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

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

Corporate News Letter for Saturday April 06, 2024.

:: Today’s Exchange Rates ::

Source : The Economic Times RATES

CURRENCY	PRICE	CHANGE	%CHANGE	OPEN	PREV.CLOSE	DAY's LOW-HIGH
USD/INR	83.44	0.00	0.00	83.42	83.44	83.42- 83.4675
EUR/USD	1.0859	0.0023	0.212247	1.0836	1.0836	1.0834- 1.0866
GBP/INR	105.6805	0.781799	0.74529	105.541	104.8987	105.5338- 105.7317
EUR/INR	90.6012	0.763397	0.849751	90.4581	89.8378	90.432- 90.672
USD/JPY	151.705	0.005005	0.003299	151.70	151.70	151.543- 151.76
GBP/USD	1.2662	0.001	0.079033	1.2652	1.2652	1.2645- 1.267
DXY Index	104.061	-0.188004	-0.180341	104.227	104.249	104.049- 104.263
JPY/INR	0.55	-0.0002	-0.036346	0.5502	0.5502	0.5498- 0.5505

/// Sea Cargo News ///

Aponte’s MSC to acquire Italian newspaper group

Gianluigi Aponte.

The newspaper's digital operations and advertising revenues are expected to be included in the acquisition agreement, while the deal also encompasses the following transportation/shipping-related publications: The MediTelegraph, L’Avvisatore Marittimo, Il Giornale del Ponente Ligure, and Tecnologie Trasporti Mare.

Swiss/Italian shipping group MSC seems to be interested in buying Genoese newspaper group Secolo XIX, following the steps of its French competitor CMA CGM which has also entered the media sector.

On 27 March 2024, the MSC Group disclosed the signing of a preliminary agreement with the publishing company Gedi, owned by John Elkann's Exor, for the acquisition of the Genoese daily Secolo XIX.

The parties will now enter into negotiations to allow for due diligence and will proceed with the transaction-related contractual documents.

ONE targets market share with 2030 strategy

Singapore-headquartered Ocean Network Express (ONE) is looking to leapfrog its THE Alliance partner Hapag-Lloyd as the fifth largest carrier with a sustained fleet growth of around 10% per year to the end of this decade.

The company said in its recently released ONE 2030 strategy that it will invest US$25 billion in its fleet to add close to 1.2 million TEUs in capacity, taking its standing fleet to 3 million TEUs.

Stefan Verberckmoes, senior analyst at Alphaliner said, “One of the main reasons explaining the strategy is that they are aware that a carrier needs economies of scale to be profitable to finance decarbonisation.”

However, former research analyst Mark McVicar believes, “The move is an attempt to gain market share, but in order for the market to remain buoyant it relies on the assumption that others will cede market share.”

Fleet growth for the Singapore-based line will increase over the six-year period from around 4%, which is below the level of market growth, to 10% annually, higher than the projected market growth to the end of the decade. Accountants PWC projects annual global GDP growth of around 3-3.5%.

“ONE should realise an annual fleet growth of around 10% until 2030 to reach its goals. That’s indeed a very ambitious plan in a market where moderate growth and overcapacity is expected,” added Verberckmoes.

The ONE 2030 plan includes delivering sustainable solutions for its vessels to meet new regulations and the acquisition of terminals in key regions of the world.

Hapag-Lloyd to increase freight rates from Asia to Latin America

German ocean carrier Hapag-Lloyd has announced an upcoming General Rate Increase (GRI) set to apply to shipments from Asia to the West Coast of Latin America, Mexico, the Caribbean, Central America, and Latin America East Coast for cargo transported in 20’ and 40’ Dry containers, as well as High Cube equipment and 40’ Non-operative reefers.

This GRI will be effective from 8 April for all destinations and 28 April for Puerto Rico and Virgin Islands and will remain in effect until further notice.

