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 -  September  30,  2024.

Today’s Exchange Rates

 

CURRENCY	PRICE	CHANGE	%CHANGE	OPEN	PREV.CLOSE	DAY's LOW-HIGH
USD/INR	83.7	0.049995	0.059767	83.64	83.65	83.615- 83.715
EUR/USD	1.1161	-0.0016	-0.143154	1.1177	1.1177	1.1125- 1.1203
GBP/INR	112.0199	0.301094	0.269511	112.0534	111.7188	111.8057- 112.0818
EUR/INR	93.4135	0.199394	0.21391	93.453	93.2141	93.0941- 93.5155
USD/JPY	142.15	-2.660004	-1.836892	144.81	144.81	142.073- 146.497
GBP/USD	1.3373	-0.0042	-0.31309	1.3415	1.3415	1.336- 1.3428
DXY Index	100.53	-0.031998	-0.031819	100.589	100.562	100.459- 100.884
JPY/INR	0.5847	0.0073	1.264281	0.5775	0.5774	0.5714- 0.5859

 

///                   Sea Cargo News            ///

India’s drive to rein in container shipping charges faces hurdles as volatility persists

Indian government leaders have promised exporters some notable proactive steps to ease their supply chain pain points, but industry stakeholders remain sceptical about their winnability and value proposition amid multiple challenges.

At a high-level stakeholder meeting held on 19 September to address exporter concerns, officials agreed to extend relief in the form of longer free times for empty containers, lower rail yard fees, faster cargo movements and investment in containership fleet.

Container Corporation of India (Concor), port authorities and Shipping Corporation of India (SCI) have been asked to lead those efforts. Representatives of foreign container lines also pledged to support government efforts.

“The decisions taken by the Ministry of Ports, Shipping and Waterways and Ministry of Railways in the meeting will result in significantly breaking down shipping costs, improving availability of containers, resolving empty containers issue, faster evacuation of export consignments and reducing congestion at the ports,” said union minister of commerce and industry Piyush Goyal said.

Explaining the steps to be implemented, Goyal noted that Concor would allow storage of empty containers at its yard in Nhava Sheva Port (JNPA) free of cost for 90 days, in addition to offering a steep reduction in related container-handling tariffs for boxes staying this period.

Similarly, SCI will provide more capacity to serve Indian export/import trade, while other foreign carriers promised some concessions or downward adjustments in their container transportation rates and lift-on/lift-off charges applied at storage yards.

JNPA chairman Unmesh Sharad Wagh noted various measures being taken to alleviate congestion problems at the port, which he believes would result in quicker clearance of cargo and shorter turnaround times.

Stakeholders also stressed the need to speed up air cargo flows. Goyal called on all stakeholders to make “concerted efforts to significantly mitigate the difficulties and address the issues faced by the exporters, effectively deploy multi-disciplinary capabilities and adopt ‘whole of the government’ approach to ensure that no logistic difficulty is faced by the exporters.”

The minister went on to explain: “Due to the current geopolitical tensions, the Red Sea crisis, Houthi operations, ongoing wars and its impact on international trade, there was a need to engage with a multidisciplinary team.”  “The government will continue to regularly monitor the situation,” Goyal added.

However, while welcoming the government intervention, industry experts believe as the market remains exposed to disruptive events, supply chain volatility is an industry-wide problem. According to them, empty container flow has been impacted by longer or unsettled vessel sailing schedules, while ports have had to deal with space pressures due to stronger-than-expected volume surges.

Meanwhile, ocean rates on major export trades out of India have noticeably dropped over the last month or so, but they continue to remain above pre-pandemic market levels.

Central European floods cause operational disruptions and delays

The severe flooding in Austria, Slovakia and the Czech Republic has affected the transport network’s local infrastructure, including container facilities.

German ocean carrier Hapag-Lloyd has announced the flooding has already affected its container depots, which may result in operational delays in the affected regions.

“Whilst we continue to accept your bookings for the coming weeks, we ask for your understanding that container releases in the above areas may be delayed due to the ongoing situation,” said the company in a customer advisory. The Hamburg-based firm noted that it is working on restoring normal operations “as quickly as possible”.

In its latest update, one of the major global freight forwarders Kuehne+Nagel said the Ostrava terminal in the Czech Republic will be fully accesibe by rail once again today after the closure due to severe floods in the previous days.

“Preparations are underway for the first Ceska Trebova – Ostrava route train, scheduled to depart on 20 September,” confirmed K+N. “Normal operations in Ostrava are expected to resume over the weekend, reinstating services routed through the Ostrava terminal.”

However, the global forwarder noted that while traffic has resumed on most Austrian routes, the situation remains uncertain for services via Austria’s Krems terminal. According to Kuehne+Nagel, infrastructure managers in the city have yet to confirm the passability of the lines, leaving some services limited.

