JUPITER SEA & AIR SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91
98407 85202
Corporate News Letter for Monday - July 01, 2024.
:: Today’s Exchange Rates ::
Source : The Financial Times
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CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
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83.38 |
-0.090004 |
-0.107828 |
83.39 |
83.47 |
83.3575- 83.495 |
|
|
1.0711 |
0.0007 |
0.065396 |
1.0704 |
1.0704 |
1.0685- 1.0725 |
|
|
105.48 |
-0.077599 |
-0.073513 |
105.4324 |
105.5576 |
105.2965- 105.5675 |
|
|
89.2992 |
0.021202 |
0.023748 |
89.187 |
89.278 |
89.138- 89.3552 |
|
|
160.835 |
0.075012 |
0.046661 |
160.76 |
160.76 |
160.265- 161.282 |
|
|
1.2643 |
0.0004 |
0.031644 |
1.2639 |
1.2639 |
1.262- 1.2664 |
|
|
105.893 |
-0.013 |
-0.012275 |
105.89 |
105.906 |
105.873- 106.126 |
|
|
0.5188 |
-0.0006 |
-0.115514 |
0.5193 |
0.5194 |
0.5175- 0.5195 |
/// Sea Cargo News ///
Hapag updates TPI service with US East Coast calls
Hapag-Lloyd has updated its TPI (INDAMEX) service rotation w.e.f August 8, 2024 to include stops at Savannah and Charleston, U.S. "As part of these changes, the current INDAMEX 2 (IN2) service will be discontinued immediately.
Consequently, all TPI (INDAMEX)
sailings before August 8, 2024, will already feature a call at Savannah,
U.S," Sanjay Kushwah, Managing Director - Area India (India, Bangladesh
and Sri Lanka), Hapag-Lloyd said in a LinkedIn post.
The new TPI service rotation is
as follows: Port Qasim - Nhava Sheva - Mundra - New York - Norfolk -Savannah -
Charleston and Port Qasim. "A key feature of this service for our Indian
market is the seamless connectivity between India and the United States with no
intermediate port calls," Kushwah said in his post.
Kushwah told Indian Transport
& Logistics News: "We are combining two services into one, and will be
running this stand-alone product giving us much larger control on this lane. We
will continue to ensure that our customers' supply chain continues to be
serviced uninterrupted by Hapag-Lloyd."
It may be mentioned here that Ocean Network Express (ONE) Modern, the first ship on the ocean carrier’s West India North America (WIN) service, called on the Port of Savannah, establishing the latest connection between India and Georgia Ports.
How Rs 76, 220 cr Vadhavan port could transform India's industrial landscape
The proposed mega Vadhavan port
in the Palghar district of Maharashtra, worth Rs 76, 220 crore, would not only
boost sea-based trade but also herald a new wave of industrial development
towards the country becoming the world’s third-largest economy by 2027 with a
GDP of $5 trillion but also generate 10 lakh direct and indirect jobs.
The port will be developed as an
all-weather Greenfield deep draft major port, which will include the
development of core infrastructure, terminals and other commercial
infrastructure in public-private partnership (PPP) mode. The move by Prime
Minister Narendra Modi-led government will further cement India’s position in
the global port map.
Managed by 12 key ports, India’s
cargo volume is growing rapidly and reached 12.31 million TEUs (twenty-foot
equivalent units) in FY24, up from 11.39 million TEUs in FY23, according to the
Ministry of Ports, Shipping and Waterways.
Adani Ports and Special Economic
Zone (APSEZ) alone has seven strategically located ports and terminals on the
western coast and eight ports and terminals on the eastern coast, representing
27% of the country’s total port volumes.
Fesco boosts capacity as demand grows for India-Russia trade
Fesco (Far Eastern Shipping Co),
Russia’s largest ocean container carrier, is cementing its connectivity out of
India, as cargo volumes see steady traction. The liner has deployed a larger
vessel on the West India-Novorossiysk route, increasing overall capacity by
about 25%.
