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

 

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

 

 

Corporate News Letter for  Tuesday -  April  29,  2025

Today’s Exchange Rates

 

CURRENCY	PRICE	CHANGE	%CHANGE	OPEN	PREV.CLOSE	DAY's LOW-HIGH
USD/INR	85.03	-0.419998	-0.491513	85.30	85.45	84.9575- 85.42
EUR/USD	1.1405	0.004	0.351953	1.1384	1.1365	1.133- 1.1422
GBP/INR	113.4648	-0.177803	-0.156458	113.4154	113.6426	113.2147- 113.6873
EUR/INR	96.5218	-0.431206	-0.444758	96.9732	96.953	96.4351- 97.1043
USD/JPY	142.359	-1.311005	-0.912511	143.64	143.67	142.133- 143.894
GBP/USD	1.3416	0.0101	0.758535	1.331	1.3315	1.328- 1.3425
DXY Index	99.587	0.115997	0.116614	99.61	99.471	99.457- 99.838
JPY/INR	0.593	-0.0024	-0.403087	0.5952	0.5954	0.592- 0.5962

 

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Tuticorin to get a new regional hub of StartupTN for space tech and logistics ventures: MSME Minister

In the last four years, almost ₹70 crore has been invested across 205 start-ups from various funds of Tamil Nadu’s entrepreneurship development programmes, the State’s MSME Minister TM Anbarasan said on Thursday.

“Another ₹20 crore is allocated for start-ups in the current fiscal year,” he added.

Tamil Nadu CM MK Stalin took the step to professionalise the nodal agency for entrepreneurship and start-ups and set up ‘StartupTN’, and appointed a professional CEO for it, he said. StartupTN already has 10 regional hubs across Chennai, Madurai, Erode, Tirunelveli, Salem, Hosur, Thanjavur, Tiruchy, Coimbatore, Villupuram.

A new regional hub is set to come up in Thoothukudi this fiscal year with a focus on space tech, port and logistics start-ups, the Minister said. He also drew attention to the ministry’s newly-announced scheme around ‘one start-up in every village.’ Under this, the State is set to select 100 villages and nurture one start-up in every village, he said.

Indian firms should avoid re-routing of goods from China to US: GTRI

Domestic exporters should not use India as a destination for re-routing goods originating from high-tariff countries like China to the US, economic think tank GTRI said on Thursday. Instead of re-routing, Indian exporters should build genuine value addition, supply chain transparency, and adhere to US customs rules, the Global Trade Research Initiative (GTRI) said. Cautioning against "shortcuts", GTRI Founder Ajay Srivastava said Indian firms need to build on genuine value addition, supply chain transparency, and comply with US customs rules.

For countries like India, the opportunity is real, but only if exporters play by the rules. 

He added that exporters often misunderstood US non-preferential rules of origin (RoO), which determine a product's true origin. If a product contains high Chinese content and fails to meet the substantial transformation test, it may still be classified as Chinese, regardless of where it was assembled and subjected to punitive tariffs.

Vadhavan Port secures Rs 57 Bn in deals for expansion

Vadhavan Port in Maharashtra's Palghar district has signed key agreements worth Rs 57 billion for its proposed facility. The deals, which were finalised in the presence of Union Shipping Minister Sarbananda Sonowal and Minister of State Shantanu Thakur, involve the construction of a dedicated terminal for chemical products and a specialised jetty for liquid cargo. 

Set to become India’s 13th largest container port, Vadhavan Port is being developed with an overall investment of Rs 760 billion and will feature nine terminals, two of which will handle liquid and related cargo. Among the major agreements is a Rs 42 billion investment with Gandhar Refineries to establish a terminal for large-scale cargo, containers, and liquid chemicals.

A Rs 10 billion deal was also signed with Saraf Group for a similar terminal, and another Rs 5 billion pact with IMC Group will see the construction of a liquid cargo jetty and storage tanks with a total capacity of 300,000 cubic meters.

Once the project is completed, the port is expected to enhance India’s cargo handling capabilities and strengthen its position in global maritime trade.

 

CMA CGM reflags one of its vessels to Indian flag

Marseille, France-based CMA CGM S A, the world’s third largest container shipping line, will reflag one of its container ships to the Indian flag on April 28 in Mumbai, making it the first big global container carrier to register a container ship in India, a jurisdiction perceived to be tax, lender and regulatory unfriendly for fleet owners. 

