new oil”
Air cargo data is commercial air freight shipment data
sourced from the AWB. It reveals the actual transaction between a carrier and
its forwarder, and is thus a valuable source for pricing decision-making.
Provided however, vendors are enabled to compete based on sound and transparent
factors. Unfortunately, this is not always the case in the day-to-day practice
of the air freight business, as the example of Virgin Atlantic Cargo
illustrates, published
exclusively in this online portal.
Source:
courtesy Investopia.The best-known provider of this market information is IATA’s marketing tool, CargoIS, enabling users to measure and benchmark their air freight activities and create cost-effective transport strategies.
However, why airlines book this data service without any tender is
a mystery, as there are also other providers of the new “data oil” keeping the
freight business running, holds René Portal, head of MI-t, an MS cloud-based
application whose database is fed by airlines.
Lufthansa Cargo inked
CargoIS deal without tender
He cites two examples of questionable behavior, that of LH Cargo and Royal
Jordanian Cargo. First to LH Cargo: The carrier announced its renewal of the
IATA CargoIS agreement at IATA’s World Cargo Symposium, held shortly ago in
Hong Kong.
This market tool has been in place for nearly as long as CASS
operates. However, Lufthansa Cargo’s step would have been more credible and
newsworthy had the carrier tendered the services to the best bidder. Instead,
management awarded it to an organization that monetizes airlines’ data under a
tax exemption status that no other vendor could dream of.
In addition, such practice is not in line with an industry that
praises digitalization and real-time data at everyone’s fingertips. It is an
agreement inked by an IATA member and the airline association that
commercializes data from thousands of air waybills, in this case submitted by
Lufthansa Cargo. These data, contributed by Lufthansa Cargo and others,
represent an immense value. It is therefore all the more surprising that such
deals are not tendered before contracts are inked.
After all, there are more providers of intelligence and up-to-date
data services out there than just IATA’s CargoIS that is priced as commercially
as any other product.
The Royal Jordanian example
Contrary to European peers, some Middle East carriers do tender –
especially those government-controlled. But does this lead to more equitable
practices? Not in the ones ‘Market Intelligence tank’ (MI-t)
was invited to participate in.
Royal Jordanian tendered for air cargo data in 2023, after having
contracted a vendor for the prior year without considering any other potential
bidder. Provider MI-t had already run a trial period before, supported by
on-site presentations in AMM. That led Royal Jordanian Cargo to choose a
vendor the airline had no prior
experience with. The worst part came during
the tendering process when Procurement instructed Market Intelligence tank to
change the contract term it had originally offered in the commercial proposal,
from one to three years, simply to match the term offered by the other vendor.
Because the agreement draft in MI-t’s proposal provided renewal at
convenience, Royal Jordanian already had multiple years of service guaranteed
but without the burden of a longer commitment.
In the end, Procurement notified their decision only after MI-t
asked, in writing, for the intervention of their Head of Legal following eight
months of unanswered e-mails and declined phone and WhatsApp calls.
The Virgin Atlantic
Cargo principle
The tender practice of airlines is often opaque. This is illustrated by the
scandalous example of Virgin Atlantic Cargo, published in CargoForwarder Global
recently and thus made known to a wider audience (view our website).
It is not uncommon for tenders to be
decided according to the buddy principle: I know you, you know me – deal done.
It is an open secret that financial donations sometimes ‘help’ to decide which
GSA will be awarded a sales contract. It is a mystery as to why, despite
internal audits and the digitalization of business processes, such cases of
corruption are not or only very rarely brought to light.
In a narrower sense, the term ‘compliance’
means that a company and its employees comply with the law. This is intended to
ensure that market participants don’t play foul, but instead act seriously and
with integrity in daily business practices.
This said, it would be desirable if some cargo carriers not only
had these principles written in bold letters on their website, but would also
adhere to them when launching a tender and before signing a sales contract.
