JUPITER SEA & AIR
SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91 98407 85202
Corporate News Letter for Thursday - April 03, 2025
Today’s Exchange Rates
|
CURRENCY |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
|
85.5 |
0.019997 |
0.023393 |
85.67 |
85.48 |
85.4975- 85.735 |
|
|
1.08 |
0.0007 |
0.064857 |
1.0793 |
1.0793 |
1.078- 1.0808 |
|
|
110.4541 |
-0.105598 |
-0.095513 |
110.7393 |
110.5597 |
110.354- 110.7835 |
|
|
92.2924 |
0.205894 |
0.223588 |
92.4134 |
92.0865 |
92.2066- 92.5709 |
|
|
149.395 |
-0.214996 |
-0.143705 |
149.61 |
149.61 |
149.317- 150.001 |
|
|
1.294 |
0.0017 |
0.131552 |
1.2923 |
1.2923 |
1.2901- 1.2949 |
|
|
104.292 |
0.031998 |
0.03069 |
104.199 |
104.26 |
104.158- 104.314 |
|
|
0.5715 |
0.0041 |
0.722599 |
0.5713 |
0.5674 |
0.57- 0.5724 |
/// Sea Cargo News ///
Will
the Coastal Shipping Bill, 2024 be a game-changer for maritime industry?
Union Shipping Minister for Ports, Shipping and Waterways Sarbananda
Sonowal introduced the Coastal Shipping Bill, 2024, in the Lok Sabha on
Tuesday, heralding it as a transformative step to unlock India’s maritime
potential.
The legislation, initially tabled on December 2, 2024, aims to regulate vessels operating within Indian coastal waters and establish a robust legal framework to promote coastal shipping as a sustainable alternative to road and rail transport.
Speaking in the Lok Sabha, Sonowal emphasised
the Bill’s significance amid growing demand for cost-effective and eco-friendly
logistics solutions. He stated that the Bill is a significant reform initiative
that can unlock the full potential of India’s vast and strategic maritime
sector and highlighted its role in providing a much-needed boost to the
maritime industry.
Streamlining processes
The Minister underscored that coastal
shipping could alleviate pressure on overburdened road and rail networks while
offering a reliable and low-cost transport option.
The Coastal Shipping Bill, 2024, is designed
to streamline operations for vessels engaged in trade along India’s extensive
coastline, which spans over 7,500 kilometers. By fostering a dedicated
regulatory framework, the legislation seeks to enhance the efficiency and
competitiveness of the maritime sector, aligning with India’s broader economic
and environmental goals.
Addressing the House, Sonowal reiterated the
Bill’s focus on sustainability and economic upliftment, urging lawmakers to
consider its long-term benefits. He moved the Bill for consideration and
passage, signaling the government’s intent to fast-track its implementation.
Strategic push for maritime growth
The introduction of the Coastal Shipping Bill
comes as India seeks to leverage its strategic maritime position to bolster
trade and logistics. With the logistics sector increasingly prioritising
greener alternatives, the legislation could pave the way for reduced carbon
emissions and decongested transport corridors.
Industry experts view the move as a step
toward integrating coastal shipping into India’s multimodal transport
ecosystem, potentially lowering logistics costs, which currently account for
13-14 per cent of the country’s GDP—higher than many peer economies.
As the Lok Sabha deliberates the Bill, all
eyes are on how the government will address opposition concerns while advancing
its vision for a revitalized maritime sector. If passed, the Coastal Shipping
Bill, 2024, could mark a pivotal moment in India’s journey toward sustainable
and efficient logistics, unlocking new opportunities along its shores.
Trump’s 25% auto tariff: 4 Big impacts on logistics sector you need to know!
On March 26, 2025, U.S. President Donald
Trump announced a 25 per cent tariff on imported automobiles and auto
components, set to take effect on April 3, 2025, with auto parts facing the
same levy by May 3, 2025. The tariff is expected to generate approximately USD
100 billion annually for the US economy, marking a significant shift in US
trade policy.
