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

 

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

 

Corporate News Letter for  Wednesday  September 03,  2025

Today’s Exchange Rates 

CURRENCY▲	PRICE	CHANGE	%CHANGE	OPEN	PREV.CLOSE
USD/INR	88.16	0.049995	0.056678	88.15	88.21
EUR/USD	1.165	-0.0061	0.520883	1.1711	1.1711
GBP/INR	118.1338	1.201904	1.007162	119.2588	119.3357
EUR/INR	102.6007	0.762398	0.737592	103.1047	103.3631
USD/JPY	148.409	1.229004	0.835035	147.18	147.18
GBP/USD	1.3392	-0.0153	1.129571	1.3545	1.3545
DXY Index	98.356	0.584999	0.598336	97.642	97.771
JPY/INR	0.5933	-0.0058	-0.96812	0.5992	0.5991

///                   Sea Cargo News            ///

CMA CGM introduces KILIMA service to link Asia with Africa

CMA CGM has announced the launch of its new service, KILIMA, set to begin in August 2025. The service aims to boost efficiency and improve the customer experience along key Asia–East Africa trade routes. KILIMA is a weekly standalone direct service from China to Kenya and Tanzania.

The first call is set for 24 August in Mombasa. Transhipment via Singapore will provide access to a broad range of Asian ports. The service also connects cargo from India’s east coast through Colombo. 

Colombo acts as a relay point for Male, with the MALE SHUTTLE’s first departure on 25 August. Zanzibar, Tanga, Longoni, and Tamatave will be served via Mombasa through the KARIBU service. 

Port Victoria, Mogadishu, Nacala, and the Comoros will be reached via Lamu using NOURA  and KARIBU. The network offers inland links to Uganda, South Sudan, Rwanda, Zambia, Malawi, and the DRC. Recently, CMA CGM announced the upgrade of its NEFWI (PCRF) service, starting January 2026.

Trump tariffs sting Tirupur exporters are betting on new markets

Tirupur, India’s knitwear capital, is feeling the pinch from the latest US tariffs, but apparel exporters in the city are already exploring new avenues to sustain growth. Times Now spoke to several manufacturers and exporters who said that while the number of new orders had reduced, the traders were already on the lookout for "newer, flexible markets". 

"Tirupur is the most affected. 30% of our textile exports worth 12,000 crores are to the US. Now we are at the brink of losing 2,000 - 3,000 crores in this. We'll have to find newer flexible markets," Subramanian, a textile manufacturer and exporter from Tirupur, said. He added, "Around 10% of exporters from Tirupur are completely dependent on the US for sales. They are being compelled to find new buyers now. It's not easy to find a new market with good buyers. It takes time. They are trying their best."

Starlink seeks approval to import landing gear for India launch

Elon Musk-owned satellite communications (satcom) service provider Starlink has approached the Indian government for permission to import its landing station equipment that allows satellite signals to be routed into terrestrial internet networks.

These are required for setting up the ground infrastructure necessary to test its services in India. Sources said that the government may take a considered view on the import of such equipment, which are critical for launching the services. 

“Starlink has approached the government including Department of Telecommunications (DoT) to import equipment for its ground infrastructure for testing, after which it can do the testing, before the launch of the services for public use,” a government official said.

These stations received data from the satellites and send it to data centres on earth which have existing fibre optic connections and each ground station serves as a vital link in the Starlink network, ensuring users can access the Internet by bridging the satellite-to-Internet gap.

Sources said Starlink has not yet finalised for its ground station locations also and till then it is taking the government’s permission to import the required equipment for these ground stations.

Bharti Airtel has established two satcom ground stations in Gujarat and Tamil Nadu and is preparing for the launch once the government approves for spectrum allocation.

Meanwhile, Airtel and Jio in March this year, have signed agreements with Musk’s company to distribute Starlink’s satcom services in India. The two Indian companies will make Starlink solutions available through their retail outlets and online stores. Additionally, they are evaluating other areas of cooperation to enhance India’s digital ecosystem by utilising their respective infrastructures.