The details for Hapag-Lloyd's increase are listed below:

· 20' Dry Container: US$1,000

· 40' Dry Container: US$1,000

· 40' High Cube Container: US$1,000

· 40’ Non-operative Reefer Container: US$1,000

Hapag-Lloyd has noted the following geographical coverage for this rate increase:

Asia (excluding Japan) includes China, Hong Kong, Macau, South Korea, Thailand, Singapore, Vietnam, Cambodia, Philippines, Indonesia, Myanmar, Malaysia, Laos and Brunei.

The West Coast of Latin America, Mexico, the Caribbean (excluding Puerto Rico, Virgin Islands, US), Central America, and the East Coast of Latin America, cover the following countries: Mexico, Ecuador, Colombia, Peru, Chile, El Salvador, Nicaragua, Costa Rica, Dominican Republic, Jamaica, Honduras, Guatemala, Panama, Venezuela, Brazil, Argentina, Paraguay and Uruguay.

ONE announces updated Transpacific network for 2025

Ocean Network Express (ONE) has announced its upgraded Transpacific service network, which will commence in February 2025.

The carrier's Transpacific product comprises 16 primary services, each tailored to deliver efficient and reliable shipping solutions.

ONE's Transpacific service network for 2025:

Asia - US West Coast South

FP1 (Far East – Pacific 1):

From Europe, Singapore (Singapore), Kobe (Japan), Nagoya (Japan), Tokyo (Japan), Los Angeles/Long Beach (United States), Oakland (United States), Tokyo (Japan), Shimizu (Japan), Kobe (Japan), Nagoya (Japan), Tokyo (Japan), Singapore (Singapore), to Europe

PS3 (Pacific South 3):

Nhava Sheva (India), Pipavav (India), Colombo (Sri Lanka), Port Kelang (Malaysia), Singapore (Singapore), Cai Mep (Vietnam), Haiphong (Vietnam), Yantian (China), Los Angeles/Long Beach (United States), Oakland (United States), Tokyo (Japan), Pusan (South Korea), Shanghai (China), Ningbo (China), Shekou (China), Singapore (Singapore), Port Kelang (Malaysia), Nhava Sheva (India)

AP1 (Asia Pacific 1):

Haiphong (Vietnam), Cai Mep (Vietnam), Shekou (China), Xiamen (China), Taipei (Taiwan), Ningbo (China), Shanghai (China) (Yangshan), Los Angeles/Long Beach (United States), Oakland (United States), Shekou (China), Haiphong (Vietnam)

AHX (Asia Hawaii Express):

Pusan (South Korea), Yokohama (Japan), Honolulu (United States), Pusan (South Korea)

Asia - US West Coast North

PN1 (Pacific North 1):

Xiamen (China), Kaohsiung (Taiwan), Ningbo (China), Nagoya (Japan), Tokyo (Japan), Tacoma (United States), Vancouver (Canada), Tokyo (Japan), Kobe (Japan), Nagoya (Japan), Xiamen (China)

PN2 (Pacific North 2):

Singapore (Singapore), Laem Chabang (Thailand), Cai Mep (Vietnam), Haiphong (Vietnam), Yantian (China), Vancouver (Canada), Tacoma (United States), Tokyo (Japan), Kobe (Japan), Shanghai (China), Singapore (Singapore)

PN3 (Pacific North 3):

Qingdao (China), Ningbo (China), Shanghai (China), Pusan (South Korea), Vancouver (Canada), Tacoma (United States), Pusan (South Korea), Qingdao (China)

Asia - US East Coast

EC1 (US East Coast 1):

Kaohsiung (Taiwan), Yantian (China), Shanghai (China), Ningbo (China), Pusan (South Korea), Panama, New York (United States), Norfolk (United States), Savannah (United States), Panama, Balboa (Panama), Kaohsiung (Taiwan)

EC2 (US East Coast 2):

Xiamen (China), Yantian (China), Ningbo (China), Shanghai (China), Pusan (South Korea), Panama, Manzanillo-PA (Panama), Savannah (United States), Charleston (United States), Wilmington (United States), Norfolk (United States), Manzanillo-PA (Panama), Panama, Pusan (South Korea), Xiamen (China)

WIN (West India North America):

Bin Qasim (Pakistan), Hazira (India), Nhava Sheva (India), Mundra (India), Damietta (Egypt), Algeciras (Spain), New York (United States), Savannah (United States), Jacksonville (United States), Charleston (United States), Norfolk (United States), Damietta (Egypt), Jeddah (Saudi Arabia), Bin Qasim (Pakistan).