Box lines adjust intra-Far East/ Australasia services

CNC Line is set to enhance its role from a slot operator to a vessel provider on CoscoSL’s NP1 service at the end of September, according to DynaLiners. This upgraded service, branded as RNM by CNC, will deploy two 1,700 TEU vessels, maintaining a route that includes Singapore, Subic Bay, and Manila.

Additionally, Sinotrans (SinoLines) has launched a new service, the Shantou Philippines Service 1 (SPS1), utilizing a 700 TEU vessel to connect Shantou, Hong Kong, Shenzhen (Shekou), and Manila, strengthening trade links between China and the Philippines.

Furthermore, intra-Far East/Australasia service network adjustments come from Sinokor and Heung A, who have revised their PSI2 service by omitting the call at the Shenzhen port. The modified rotation now includes Busan, Ulsan, Kwangyang, Shanghai, Jakarta, Ningbo, and return to Busan.

Moreover, Pan Ocean will join CK Line’s KCH service in a collaborative effort starting in October, according to Alphaliner. This joint operation will use two 1,000 TEU vessels, calling at Incheon, Qingdao, Ningbo, Hai Phong, Shenzhen (Shekou), and returning to Incheon, enhancing service frequency and capacity on this route.

AAL Shipping receives third Super B-Class multipurpose heavy lift vessel

AAL Shipping (AAL) has received AAL Houston, the third vessel in its eight-ship, third-generation Super B-Class newbuilding fleet.

This 32,000 dwt dual-fuel multipurpose heavy lift carrier prepares for its maiden voyage.

Named after AAL’s operations hub in the Americas, the vessel was formally christened at a ceremony held at the CSSC Huangpu-Wenchong Shipyard in Guangzhou, China, on  12 September, with representatives from AAL Shipping, Columbia Shipmanagement, and special guests in attendance.

Like its sister vessels, AAL Houston has been specially designed to meet the evolving demands of the industrial project and heavy-lift sectors. Capable of transporting up to 90,000 freight tons of project and breakbulk cargo, as demonstrated by AAL Limassol on its maiden voyage, the vessel is equipped with three port-side cranes with a combined lifting capacity of 700 tonnes.

Its accommodation block is positioned at the front for enhanced visibility when handling oversized cargo, and it includes AAL’s retractable ‘AAL ECO-DECK’ extension system, expanding its clear deck space to 5,200 m².

This design is the result of years of collaboration between AAL, parent company Schoeller Holdings, Columbia Shipmanagement (CSM), SDARI, and the CSSC Huangpu-Wenchong Shipyard, as highlighted in interviews with Schoeller Holdings’ Founder and Chairman Heinrich Schoeller and AAL CEO Kyriacos Panayides.

“There is always a dilemma during new building projects – satisfying the demands of your market and customers today, but crucially anticipating the requirements of tomorrow. We are at a crossroads of environmental change and a rapidly developing project landscape. Demands upon our fleet have never been higher – so we needed to raise the bar with these heavy lift vessels and the results are already positive, with the maiden voyages of the ‘AAL Limassol’ and ‘AAL Hamburg’ breaking cargo records,” said Panayides.

AAL Houston will soon join its sister vessels, AAL Limassol and AAL Hamburg, as part of the Super B-Class fleet, operating on major routes between Asia, Europe, the Americas, and Australia, and serving a wide range of industries and project sectors.

For its maiden voyage, the vessel will carry a diverse range of project cargo, including HRSG modules, transformers, plant equipment, and barges.

The remaining ships in the Super B-Class series are scheduled for delivery between now and 2026, with the upcoming vessels, AAL Newcastle and AAL Mumbai, featuring an enhanced heavy lift capacity of up to 800 tonnes.

Port of Sihanoukville launches new 450,000 TEU terminal

Port of Sihanoukville

Cambodia’s port of Sihanoukville has inaugurated its new 450,000 TEU container berth, according to DynaLiners.

The cost of constructing the new 253-metre long and 10.4-metre depth berth was US$37.5 million.

The port of Sihanoukville will now have a container capacity of 1 million TEUs. The port aims to further expand this capacity, as it is developing a new deep-water container terminal.

The upcoming terminal, which will be completed in three phases, is expected to provide a further 1.5 million TEUs in capacity by 2029.

Could East and Gulf Coast port strike result in banana shortage?

                                                  Port of Savannah

Furniture, bananas and motor vehicle parts could be the top containerized commodities that would be affected by a potential labor strike at the United States East Coast and Gulf Coast ports, according to US Census Bureau data.

The top three containerized goods processed by East Coast and Gulf Coast ports year to date have included nearly 2.5 million tons of furniture, followed by 2.2 million tons of bananas and plantains and 1.8 million tons of motor vehicle parts.