This policy, aimed at bolstering American
manufacturing, has sent shockwaves through global supply chains, raising
questions about its implications for India—a rising player in the automotive
and logistics arenas. While India’s direct exports of fully built vehicles to
the US are negligible, its auto component industry and interconnected logistics
sector stand at a crossroads.
India’s auto industry: A snapshot
India’s automotive sector is a cornerstone of
its economy, contributing nearly 7 per cent to the country’s GDP and accounting
for about one-third of its manufacturing output. According to a report by IBEF,
India, which is emerging as a global hub for auto component sourcing, is
expected to witness exports of around USD 100 billion by 2030.
In the financial year 2024, India exported
auto components worth USD 21.2 billion globally, with the US being its largest
single market, absorbing USD 6.79 billion of these exports. In 2023-24, North
America, which accounts for 32 per cent of total exports, increased by 5 per
cent, while Europe and Asia, which account for 33 per cent and 24 per cent of
total exports, increased by 12 per cent and growth for Asia remained flat,
respectively.
This policy shift aligns with Trump‘s broader “America
First” economic agenda, prioritising domestic production over foreign imports.
Trump impact on India’s logistics
sector
Indian automotive component manufacturers,
many of whom are integral to the global supply chain, now face potential cost
escalations and trade uncertainties. The increased tariffs could reduce exports
to the US, forcing Indian companies to explore alternative markets or establish
local manufacturing units within the United States to bypass the tariffs.
India’s logistics sector, valued at USD 250
billion and growing at 8-10 per cent annually, is intricately tied to the auto
industry. The tariff’s effects will cascade through this ecosystem, influencing
transportation, warehousing, and port operations.
Transportation and freight dynamics
The auto component export chain relies
heavily on road, rail, and sea freight. A potential decline in US-bound
shipments could reduce demand for trucking services from industrial hubs like
Pune, Chennai, and Gurugram to ports like Mundra and Chennai. Freight
forwarders handling containerised cargo may see volumes dip, particularly for
less-than-container-load (LCL) shipments, which SMEs favour. Conversely, if
Indian firms pivot to other markets, intra-Asia or Europe-bound freight could
rise, shifting logistics patterns.
Shipping lines, however, face a mixed bag.
The 25 per cent tariff may lower trans-Pacific cargo volumes from India to the
US, impacting carriers like Maersk and MSC. However, India’s ports, handling 95
per cent of its trade by volume, could see increased activity if exports
redirect to non-US destinations. Jawaharlal Nehru Port Authority (JNPA), a key
export hub, might need to adapt its rail and road connectivity to handle this
shift efficiently.
Warehousing and inventory management
A drop in US exports could lead to
overstocking of components in Indian warehouses, raising storage costs and
tying up capital. Logistics firms may need to optimise just-in-time (JIT)
inventory systems to minimize excess stock, a challenge given India’s fragmented
warehousing landscape. On the flip side, companies localising production in the
US might demand more warehousing near American ports, indirectly boosting
India-linked logistics players with global footprints.
Port operations and connectivity
The tariff underscores the importance of port
efficiency. JNPA’s upcoming Phase 2 of its fourth container terminal, set to
push its capacity beyond 10 million TEUs, could prove timely. Its rail link to
the Dedicated Freight Corridor (DFC)—capable of handling 350-container
rakes—offers a competitive edge for rerouting exports. However, a short-term
dip in US-bound cargo might strain port revenues, particularly for private
operators like Adani Ports, which dominate India’s container traffic.
Sustainability and cost pressures
Logistics firms may face higher costs if
shipping routes lengthen to new markets, increasing fuel consumption and carbon
emissions. This clashes with India’s sustainability goals under the National
Logistics Policy, which aims to cut logistics costs from 14 per cent to 8 per
cent of GDP by 2030. The tariff could thus complicate efforts to green the
supply chain, unless offset by investments in rail over road transport.