Last week, the Unique Identification Authority of India (UIDAI) has also collaborated Starlink, for seamless Aadhar based customer verification.

India to expand outreach in 40 countries to push textile exports amid Trump-era tariffs

India is planning dedicated outreach programmes in 40 key textile-importing nations, including the UK, Japan, South Korea, Germany, and Canada, to counter the impact of a steep 50% tariff imposed by the United States on Indian goods, officials said on Wednesday. 

India already exports textiles to over 220 countries, but the top 40 importers hold the real key to diversification, accounting for more than $590 billion of global imports. At present, India’s share in the world textile trade stands at just 4.1%, or around 5-6%, leaving significant room for expansion. 

“In each of these 40 markets, this is proposed to pursue a targeted approach, positioning India as a reliable supplier of quality, sustainable, and innovative textile products,” a Commerce Ministry official said, adding that export promotion councils (EPCs) and Indian missions abroad will lead the efforts.

India-Africa trade surpasses USD 100 billion in FY 2024-25

Union minister Kirti Vardhan Singh on Wednesday said India-Africa trade has crossed USD 100 billion and New Delhi has emerged as one of the top-five investors in the continent. 

Addressing the inaugural session of the 20th CII India-Africa Business Conclave in the national capital, Singh said India has extended concessional loans worth over USD 12 billion and USD 700 million in grant assistance for projects across Africa, apart from offering 50,000 scholarships for African youth, of which more than 42,000 have already been utilised. 

"This year's theme is different as we have decided to move from project partnership and growth partnership to the spirit of 'Co-creating a Shared Future', which signifies the sentiment attached to this remarkable journey," the minister said.

Ocean carriers step up with an ‘aggressive drive’ to capture market share

The race for cargo has begun between carriers as volumes dip and fleet growth hits its new record, with the alliances eyeing different tactics. Carriers have now suffered their tenth consecutive week of freight rate declines and, according to data company Upply, traditional peak summer season cargo levels proved “disappointing” on both Asia-Europe and transpacific routes. 

Further, Alphaliner reports that the global container orderbook is on the verge of hitting a record 10m teu – the element of ‘fomo’ [fear of missing out] among carriers has prompted an “aggressive push for market share”. The orderbook-to-fleet ratio now stands at 30.4%. “This is not a time for rest in shipping companies’ sales services,” said Jérôme de Ricqlès, liner shipping expert at Upply.

The race for cargo is in full swing, he added and noted the differing strategies between carriers and alliances to keep their profits raised in the face of this “general morosity”.

“Maersk and Hapag Lloyd, via their Gemini alliance, aim to differentiate themselves by offering a higher quality of service to justify rate increases” said Mr. de Ricques. “This approach is having some success with major shippers receptive to the quality argument, but these are few and far between”.

South Korea’s leading shipbuilder to merge affiliate in bid to capture US demand amid Trump policies

South Korea's HD Hyundai Heavy Industries, the world's biggest shipbuilder, said on Wednesday that it plans to merge with its affiliate HD Hyundai Mipo as it targets a bigger slice of the US shipbuilding market. 

With the merger, the company said it aims to lead US-Korea shipbuilding cooperation projects highlighted during a recent summit between the leaders of the countries that Seoul has dubbed "Make American Shipbuilding Great Again." 

"Ahead of the full-scale launch of the MASGA project following the Korea-US summit and as countries around the world are strengthening naval power, demand for K-defence is expected to increase further," HD Hyundai Heavy's parent company said in a statement. 

As South Korea's top builder of naval vessels, Hyundai wants to combine its expertise and technology in the field with Mipo's docks, facilities and skilled workers.

ABS certifies the world’s largest classed unmanned surface vehicle

ABS has awarded classification to the Saildrone Surveyor, a fully autonomous deepwater unmanned surface vehicle (USV). At 20 meters long and designed for operations across global oceans, the Surveyor is the largest class of USVs built by Saildrone. 