Rounding out the top five containerized goods handled by East Coast and Gulf Coast ports are semiconductor devices and LED lights (1.4 million tons) and ceramic flags and wall tiles (nearly 1.4 million tons).

While shippers have considered shifting some cargo to US West Coast or Canadian ports, the answer may not be so simple for all goods, according to Jason Miller, a supply chain professor and economist at the Eli Broad College of Business at Michigan State University. Miller compiled and organized the Census Bureau data.

Take bananas, Miller said in a recent LinkedIn post. About 75% of banana and plantain imports come into the US via the East and Gulf Coast. Water transportation of bananas is more cost-effective than shipping bananas by refrigerated truck on a per-mile basis, according to Miller.

“There is zero chance of shifting all these imports through the West Coast, and the low dollar value per unit of weight for bananas means putting them on planes isn’t economical. Moreover, you can’t frontload a perishable product,” Miller said.

The percentage of motor vehicle parts coming through East and Gulf Coast ports is about 55%, with most actually coming from Asia and the remainder coming from Europe, according to Miller. But shifting all these motor vehicle parts isn’t feasible, particularly for European auto parts, which can have a higher value per unit.

Meanwhile, when considering the value of tonnage processed through East and Gulf Coast ports, motor vehicle parts and motor vehicles dominate: the value of motor vehicle parts that have been shipped via containerized imports year-to-date is worth US$10.8 millon, while the value of motor vehicles and transport vehicles shipped year-to-date is worth US$7.7 million.

The high stakes for US importers compelled them last week to ask President Joe Biden to encourage the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) to continue to negotiate a new labor agreement before the current one expires on 30 September. ILA members have said they plan to go on strike on 1 October should a labor contract not be reached.

“A strike at this point in time would have a devastating impact on the economy, especially as inflation is on the downward trend. … The administration needs to provide any and all support to the parties in their negotiations. In addition, the administration needs to be ready to step in if a strike or other action occurs that leads to a coastwide shutdown or disruption,” said a letter addressed to President Biden on 17 September and signed by 177 trade associations, including the American Home Furnishings Alliance, the American Spice Trade Association, Autos Drive America, the National Retail Federation and the National Grain and Feed Association.

For now, Biden has indicated that he will not invoke a federal law that would prevent ILA members from striking on 1 October. But “Combine a highly emotional consumer product that people will be irate about if there are stockouts (bananas) and the potential for widespread disruption to the most important manufacturing sector in a critical swing state (Michigan), and I can’t help but think a prolonged port strike will not be allowed to occur just prior to a presidential election,” Miller said.

Emerging ports in Southeast Asia and Africa gain momentum

Port of Tema

Container News recently undertook a comprehensive comparative analysis focusing on the emergence of new shipping services and alliances, particularly evaluating ports in Southeast Asia and Africa.

This assessment was driven by a selection of countries that are attracting significant investments and possess the potential to evolve into pivotal trade hubs amid intensifying global maritime competition. The evaluation centered on port performance, leveraging connectivity indicators and logistics performance metrics to gauge development.

The analysis encompassed the following ports: Haiphong and Ho Chi Minh (Vietnam), Laem Chabang (Thailand), Tanjung Pelepas and Kuantan (Malaysia), and Batam and Jakarta (Indonesia). For Africa, the selected ports for this analysis were Djibouti, Tema (Ghana), Lekki (Nigeria), Walvis Bay (Namibia), and Dar es Salaam (Tanzania).

Over the past three years, the port connectivity in these Southeast Asian countries has notably increased, reflecting the region’s dynamic investment landscape.

This surge is particularly evident in Vietnam, which has attracted substantial Western corporate presence, necessitating advanced developments in shipping infrastructure to remain competitive.

The analysis also underscores a burgeoning rivalry among these nations, as they collectively enhance their port capabilities to manage increased volumes and transform into major maritime centers.

The scenario in Africa presents more variability, illustrating significant disparities across the continent. Ghana’s port of Tema shows a stable and positive trajectory in connectivity, likely linked to its strategic inclusion in new maritime routes, as previously reported by Container News.

This is indicative of West Africa’s potential pivotal role in forthcoming maritime services, with firms such as CMA CGM announcing new routes involving African ports.

Conversely, Djibouti has experienced a noticeable decline, potentially due to disruptions in the Red Sea. Similarly, Namibia has seen a downturn, although efforts are underway to stabilize this trend. Nigeria, on the other hand, is witnessing substantial growth due to new shipping services and subsequent investments that are catalyzing port development.

To provide a holistic view of the dynamics at these emerging ports, the analysis integrated the Logistics Performance Index and the Port Connectivity Index.