Conclusion
While the auto component industry faces
immediate cost pressures and potential demand erosion in the US, its largest
market, but could gain if it capitalizes on redirected exports or US
localisation.
Meanwhile, the logistics sector must brace
for shifting freight patterns, warehousing adjustments, and port dynamics, all
while managing cost and sustainability goals. India stands at a pivotal moment;
its response will determine whether this tariff becomes a stumbling block or a
stepping stone in its journey toward global trade prominence.
China’s container logistics businesses facing mounting pressure
China’s container logistics businesses face
mounting pressure as declining container prices and leasing rates caused by
weak cargo demand strain the industry.
According to a study by Container Xchange,
the market is experiencing growing inventory glut, making it harder for
businesses to move containers.
Container prices continue to slash in
China
The average price of 40ft high-cube
containers in China has been on a
clear downward trajectory, reflecting weaker demand for container purchases.
Prices have declined by 11 per cent, from USD 2,859 in November 2024 to USD
2,539 as of March 18, 2025.
This downward trend in container pricing is
not unique to the country. Key container trading hubs in Asia, including Hong
Kong, Singapore, Nhava Sheva, Haiphong, and Ho Chi Minh City, are experiencing
similar declines, mirroring the price corrections observed there.
·
Hong Kong: The average container price in March
2025 stood at USD 2,632.5, down from USD 2,727 in February 2025 and USD 2,800
in January 2025, marking a steady decline over the past three months.
·
Singapore: Container prices in March 2025 were
recorded at USD 2,202, declining from USD 2,300 in February and USD 2,435 in
January.
·
Nhava Sheva: The March 2025 price was USD 1962, down
from USD 2,057 in February and USD 2,060 in January, showing a downward
correction similar to other major ports.
·
Haiphong: Prices dropped to USD 2,247 in March,
down from USD 2,377.5 in February and USD 1935 in January.
·
Ho Chi Minh City: The market saw a similar trend, with
prices at $2,152 in March, down from USD 2,042 in February and USD 2,290 in
January.
The data suggests that the container price
softening seen in the country is part of a broader regional trend, reinforcing
the notion of market correction across Asia
“Tariff uncertainties and the slowdown in
cargo transportation have intensified inventory build-ups in China, making it
difficult for businesses to clear their stocks from depots. Resultantly, we
observe a continued decline in container prices and average leasing rates out
of China in the month of March,” Christian Roeloffs, CEO of Container xChange, said.
Container leasing rates decline
One-way leasing rates for 40ft high-cube
cargo-worthy containers on key China-to-US routes are experiencing a notable
decline. For instance, the Shanghai to New York rate has dropped by 24 per
cent, from USD 720 in February to USD 547 as of March 17.
Similarly, a downward trend is observed on
the Shanghai to Los Angeles route, indicating softer demand for container
repositioning. This decline in leasing rates suggests an oversupply of
containers in China, driven by multiple factors — a surplus of containers
returning to China compared to outbound shipments and weakened freight demand
affecting shippers and leasing companies.”
“What we’re seeing right now is a convergence
of factors — weakened demand, tariff-induced uncertainties, and inventory
imbalances” Roeloffs said.
The downturn in the container market aligns
with broader economic indicators in China. A notable 27.1 per cent decline in
Foreign Direct Investment (FDI) in 2024, the steepest since the 2008 financial
crisis, and ongoing trade tensions with the US have cast a shadow over China’s
economic outlook.
“China’s container market is not just
reacting to internal economic dynamics but is also caught in the crossfire of
shifting global trade routes and policies. As a result, container owners and
traders are adopting a ‘wait and watch’ policy while the importers in the U.S.
have overstocked inventories for the coming busy period,” he added.
Roeloffs further stated that the main pain
point our Chinese customers are facing is the low cargo transportation demand
and volume.
India denies entry to Russian oil tanker over documentation issues
Indian port authorities denied entry to an
ageing tanker loaded with Russian crude on Thursday due to inadequate
documentation, sources familiar with the matter said, an unusual move that
indicates tightened scrutiny of vessels carrying Russian oil. India is the
biggest buyer of seaborne Russian crude.