The company develops maritime security, ocean mapping, and meteorological and oceanographic data solutions using autonomous assets. “ABS and Saildrone are pioneering new frontiers, setting the pace for innovation.

This step forward is a result of our investments in ABS’s technical capability and helping to ensure our Rules can support innovation with an unwavering focus on safety,” said Patrick Ryan, ABS Senior Vice President and Chief Technology Officer.

/////       AIR  CARGO   NEWS   /////

Hirasar airport handles first air cargo consignment

Rajkot's Hirasar airport processed its first outbound cargo shipment on Tuesday, clearing a 600 kg consignment of silver ornaments from the passenger terminal.

While the airport's dedicated cargo terminal is still under construction, temporary clearance from the passenger terminal was permitted after repeated representations from logistics companies and jewellery traders. 

The Bureau of Civil Aviation Security (BCAS) granted security clearance for the arrangement on July 23. The inaugural consignment was dispatched to Delhi on a night flight.

Sources said logistics operators have been allotted night hours for cargo examination and clearance before loading. Cargo booked on daytime flights will be cleared at night and stored at the airport until dispatch.

Rajkot, a major hub for jewellery manufacturing, dispatches nearly 10,000 kg of silver, gold and imitation ornaments daily across the country. Industry representatives said the new facility will cut logistics costs and reduce theft risks associated with road transport.

Arunachala Pradesh begins air cargo service from Donyi Polo Airport

Arunachal Pradesh is all set to begin its first outbound air cargo service from Donyi Polo Airport, Itanagar. The service, under the theme ‘Empowering Farmers, Connecting Markets,’ is designed to link local farmers with larger markets and speed up the transport of perishable goods.

“Today, I had the privilege to flag off the first outbound air cargo from our state at Donyi Polo Airport. This initiative will open new horizons for our hardworking farmers,” Balo Raja, Civil Aviation Minister said in a post on X. As per the officials, the facility will focus on fruits, vegetables, flowers and other produce that often incur losses due to delays in conventional transport. The cargo service is expected to reduce wastage and help cultivators secure better prices, particularly in remote districts.

NMIA promises integrated terminal with 79 cargo stands in Phase 1

The Navi Mumbai International Airport (NMIA), gearing up for its inauguration in September, has announced the readiness of its Phase 1 facilities.

On the cargo side, NMIA will feature an integrated terminal with 79 dedicated stands, equipped for semi-automated handling, cold chain logistics, specialised storage for perishables and hazardous goods, along with 100 per cent export screening. 

Its strategic location—just 14 km from Jawaharlal Nehru Port Trust—will facilitate seamless multimodal freight movement. Officials noted that the airport’s phased development strategy is aligned with projected air traffic growth.

By 2050, passenger numbers in the Mumbai Metropolitan Region are expected to reach 250 million annually, with NMIA alone designed to handle up to 90 million passengers per year while ensuring robust capacity for cargo and private aviation.

Phase 1 also includes parking for 42 commercial aircraft stands and 23 dedicated slots for private jets and general aviation, addressing a long-standing shortage of private aircraft parking in the region.

Air One welcomes 1st B-777F, expecting 2nd by Q4 2025

Air One International Holdings has taken delivery of its first Boeing 777 freighter for use by affiliate British cargo airline, One Air and said it is expecting a second B777F to be delivered by the end of the year.

The production freighter is the first of two new 777Fs purchased by AeroTransCargo FZE, the aviation asset management company and subsidiary of Air One International Holdings.

The first 777F will be placed on an operating lease with East Midlands Airport-based airline, One Air and is painted in One Air’s blue, yellow and white livery. 

The second aircraft is due to be delivered in the fourth quarter of this year. One Air currently has three 747-400Fs as well as the recently delivered 777F, said reports.

Bridges Air Cargo gets first E190F to boost global cargo ops

Bridges Air Cargo has taken delivery of its first Embraer E190 converted freighter to boost global operations. The Maltese cargo carrier said it had begun ‘onboarding’ the aircraft, owned by US lessor Regional One.