MPA assists US Coast Guard after Baltimore bridge collapse: Latest updates and classification investigation

Dali / Source: VesselFinder.

Chief Executive of the Maritime and Port Authority of Singapore (MPA Singapore) Teo Eng Dih has extended to Admiral Linda L. Fagan, Commandant US Coast Guard, MPA’s continued support to the US Coast Guard and the local authorities on the Francis Scott Key Bridge collapse.

MPA Singapore is working with the ship management company Synergy Marine to facilitate information exchange to support the US Coast Guard in its investigation.

MPA has also requested the vessel’s classification society, ClassNK, to prepare the technical assessment and stability calculations, which are important parameters to support the US Coast Guard in the planning and subsequent safe execution of the vessel salvage operations.

MPA noted it works with eight international classification societies, appointed as MPA’s Recognised Organisations, to survey, inspect and ensure Singapore-flagged vessels comply with all applicable statutory requirements. As part of its flag state obligations, MPA will investigate whether there have been any infringements of relevant statutory requirements under the Merchant Shipping Act 1995.

In another statement, MPA Singapore, which revealed ship “lost propulsion” before the incident, confirmed that the vessel’s required classification society and statutory certificates covering the structural integrity of the vessel and functionality of the vessel’s equipment were valid at the time of the incident.

Additionally, the boxship, which is involved in an accident for the second time, underwent and passed two separate foreign port state inspections in June and September 2023, according to MPA's records. In the June 2023 inspection, a faulty monitor gauge for fuel pressure was rectified before the vessel departed the port. Dali's next classification and statutory surveys are due in June 2024.

The Transport Safety Investigation Bureau (TSIB), under Singapore’s Ministry of Transport, will conduct an independent marine safety investigation under the International Maritime Organization's Casualty Investigation Code to identify lessons to prevent future marine casualties and incidents. MPA noted that TSIB’s marine safety investigation does not seek to apportion responsibility or determine the liability for the incident.

MPA added it will continue to work with the ship management company to ensure that the welfare of Dali’s crew is taken care of throughout the incident, and that the company fully cooperates with the relevant local authorities.

Two bodies recovered in Baltimore bridge collapse

The bodies of 35-year-old Alejandro Hernandez Fuentes and 26-year-old Dorian Ronial Castillo Cabrera have been found and were recovered from waters beneath the collapsed Francis Scott Key Bridge in Baltimore, according to BBC.

The British media company reports that the waters are too treacherous for divers to continue the search for the other four missing men. Therefore, the authorities will now try to remove the dangerous debris of the superstructure so that divers can return to the water.

Red Sea challenges lead to boxship drought for recycling yards

The Red Sea crisis and the higher freight and charter rates are discouraging owners from scrapping older boxships, resulting in a dearth of tonnage being sold for demolition, despite cash buyers offering higher prices.

While January saw 13 container ships of nearly 22,000 TEUs being torched, scrapping has slowed.

Just three boxships (MTT Singapore, MTT Tanjung Manis and Dong Fang Xing) were recycled in February and so far. In March, just two container vessels (Far East Cheer and Mapocho) have been broken down. The majority of the ships were built in the 1990s and were in the sub-Panamax sizes.

Mapocho belonged to German mainline operator Hapag-Lloyd, which in May 2023, disclosed that it plans to scrap several ships in a two-year timeframe, as these vessels have reached the end of their lifespan.

Since that time, Hapag-Lloyd has demolished four ships, including Mapocho. Drewry’s senior manager (container research) Simon Heaney told Container News that the current uptick in charter and freight rates is deterring scrapping, but things could change once the Red Sea situation abates.