Phil Wardlaw leaves
Atlantic Cargo
The helmsman of the cargo section of Virgin Atlantic has handed in his
resignation. This was confirmed by the airline’s communications department on
request. In detail, spokesperson Louise Gallagher writes the following:
“Phil has made the
decision to leave Virgin Atlantic for a new role at another global airline.
We’ve begun the process of recruiting his successor and will announce this as
soon as we’re in a position to do so.”
Ms. Gallagher did not answer the question as to whether Emirates
was the airline for which the manager would be working in future. It seems that
there is no interrelation between Wardlaw’s upcoming Virgin exit and the
management’s dubious tender practices. Asked about this, Virgin Cargo’s
spokesperson did not touch on this issue in her email to CargoForwarder
Global.
FAA plays hardball with Boeing
Washington’s Federal Aviation Administration (FAA) has tightened its grips on Boeing. The regulator is undertaking much tougher audits following a blowout on a B737 MAX in January, blamed on assembly failures. It imposed a production cap of 38 jetliners a month and announced stepping up factory checks at the manufacturer’s Renton plant.
The FAA
announced that it will up its Boeing inspections significantly
– picture: CFG/hs
The FAA’s patience with Boeing has ended. Repeated technical
glitches with the B737 MAX in the recent past, blatant production errors and
sloppy technical controls by Boeing’s own experts have alarmed the authority.
It came under increasing criticism itself and was accused by
aviation experts and media of treating Boeing too leniently. Now the wind has
changed. Gone are the days when technicians and safety experts from the
aircraft manufacturer were allowed to carry out the final inspection of
passenger and cargo aircraft themselves and only had to provide the FAA with
documentary evidence of the results of the final technical and operational
checks.
Increasing budget gap
The reduction in the monthly production rate that has now been ordered, is
tearing a big hole in the manufacturer’s coffers. Frame makers get paid for
their jetliners upon delivery. The underlying production rate dictates the
pulse of an industrial system feeding thousands of aerospace suppliers
worldwide. Hence, Boeing’s production slowdown is expected to ripple through
the airline industry, with carriers scrapping flights from their schedule or
prolonging existing jet leases to meet demand.
In addition, any
prolonged output slump has potential repercussions for engine maker CFM
International, co-owned by newly standalone supplier GE Aerospace and France’s
Safran. As sole engine supplier for the MAX, CFM gets paid for the turbines
once a fully assembled aircraft is delivered to an airline and not when
aircraft parts are handed over to Boeing or, in case of Airbus jetliners, to
its European rival.
Falling further behind Airbus
With FAA ordering Boeing to sharply cap MAX production, enabling Washington’s
inspectors to check if industrial operations are working smoothly, Boeing falls
further behind its arch-rival. In the single-aisle category, Airbus already has
a comfortable lead which will now be extended.
News agency Reuters
cites Rob Morris, Global Head of Consultancy at Cirium Ascend, who said that 11
MAXs were finished by Boeing in February, following 13 in March. The rate
peaked around 38 a month in mid-2023, Cirium data shows.
Airbus, in
contrast, produced an average of 46 jets a month of its competing variant
A320neo in the first quarter, Morris said.
Boeing customers getting nervous
Due to the string of mishaps that have severely damaged Boeing’s reputation,
and led to a management shakeup, some airlines are considering canceling
earlier orders and switching to Airbus models. But it is not all is running
smoothly at the European aircraft manufacturer, either. Hit by supply chain
disruptions, the production rate of the A320 variants could not be ramped up as
quickly as originally announced by management.
China invests heavily in drone industry
Drones can be used in multiple ways,
for both civilian and military purposes. The latter is demonstrated day after
day by Russia’s war against Ukraine. China has now announced its intention to
provide the equivalent of USD 70 billion for the development of a ‘low altitude
economy’. A gigantic chunk of money.