The enhanced service, known as
FIL-W (Fesco Indian Line West), kicked off with the 1,080-teu Fesco Askold
departing Nhava Sheva on 18 June for Mundra. Sister ship Fesco Ekaterina, 1,049
teu operates on a rotation of Novorossiysk-Nhava Sheva-Mundra-Novorossiysk.
The connection, which began in
February last year, now offers a fortnightly frequency, with an average transit
time of 16 days from India to Russia.
To maximise capacity
utilisation, Fesco is using Mundra as a hub to consolidate or aggregate cargo
from other locations in the region and for transhipment.
“Feeder lines connect FIL-W to
other Indian ports like Kolkata, Tuticorin and Chennai, as well as to Jebel Ali
(UAE), Chattogram (Bangladesh), Karachi (Pakistan) and Colombo (Sri Lanka),”
said the Russian carrier.
Buoyed by growing demand on the tradelane, niche Indian NVOs have also been deploying tonnage, mostly on an inducement basis. Mumbai based Econship is one such, which has had a raft of sailings for India-Russia trade.
Yang Ming
denies “self-enrichment” of head honchos
Yang Ming headquarters.Yang Ming Marine Transport has refuted speculation that its chairman Cheng Cheng-mount and general manager Patrick Tu have arbitrarily paid themselves bonuses.
Media reports claim that each man has paid himself TW$2 million
(US$62,000) after Yang Ming’s turnover began improving from the last quarter of
2023. In 1Q 2024, the Taiwanese operator’s net profit was US$298.42 million,
more than twice the amount in the year-ago period.
In 2022 and 2023, Yang Ming paid employees bonuses of more than
70 months due to exceptional profits. In terms of year-end bonuses, each of
Yang Ming’s directors received bonuses amounting to 50 months of salary, and
the total paid out was TW$16 million (US$494,000). In addition, each director
received an extra TW$2 million as a “special contribution bonus”. Information
about the bonus payments was leaked, causing suggestions in the media that
Cheng and Tu had rewarded themselves.
On 21 June, in response to the reports, Yang Ming said: “Since
Mr Cheng became the chairman in October 2020, the company’s business
performance and financial status have improved significantly, and have not been
inferior to the company’s peers.
The remuneration of Yang Ming’s chairman and general manager is
significantly lower than their counterparts in peer companies. Bonus payments
are handled in accordance with the company’s performance bonus calculation for
shore-based staff, and the same applies to special contribution bonuses. The
remuneration amounts are reviewed by the salary committee and there’s no basis
for ‘self-enrichment’.
“The company's salaries are kept confidential. If the discussion
involves personal interests, the parties concerned will avoid participating in
the discussion. However, the content of the meeting and the discussion process
of the relevant proposals have been repeatedly leaked by interested parties.
Using specific media outlets for personal attacks not only harms the company's
image but also violates the spirit of corporate governance.”
FMC chairman, Daniel B. Maffei.Detention and demurrage (D&D) cases handled by the Federal
Maritime Commission (FMC) in the United States have trebled since the pandemic
and are set to reach historical highs by the end of the year.
FMC commissioner Carl Bentzel said that cases reaching the
late-stage litigation had trebled, forcing the organisation to recruit two more
administrative court judges, who now total three, to deal with the number of
cases being handled.
“Even so only around 5%-10% of cases reach the litigation stage
with most disputes being settled before the point where litigation is needed,”
Bentzel told Container
News.
Currently, there are around 56 formal cases being heard and
another 31 small claims, but within that, the number of incidents can be huge,
as demonstrated by the recent case brought by Samsung Electronics America,
which numbers 96,000 D&D charge incidents in its litigation with HMM.
However, Bentzel also said that the vast majority of cases never
make it to the later stages, but are settled through the FMC’s dispute
resolution process, and with cases involving US$12 billion worth of billings
since the pandemic, the organisation’s legal team remains “underpowered”, with
the recruitment of an administrator currently in process.
Most of the cases now being brought are for refusing service or
acting in bad faith, but Bentzel said that most of the contracts are “service
contracts and are necessarily binding”.