CMA CGM has opened a unit in the Gujarat International Finance Tec-City (GIFT City) christened ‘CMA CGM Shipping Assets India IFSC Pvt Ltd’, to own the Indian flagged 2,592 twenty-foot equivalent units (TEUs) capacity ship named ‘CMA CGM Vitoria’, built in 2008 and currently flying the Malta flag. 

The French line will also convert a second container ship named ‘CMA CGM Manaus’, built in 2009 and flagged in Malta, with a capacity to carry 2,592 TEUs, to the Indian flag shortly. The conversion of this ship to the Indian flag will take place outside India, a government official said.

In shipping, ships fly the flag of the nation where they are registered. “It’s a small start by CMA CGM,” the government official said. “They are testing the waters, and more ships are likely to be converted to the Indian flag soon,” he hoped.

 

India won't allow transshipment of goods to other regions: Piyush Goyal

Commerce and Industry Minister Piyush Goyal said on Friday that India will not allow irregular practices and trans-shipment of goods from its soil to other regions.

“At no point of time, will we allow India to become a route for trans-shipment for breaking the rules of origin, so that other countries bring material into India, maybe do little bit of processing and supply it to a third country, calling it a made-in-India product,” Goyal said at an industry event, urging India Inc to remain vigilant. 

While the minister did not refer to any country, his remarks came against the backdrop of the United States (US) Vice-President JD Vance’s statement on Tuesday. Vance had said America seeks trade partners based on ‘fairness’ and who do not serve as ‘conduits’ for trans-shipping goods from other countries. 

The US is India’s largest trade partner. Both the countries are in talks to launch negotiations for an early tranche of a trade deal. “We are working on at least 10-12 FTAs with countries or bloc countries, like the EU which will mean 27 countries within one block. And, in every one of them, we are working to see how we can get greater access for our cost effective and high quality steel sector”, Goyal added.

Apart from the EU and US, India is negotiating with UK, New Zealand,

Peru, Chile and Oman. Talks for a trade deal with Bahrain, Qatar or the Gulf Cooperation Council (GCC) may also materialise.

Massive explosion at Iran’s Largest Port kills at least 40 and injures 1200

At least 40 people have been killed and around 1200 injured following a massive explosion at Shahid Rajaee Port, Iran’s largest container port, near the southern city of Bandar Abbas. The blast occurred on Saturday morning April 26.

Port of Shahid Rajaee is one of the two parts in the port of Bandar Abbas. Southern Hormozgan province in Iran. It is located on the north shores of the Strait of Hormuz.

Local reports say the explosion shattered windows, tore off roofs and destroyed cars in nearby areas. Residents reported feeling the impact up to 50 kilo meters (31 miles) away.

While the exact cause of the explosion remains unclear, chemicals stored at the container port are suspected to have fuelled the blast. Shahdi Rajaee is Iran’s busiest port facility, handling a large share of the country’s imports and exports.

The Iranian Defence Ministry has denied international media reports

suggesting the explosion could be linked to the mishandling of solid missile fuel. The Associated Press, citing British Security firm Ambrey, reported that the port had received a shipment of sodium perchlorate – a chemical used in ballistic missile propulsion – in March. Mishandling of this chemical could potentially have triggered the blast, according to Ambrey.

However, a spokesperson for the Defence Ministry dismissed these claims as part of “enemy psychological operations (psyops),” insisting the affected area contained no military cargo.

The explosion comes at a sensitive time, as Iran is engaged in a third round of nuclear negotiations with the United States in Oman.

/////       AIR  CARGO   NEWS   /////

DHL stops package delivery in the USA

Fewer DHL ULDs are likely to fly to the USA in the near future, company courtesy

Due to the new tariffs imposed by the Trump government on imports, an avalanche of documentation is required when importing goods worth more than USD 800. The comprehensive documentation and associated checks require additional time and significantly increase costs, states DHL. To complete the formal import procedure, both the sender and recipient must fill out numerous documents including commercial invoices, packing lists, proof of origin, customs tariff numbers and other similar requirements. In reaction, the integrator has decided to stop the business altogether – at least temporarily.

From April 21, 2025, integrator DHL Express is halting all business-to-consumer shipments exceeding a customs value of USD 800, to individuals in the United States. DHL cites new customs regulations in the States as the reason for this measure. Washington’s regulatory changes have significantly lengthened clearance processes despite the efforts of the employees. In addition, DHL declared that business-to-business shipments could face delays but would not be suspended. Shipments under USD 800 to either businesses or consumers, are not affected by the changes.