The volume of the market segment of
low-altitude aerial vehicles [operating below 1,000 meters], grew by almost 34%
last year, reaching a financial volume of USD 70 billion. Market experts
forecast it will more than double by 2026. This estimate is based on an
analysis from a research institute linked to Beijing’s Ministry of Industry and
Information Technology (MIIT), and published last week.
Sun Wensheng, Deputy
Director of the Department of General Affairs at the Civil Aviation
Administration of China (CAAC), stated that the regulator intends to “continuously improve support services for low-altitude flight
activities, including plan approval, air traffic management, meteorological
services, communication and surveillance.”
Powerful driving force
The project is outlined in a nine-page guideline for the general aviation
industry presented by the MIIT in cooperation with other agencies. The scheme
reveals government intentions to provide considerable start-up assistance to
pave the way to launching commercial applications in sectors such as urban air
transport, drone food deliveries, emergency rescue, and logistics supplies, in
general.
“By 2030, a new development model for
general aviation, characterized by high-end, intelligent and green features,
will be established,” the guideline announces. It goes on to say: “General
aviation equipment will be fully integrated into production and life, becoming
a powerful driving force for economic growth.”
Bright future of drone applications
“In
China, civilian drones have pioneered industry-wide adoption in sectors such as
agriculture, fishery, forestry, animal husbandry, and aerial photography,” stated
Luo Hongjiang, from the civil aviation regulator during a briefing last week.
He went on to say: “Logistics services of drones have expanded into
urban commercial areas and communities. The airworthiness certification process
for eVTOL aircraft is steadily advancing, and the future prospects of drone
applications are bright.”
… but also large combat drones, like the
WZ-7 “Soaring Dragon” – courtesy: Future Zone.
Dual-use considerations
The USD 70 billion project runs under the collective term ‘General Aviation’.
Possibly a deliberate name that sounds harmless in order to emphasize the
civilian nature of the scheme to the outside world, to avoid raising and
spreading mistrust. In a country that keeps its true plans under wraps, it fits
that military considerations are not mentioned anywhere.
However, experts suspect that the entire
plan is of dual-use character, i.e. the high investments in drones also serve
to build up a powerful drone infrastructure for the Chinese military, which is
under the command of China’s Central Military Commission. Just this March, a
large Chinese drone was discovered in the airspace of Taiwan – a country that
China regards as part of its own territory and wants to annex – by force if
necessary.
Ardian sells Staci to bpost
Belgian postal service provider bpostgroup has acquired Staci
(100%), a fulfilment and logistics services specialist registered in the
Parisian suburb, Pontoise. Seller is French private investment house Ardian
that purchased Staci in 2019, together with some other minor stakeholders.
The deal, valued 1.3
billion euros, will enable state-owned Belgian Post to strengthen its position
in Europe and secure market shares in the APAC region as well as in North
America.
Different names, common goal: business
success – picture: courtesy Belga / Staci.
The days when state postal services defined themselves primarily
as deliverers of letters and small items, are largely over. Today, they are
increasingly moving into the business of multichannel logistics and
distribution solutions, including B2B, B2C, D2C and e-commerce. Hardly any
other company embodies this transformation from letter carrier to full service
provider more vividly than Deutsche Post. It bought the U.S. express service
DHL in 2000, and now operates internationally under its name.
The Dutch postal
service (Posterijen, Telegrafie en Telefonie) pursued a similar strategy when
it took over the Australian express service provider TNT in 1998. However, the
plan did not materialize. Today, TNT is part of FedEx and the logistics
division, TNT Logistics, has been renamed Ceva Logistics, which belongs to the
French multinational shipping company CMA CGM.
“The Staci acquisition catapults bpost to the next level” – Chris
Peeters
Next postal candidate to strive for higher goals is the Belgian bpostgroup. By
acquiring Staci, it embarks on an expansion spree with the ambition of opening
up new markets and further strengthening existing business areas.