Heaney said, “As long as the Red Sea crisis persists, the incentive to scrap older ships will be considerably lower than it would have been. The situation has boosted freight rates, time-charter and second-hand valuations so the motivation to demolish simply isn’t there.

“Drewry thinks that will change shortly after the resumption of Suez crossings, because the market will be even more exposed to the structural overcapacity, but the timing is very hard to predict.”

The largest cash buyer of ships for recycling, Global Marketing Systems said that despite rates of US$520/ldt to US$550/ldt being offered, this has been inadequate to tempt ship owners to part with older vessels.

Global Marketing Systems stated, “Containers and tankers too remain oddly off the recycling buffet and this in turn is driving the ongoing dearth of viable candidates into overdrive, as chartering rates continue to hold through a time that many had been expecting them to falter with the turn of the year. Global economies certainly have the trigger-happy Houthis to thank for the aggression in the Red Sea lanes.”

Yang Ming unveils enhanced 2025 Transpacific network

Yang Ming has announced its upgraded Transpacific service network for the next year, which will commence in February 2025.

The Taiwanese ocean carrier said it will refine its Transpacific service network in response to the upcoming change within alliance membership. The enhanced network will feature a total of 13 loops covering both Asia – US West Coast and Asia – US East Coast.

Below is Yang Ming's Transpacific network for 2025:

Asia – US West Coast South services: 6 loops

FP1 (Far East – Pacific 1):

PS3 (Pacific South 3):

PS4 (Pacific South 4):

Xiamen (China), Yantian (China), Kaohsiung (Taiwan), Keelung (Taiwan), Los Angeles/Long Beach (United States), Oakland (United States), Keelung (Taiwan), Kaohsiung (Taiwan), Xiamen (China)

PS6 (Pacific South 6):

Qingdao (China), Ningbo (China), Los Angeles/Long Beach (United States), Oakland (United States), Kobe (Japan), Qingdao (China)

PS7 (Pacific South 7):

Singapore (Singapore), Laem Chabang (Thailand), Cai Mep (Vietnam), Shanghai (China), Los Angeles/Long Beach (United States), Oakland (United States), Shanghai (China), Singapore (Singapore)

PS8 (Pacific South 8):

Shanghai (China), Ningbo (China), Kwangyang (South Korea), Pusan (South Korea), Los Angeles/Long Beach (United States), Oakland (United States), Pusan (South Korea), Kwangyang (South Korea), Incheon (South Korea), Shanghai (China)

Asia – US West Coast North: 3 loops

PN1 (Pacific North 1):

Xiamen (China), Kaohsiung (Taiwan), Ningbo (China), Nagoya (Japan), Tokyo (Japan), Tacoma (United States), Vancouver (Canada), Tokyo (Japan), Kobe (Japan), Nagoya (Japan), Xiamen (China)

PN2 (Pacific North 2):

PN3 (Pacific North 3):

Qingdao (China), Ningbo (China), Shanghai (China), Pusan (South Korea), Vancouver (Canada), Tacoma (United States), Pusan (South Korea), Qingdao (China)

Asia – US East Coast: 4 loops

EC1 (US East Coast 1):

EC2 (US East Coast 2):

EC5 (US East Coast 5):

Laem Chabang (Thailand), Cai Mep (Vietnam), Singapore (Singapore), Colombo (Sri Lanka), Suez, Halifax (Canada), New York (United States), Savannah (United States, Jacksonville (United States), Charleston (United States), Norfolk (United States), New York (United States), Halifax (Canada), Suez, Singapore (Singapore), Laem Chabang (Thailand)

EC6 (US East Coast 6):

Kaohsiung (Taiwan), Hong Kong (China), Yantian (China), Ningbo (China), Shanghai (China), Pusan (South Korea), Panama, Houston (United States), Mobile (United States), Panama, Rodman (Panama), Kaohsiung (Taiwan)

/// Air Cargo News ///

Challenge Group connects LGG-BOM, begins twice weekly freighter service

Challenge Group is set to utilize the added capacity of its second converted B767 freighter to establish a scheduled route between Mumbai (BOM) and Liège (LGG), operating twice weekly.