Their official Linkedin post stated, “We are thrilled to announce that we are onboarding our first Embraer ERJ-190 converted freighter – a first of its kind in the aviation world. This marks an exciting milestone in our journey as a growing cargo airline.

The ERJ-190F will strengthen our ability to serve our customers with greater efficiency, flexibility, and reliability.” The airline added that it expected to receive its second E190F soon. 

From De Minimis to De Misery…

They’ve been coming in thick and fast: the number of European postal services that have announced a stop or temporary suspension on parcels and commercial postal items destined for the U.S. Why?

Because of the White House’s decision on 30JUL25, to delete the de minimis exemption from customs duties on parcels worth less than USD 800 for all countries, with effect 29AUG25.

The Group’s headquarters in Bonn, Germany. Image: DHL

So far, 22 European postal services have already or are planning to suspend parcel shipments to the United States due to confusion over new U.S. import tariffs scheduled to take effect on 29AUG25. They are:

·        Austria (Österreichische Post, starting 25AUG25)

·        Belgium (bpost, suspended 23AUG25)

·        Czechia (Česká pošta, suspended 22AUG25)

·        Denmark (suspended 22AUG25)

·        Estonia (Omniva, suspended 22AUG25)

·        Finland (Posti, suspended 22AUG25)

·        France (La Poste, starting 25AUG25)

·        Germany (Deutsche Post, DHL Parcel Germany, suspended 22AUG25)

·        Greece (Hellenic Post – date not specified)

·        Italy (Poste Italiane, suspended 23AUG25)

·        Latvia (Latvia Pasts, suspended 23AUG25)

·        Liechtenstein (Liechtensteinische Post, suspended 22AUG25)

·        Lithuania (Lietuvos paštas, suspended 22AUG25)

·        Malta (Malta Post, suspended 23AUG25)

·        Norway (Posten Bring, suspended 23AUG25)

·        Netherlands (PostNL, suspended 23AUG25)

·        Poland (starting 25AUG25)

·        Portugal (Correos Portugal, starting 25AUG25)

·        Slovenia (Pošta Slovenije, suspended 22AUG25)

·        Spain (Correos, starting 25AUG25)

·        Sweden (PostNord, suspended 23AUG25) – United Kingdom (Royal Mail, starting 26AUG25)

And not just the European continent. According to Value Added Resource (https://www.valueaddedresource.net/international-postal-services-de-minimis-pause-us-shipments/), other countries have also announced their temporary freeze on U.S.-bound parcels of a certain value.

For example, NZ Post New Zealand declared: “There are some restrictions when sending to the United States and U.S. territories…while formal processes around the new U.S. tariffs, duties and taxes are being finalised…Our online labelling tools will be disabled for impacted services from 5 p.m., 22AUG25. We expect that this suspension will be short term.” Thailand Post (suspended 21AUG25), Korea Post (25AUG25), Singapore Post (25AUG25), India Post (25AUG25), and Canada (25AUG25) are also listed. At time of writing Australia has not yet issued its verdict.

Not the first time…
DHL’s press release sent out on 22AUG25, announcing its temporary restrictions on German postal goods destined for the U.S., is an expansion of a situation that already began earlier this year, in APR25. CFG reported: https://cargoforwarder.eu/2025/04/21/dhl-stops-package-delivery-in-the-usa/ , when U.S.-bound goods from Hong Kong and China were affected.

“After 22AUG25, Deutsche Post and DHL Parcel Germany will no longer be able to accept and transport parcels and postal items containing goods from business customers destined for the U.S.,” the press release states, giving the reason that “the U.S. Executive Order ‘Suspending Duty-Free De Minimis Treatment for all Countries’ changes the basis for postal goods shipping to the U.S. for all postal and parcel service providers”.