Chris Peeters, CEO of bpostgroup, explains the logic behind the
Staci purchase: “The contemplated acquisition […] is fully in line with the
strategic choices bpostgroup had already made and presents the potential for a
robust B2B-service offering. Also, bpost in Belgium can expect extra volumes in
its last-mile-delivery network. Moreover, this transaction promises growth,
sustainable employment, and enduring value creation.”
bpost emphasizes
that Staci’s service portfolio complements that of its own subsidiaries, Active
Ants and Radial, and amplifies its existing activities. It will gain immediate
access to special know-how and technology of B2B, e-commerce and benefit from successful
initiatives lifting the traditional brick-and-mortar businesses to the next
level.
As a welcome addition to the deal, bpost gets access to Staci’s
portfolio of clients in many sectors, including Fast Moving Consumer
Goods (FMCG), retail, pharmaceutical, health, cosmetics,
industrial, energy, financial services, catering, and public services. Above
all, bpost expects that the acquisition accelerates the ongoing transformation
of its business model in its traditional Belgian home market, by accelerating
processes.
Strategic change
Chris Peeters comments: “I am convinced that with the contemplated
acquisition of Staci, we will be ready for robust growth. The B2B logistics
sector, including in Belgium, holds immense potential. Our collaboration with
Staci will bring us expertise, innovation power, and customer insights,
enabling us to craft a complete customer-centric offering tailored to their
needs. With this strategic change, we aim at possessing the assets, potential,
and ambition to excel as an international logistics player, securing a
sustainable future for our company and employees.”
No job-axing, promises bpost
bpost emphasizes that the management team and all employees of Staci will
remain on board, so that the group can continue to rely on their expertise and
experience. After the transaction closing, Staci CEO Thomas Mortier will become
member of the executive committee of bpostgroup and will lead the new business
unit 3PL.
The Belgian Post
Group plans to pay the transaction by using bridge financing upon closing
combined with a portion of its own cash. The transaction is subject to prior
communication and consultation with the relevant employee representatives, and
is expected to close in fall 2024, depending on green light from the relevant
competition authorities.
ULD manager ACL Airshop wants to up its market share
ACL Airshop gained a new CEO on 01 March 2024. Bernhard
Kindelbacher, a former Lufthansa Cargo executive, took over the top leadership
at ACL Airshop, following Steve Townes’ nine-year tenure. ACL Airshop provides
a customer-centric variety of ULD services for over 150 airlines, including
tailored solutions customized to a client’s specific requirements.
Kindelbacher is based in Amsterdam, however CargoForwarder Global
(CFG) met up with him for an exclusive interview at the IATA World Cargo
Symposium in Hong Kong.
Here is what he had to say about his initial steps and feelings
regarding his new position and market perspectives of his company.
Former
Lufthansa Cargo executive Bernhard Kindelbacher heads ULD manager ACL Airshop
since five weeks – photo: private.
CFG: If you reflect on the period before your official start, what
primarily influenced your decision to join ACL Airshop?
BK: The opportunity initially presented had a strong
entrepreneurial element. Having recently completed a work assignment in the USA
and Canada, where I engaged deeply in leading an operation, this aspect of the
job intrigued me. And even within the global Lufthansa structure, it often felt
like we were running our own medium-size, unique cargo organization in North
America. Upon examining the structure of ACL Airshop, I saw parallels to my
previous experiences, coupled with the freedom to drive the Company forward
within the logistics sector on a global scale. ACL Airshop asked me to bring
airline and air cargo ‘know-how’ and that is what we are doing now. There are
many opportunities for ACL Airshop to grow. The ingredients for a comprehensive
Cargo ULD Management are all here in ACL Airshop, but it is all about putting
them together, making it work, and presenting custom ULD solutions to our
customers.
CFG: Which steps have you already taken in terms of onboarding and
transition?