The new scheduled flight creates a direct link between strong economic geographies with operations serving the whole of Europe and the US. Offering a payload of 52 tons per uplift, the freighter will mainly carry pharmaceuticals and electronics, but also the large and complex main deck cargo shipments that are Challenge Group’s expertise.

“Given that India is striving to become the factory of the world, and the production of key verticals has significantly increased during the past few years, our strategic decision to now launch a regular and direct India-Europe service goes some way towards satisfying the intense customer demand on this route,” says Or Zak, Chief Commercial Officer of Challenge Group.

“In fact, after the inaugural flight, we are already adding a second weekly frequency from April onwards.”

“The launch of our Mumbai freighter service is the result of extensive market preparation conducted over the past year. This initiative commenced with consistent charter operations across various airports such as DEL, HYD, and BLR.

Subsequently, we conducted a targeted roadshow in BOM and DEL last June, engaging with key stakeholders in the logistics industry to present our assets, capabilities, expertise, our supply chain approach and the value proposition of our end-to-end solution.

This endeavour provided more insights into their business requirements. Our participation in the recent Air Cargo India event in February further solidified our presence and network within the sector, paving the way for the successful introduction of our Mumbai freighter service.,” Or Zak explains.

Challenge Group’s Indian cargo capacity which is offered for bookings to the entire Indian freight forwarding community, is managed by the group’s entrepreneurial and reliable GSSA partner, Rainbow Aviation.

In allocating the additional capacity of its second converted B767 freighter to operate in this new market, the Group aims to significantly enhance customer service and advance its global presence.

Atlas Air CEO warns of potential capacity shortage amid e-commerce boom

Market demand for air cargo is expected to grow by approximately four to four and a half per cent this year, but the industry may face a challenging time due to a capacity shortage.

Atlas Air’s CEO, Michael Steen, explained the situation during an interview with The STAT Trade Times at the IATA World Cargo Symposium held in Hong Kong recently. According to Steen, there are currently around 650 wide-body freighters in operation globally, with 10% operated by Atlas Air.

Out of the 650, around 120 freighters are over 30 years old, and the typical lifetime of an aircraft is between 30 and 35 years. This indicates that around 120 wide-body freighters must leave the global fleet soon.

Unfortunately, there won’t be enough new production rate growth or converted aircraft coming into the market to compensate for the loss.

This is a significant problem since freighters carry 60% of the total cargo volume, with the remaining 40% carried in the bellies of the passenger planes.

But only 50% of passenger aircraft's belly capacity is actually used for freight.

This is due to factors that include network changes and changes in travel patterns. He further underscored the need to closely monitor the evolving landscape of global trade, navigating geopolitical tensions and potential trade conflicts - calling for proactive engagement with stakeholders to ensure a more aligned approach that benefits the economy at large.

“The real competition is the 777-8F from Boeing”

In the realm of aviation and the air cargo industry, two major players dominate aircraft manufacturing: Boeing and Airbus. They maintain a fierce rivalry in the market, although the situation is not equal for both manufacturers.

The American company Boeing is facing a series of challenges due to some recent and past events such as aircraft crashes, mid-flight door failures, aircraft malfunctions, as well as delays in aircraft production and approvals.

These issues have affected Boeing's reputation in the industry. Meanwhile, its competitor Airbus is gaining ground, securing more orders for its latest freighter, the Airbus A350F which is based on the Airbus A350-1000 passenger aircraft.

This is further solidifying Airbus’ position and is likely to impact Boeing's market share. According to the latest media reports, Atlas Air, a major American cargo airline known for its fleet of Boeing wide-body aircraft, is reportedly considering a transition to Airbus.