Initial findings suggest that both Southeast Asian and African ports have demonstrated significant improvements in logistics performance and port connectivity since 2023. This growth underscores the regions’ escalating importance as emerging trading hubs, with new services reshaping the trade landscape and propelling further investments and development.

While the trend in Asia shows a consistent competitive escalation, the sharp rise observed in African ports underscores a more tumultuous environment, influenced by regional disruptions and disparities.

However, the overarching trend indicates that emerging ports are increasingly gaining ground, reflecting their growing significance on the global shipping stage.

///                   Air Cargo News            ///

Exclusive – Globe Air Cargo Bulgaria turns 20! Of all the various players involved in the air cargo industry, it is probably safe to say that the image and role of the traditional GSA has likely changed the most over the past two decades – at least, that of the more successful ones. One such candidate is clearly ECS Group subsidiary, Globe Air Cargo Bulgaria. The GSSA recently celebrated its 20th anniversary with customer, colleagues and partners. CargoForwarder Global (CFG) asked Globe Air Cargo Bulgaria’s Managing Director, Tania Mlechenkova (TM), about the secrets to her company’s success and for a reflection on then and now on the Bulgarian air cargo scene. (Front, 4th from right) Tania Mlechenkova celebrates with customers, partners, and colleagues. Image: ECS Group CFG: Congratulations on your 20th anniversary! How does today compare to 20 years ago, when you first started out? What has changed, what has remained the same? TM: Indeed, I started working for the air industry 25 years ago. From “Flintstone” to the “Jetsons” illustrates to a great extent the changes over the years. At the time when I started, the only way of communication was by phone, fax and telex. I’m sure the young generation doesn’t even know what a fax machine is! And nowadays, we stay connected while flying. The technological and market developments have significantly reshaped the air industry, but still the core process of flying, taking off, landing, navigating has remained fundamentally the same. CFG: How have you chosen to celebrate 20 years? TM: We began planning the 20th year celebration last year. This is our way to express gratitude to the airlines we represent, to our customers and business partners. Finding the venue was a bit challenging. We named the event ‘Elegance in Sky’ and the location had to convey the overall idea which might be described as serene, stylish and inviting. The atmosphere had to reflect the sense of exclusivity and refinement. But it was not just an event celebrating 20 years of GAC Bulgaria. It was also combined with our Group’s long-term sustainability strategy. Young people and talents are the architects of our future, and they are the ones having the potential to go beyond the boundaries. And our goal should be to encourage them in this path. This is how we came to the initiative to make a donation to one of the Bulgarian math teams participating in international competitions. CFG: What brought you, personally, to air cargo? What do you enjoy about the industry and what would you advise others considering a career in air cargo? TM: Luck! I graduated in math science and macroeconomics and, as a student, I never imagined working for the air industry. I searched for a summer job and I came across an announcement for a position of customer service agent in a GSA company. The ‘temporary summer job’ turned to be ‘lifetime one’ or at least for the last 25 years. This was love at first sight. As soon as you smell the kerosene, you already know. For those who want to work in a dynamic field, in a fast-paced environment, who enjoy ticking opportunities, living on a stand-by, who have passion for aviation, technology and global connectivity – the air industry is the right place. CFG: What is your business credo and what do you feel is the secret of 20-year GAC Bulgaria’s success? TM: 20 years is a long journey. But for me, the years have passed in a blink of an eye. Still, this is a remarkable achievement. The principles in doing our job and living a life are the same. It’s like solving a math problem – finding a solution by having certain parameters, and if you remember that every problem has at least 2 solutions – then it’s easy. There is no single formula for success. But if I must summarize it in 2 words: it would have been – Personal Attitude. CFG: You are a team of 2, correct? How many airlines do you support, what are the main commodities being exported/imported, and what is the balance export/import? TM: We used to be a team of 2 for the last 5 years. But at some point, the workflow increased so dramatically that we realized only 2 of us is not enough to meet the customers’ and airlines’ needs and expectations. Currently we are 3 ladies in the office, managing all activities. We represent 9 airlines in total – both online and offline – covering all kind of commodities: textiles, chemicals, pharmaceuticals, machinery and equipment, electricals, fruit and vegetables, biological samples, dangerous goods, banknotes, watches, AOG, etc. The import still has an advantage compared to the export. CFG: Looking at the GSSA scene in Bulgaria – what has changed here over the past 20 years? What is the trend when it comes to outsourcing, and why do you believe that is? TM: When GAC entered the Bulgarian market, there were only 2 GSA companies. Over the years, the number increased to 7 and there was room for all of us… until the world started to change due to technologies and digitalization. The traditional GSA concept is no longer valid. And I must say that we, as a Group and GAC