“These are minimum volume contracts, which are loosely worded to
allow either the shipper or the carrier the flexibility not to perform,” said
Bentzel.
Another industry figure, who wanted to remain anonymous said
these contracts were “aspirational”, in that shippers and carriers aspired to
carry these levels of cargo, allowing either player that signed the contract
the ability to switch to the spot market when it is beneficial to them.
“Few of these cases would stand up in a Federal Administrative
court because they are just not very well defined,” said Bentzel, which leaves
the FMC to adjudicate when there is a dispute, he agreed, that the process has
now become more about arbitration than litigation.
The simplification of bringing cases to the FMC’s attention has
effectively ramped up the number of D&D cases being heard, but the mere
threat of being referred to the FMC’s litigation service now carries more
weight and companies prefer to settle.
“We’re working with industry to set the precedents,” with the
legislation still comparatively new, it was originally introduced in mid-2022,
and there was a large slew of cases originating from the pandemic and the
congestion that was endemic in that period.
With the cases taking 18 months to two years to be processed
Bentzel is expecting “a slug of new cases going forward,” as a result of the
congestion currently being generated by the Red Sea diversions.
“I have been in discussions with the State Department because I
want to investigate and explain the impact of the Red Sea crisis and the
failure of governments to maintain the laws of the sea and the law of innocent
navigation,” explained Bentzel.
It is not that Bentzel wants to understand the impact of the
failure of governments on a broader scale.
“If Tesla stops its German production because it cannot get the
components it needs then what is the impact on Tesla, the German economy and
the broader shipping industry?” asked Bentzel, who added with emphasis, “We
need to pay attention to the Red Sea”.
Port of Antwerp-Bruges reported a container fire incident at MSC
PSA European Terminal (MPET), quay 1742.
On 24 June at 05:30 (local time), the Belgian port said that
terminal operations were temporarily suspended due to a fire that broke out in
a container, with shipping traffic currently blocked at Deurganckdok.
After one and a half hours, shipping traffic in the area resumed
as firefighters brought the fire under control and moved the box to a safe
location.
"Everyone involved is now making every effort to restart
all activities as soon as possible," pointed out the port in the latest
update.
Maersk, Nike to christen
green vessel at LA Port in August
A.P.
Moller – Maersk (Maersk) proudly invites the public to come aboard a container
ship of the future when one of the world’s first methanol-enabled vessels
arrives in Los Angeles this August.
Powered
by green fuel* for its maiden voyage and capable of carrying more than 16,000
containers (TEU), the vessel will get its new name at a private ceremony at the
Port of Los Angeles Outer Harbor on Tuesday, August 27. Maersk’s CEO Vincent
Clerc will be on hand, alongside special guest speakers from Nike and leading
state and local officials. As a partner in the name-giving event, Nike shares
Maersk’s deep commitment to decarbonizing supply chains.
“Nike
is committed to protecting the future of sport and we leverage science-based
targets to guide us through our Move to Zero journey. Operating one
of the largest supply chains in the world, we have a responsibility to advance
the innovation and use of more sustainable methods that get us closer to zero
carbon and zero waste. By working with suppliers like Maersk, who share our
commitment to sustainability, we are scaling our use of biofuels in ocean
transportation, our main first-mile delivery channel.”
Venkatesh
Alagirisamy, Nike Chief Supply Chain Officer
“This
event is not only an opportunity to celebrate a remarkable engineering
achievement, but the chance to highlight that we can navigate towards more
sustainable supply chains if we work together.”
Charles
van der Steene, Regional President for Maersk North America
On
Wednesday, August 28, Maersk invites the public to tour the 350-meter-long
vessel, which will be sailing from Asia. Visitors will be able to see the
Sailors’ living quarters and even stand on the bridge from where the captain
controls the vessel. Public tours will require visitors register for a free
ticket via an online registration site that will be activated and announced in
August.
This
is the fifth container vessel in Maersk’s fleet that can sail on green
methanol, an alternative to conventional bunker oil. Maersk continues to
explore and study various alternative fuels in pursuit of its goal to reach
net-zero greenhouse gas emissions by 2040. Learn more about Maersk’s fleet
of the future on Maersk.com.