Russian oil accounted for about 35 per cent
of overall crude imports in 2024 by India, the world's third biggest oil
importer and consumer. The Tanzania-flagged Andaman Skies, carrying about
100,000 metric tons (or some 800,000 barrels) of Varandey Russian oil sold by
Lukoil from the northern port of Murmansk, shipping data showed, was on course
for the Vadinar Port for delivery to state refiner Indian Oil Corp before being
turned away, sources said. The sources declined to be named as they are
not authorised to speak with media.
Indian port entry rules require tankers that
are more than 20 years old to have seaworthiness certification by a member of
the International Association of Classification Societies or an entity
authorized by India’s maritime administration.
Andaman Skies, which was built in 2004 and
had previously visited India as recently as December, was carrying
certification by Dakar Class, which is based in India but not recognised by
Indian Shipping authorities, the sources said.
The vessel has protection and indemnity
insurance cover from Russian company Soglasie, according to two sources
familiar with the vessel’s documents. Lukoil and Soglasie didn’t immediately
respond to Reuter’s for comment. Vadinar Port authorities and Indian Oil did
not respond to Reuter’s emails seeking comments.
Russian oil supplies to top buyers Indian and
China fell sharply in the immediate aftermath of sweeping US sanctions in
January, aimed at curtailing Moscow’s oil revenue, on targets including more
than 100 ships, making it harder for sellers of Russian oil to find vessels.
India’s oil secretary last month said the
country’s refiners would buy Russian oil supplied by companies and ships not
sanctioned by the US, effectively reducing the number of cargoes and vessels
available.
Indian refiners buy Russian oil on delivered
basis with ship, insurance and other services arranged by the Seller. While the
Andaman Skies is the subject to UK and European Union sanctions, it is not
designated by US or United Nations sanctions. India follows UN sanctions.
Contact information for the ship’s owner Durbeen Navigation Ltd could not
immediately be found.
Transpacific sees
first major MSC blanks as rates fall and volumes falter
Following nine weeks of consecutive declines
in spot freight rates on the transpacific, carriers are finally beginning to
pull capacity from the trade. Yesterday, MSC announced six transpacific
sailings to be blanked, starting with next week’s sailing on the Chinook
service that links the Far East with Prince Rupert, Vancouver, and
Seattle/Tacoma, operated with eight vessels averaging 13,000 teu, and includes
Zim-chartered slots.
In addition, in week 17 it will blank two sailings out of Asia to the US west coast, the Pearl and Orient strings, and two Asia-US east coast services, the America and Lone Star strings. Finally, in week 18 it will blank the sailing from Asia of the Asia-US east coast Empire service, which also has Zim chartering slots.
The transpacific spot rate on Drewry’s World
Container Index’s (WCI) has been on the downward trend since a 9 January high
of $5,476 per 40ft. The current rate is $2,487 which means it has more than
halved in 2 months. On January 09 this year’s high point for WCI’s Shanghai –
New York rates, which has declined from $7,085 per 40ft to last week’s $3,622.
It also appears that volumes have weakened
considerably in recent weeks, according to liner analyst John McCown. This week
he noted that US containerised imports in February had grown 3.4% year on year,
the smallest gain for 16 months. In comparison, January import volumes were
13.7% above January 2024, and December was 14.2% above the previous year.
Car carriers in retreat as Trump unveils 25% auto tariffs
The US administration confirmed yesterday that it will go forward with the implementation of a 25% tariff on all foreign-built cars, something that is expected to add greater pressure to car carrier rates which have been coming off multi-year highs in recent months.
US president Donald Trump said the latest
tariffs would come into effect on April 2, with charges on businesses importing
vehicles starting the next day.
Charges on auto parts are set to start in May
or later. Fredrik Dybwad, an equity researcher with Fearnleys Securities,
said: “Car sales have already been struggling and have seen flattish sales
growth the recent months, and the tariff will further add pressure to this.