The company's decision stems from concerns regarding the delivery schedule of Boeing's upcoming freighter, the 777-8F, which Boeing previously announced would enter service in 2027. In contrast, Airbus plans to launch its Airbus A350 freighter in the first half of 2026. If Atlas Air opts for Airbus over Boeing for its new freighters, it would deal a significant blow to Boeing's reputation.

The initial projected entry into service for the Airbus A350F, set by Airbus during its launch in 2021, was by the end of 2025. However, during an exclusive interview for STAT Media Group, at the IATA World Cargo Symposium held in Hong Kong recently, Crawford Hamilton, Head of Freighter Marketing at Airbus, discussed the development and delays related to the Airbus programme.

Crawford highlighted that despite the delay to 2026, Airbus has improved the aircraft significantly, particularly with the enlargement of its door, now the largest in the industry at 170 inches wide and under 124 inches high. This enhancement allows for easier accommodation of large jet engines, such as those found on the 787 or A330 Neo, in one piece.

Moreover, the increased door size enables the loading of bigger package sizes, including even 20-foot shipping containers, providing greater flexibility. Additionally, Airbus has increased the payload by two tonnes, from the initial 109 tonnes to 111 tonnes.

Crawford emphasised that while there has been a slight delay, Airbus's focus remains on providing its customers with superior solutions and enhanced capabilities, which they appreciate. Crawford said that the manufacturer had no order for its A350 freighter in the year 2021. However, now it has an order for around 55 aircraft, including airlines like Singapore Airlines, Cathay Pacific, and the new customer, Starlux, which positions it equally with its competitor in terms of orders.

Crawford also pointed out that with the discontinuation of the 777F's production by the end of 2027, Airbus finds its main competition in Boeing's 777-8F. He emphasised Boeing's extensive market dominance, referencing the quad-engine jet, the 747.

He underscored the significant fuel efficiency advantage of the new A350F over the 747, with the A350F burning 40% less fuel. In discussing the market for converted freighters, Crawford from Airbus highlighted a substantial demand for single-aisle freighters, such as the Airbus A320 and A321, estimated to exceed 1000 aircraft.

Regarding mid-size freighters, he mentioned the Boeing 767, which has a line built to reproduce it; however, he noted that Airbus has the A330 to compete in this segment. In the passenger market, Japan Airlines (JAL) just announced its commitment to purchase 21 A350-900s and 11 A321neos.

Meanwhile, Korean Air surprised the industry by ordering 33 Airbus A350 aircraft, including 27 A350-1000s and 6 A350-900s. Undoubtedly, the Airbus A350 is Airbus' best and most highly efficient product. In the global air cargo industry, there’s anticipation among the operators about the arrival of the new Airbus A350F.

FedEx has 37 jets parked, aircraft capex to be reduced

FedEx currently has 37 jet aircraft parked, which is up from 20 last quarter, and is planning to retire nine more MD-11s in the last quarter of the current financial year.

"We also continue to expect aircraft related CapEx to decline to approximately $1 billion in fiscal year 2026," says John Dietrich, EVP and Chief Financial Officer, FedEx. "And we expect CapEx as a percentage of revenue will keep declining in the future as we reduce our facilities’ footprint through Network 2.0 and continue to plan for lower annual aircraft CapEx beyond fiscal year'26."

Capital expenditure for the third quarter (ended February 29, 2024) came in at $1.4 billion, bringing year-to-date capex to $4 billion. "And we now anticipate capital spend of $5.4 billion for the full year, which is down over $700 million from last year and down $300 million from our prior forecast of $5.7 billion," adds Dietrich.

Raj Subramaniam, President and CEO, FedEx says: "It is my top priority to continue to make the changes necessary to align our air network with an evolving demand environment and unlock the full profit opportunity. While we have made progress at Express this quarter, there are several areas we're aggressively working to address in order to accelerate profit improvement; service mix, network utilisation, continued inflation and other cost headwinds.