In
addition, Maersk's new container ships have several innovative design features
that set them apart from traditional container vessels, including the
positioning of its crew accommodation and bridge at the bow and a single funnel
at the stern. These design elements allow for increased container capacity and
improved efficiency during port operations. Maersk has ordered 20 additional
methanol-enabled vessels.
Credentialed
journalists may apply to attend the naming ceremony through the Maersk media
relations department.
*Maersk
defines green fuels as fuels with at least 65% reductions in GHG emissions on a
lifecycle basis compared to fossil reference fuels.
DP
World has taken another major step in its ambition to be the UK’s leading
logistics provider by opening its largest ever warehouse. The 598,000 sq ft
facility in Coventry is part of a £50m investment that will help customers to
stay competitive.
The
new warehouse - which was internally fitted out for £34m and completed last
month following a two-year construction period alongside developer SEGRO PLC -
includes a new fully Automated Case Retrieval (ACR) system which will
significantly increase efficiency.
It
was built meeting the highest sustainability standards to a BREEAM ‘Excellent’
rating and forms a key part of DP World’s investment in UK logistics over the
last two years, alongside facilities in Bicester and Burton upon Trent.
Denis
Doyle, Senior Vice President of Operations at DP World, said: “The completion
of the Coventry warehouse reinforces once again our commitment to meeting
complex requirements and delivering best in class assets for our customers.
Our
£50m investment into the three sites at Coventry, Bicester and Burton upon
Trent is part of a wider strategy to extend our reach into the UK supply
chain.”
“We
have been building a unique array of assets and suite of capabilities, helping
our UK and European customers stay competitive in a fast changing and
unpredictable trading environment, while serving the national interest.
Together
with the imminent opening of the £350m new fourth berth at London Gateway, this
new platform for growth in the warehousing sector will drive forward our
ambition to be the UK’s leading provider of end-to-end logistics.”
In
September last year, DP World opened its 270,000 sq ft facility in Bicester,
the nation’s largest music and video distribution warehouse which handles
approximately 70% of physical music and 35% of home entertainment products sold
in the UK annually.
It
builds on the 75,000 sq ft Burton upon Trent site opened in 2022 and a 230,000
sq ft multi-user warehouse which forms part of London Gateway’s logistics hub.
In
addition to its hubs at Southampton and London Gateway, DP World’s offer
includes logistics, forwarding and European transport capabilities, all of
which are being integrated into the company’s global network.
Operating in 78 countries, DP World handles 10 per cent of world trade.
/// Air Cargo News ///
dnata launches operations in Raleigh-Durham in the USA
dnata,
a leading global air and travel services provider, continues to expand and
invest in people and infrastructure in the USA. Having successfully launched
operations at Raleigh-Durham International Airport (RDU), it now provides a
range of quality and safe ground handling services at 28 airports in
the country.
dnata’s
expansion into RDU represents an investment of US$ 2 million and will create
over 25 new, local jobs with the company. The inaugural customer is
Lufthansa, Germany’s flag carrier, which operates a five-weekly service between
the North Carolina airport and Frankfurt with an Airbus A330-300
aircraft.
David
Barker, dnata’s Regional CEO, Airport Operations – Americas, said: “We are
excited to add Raleigh-Durham to our growing network in the USA. This expansion
underscores our commitment to consistently invest in our operations and
services in a strategic, rapidly developing market.
“We
are proud to have been selected by Lufthansa as their ground handling partner
at another airport. We look forward to working with the airline’s local team to
contribute to their success with our best-in-class services.”
Including
Lufthansa Airlines, dnata provides a range of ground handling, logistics and
cargo services to more than 70 airline customers throughout the USA with 3,300
customer-oriented employees. In the financial year 2023-24, dnata turned around
over 60,000 flights in the USA, handling over 18 million passengers and 200,000
tonnes of cargo.
dnata
is a leading global air and travel services provider. Established in 1959, the
company offers quality and safe ground handling, cargo, travel, catering and
retail services in over 30 countries across six continents. In the financial
year 2023-24, dnata’s customer-oriented teams handled over 778,000 aircraft
turns, moved 2.9 million tonnes of cargo, uplifted 123 million meals, and
recorded a total transaction value (TTV) of travel services of US$ 2.4 billion.