Bulgaria in particular, are more than a pure GSA. We cover all cargo activities – from A to Z. 20 years ago, sales and bookings were the core of the GSA business. Nowadays, it’s just the gravity point around which all other strategies are defined – such as capacity and revenue optimization, implementing new technology, and adopting sustainability. The era of the ‘prêt-à-porter’ in the air industry is over. The meaning of outsourcing today, is to offer expertise. In that respect, ECS Group is not only the pioneer, but also the leader. CFG: The European Commission predicts that the GDP in Bulgaria is projected to grow by 1.9% in 2024 and 2.9% in 2025, with exports expected to expand robustly after 2024-Q1, in line with the recovery of external demand, and imports are projected to rebound, led by domestic demand. What is your prediction for air cargo over the next couple of years and what do you see happening for GAC Bulgaria? TM: Air cargo is not an exception and, as such, correlates with that forecast. The expanding of the IT sector can boost Bulgaria’s ability to produce and respectively export more. Same applies to the automobile and pharmaceutical sectors. The Bulgarian market is a competitive one in terms of quality, cost and innovation. This can result only in a positive trend. The short-term forecast for the next 1-2 years, is for moderate growth. Significant growth can be expected in the medium term. As long as GAC Bulgaria sets the rules, serves as a role model, and supports other companies as they adhere to those rules, the good future is secured. CFG: How would you evaluate the level of digitalization in air cargo processes in Bulgaria to date? What works well, and what requires improvement? TM: In Bulgaria, digitalization in air cargo processes is progressing under EU regulations, which encourage digital standardization. The local government is also modernizing the logistics and transport sectors. While many Bulgarian freight forwarders have adopted digital platforms for booking, tracking, and managing shipments, some still use legacy systems and manual processes. As part of the ECS Group, GAC Bulgaria is fully aligned with the group’s digital strategy, supporting freight forwarders here to embrace these advancements. This alignment helps ensure that our operations and those of our partners stay current with the latest digital trends, maintaining our competitive edge in the industry. CFG: If air cargo was a Bulgarian dish/food item, which would it be and why? TM: Banitsa – it’s a traditional Bulgarian pastry made from layers of filo dough filled with a mixture of eggs, cheese and sometimes yogurt. It becomes wonderfully crispy and flaky when baked, contrasting with the soft, creamy filling inside… just like us! [She smiles.] Thank you, Tania, for this interview! Will air freight exporters face a peak season fee? Due to an expected high volume of air freight by the end of the year, integrators are considering charging additional fees. This is now also being discussed by some cargo airlines. The move is a reaction to the high demand for air transportation versus scarce capacity. In addition, the USA and Canada are considering stiffer rules for shippers whose goods are destined for consignees in North America. We discussed these and other novelties influencing the air freight industry, with Adam Gunnarsson (AG), Vice President Kales Group BV, on the fringes of the recent Seafood Logistics Conference at Oslo Gardermoen Airport. CFG: Adam, if a shipper fails to send at least 6 shipments within three months into the USA or Canada, they will be excluded from further business. This announcement by the local authorities come up completely unexpectedly about a month ago and caught the air freight industry by surprise. What is the status of this provision today? AG: Several carriers we talked to, all say the same thing – instructions are not clear, and the content is constantly shifting. The reason why it has come up, has not been disclosed but it is related to security issues. The instructions sent out from various carriers, have been withdrawn, awaiting new instructions from TSA. The original instructions included goods originating from around 50 countries, including all European countries. Since then, the list of countries has been extended but so far not all countries are included. The carriers are referring to IATA for more information. CFG: How was the step officially justified? AG: As indicated, it has not been disclosed to this date. CFG: At the Norwegian Seafood conference, you indicated that some carriers might soon introduce a ‘peak season fee’ because demand is outgrowing capacity, creating major imbalances in air freight. When will it come and what sums are we talking about? AG: With the peak season starting in September, air cargo demand is expected to remain robust, particularly in high-demand regions like Asia Pacific. However, capacity constraints are already evident, with flights on many routes already fully booked. The market faces potential additional pressure from reduced belly capacity in Q4 – the shift from summer to winter schedule – and the possibility of strikes at U.S. East Coast ports, which could worsen the existing challenges. So far, we have only heard of peak season fees being introduced by some of the integrators, but not at which level, as of when, and in what shape or form, i.e. fixed fees or flexible and dynamic pricing. CFG: Turning to e-trade, widely discussed at the Oslo meeting: is the cargo industry amid a new era of e-commerce, which conversely could lead to the downfall of general cargo? AG: The cargo industry is indeed undergoing a significant transformation due to the rapid growth of e-commerce. However, whether this signals the downfall of general cargo is a more nuanced question. E-commerce