BK: We did a lot, quickly and efficiently. I visited on a global
tour our stations and customers first in the USA, then in Europe, and finally
in Asia with my respective COO colleagues joining me. These experiences
contributed to my understanding of the company’s operations, its goals, teams,
customers, stations, and my colleagues. It was a perfect onboarding and I
received such a warm welcome from all the ACL Airshop colleagues as well as the
customers.
CFG: Did anything unexpected happened during this period?
BK: Not really. Maybe one surprise: ACL Airshop offers all the
ingredients, yet we’re still not perceived as a comprehensive ULD fleet management provider,
despite having all the necessary solutions and services. People don’t recognize
yet that we can offer more than just individual parts. I believe there’s much
more potential here. With my 30 years of experience in the industry, I view it
as a familiar challenge that we need to navigate within the ULD environment
now.
CFG: What makes the ACL Airshop model different from competitors
on the market?
BK: It arises from the ACL Airshop origins, with one aspect
being short-term leasing solutions. Others operate within the framework of a
more closed, fixed system, but we can offer much more additional benefits. We
now offer long-term comprehensive ULD management programs as well, with roughly
50% of our large worldwide ULD fleet under multi-year contracts with major
customers. That includes not only the flexibility through our available stock
worldwide but also our network of Repair Stations, our award-winning logistics
technologies such as Bluetooth track/trace and ULD mgt software, and our
substantial manufacturing resources in-house which is a plus in the supply
chain. It is a competitively unique combination of all those features, all
aimed toward satisfying customer requests. We possess greater flexibility,
faster reaction time and global ad-hoc capabilities. We have a very large
network of service locations plus our large available inventory of lease-ready
ULDs. I believe this full array of skills and deliverables are unique and very
attractive for our customers so they can focus on generating revenues while ACL
Airshop takes care of their cargo ULD Management.
Secondly, my
colleagues at ACL Airshop bring so much air cargo experience on the table from
their times in airlines. This background aligns very well and provides a better
understanding when we interact with customers. We know from customer surveys
that they rate our people very highly in terms of responsiveness, speed,
solution orientation, professionalism and dedication. That stems from over 4
decades of a vibrant, customer-centric organization.
CFG: Could you state a couple of goals to be achieved in the
upcoming future?
BK: First, our goal is to clarify in the market that we are a
comprehensive cargo ULD fleet management provider.
Our aim is to become a more-dominant cargo ULD management provider. We are
already well-established in the USA and Europe, so the next step would be to
establish a greater presence in Asia. We have an advantage there, as the Asian
market is mainly driven by cargo carriers or divisions, and we have all the
necessary knowledge within our team. Our footprint of air hub locations across
the APAC region is large and still growing.
Secondly, our aim
is to retain and attract professionals from the industry with extensive
knowledge, the right spirit for our challenges, and great interest to develop
and use modern technology and innovative processes.
ACL Airshop in short:
More
than 74,000 Unit Load Devices (ULDs) are owned, maintained, and leased by ACL
Airshop. These include air freight pallets and containers, sourced from 57
airport hub locations across North America, Europe, Asia Pacific, the Middle
East, and Latin America. The overall company employs close to 250 people
globally.
I reckon you have enjoyed reading the above useful
information.
Have a nice day.
Thanks & kind regards
ROBERT
SANDS, Joint Managing Director
Jupiter
Sea & Air Services Pvt Ltd
Casa
Blanca, 3rd Floor, 11, Casa Major Road, Egmore
Chennai –
600 008. India.
GST
Number : 33AAACJ2686E1ZS.
Tel : + 91 44 2819 0171
/ 3734 / 4041
Mobile : + 91 98407
85202
E-mail : robert.sands@jupiterseaair.co.in
Website : www.jupiterseaair.com
Branches :
Chennai, Bangalore, Mumbai, Coimbatore, Tirupur and Tuticorin.
Associate Offices : New Delhi, Kolkatta, Cochin & Hyderabad.
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