Near half of all cars sold in the US last year were imported, and it is quite clear for us that a 25% cost increase for importers will pressure car sales in the country further. All else equal, we expect car volumes going into the US to come down, negatively affecting seaborne volumes and thus also car carrier earnings.”
Iran oil-filled tankers build up off Malaysia as sanctions
mount
Close to a dozen US-sanctioned tankers are
idling off Malaysia with Iranian crude, with some having been stationed in the
oil-transfer hub for more than a month — possible sign of slowing
logistics for the sensitive trade to China.
At least 11 tankers with the Persian Gulf
state’s barrels have either come to a halt off Malaysia this week, or are
moving at very low speeds, according to ship-tracking data compiled by
Bloomberg.
The ships, holding close to 17 million
barrels, are clustered in an area east of the Malaysian peninsular,
a popular spot for ship-to-ship transfers of Iranian oil.
In recent months, the movement of Iran’s
crude from major export terminals such as Kharg Island to cargo-switching
hotspots such as Malaysia has been more heavily scrutinized, after the US
cranked up a “maximum pressure” approach on Tehran with a series of
sanctions targeting ships and entities supporting the regime.
US efforts are unlikely to completely stop
the oil trade between Iran and China though. The Persian Gulf state still has
spare shipping capacity. More than 20 tankers are currently anchored empty near
the country’s Kharg Island loading terminal, according to Tanker-Trackers.com
Inc, a firm that uses satellite imagery and other tools to track crude oil
shipments.
A supply chain quirk helped Air India get 50 Boeing jets made for Chinese peers
Air India Ltd.’s windfall of 737 Max jets amid a broader shortage of new planes is coming to an end. After adding two Boeing Co. aircraft a month on average since September 2023 as the US manufacturer cleared a backlog of the jets it had originally built for Chinese carriers, the pool will run dry by June, people familiar with the matter said, leaving the Indian airline with little visibility around fresh deliveries in the months ahead.
Air
India’s easy supply was thanks to a supply chain quirk. Boeing was able to
divert 737 Max jets built for Chinese carriers, including Shanghai Airlines
Co., as they deferred taking deliveries following regulatory concerns about the
safety of a lithium battery in the planes’ cockpit voice recorders.
Having
ordered 190 of the aircraft in June 2023, Air India’s low cost arm, Air India
Express Ltd., has already taken possession of 41 of the 50 so-called white-tail
planes — those built for others but still in storage. Another four are due this
month and five between May and June.
Considering deliveries of the remaining 140 737 Max jets wouldn’t start before
the end of the fiscal year ending March 2026, the Tata Group-owned Air India
risks losing ground to market leader IndiGo, which has said that this year,
it’s adding more than one aircraft a week.
Of
the 41 white-tail aircraft Air India has received so far, 38 of them are in
operations and three are being repainted, the people said, asking not to be
identified discussing confidential arrangements.
Shadow
Factory
Boeing
is likely to wind down a shadow factory that it used to upgrade the white-tail
737 Max models this summer, after already shutting down a facility where it
inspected and repaired the larger 787 Dreamliner. The plane manufacturer is
separately working on ramping up the 737 production, as it targets 38-jets a
month by mid-2025.
“We
will defer to our customers for any details on their fleet planning,” Boeing
said in an email response. Air India and Air India Express didn’t immediately
respond to requests for comment.
The Air India Group, which commands less than a third of India’s domestic
aviation market, ordered a total of 570 aircraft in the past two years, with
the orders split between from Boeing and Airbus SE.
Despite
the large order, fresh deliveries of single-aisle planes from Boeing may happen
only closer to the end of the current fiscal year, the people said.
Apart from the white-tail aircraft from Boeing, Air India has also received six
Airbus 350-900s, which were meant for Russian Flag carrier Aeroflot. Besides,
it leased 11 Boeing 777s from the market, they said.