CargoLogicAir administration continues to face difficulty accessing records
Copyright:
Carlos Yudica/ ShutterstockThe administrator for defunct UK freighter operator
CargoLogicAir has highlighted the ongoing issues it has faced in accessing the
airline’s company records.
In a six-monthly progress report, the airline’s joint
administrator Buchler Phillips said it had been unable to access Microsoft
Azure and Microsoft 365 subscriptions since it was appointed.
This was “severely hampering the progress of the
administration”.
However, since legal action was threatened, Microsoft Ireland
Operations Limited (MIOL) has started engaging with the administrators.
“The lack of records is hindering the collection of book debts,”
the administrator explained.
Buchler Phillips added that it understands that some records may
have been permanently deleted in the meantime.
It has requested information on how the records can be restored,
however expensive or time consuming.
On a brighter note, the administrator has gained access to the
Trax aircraft stock system, which has allowed the company to move forward with
selling Boeing 747 stock.
And an offer – worth $385,000 – has also been accepted on the
sale of stock held at East Midlands Airport in the UK, although further stock
is held at Amsterdam and Hahn airports and is yet to be sold.
Overall, Buchler Phillips at the present time expects there to
be sufficient funds available to make a distribution to creditors.
UK-based CargoLogicAir, which operated Boeing 747
freighters, entered
administration in 2022 after it was forced to
halt services following sanctions relating to the conflict in Ukraine that
prevented it from flying to European Union and US destinations.
Meanwhile, the airline’s ultimate beneficial owner, Alexey
Isaykin later found himself on a UK sanctions list related to the war.
In November last year, Buchler Phillips was granted
an extension to the administration period due to
the difficulties it faces accessing records and creating bank accounts due to
the sanctions.
The extension runs until November 2025.
The administrator currently estimates that £10.5m in total
assets can be realised, although it does not at present list any funds raised
through stock, tax refunds and book debts as these are too uncertain.
Texel Air Australasia offers freighter capacity to Team Global Express
737-800BCF.
Photo: Texel AirAustralian logistics solutions company Team Global Express has
begun a partnership with Texel Air Australasia that will see the cargo airline
provide capacity across Australia using four freighters.
The four 737-800 Boeing Converted Freighter (BCF) aircraft, with
Team Global Express livery, will be operated by the Auckland-headquartered
airline on an ACMI basis as part of a seven-year partnership.
They will replace existing 737-300 and 737-400 aircraft. The
seven-year partnership is worth A$480m, the partners said in a press release.
“The newly introduced planes enable more parcels to be delivered
along regional flight paths on prioritised schedules, including additional
morning pick-ups at destinations such as Port Hedland, Norfolk Island and
Karratha,” Team Global Express said. “Through a more frequent and efficient
schedule, these smaller hops can facilitate more overnight deliveries for
regional customers.”
Team Global Express Group chief executive Christine Holgate
said: “In a country as vast as Australia, airfreight plays a vital role in
connecting distant cities and transporting essential goods such as lifesaving
medications, perishable goods, machinery equipment and livestock.
“The new planes contribute towards a 20% improvement in cargo
capacity, which creates a greater carbon saving per parcel.
“This partnership supports our new e-commerce product, which
offers customers unrivalled speed across a single network.”
Team Global Express said in a LinkedIn post on June 21: “Our
ability to deliver airfreight – especially to regional Australia – just got
faster.
“We have introduced four Boeing 737-800 BCF freighter aircraft
to our domestic air freight fleet, increasing our capacity and speed of
delivery.
These freighters replace four aircraft in the company’s total
fleet of forty planes and are the first to proudly display Team Global Express
branded livery.”
Texel Air Australasia also said in a LinkedIn post last week:
“This week, Team Global Express launched its new B737-800BCF freighter service
at an official event in Brisbane.