"First with respect to the service mix. We're seeing a clear international market shift towards deferred services. This is tied in part to the rapid growth of many of our e-commerce customers where we are a critical enabler of global trade offering unique solutions for our customers. Second, weakness in global trade continues to constrain demand in our international business, which has remained challenged for longer than expected.

As such, we're continuing to proactively realign our air network to match capacity to demand." FedEx had five percent fewer flight hours in the third quarter, according to Dietrich. "When you're not flying airplanes, you're able to avoid certain maintenance costs.

The air ops team is doing an exceptional job of managing its cost for aircraft undergrounded, whether you're using what's called green time on engines that are available, limiting your inventory purchases and so forth."

Brie Carere, Chief Customer Officer, FedEx said overall air freight market yields decreased between 30-40 percent in calendar year 2023, and "that is not going to repeat next year."

Tricolor in focus Tricolor is a fundamental redesign of FedEx network, says Subramaniam, to improve the utilisation of assets, "our return on invested capital (ROIC), profitability and our operating margin. First and foremost, our overall capacity will be determined by the demand environment, and Tricolor will allow us to better flex our capacity to mass demand. FedEx is breaking its network into three categories - purple, orange and white - "and that will cater to the different cohorts of traffic.

The idea is to move the right product and the right network while reducing the cost to serve. "The purple network will be a highly optimised and leaner network designed to move international priority parcel volume that protects our value proposition in different geographies. This network now becomes much more parcel-centric, will have significantly better service but also density, and that density will improve the revenue proposition and revenue per flight.

"Turning to the orange network, that will cater to the premium freight traffic. And these are FedEx planes that will operate off cycle from the purple system, which allows two things. Firstly, it allows us the ability, once again, to maximise density and asset utilisation. It also decongest hubs and improve service.

Most importantly, it allows a truck fly truck model that reduces the cost to serve. And in this context, it should be noted that we are fully leveraging the existing capacity in our trucking networks in the U.S and Europe. "It should be noted that 20 percent of the global air freight shipments approximately drive about 80 percent of the weight, which is a primary target for freight forwarders.

We're going to focus on the other 80 percent that will readily work with the model I described." The white network, according to Subramaniam, then is primarily the use of passenger belly capacity to move lower yielding e-commerce and deferred track.

"So, these three networks working in concert with high technological orchestration is what we call Tricolor. It helps the baseline productivity, it improves our existing asset utilisation and makes the entire system more efficient. And we're going to manage the execution of Tricolor with the rigour of DRIVE and ensure success."

Fedex Federal Corp from June In June 2024, FedEx Express, FedEx Ground and FedEx Services will consolidate into Federal Express Corporation.

Subramaniam says: "I think two words kind of describe this move, one is efficiency, the other one is effectiveness. I think we are looking forward to the structure that actually moves us forward on both fronts. And I think at the end of the day, this transformation efforts will set us up to drive improved performance and profitability over the long term."

WFS strikes DHL cargo deal in France

Photo: WFS

DHL Aviation has signed a new multi-year contract with Worldwide Flight Services (WFS) to manage freight at its airport stations in France.

This renewed partnership extends the two companies’ 14-year relationship in France. DHL signed its first freight handling contract with WFS in Paris in 2010.

The DHL CDG HUB is designed to help the business continuously and rapidly handle packages and is equipped with a “next-generation shipment sorter”.

Currently, the CDG HUB provides strategic air links with other DHL hub locations within and outside Europe, such as Leipzig and Brussels airports, as well as Casablanca, Morocco.

In addition, WFS manages onboard truck freight services for the CDG HUB from Leipzig and Brussels, as well as freight reception points for DHL Aviation throughout France, including Orly, Bordeaux, Lille, Lyon, Marseille, Nantes, Strasbourg, Toulouse, Basle-Mulhouse and Nice.

Laurent Bernard, vice president cargo France at WFS, explained: “DHL is a significant customer of WFS in Paris and across our network in France. We have a strong partnership and this extension to our warehouse contract clearly shows our service performance satisfies DHL’s high standards.