New threshold value
The move is a temporary measure, the company emphasized in its statement.

DHL blamed the announced halt on new U.S. customs rules which were decided on 05APR25, requiring formal entry processing on all shipments worth over USD 800.

Formerly, the minimum value per shipment was USD 2,500 until regulations were changed on 05APR25. “This change has caused a surge in formal customs clearances which we are handling around the clock. While we are working diligently to scale up and manage this increase, shipments over USD 800 – regardless of origin – may experience multi-day delays,” reads a DHL press release.

DHL told agency Reuters, last week, that it would continue to process shipments from Hong Kong to the United States “in accordance with the applicable customs rules and regulations” and would “work with our customers to help them understand and adapt to the changes that are planned for 02MAY25.”

Imposing tariffs abusively
The statement is a reaction to Hong Kong Post’s decision to stop handling packages coming from or going to the United States,accusing the Trump government of “bullying”after Washington canceled tariff-free trade provisions for packages from China and Hong Kong. The city’s government cited U.S. President Donald Trump’s decision last week to eliminate the so-called de minimis exception for items posted from the city to the U.S. The exemption applied to international shipments worth USD 800 or less entering the U.S.

“Bullying act”
“The U.S. is unreasonable, bullying, and imposing tariffs abusively,” the Hong Kong government said in its release. “The public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the U.S.’s unreasonable and bullying acts.”

Meanwhile, Hong Kong Post has stopped accepting packages transported by sea and will stop taking airborne shipments starting from 27APR25. Other postal items containing only documents such as letters, for example, will not be affected.

A DHL spokesman told media people that the integrator will continue to process shipments to the US, monitor the situation, and work with customers to help them keep up with latest changes. FedEx and UPS were not available for comment.

Court hearing irritates KLM

A court hearing in the Netherlands last week dealt with the question of how many flights may take place in Amsterdam in future. Currently, 500,000 takeoffs and departures are permitted per year. However, Transport Minister Barry Madlener and the government in The Hague favor cutting 22,000 slots. Besides passenger traffic, cargo flights would be severely affected by the step as well. Should the governmental scheme become law, this would lower noise emissions and benefit local residents, representatives emphasized during the hearing.  

Both sides were asked by the court to present their differing positions to the controversial slot reduction scheme tabled by the Dutch government weeks ago. At the end, the judges showed a tendency in favor of The Hague’s opinion. On 28APR the court will announce its final decision on this matter.

Less air traffic lowers the Netherlands’ attractivity
If the impression gained by participants at the hearing is not misleading, KLM, in combination with its low-cost subsidiary Transavia, will probably have to do without 6,000 slots. There will also be considerable cuts in cargo flights, which Madlener wants to reduce by 5,000 per year.

However, some of these slots are currently not used since carriers have shifted some of their AMS traffic to other airports. It was particularly interesting that KLM’s planned fleet modernization, which will lead to a considerable reduction in noise for the residents of Schiphol, was largely brushed aside by the judges.

It involves 61 of the latest generation aircraft, which will be based in Schiphol and whose noise emissions are significantly lower than those of current generations. At the hearing, the government conceded that only 15 of these 61 new aircraft were included in the calculations for the future slot regime. Observers see the Dutch government’s ignoring of EU provisions as an affront to Brussels.

This brand new KLM operated A321neo is one of the 61 cleaner and quieter aircraft lowering the noise level in the vicinity of AMS – courtesy KLM

KLM demands a balanced approach
“We expect the Ministry of Infrastructure and Water Management to take the European Commission’s decision to heart and follow the recommendations before implementing capacity restrictions. This way, the sector retains a future perspective while maintaining a balance with the environment, keeping the Netherlands connected to the rest of the world,” argues KLM.

Slot decision could trigger broader consequences
Provided the judges support the Dutch government’s view in their final slot decision on 28APR25, repercussions by the U.S. administrationand judiciary are expected to follow immediately. American Airlines, Delta Air Lines, FedEx, Jetblue, United Airlines and the integrators FedEx and UPS are also affected by the proposed slot cuts. The U.S. airlines’ argument: the slot reduction is an arbitrary interference in free air traffic between the two traffic regions, as contractually agreed between Washington and Brussels.

Due to its dense route network the dense route network, the Netherlands is one of the best-connected countries in the world. “This is crucial as our economy relies on international trade,” argues KLM.  National measures have a direct impact on the position of the airline and the Netherlands, especially now that surrounding countries in Europe are discussing the expansion of their airports. “What is dismantled now cannot be regained,” reasons the airline.