This new aircraft service comprises four B737-800BCFs provided
by Texel Air, operating as an ACMI carrier for the next seven years.
“We at Texel Air are incredibly proud to deliver this crucial
new capability to Team Global Express. Branded in their new livery, these
aircraft will enhance connectivity across Australia with increased speed and
efficiency.”
Texel Air Australasia provides ACMI and charter services and was
launched by Bahrain-based ACMI and charter cargo airline Texel Air last
year.
Planespotters’ data shows that Texel Air Australasia currently
has five 737-800BCF. The airline’s fifth 737-800BCF is currently in service for Parceline Express, a
subsidiary of Freightways and New Zealand Post.
Established in 2013 by Chisholm Enterprises, Texel Air is an
ACMI/charter cargo airline and aircraft maintenance repair organisation (MRO).
Owned by Australian equity fund Allegro Funds, Team Global
Express operates a multimodal network – utilising trucks, ships, aircraft and
rail – across Australia and New Zealand.
The company carries a wide range of cargo via more than 500
flights per week using 40 aircraft.
UK’s East Midlands Airport predicts e-commerce fuelled cargo growth
Source:
David Soanes Photography
East Midlands Airport (EMA) in the UK is hoping its cargo
volumes will increase by more than 50% over the next 20 years as it benefits
from increasing e-commerce demand and constrained capacity at rival hubs.
A recent report by MDS Transmodal and York Aviation suggests
that EMA’s volumes will increase by 54% over the next 20 years.
Based on UK government figures, this would see freight and mail
volumes grow from 370,000 tonnes handled last year to around 570,000 tonnes in
2042.
The two consultants said this growth is based on the continued
rise of e-commerce demand – UK e-commerce sales grew to 27% of all retail sales
in 2022 from only 3% in 2004 – and Heathrow Airport’s focus on bellyhold rather
than freighter aircraft.
At present, the airport is the second busiest for cargo in the
UK.
“It’s true that Heathrow carries higher volumes of cargo, but
that’s mostly in the ‘bellyhold’ of passenger aircraft – and that puts EMA at a
significant advantage,” said the airport’s head of aviation David Craig.
“Some airports are also prioritising passenger flights over
cargo operations,” he added. “There is therefore a trend where cargo operators
are favouring airports like EMA that support aircraft purely carrying freight.
“There is another trend emerging which EMA is well placed to
benefit from, and that’s the growth in e-commerce demand, especially from
markets such as China where the likes of Temu and Shein are becoming dominant.
“They are looking for ways to get their goods into the UK and
Europe, and EMA’s existing links and facilities enable them to do that.
“We expect this demand to increase as e-commerce grows in China
and elsewhere and airlines look for dedicated cargo solutions over more
expensive and constrained passenger ‘bellyhold’ options.”
He pointed out that the three express giants – DHL, UPS and
FedEx – already have bases right next to the runway at EMA. Earlier this
year, British cargo airline One Air commenced 747-400 freighter operations at
EMA.
Astral Aviation diversifies
cargo fleet with 737 freighter
Astral Aviation has grown and diversified its fleet with the
lease of its first Boeing 737-400 freighter from Canadian lessor Avmax Group.
In addition to the dry leased 737-400F (MSN 27082), Avmax has
purchased and leased back a Boeing 767-200F (MSN 22217) airframe that has been
in Astral’s fleet since 2020.
Sanjeev Gadhia, founder and chief executive of Astral Aviation, commented: “We are excited to add Avmax as a growth partner. Both transactions highlight their ability to provide flexible solutions that meet market requirements, enabling further growth for the Astral fleet.
“The introduction of the B737-400F marks an important inflection
point in our growth strategy. This aircraft streamlines our fleet mix, allows
Astral to match cargo demand with appropriate capacity, and ultimately offers
better solutions to our customers.”
Kenya-headquartered Astral Aviation has hubs in Nairobi, Dubai,
Johannesburg and Liege and currently operates one Boeing 757F, one Boeing 767F,
two Boeing 727Fs, one McDonnell Douglas DC9F, and three Fokker 50s. The airline
also has two 767Fs on order, due for delivery this year.