“Maintaining this contract is very important to our business in France and helps to demonstrate WFS’ capabilities to DHL for wider partnership growth across our global network in the future.”

Filippo Capogreco, vice president DHL Aviation, added: “We are proud to give continuity to an operational and business partnership that has worked well for years and with mutual satisfaction.

“We would like to thank John Batten (CEO EMEAA at WFS) and his entire workgroup of professionals for the quality work done so far and even more for the better work we will do in the future.”

Recent business developments for WFS include a new three-year contract with Air China Cargo in Los Angeles, and a contract with Finnair for cargo warehouse handling at Paris Charles de Gaulle Airport in France.

WFS’ parent company SATS recently confirmed its intention to acquire Sweden’s Terminal & Transporttjänst i Sigtuna (TT) and APH Logistics through its wholly-owned subsidiary, WFS Sweden.

Emirates gets ready for SAF at Schiphol

Emirates has commenced the activation of its sustainable aviation fuel (SAF) agreement with Neste at Amsterdam Schiphol Airport.

Over 2m gallons of blended SAF will be supplied into the fuelling system at Schiphol Airport over the course of 2024.

The Dubai-headquartered airline will track the delivery of SAF into the fuelling systems and the environmental benefits of this using standard industry accounting methodologies.

Photo: Emirates

Emirates’ partnership with Finnish sustainable fuels producer Neste, announced late last year, represents one of the largest volumes of SAF that the airline has purchased to date.

Once fully supplied into Schiphol’s fuelling system, the blended SAF will have been comprised of over 700,000 gallons of neat SAF. The airline is also working with Neste to supply SAF into the fuelling systems at Singapore Changi Airport in the next few months.

Adel Al Redha, deputy president and chief operations officer at Emirates, said: “Collaborating with committed partners like Neste is one of the practical steps we are taking to reduce our emissions, and it’s an all-important milestone in our own sustainability journey as an airline.

“Strong partnerships like this, especially at major air transport hubs such as Amsterdam, lay the foundation for how we can work with partners and airports to increase access to and availability of SAF across our network.”

Alexander Kueper, vice president renewable aviation at Neste, said: “We are proud to support Emirates in their sustainability journey. SAF is an available solution for reducing greenhouse gas emissions from air travel and it is exciting that Emirates have started using our Neste MY Sustainable Aviation Fuel at Amsterdam Airport Schiphol.

“It is also a great example of how we are working together with partners to accelerate SAF usage and are looking forward to the next steps of our cooperation.”

SAF used as part of this agreement can be safely dropped into existing jet engines and airport fuelling infrastructure, said Emirates.

The airline’s first flight powered by SAF blended with jet fuel took place in 2017 from Chicago. The airline currently operates flights from Paris, Lyon and Oslo with SAF.

In October last year, Emirates, with the support of partners, also integrated SAF into Dubai International Airport fuelling systems, allocating the SAF to a number of flights, including a flight to Sydney.

Earlier this year, the airline became the first international carrier to join the Solent Cluster in the UK, an initiative focused on low carbon investments with the potential to create a SAF plant that can produce up to 200,000 tonnes (200 kt) per year if operational by 2032.

Emirates also actively contributes to a number of industry and UAE government working groups and is in continuous discussion with a range of stakeholders to help scale the production and supply of SAF.

The airline, along with the UAE GCAA has actively played a part in developing the UAE’s power-to-liquid (PtL) fuels roadmap, driven by the UAE Ministry of Energy and Infrastructure and the World Economic Forum, in addition to contributing to the UAE’s National Sustainable Aviation Fuel Roadmap which aims to transform the UAE into a regional hub for alternative aviation fuels with the ambition to produce 700m litres of SAF by 2030.

Joining entities across aviation, government, regulatory, academic, fuel production and the manufacturer value chain, Emirates is a founding participant of the UAE research consortium Air-CRAFT, focused on developing, producing, and scaling SAF technologies for the industry.

The first ever commercial transatlantic flight 100% powered by SAF took place in November 2023.

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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