KLM was founded on 07OCT1919. This makes it the oldest commercial airline in the world that is still flying today.

China blacklists Boeing

The trade war between the US and China is becoming increasingly bizarre. As a countermeasure against Trump’s tariffs of up to 145% on Chinese exports, Beijing has now instructed its own state airlines to suspend purchases of Boeing-built aircraft and stop buying components from the U.S. aircraft manufacturer. This is exactly what CargoForwarder Global predicted on 06APR: The Trump tariffs are an economic stimulus program for China’s own aviation industry, especially the Comac model series C919.

And the winner of Trump’s China tariff hike is … Shanghai-built COMAC C919.

Boeing’s expulsion from China is likely to be an economic stimulus program for the state-owned Chinese aircraft manufacturer COMAC. Unintentionally, the USA is now providing active development aid for the newcomer, especially for its flagship, COMAC C919. This was already predicted by CargoForwarder Global in a report aired on 06APR.

The aircraft can accommodate 168 passengers and is able to fly 4,075 km non-stop. This makes the jetliner a serious competitor for the B737 series, but also for the Airbus A320 family. The COMAC management speaks of 820 orders from 28 customers received so far. Supposedly, the numbers will increase quickly.

Stock exchange is not amused
Following Beijing government’s announcement of their Boeing boycott, the share price of the manufacturer fell by USD 2.79%. It had already gone south during the past three weeks falling from USD 182 on 25MAR to USD 156 on 15APR. However, the share prices of Chinese airlines also fell notably, as many Boeing variants belong to their fleets.

The basic idea of Trump’s tariff policy is to motivate industries to produce in the U.S. and not abroad. What seems to be a smart idea at first glance encounters in practice mounting hurdles demonstrated by Beijing’s embargo of rear earths exports or the EU’s threat to impose hard countermeasures hurting key U.S. products. In the meantime, Trump has exempted the import of electronic products such as smartphones or laptops from the China tariffs, most of which are produced in Chongqing, Chengdu or Zhengzhou.

A policy guided by irrationality
Specifically, China’s Boeing boycott is likely to hit the autocrat in the White House hard. After all, this retaliatory move threatens to position the U.S. aircraft manufacturer further behind its European arch-rival Airbus in terms of both sales figures and order volume.

At the same time, Beijing’s bold Boeing expulsion is likely to further unsettle the crisis-ridden employees of the U.S. aircraft manufacturer, who were lately confronted with negative headlines such as the crash of two B737 MAXs casing hundreds of victims, the loss of a cabin door during an Alaska Airlines flight and recurring technical defects on many aircraft.

These and other mishaps have severely damaged the reputation of the aircraft manufacturer, which the aviation industry once valued for its outstanding reliability and advanced safety architecture.

The support is crumbling
In the meantime, Trump’s zig-zagging tariff policy provokes increasing resistance, not least triggered by falling government bonds, the harbingers of a recession, worrying even his hard-core followers.

According to Boeing’s 2024 Commercial Market Outlook, China Southern, Air China, Hainan Airlines et alia account for around 20% of the global demand for passenger and freighter newbuilds over the next two decades with roughly 50% made by Boeing. The U.S. airframer could not initially be reached for comment.

Hong Kong stops mail services to the U.S.
Meanwhile, the Hong Kong Post Office has announced that it will no longer send shipments by sea to the United States. As of April 27, the airmail service to the United States will also be discontinued. The reason given for this is the “harassing” U.S. tariffs.

When sending goods to the U.S., Hong Kongers must be prepared to pay exorbitant fees due to the “unreasonable and tyrannical measures” taken by the U.S., said Hong Kong Post in a statement. Other mail items containing only documents would not be affected.

BARIG puts air freight high on the agenda

For the lobby organization Board of Airline Representatives in Germany (BARIG), the role of cargo in air transportation has long played only second or even third fiddle. This is likely to change soon. With Thilo Schäfer from Condor Cargo and Jorge Carretero from LATAM Cargo, two experts have joined the Air Cargo Committee of the association. The two managers will position air freight issues much more prominently on the organization’s schedule.

(LTR): Thilo Schäfer, Director Cargo Condor, Michael Hoppe, BARIG Chairman and Executive Director, Jorge Carretero, Sales Director Central Europe LATAM Cargo.  Photo: courtesy BARIG e.V.