Astral also plans to add two Embraer E190Fs next year, following
a deal
with Nordic Aviation Capital (NAC) in
2022.
Steve Hankirk, chief executive of Avmax Group, stated: “We are
pleased to have completed both transactions with Astral Aviation and welcome
them into the Avmax family. Astral continues to demonstrate that they are a
leading cargo carrier in the African market, and we are proud to support them
with the growth of their airline.”
Scott Greig, senior vice
president and head of Avmax Aircraft Leasing Inc., emphasized Avmax’s strategic
focus on the African market and its operational agility, stating, “Both
transactions demonstrate our commitment to the African market and highlight Avmax’s
diverse capabilities in leasing aircraft to leading carriers like Astral
Aviation. We are pleased to support Astral as they optimize their fleet with
the introduction of a B737-400F, enhancing their ability to meet growing cargo
demand effectively.”
The announcements were made during this year’s AviaDev
conference in Namibia, where industry leaders gather to discuss developments
and opportunities in African aviation.
In March, Etihad
Cargo and Astral Aviation began a partnership that
incorporates Astral operating weekly flights from Abu Dhabi to its home hub of
Nairobi where cargo can then be flown to and from other points in the carrier’s
African network.
Amazon places more freighters with Sun Country Airlines
Amazon Air
B737-800FAmazon Air has placed an additional eight Boeing 737-800
freighters with Sun Country Airlines as it deepens its partnership with the
Minneapolis-headquartered carrier.
The amended air transport service agreement means Sun Country,
which operates in the US and the Americas, will now operate a total of 20
737-800 freighters on behalf of the e-commerce giant.
Meanwhile, the length of the CMI agreement has been extended by
five years to 2030 with a series of three options that if exercised would
extend the deal through to 2037.
The first additional aircraft is expected to begin service in
the first quarter of 2025 and all eight aircraft are expected to be operational
by the third quarter of 2025.
“Amazon is an extremely important customer to Sun Country and
strong execution on our current cargo services positioned us well to grow our
business. We look forward to continuing to provide services to Amazon into the
2030s,” said Jude Bricker, chief executive, Sun Country.
The move comes after Atlas Air earlier this year said it
was backing
out of operating 737 freighter aircraft on behalf of Amazon.
Atlas has been operating both 737 and 767 freighters for Amazon
for a number of years, but these deals will now end next year.
Atlas reasoned that it wanted to concentrate on operating
widebody freighters on long-haul markets.
Meanwhile, Amazon has been simplifying
its domestic US network over the past year,
according to a report issued earlier this year by the Chaddick Institute.
The changes have seen the carrier utilise larger aircraft
– such as A330-300 operated by
Hawaiian and more 767s operated by ATSG – and
consolidate operations at fewer hubs.
In the process, the percentage of the fleet comprised of 737 or
smaller planes has fallen from 38% to 33% over the past year (as of March).
The carrier also stopped using ATR-72 turboprops over the last
year and reduced the number of airports it flew to.
The report said that the move to a hub and spoke operation and
away from point-to-point flying brings its strategy closer to that of express
giants UPS and FedEx.
“Amazon Air’s network has gradually grown to be more like that
of FedEx and UPS,” the report stated. “These air cargo integrators have long
been hub-centric, with nearly identical schedules day after day (except for
weekends and holidays).
“Their networks have been gradually fine-tuned to maximise their
versatility for guaranteed delivery the next morning or afternoon. Amazon is
pursuing a similar strategy in North America. More than four in five Amazon Air
flights (80.5%) within the US mainland operate to or from its five largest
hubs, up from 65.6% in early 2021.”
Sun Country first started operating aircraft for Amazon in May
2020 after the two
companies struck a 10-aircraft sublease deal, which
was later extended by two more aircraft.
Cargo revenue from its Amazon agreement increased about 2.5% in
the first quarter, year-on-year, to $24m.
I hope
you have enjoyed reading this update.
Have a nice day.
With 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
Fax : + 91 44 2819 0735
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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