is booming, especially following the pandemic, as consumer preferences shifted toward online shopping. The two segments have different characteristics. E-commerce is smaller parcels, faster transit times and more technology-intensive; more frequent shipments rather than large, less frequent general cargo loads. General cargo, which includes large, irregular, or bulky goods, still has a vital role in global trade. Industrial sectors, energy, construction, and manufacturing, rely heavily on general cargo services to ship raw materials and equipment. E-commerce does not serve these sectors well, due to the nature of the products being shipped. The demand for bulk goods, machinery, and large-scale materials in global supply chains, remains substantial. The industry is evolving, and general cargo is likely to persist alongside e-commerce as part of a more diversified logistics landscape. The key for companies will be to adapt — those that can successfully integrate e-commerce logistics with traditional cargo models will be the winners. CFG: Back to the seafood issue discussed in Oslo: The Norwegian fishing industry and its freight forwarders are complaining about the withdrawal of freighters and the resulting lack of main deck capacity. Doesn’t this development also offer the opportunity to create a greater balance between air freight exports and imports through the shift to e-commerce? AG: Yes, as long as e-commerce hubs in Europe are spread to more countries and airports. So far, they have been concentrated at a few airports such as Liège, Budapest, Madrid, etc., but we now see airports like Copenhagen and Oslo expanding, attracting more inbound e-commerce volumes. Increasing e-commerce volumes coming into Oslo, will have a positive effect on the capacity balance. CFG: You said that by 2040, roughly 95% of consumer goods flown by air will consist of e-commerce shipments. Won’t this worsen the current capacity crunch because Airbus and Boeing cannot build a large number of new freighters so quickly and old aircraft are gradually being phased out for reasons of profitability or high CO2 emissions. How will it affect global supply chains if this prediction becomes reality? AG: I said “95% of all purchases will be done online through e-commerce in 2040.” This statement seems to have come from Nasdaq originally, but has been quoted by Forbes and many other media channels and is today included in facts and statistics of e-commerce. The rapid growth of e-trade will change the air cargo market and spur the need for more capacity. New distribution patterns and supply chains will be required. Adam, thank you for your insights. Liège Airport may replace Amsterdam as flower hub Liège Airport has the potential to become the flower hub of the future. This was said by Willum van den Hoogen, Managing Director of the international flower market, Florius International FCZO, during a focus on commodities at the Liège e-Commerce forum. There is, however, still a way to go.                         Willum van den Hoogen Managing Director of Florius  –  photo: cfg/ms That the reflection on flowers popped up, was due to the fact that some e-commerce aircraft always take flowers on return trips from South America and Africa. Emirates SkyCargo’s SVP Commercial Worldwide, Jeffrey van Haeften, said that flowers will remain an important commodity. In this segment, however, infrastructure is everything, said Mr van den Hoogen. “Flowers are a decaying product, with an ideal conservation temperature of +1°C. You need handlers with aircraft parking in front of the door to the warehouse so that the products can be put straight into the vacuum coolers.” Florius has set up a well-performing flower route between Nairobi and Amsterdam, which is very satisfactory, he lauded. Neither Liège (LGG) nor Brussels (BRU) can match this at the moment, the manager assessed. Yet, the opportunities are there, he concluded: “At Schiphol, we are facing issues such as the general policy of the airport, slot scarcity, lack of space and environmental concerns. Amsterdam’s role as a main port is being reduced, which could favor Liège, especially if they manage to offer the same service. That is not yet the case. At Liège Airport, flowers are still handled as general cargo, and the airport does not have the right cooling infrastructure, yet.” LGG will invest in infrastructure Torsten Wefers said that the airport handled 700 tons of flowers per day in 2023. “Yet, three handlers – whose names I cannot share at this moment – are willing to invest in the necessary infrastructure, such as vacuum freezers,” he said, indicating upcoming improvements. The flowers supply chain starts at the first mile, said Dirk Goovaerts, Head Middle East and Africa for Swissport. He referred to the ‘Flower Corridor’ that Swissport launched at Nairobi Airport in 2022, which seamlessly connects the farms with the aircraft.  “That is different to e-commerce, where the last mile is important and that is something to be left to the specialists.” Mr. van den Hoogen is convinced that air cargo will remain the premier mode of transport for flowers. “Due to environmental demands, there is a push for flowers to be transported by sea containers and I would use it if I could. But apart from the political situation, there is the distance from Africa to the consumer markets. We try to diminish our carbon footprint by putting 130 flowers instead of 110 in one box. So, we up our transport volume by using less boxes.” Challenge Group awarded IATA CEIV Lithium Battery certification Earlier this month, Challenge Group received its IATA CEIV Lithium Battery certification. Challenge Group’s Chief Operating Officer (COO), David Canavan gave more details about this new milestone as well as an update on its perishables services, in an interview