No sooner had they been appointed, than the trio demanded a U-turn in Germany’s aviation policy. Their claims in a nutshell: The air traffic decline in Germany needs to be stopped by setting aside bureaucratic hurdles and lower costs. This is stated by BARIG Chairman Michael, while pointing at the Berlin politicians. 

“In contrast to Europe or even worldwide, air traffic in Germany has still not fully recovered after the pandemic. The reason is obvious: Skyrocketing production costs for aviation in general, which also severely hamper cargo business. It is the upcoming German government’s responsibility to significantly and sustainably reduce cost pressure, consequently and fast. Otherwise, it will not be possible to bring Germany back to the top positions in Europe and globally, as an aviation and business location,” BARIG Chief Hoppe warned.

Unhealthy cost-structure
According to a recent report by the German Aerospace Center (DLR), local airport costs have risen by 39% across Europe since 2019, due to higher fees payable by airlines. Yet, in Germany, the increase is a whopping 70%!

Meanwhile, even the Lufthansa Group wants to grow primarily through its subsidiaries in Austria (AUA), Switzerland (Swiss) and Italy (ITA), and less through its core brand, Lufthansa Airlines.

On the domestic market, the costs are too high due to taxes and fees, but also due to continuous strike action by unions, exclaimed Group CEO, Carsten Spohr in mid-MAR25, at his company’s annual press conference. Group subsidiary, Lufthansa Cargo, is similarly affected by the skyrocketing costs in its home market, apart from ticket taxes.

Thilo Schäfer, Director Cargo at leisure carrier, Condor, also demands Berlin politicians to take a U-turn: “Germany may continue being a key European hub for global air freight. However, this position has come under severe pressure.

This makes it even more important to actively develop the framework conditions in Germany to strengthen its competitiveness in the European market. Together with the BARIG Air Cargo Committee, we want to drive forward future-oriented topics such as automation, digitalization, and the optimization of processes.

Digitalization like IATA’s ONE Record initiative is key for transporting air cargo in time, in budget, and in quality. We need to digitalize our processes with all stakeholders involved – meaning airlines, airports, handling agents, and authorities.”

Strengthening hub performance
And LATAM Cargo’s Jorge Carretero adds to this: “Logistics and air freight in Germany are currently being confronted with many issues and challenges that will determine future developments. In order to create the best possible processes and framework conditions, we develop innovative and practicable solutions in the committee with the expertise of our international community.

New thinking is needed
Ultimately, the future German government coalition of Conservatives and Social Democrats needs to establish a new approach to aviation policy. The sector must no longer be seen as a dairy cow, but as an industry of paramount importance for imports and exports, the maintenance of supply chains, a guardian of air security and a provider of thousands of qualified jobs. Without this paradigm shift, the exodus of airlines will continue.

In a first step, the future coalition of Conservatives and Social Democrats has announced that it will reverse the increase in air traffic tax decided in 2024. In addition, the national blending quota is to be abolished. It stipulates a certain proportion of SAF in order to reduce CO2 emissions.

Airbus advances A350F fuselage fit out

Airbus A350F. Copyright: Airbus S.A.S 2021 - computer rendering by FIXION - MMS - 2021

Production of the Airbus A350 freighter has moved forward again with the first forward fuselage section of the aircraft now equipped with essential systems.

This follows delivery of the first section 19 and is an important development for Airbus, given the A350F has been delayed until the second half of 2027.

Airbus said in a LinkedIn post on 17 April: ”The Airbus Aerostructures plant in Hamburg has delivered the first forward fuselage section for the A350F, fully equipped with electrical, hydraulic, air conditioning and water systems.”

The aircraft manufacturer’s senior vice president of marketing Joost van der Heijden added that the first forward fuselage section had been transported from Germany and joined with the cockpit in France.

He said: ”Great milestone for the A350F as the forward fuselage section has been equipped with systems and joined with the cockpit at our Montoirde Bretagne site in France. It will now be shipped to Toulouse with Final Assembly of the first A350F starting over summer.”

Airbus announced in February this year that it would push back the entry-into-service date of its A350 freighter to the second half of 2027, from its earlier expectation of 2026.

Back in May 2023 the company also shifted the A350F entry into service date from the end of 2025 to 2026. The company has firm orders for 63 A350 freighters, with 60 of them attributed to 10 identified customers.

Last year, Airbus told Air Cargo News that Asia and the US both hold promise for new orders of the A350F.

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.