The service is therefore temporarily suspended, though DHL Express shipments are still possible. “Packages and parcels that contain only gifts from individuals to individuals with a value of up to USD100 and are declared as a ‘gift’, as well as documents, can continue to be sent as usual,” it specifies. Business customers suffer temporary restrictions. Documents sent as letters are not affected, but overall, much stricter scrutiny will be in place to uncover fraudulent abuse of the new regulations.

As clear as mud
Despite the decision having been made a while back, there are still unclarities regarding the handling process, as DHL details: “the reason for these anticipated temporary restrictions is new processes required by U.S. authorities for postal shipping, which differ from the previously applicable regulations.

 Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out.” It goes on to explain the difference between postal and commercial customs clearance – both of which are negatively affected by the 30JUL25 Executive Order, but in different ways.

At the end of the day, processes are becoming more time-consuming, subject to stricter regulations, and the new regulations are adding costs to the existing supply chain: “All commercially cleared shipments, including those with a value under USD 100, are subject to customs clearance.

For goods from Germany respectively the European Union, the customs rate is expected to be 15% of the goods’ value – some product categories may be subject to higher duties.” DHL assures that it, along with its European partners, is in contact with U.S. authorities, to come to solutions so as “to resume postal goods shipping to the U.S. as quickly as possible”.

A dip in traffic and profit
Quick solutions are in the interests of everyone. In a discussion regarding financial results earlier this month, DHL’s CFO stated that the end of the de minimis exemption could reduce its potential full-year operating profit by up to USD 231 million – in other words a 3.3% hit on its operating profit.

Following the APR25 introduction of tariffs on previously duty-free low-value parcels from China and Hong Kong to the U.S., express shipments – particularly business-to-consumer parcels from those countries – fell by 20%. With the next chapter starting up on 29AUG25, further challenges and volume dips can be expected. And that is just one integrator in a very large air cargo industry.

Not to mention the knock-on effect these changes will have on consumer behaviour and the survival of small and medium-sized businesses who will suffer the brunt of the price increases and delays. What was once de minimis will cause misery for a while yet.

TIACA puts e-commerce under the microscope

The International Air Cargo Association (TIACA) has issued an e-commerce White Paper that pays tribute to the growing impact of e-commerce on the global cargo industry. By 2024, e-commerce comprised roughly 20% of air cargo volumes and is expected to double within a decade.

In its White Paper, the association not only highlights the effects of the e-commerce boom on the various participants in the supply chain but also provides specific recommendations for optimizing e-commerce management along the entire transport process.

The White Paper was compiled by a 14-member international Task Force, chaired by Nicolai Schaffner, Swissport, and Independent Consultant, Carl Kent.

e-commerce has led to a paradigm shift in international air freight. Driven by lockdowns during the Covid pandemic, consumer behavior has switched from traditional retail “brick and mortar” to online marketplaces, C2C platforms, and direct sales channels.

Social media-based retail activity is speeding up this evolution as retail is now available around the clock and accessible via smart phone technology no matter where someone lives. Global payment systems support this “shop anywhere, anytime” mindset.

Descriptions are supplemented by recommendations for action
The white paper published by IATA is the first comprehensive approach to examining the impact of this trend on air freight.

All in all, the 82-page compendium offers precise descriptions of the current situation as well as practical guidance for airlines, forwarding agents, ground handlers, airports, customs authorities, and regulators, on the hurdles that still need to be overcome to optimize the ever-increasing flow of e-commerce shipments. The great merit of the TIACA paper lies above all in these action-focused recommendations.

In e-commerce, the shopping cart is right next to the notebook.

e-commerce impact on airlines
This is vividly illustrated in Chapter 06, which features opportunities and challenges for airlines arising from online retail. There, the authors of the study emphasize that e-commerce has significantly changed the business activities of air cargo operators in three key ways: Firstly, online shopping has increased demand for express shipping, increasing the need for higher speed.

As a consequence, carriers should shift their handling strategy, focusing on millions of small parcels rather than traditional bulk freight. Secondly, to meet the growing demand, major freight carriers need to expand their freighter fleets, with passenger airlines relying increasingly on e-commerce volumes to boost their revenues.