with CargoForwarder Global (CFG). According to the International Air Transport Association (IATA), around 1.3 million shipments of lithium batteries are transported by air every year. They also estimate that around 5% of air cargo shipments include lithium batteries, in addition to other electronics and mail parcels. And those are just the shipments officially declared as containing these batteries. It took Challenge Group six months of intense preparation, training and strict auditing to finalize the accreditation. Lithium Battery shipments have their own separate handling areas, both in the warehouse Dangerous Goods section as well as in the second-line warehouse dedicated to e-commerce. Challenge operates 50 weekly rotations in average from / to Liège, with many flights transporting lithium batteries  –  photos: company courtesy. E-Commerce is a segment to be watched “E-commerce receives particular attention,” says COO, David Canavan (DC), “since around 70% of e-commerce being flown across the globe, contains Lithium Batteries. That is another reason why more and more air cargo stakeholders should be striving for risk awareness and safe handling. An IATA CEIV Lithium Battery audit is the best way to adopt and ensure company-wide compliance with the required safety standards.” CFG: Are these consignments allocated specific places in the aircraft? DC: “Regarding the transportation of lithium batteries on board our aircraft, I would like to assure you that our procedures are fully compliant with Dangerous Goods regulations and the IATA CEIV checklist. We adhere to strict guidelines for positioning lithium batteries to ensure compliance with accessibility and segregation requirements. Specifically, the placement of these batteries is carefully managed to align with the criteria for both accessibility and segregation as outlined in the relevant regulations. Furthermore, once the batteries are loaded onto the aircraft, the crew is thoroughly briefed on their specific location. This ensures that all safety protocols are followed and that the crew is aware of the precise positioning of the cargo”. CFG: Mr. Canavan, how does the detection procedure work? DC: “The detection procedure for lithium batteries is a critical component of our acceptance process, fully compliant with Dangerous Goods regulations and the CEIV check list. This procedure encompasses several key steps: 1.      Documentation: We ensure that all relevant documentation is reviewed and verified to confirm compliance with regulatory requirements. 2.     Labelling: Each shipment of lithium batteries is accurately labelled according to Dangerous Goods regulations to clearly identify the nature of the cargo. 3.     Packaging: We verify that the packaging meets all required standards for the safe transportation of lithium batteries, including appropriate containment and protection measures. 4.    Storage: Once these steps are completed, the batteries are stored in a dedicated segregation area within our warehouse. This area is specifically designed to handle and store lithium batteries safely until they are ready for build-up. By following these procedures, we ensure that our handling of lithium batteries is safe, compliant, and efficient.” Front-runner CFG: Is Challenge a front-runner in this CEIV accreditation? DC: “Yes, Challenge is indeed a front-runner in CEIV accreditation. Our commitment to operational excellence is demonstrated by our ownership of three prestigious certifications: CEIV Pharma, CEIV Live Animals, and CEIV Lithium Batteries. At our handling facility in Liège, we served as the testing handling agent for the CEIV Pharma certification, reflecting our expertise and leadership in maintaining the highest standards in pharmaceutical cargo handling. Furthermore, we are one of the few organizations, globally, to hold CEIV Lithium Batteries certification, both as an airline and a handling agent. Our extensive certification portfolio underscores our dedication to ensuring top-notch handling practices across diverse cargo types”. CFG: During the e-commerce forum, it was said that Liège (LGG) could grow into an important flower hub, provided that the handlers invest in vacuum coolers. In a reaction to this, Torsten Wefers said that three handlers are considering this. Is Challenge one of them? DC: “Challenge has over four decades of expertise in handling and transporting perishable cargo, including flowers. Our facility is equipped with a fast lane and a cooling area capable of accommodating the loading of two full B747 freighters. We are continually focused on enhancing our operational processes and adopting the latest technology to better serve the cool chain industry. While we are actively exploring advancements in technology, including vacuum coolers, we are committed to improving our services to support the flower industry and the broader perishable cargo sector.” CFG: How many flights does Challenge operate from/to LGG? DC: “Challenge operates an average of 50 weekly rotations from our hub in Liège (LGG). Our network includes several key trade lanes, with flights serving destinations such as the U.S., China, Hong Kong, the Middle East, and the Indian subcontinent.” CFG: What are the destinations/airports of provenance? DC: “New York (JFK), Atlanta (ATL), Houston (IAH), Zhengzhou (CGO), Hong Kong (HKG), Tel Aviv (TLV), Dubai (DWC), Mumbai (BOM), Delhi (DEL) and Milan (MXP).”  