Akasa Air, Air India’s smaller rival and another Boeing 737 Max customer, has
grown its fleet to 27 aircraft in 30 months mainly on the back of these
white-tail planes, even as it struggles amid delivery delays of 199 or the 226
aircraft it ordered.
Photo:
Hyperian AerospaceHyperian
Aerospace is planning to develop a hypersonic cargo aircraft that it claims can
deliver up to 10 tons of cargo ”anywhere in under 1.5 hours”.
The
HYPERLiner is the world’s first Mach 10 hypersonic cargo aircraft, said its
US-based developer in a LinkedIn post on 24 March.
"HYPERLiner
(TM) CARGO isn’t just faster—it’s a paradigm shift in global logistics. With
hydrogen-powered hypersonic flight, we will move cargo at Mach 10 speeds,
eliminating the need for slow, congested, and fuel-intensive freight
aircraft," said Hyperian.
The
company claims the HYPERLiner can travel from New York to London in 27
minutes, New York to Dubai in 54 minutes, New York to Shanghai in 57 minutes
and New York to Sydney in 90 minutes.
Air
Cargo News has requested more information on whether the aircraft will be
manned or unmanned.
Hyperian
has also not yet announced the launch date of the aircraft or revealed a launch
customer(s) and how far along the project is, but has suggested the HYPERLiner
could serve the e-commerce, defense, pharmaceuticals and industrial logistics
industries.
As
well as its speed credentials, the HYPERLiner is designed to have minimal
emissions, compared to the problematic emissions of existing large cargo
aircraft, pointed out the company.
"HYPERLiner
(TM) CARGO runs on compressed hydrogen, generating zero CO₂ emissions, making
air cargo logistics cleaner and more sustainable," said Hyperian.
DHL
Express flies endangered antelopes to Kenya
Copyright:
Peter Ndung’u for Lewa Wildlife ConservancyDHL
Express has flown critically endangered mountain bongo antelopes from Florida,
US to a sanctuary in Kenya using one dedicated aircraft to carry all 17 of the
animals.
The
transportation of the antelopes from the Rare Species Conservatory
Foundation (RSCF) in Florida to a sanctuary on the slopes of Mount
Kenya, run by the Meru Bongo and Rhino Conservation Trust, was carried out in
partnership with Tusk, a charity dedicated to accelerating the impact of
Africa-driven conservation.
DHL
provided point-to-point air transfer for the antelopes. Meeting the requirement
that the full herd be transported together, the logistics company provided a
dedicated aircraft which carried the antelopes 7146 nautical miles directly
from Palm Beach International Airport (PBI) to Jomo Kenyatta International
Airport (NBO).
The
antelopes were transported in custom-built crates, alongside six tonnes of
pelleted feed and three specialist animal care staff including a veterinarian
and two bongo specialists from the US.
Bred
in Florida, mountain bongo antelopes are on the verge of extinction with fewer
than 100 left in the wild due to poaching, forest degradation and habitat
fragmentation.
The
mountain bongos were released into a 20-acre sanctuary, which has been set
aside for their long-term management and recovery by the Kenya Forest Service.
The
sanctuary plays a critical role in the national recovery plan and is key to the
ongoing success of the project.
Formed
by 12 female and 5 male bongo antelopes, the herd will remain in the paddocks
to safely breed. The offspring will then slowly be reintroduced into Mount
Kenya’s forest ecosystem, from which they have been absent for over 40 years.
Mike
Parra, chief executive DHL Express Europe, said: “We are so proud to be able to
leverage the power and expertise of our global network to assist in
transporting these critically endangered bongo antelopes to their new sanctuary
in Kenya.
“The
logistics of moves such as this are incredibly complex, with the welfare of the
animals being everyone’s top priority. A huge thank you to our partners at
Tusk, the Lewa Wildlife Conservancy, and everyone involved in making this
important conservation mission a success.”
Charlie
Mayhew, founder and president of Tusk, added: “The return of 17 critically
endangered mountain bongos from Florida to Kenya is a significant step in
restoring this critically endangered species to its native habitat, and
demonstrates the conservation progress that can be made through collaboration.
"We
are hugely grateful to our global partner DHL Express for their generous
support in transporting the bongos – yet another key milestone in the
partnership between our organisations.
DHL’s
dedication to environmental sustainability, and its role as a responsible
corporate partner in supporting Tusk’s mission to protect Africa’s wildlife and
natural habitat, is invaluable.”
Exclusive – CPH lifts status of key
northern Cargo Hub
Copenhagen Airport (CPH) celebrates its 100th anniversary this year. And it is doing well. The freight division reported a 16% increase in cargo traffic in 2024. According to the Senior Air Cargo Managers, Michael Giese and Lars Gotfredsen, the Danish Airport plans to develop additional cargo facilities in the coming years.
Lars
Gotfredsen (left) and Michael Giese manage jointly Copenhagen’s cargo business
– photo: CFG/hs Copenhagen
Airport sees an increasing interest of forwarders and carriers seeking to use
the airport as a Nordic gateway for import and export. This requires new
facilities around the airport for storage, handling and parking, to be aligned
with demands and national and EU regulations. That perspective was exclusively
unveiled during the 10th Nordic Air Cargo Symposium, held at
the Clarion Hotel Copenhagen Airport from 25-26MAR25.
Ground
handling agents benefit…
New cargo facilities will support key operators alongside several smaller
service providers. The main player is Spirit Air Cargo Handling. A household
name in Copenhagen, as the company is part of the SAS Group. It manages the
Scandinavian airline’s ground handling activities in Kastrup as it does for
Thai Airways, LOT Cargo, Finnair Cargo, Air Serbia and some other small actors.
“Only last week, we received request from five different companies,” states
Spirit Managing Director, Peter Plambech, referring to the high demand for his
company’s services.
The
building of new cargo facilities is important for two key reasons, management
emphasized. Firstly, tonnage is growing rapidly. In 2024, a total of 325,000
tons were handled in Kastrup: an increase of 16% compared to 2023. If SAS
becomes majority-owned by Air France-KLM, as signaled by the Franco-Dutch
carrier, the synergy effect is expected to give the cargo business at CPH an
additional push.
And
secondly, the central SAS warehouse managed by Spirit has seen better days. It
was inaugurated in 2000, which is clearly visible in the interior, despite
constant maintenance efforts. The participants of the Nordic Air Cargo
Symposium, including the author, were able to see this for themselves during an
exclusive tour.
…so
does the pharma and life-science business
A state-of-the-art freight terminal is also essential to manage the rapidly
growing pharma business. The non-profit organization, Medicon Valley Alliance,
confirms this need. It is a leading European player with 330 member companies
from the life sciences sector. Of these, 40% are based in Denmark (building a
cluster in the Copenhagen area), 40% come from Sweden and 20% from other
neighboring countries. According to Medicon’s CEO, Anette Stenberg, around
80,000 people are employed by one of the member companies. For CPH, this means
that the airport aims to focus even more on these high-quality and high-priced
products.
This
also applies to fresh fish, which mainly comes from Norway and is flown from
Oslo but also travels from Copenhagen to the global target markets. In
addition, CPH has put a new focus on the thriving e-commerce business, which
the airport has decided to support.
Customs
was part of the cargo project from day one
Customs is heavily involved in these plans, as Charles Bo Volkersen Conrad,
Deputy Director Trade and Commerce, Danish Customs, confirmed to CargoForwarder
Global: “We don’t want to put any unnecessary barriers on e-commerce. On the
other hand, we have responsibilities to ensure that only legal goods cross the
Danish borders. That’s why we are in close dialogue with airport management on
what is needed tomorrow and thereafter, to enable customs to keep up with
developments, standing as a guard to guarantee security to society.” The
official went on to say: “We need not only strong Danish national customs
but the EU bodies responsible for customs must also pull together in this
regard.”