Seafood Logistics – Key Takeaways Was it worthwhile for the 90 or so attendees to take part in the seafood conference? What were the highlights in terms of content and what inspiration did the presentations and panels give those industry representatives present for their day-to-day work? CargoForwarder Global (CFG) spoke to three managers and asked them for their views on the event. Lars Gotfredsen, Senior Air Cargo Manager, Copenhagen Airport I had several reasons to attend the Seafood Air Logistics Conference. Firstly, I wanted to hear first-hand about the latest developments in this very dynamic and extremely important business sector and the impact on air freight. My expectations were high because the names of the experts announced by organizer, EuroAvia, in its program sounded very promising. And indeed, I can say that I am taking a wealth of information back to Copenhagen as a result of the conference. Another very important reason, and this probably applies to the vast majority of participants, was the platform character of the meeting. Connecting with shippers, forwarding agents and representatives of airlines, and speaking with them face-to-face is practically only possible at events like this one here in Oslo. As a consequence of the event, the question that arises for me in my role as Copenhagen’s responsible Cargo Manager, is whether we currently provide the market with sufficient capacity for handling freight shipments at Kastrup or whether we should expand the capacities. In particular, we should enlarge our facilities for handling temperature-critical products by building additional cool rooms. That is an aspect that we must quickly add to our agenda. Additional cool rooms are not only important for seafood, but also for pharmaceutical products. They have a high and growing significance for us due to the strong pharmaceutical cluster in the Copenhagen region and in neighboring Malmö, which stretches as far north as Gothenburg. Depending on how you count, 4 to 5 million people live there, so it is also a large consumer market with high purchasing power. What few people know: Denmark is the world’s seventh largest pharma producer. Another important takeaway of the Oslo meeting is the fast ascent of e-commerce. Copenhagen Airport’s management is aware of this, but the dynamism of this business was impressively confirmed by many speakers at the meeting. Being the largest airport in Scandinavia, we want to step up our efforts to become a choice for e-commerce traffic. This said, I finally would like to make a critical comment: To my taste, there were far too few seafood producers present. So, we heard too little from shippers about challenges and opportunities fostering the seafood business or slowing it down.                                     Nicklas Krandorf Head of Sales Scandinavia & Europe, SAS I fully agree with Lars that we heard too little from salmon farmers and seafood shippers. How do they see the market? What are their expectations? Are they going to open sea/deep water to extend their business and relieve the fjords from fish farming? This environmental aspect is obvious, as the farms have a considerable ecological impact on the sea life in coastal waters. It is part of the entire picture and must therefore be addressed. Something that was only done very tentatively at best at the conference in Oslo, although sustainability was given a lot of space in most of the speeches and panels. At the meeting, I was often asked what effects Air France-KLM’s financial investment in SAS (19.9%) has caused and how the change from the Star Alliance to the SkyTeam Group and SkyTeam Cargo has affected SAS’s policies. My answer to this is: So far there have been no visible effects. Of greater importance is our change in strategy from a carrier prioritizing business travelers, to a leisure carrier. Pre-Covid, routes to the Far East accounted for 30% of our entire intercontinental traffic, while 70% were operated Transatlantic. Today, the ratio is 15% East Asia and 85% North America. We have concentrated long-haul traffic in Copenhagen, but continue to serve Oslo and Stockholm, offering intercontinental flights to those markets as well. As far as cargo is concerned, thanks to the modernizing of our long-haul fleet, we have increased the load capacity of our passenger aircraft to 23 tons per flight. We have also achieved this because we always keep an aircraft in reserve, in case a jetliner has to be grounded at short notice due to unforeseen or sudden events. This has significantly improved the punctuality rate.                                         Odd-Eirik Jenssen, Purchase & Sales Manager Fram Seafood AS In my first ten years in the seafood business, we never talked about sustainability or environmental impacts caused by our daily doing. This has changed dramatically, mainly because customers put pressure on the industry, as do politicians.            This started when the international Sushi wave began to roll some 20, 25 years ago. It is part of culinary globalization, triggered not only by its good taste, but also because swine fever, mad cow disease and bird flu have strengthened the trend towards fish. In Norway, this is now being thwarted by the government. A short while ago, the Finance Ministry imposed new taxes on the seafood industry, amounting to 25%. To date, it is still unclear if the tax is based on the retail price of shipments, or the annual profits made by salmon farmers. The first consequence of this governmental announcement, is that the producers have slowed down their investments, including innovative sustainable measures. However, industry associations have managed to halve the tax bill from originally 35%-40% demanded by the Finance Ministry, to 25% today. Nevertheless, in view of the paramount importance of this industry for the entire country, the tax issue will be a major topic at the upcoming national elections on 08SEP25. And 25% may not be the last word. I hope you have enjoyed reading the above news letter.                                                     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.     Thanks  to  :  Container  News,  Indian Seatrade  &  Air Cargo News.