The
following comparison, unveiled at the Symposium, illustrates just how complex
the day-to-day business is: 20 tons of general cargo, stowed in the lower deck
of a passenger flight, translates into roughly 40 different air waybills. In
the case where the carrier’s belly compartments are filled with e-commerce
goods, 40,000 to 50,000 different AWBs are mandated by law, due to the
multitude of goods. Despite all digital data transmission, it is a Herculean
task for the responsible customs authorities to check this avalanche of
shipments in a reasonable amount of time. This can only be done by means of
selected spot checks. Companies that provide false information about the
content of their shipments and are caught, will have to expect much higher
fines in future.
Community
system on the horizon
Finally,
Gotfredsen and Giese announce that CPH is planning to facilitate a community
platform in order to connect the various cargo players, especially forwarders,
more closely with each other and to act collectively. Truck slots that allow
shipments to be delivered and picked up without truckers being thwarted by
waiting times, are part of the masterplan. The aim is also to determine which
goods pass through the airport every day and in what quantities. “This
data helps us a lot in the dialogue with our customers,” reasons Mr.
Gotfredsen.
Menzies enters Brussels Airport’s cargo
handling business
Menzies Aviation Holding Limited has secured a license for full freighter handling at Brussels Airport, to the detriment of Swissport. The current licenses expire in October this year.
Ground
handling agent Menzies will fly its flag at Brussels Airport come OCT24 –
company courtesyBrussels
Airport initiated the selection procedure in mid-February 2024, to appoint
service providers in five categories, in which only a limited number of
operators are permitted: baggage handling, ramp handling for passenger
aircraft, ramp handling for full freighter aircraft, freight and mail
transport, and catering transport.
Apart
from Menzies Aviation Holding Limited, the other companies licensed to perform
ramp handling for full-freighter aircraft are Aviapartner Cargo NV and dnata
NV. The latter two have also been licensed for on-tarmac freight and mail
transport, in this case together with Alyzia SAS.
Much
interest
According to Patrick Minsart, chairman of the Handling Cluster within Air Cargo
Belgium, up to 15 companies submitted an offer. The Spanish group, Acciona
Aeropuertos, and France’s Group Europe Handling were also among the
applicants. “In fact, all candidates start from point zero,” Mr
Minsart says. “They are all evaluated on an equal base.”
In
a press release, Brussels Airport says that the proposals received were
evaluated based on a series of objective criteria compliant with current
legislation to ensure safe, proper and high-quality ground services for
airlines.
Sustainability
The selection criteria included sustainability requirements. Particular focus
has been placed on the electrification of rolling stock, with specific criteria
built into the procedure. This is aligned with the airport’s new environmental
permit, which stipulates that 80% of airside vehicles must be electrified or
replaced by zero-emission alternatives by 2030.
On
a temporary basis, the French company Alizia SAS was already operational in
passenger and baggage handling at the airport since 17 December 2020, when
Swissport Belgium filed for bankruptcy. Cargo activity, however, was not
included in the bankruptcy.
Lawsuit
To date, Menzies does not have a presence at Brussels Airport and therefore an
organization and staff will have to be set up by October. The group expressed
its interest in passenger and aircraft handling at Brussels Airport as early as
2011 and even went to court when it was not granted a license.
In
2020, Brussels Airport and Menzies allegedly agreed on an indemnity settlement
of 15 million euros. When, two years earlier, the licenses had again expired,
Menzies submitted an offer as well.
This
time the group lost due to a procedural error of its own making. According to
Patrick Minsart, both Menzies and Alyzia will be welcomed in the ACB handling
cluster. Neither Menzies nor Swissport has as yet commented on the decision
taken by Brussels Airport.
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 1Branches : Chennai, Bangalore,
Mumbai, Coimbatore, Tirupur and Tuticorin.
Associate Offices : New
Delhi, Kolkatta, Cochin & Hyderabad.
Thanks to : Container News, Indian Seatrade & Air Cargo News.
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