Thirdly, carriers must be aware of increasing compliance costs and operational complexities resulting from stricter ICAO and state regulations, following the rise in undeclared lithium batteries, counterfeit goods, and customs fraud.

Industry-wide collaboration is needed
As further recommendations for airlines on how to deal with the e-commerce tsunami in a smart, efficient, and targeted manner, the authors of the white paper stress the need to streamline booking and tracking processes, as consumers now expect real-time updates on their shipments.

Additionally, due to the growing requirement for last-mile delivery solutions, airlines should closely collaborate with logistics providers to ensure timely deliveries from airports to consumers’ doorsteps.

Furthermore, airlines must adopt advanced technologies, such as data analytics and automation, to enhance operational efficiency and manage the surge in volume effectively. This transformation also involves revising capacity management strategies to accommodate fluctuating e-commerce demands and ensuring adequate infrastructure is in place for handling increased cargo loads.

At the same time, they point to competitive pressure from e-commerce giants such as Amazon, which are expanding their internal logistics activities and reducing their dependence on third-party carriers, and disrupting traditional air cargo business models.

Putting more focus on security issues
In a nutshell: cargo carriers should adapt their operational models to accommodate the surge in small, high-frequency e-commerce shipments. They should closely evaluate which additional infrastructure and fleet investments are required to handle the growing demand for express air freight services.

Finally, keeping a close eye on security issues and compliance with customs regulations becomes increasingly important.
Subsequent chapters describe how postal services are responding to the growth in e-commerce shipments.

Two adaptation strategies can be identified: some postal services are diversifying into e-commerce logistics, financial services, and digital innovations to counteract the decline in traditional mail volumes. Others are considering strategies such as reducing delivery frequency or focusing on higher-value services.

Ecological considerations
Sustainability is another chapter that is highlighted. Environmental aspects are becoming increasingly important for air freight and thus also for e-commerce logistics, the authors of the study believe. Charts and diagrams very clearly illustrate this assumption.

e-commerce and its effect on ground handlers
The impact of e-commerce on the activities of ground handling agents is also reflected. Ground handling activity is currently unregulated, with many differences existing between carriers in terms of standard ground handling operations and procedures. As such, a ground handler who represents multiple carriers is faced with managing various operational standards and deviations. As e-commerce grows, the role of the ground handler becomes even more important as volumes of small shipments often place additional burdens on facility and border management when compared to larger consolidated shipments. In addition, the quality requirements for employees are increasing.

Strategic guidance

The white paper concludes with the remark: “By adopting standardized practices, investing in digital infrastructure, and strengthening global cooperation, the air cargo industry can align with the future demands of e-commerce while ensuring safe, efficient, and environmentally responsible operations. TIACA’s strategic guidance offers a roadmap for stakeholders to navigate this evolution collaboratively and proactively.”

Those interested in the analysis should contact:

Rachael Negron, TIACA, PO Box 661510, Miami Springs, FL 33266-1510.
Phone: +1 786 265 7011  /  e-mail: press@tiaca.org

SHEIN focuses on sustainable supply chains

Signing the MoU (from L > R): Elodie Berthonneau, LCAG, Ethan Shen SHEIN, Ashwin Bhat LCAG and Alex Chen, SHEIN – courtesy: LCAG

If we are not mistaken, the deal is an industry first inked by a Chinese e-trader with a cargo carrier. In the Memorandum of Understanding both companies declare their intention to finalize the adoption of SAF offsetting solutions for SHEIN deliveries within the next 182 days. Further to this, they will test and promote the transition to renewable and lower-carbon energy sources for air transport operations, is stated in a press release.

Ambitious goals
The initiative is aligned with SHEIN’s commitment to address its carbon footprint from transportation, driven by the aim to reduce it. The step is part of its evoluSHEIN strategy to decarbonize supply chains, source responsible materials and protect nature and biodiversity, among other overarching criteria (see chart).

Conversely, Lufthansa Cargo will provide high-quality “Proof of Sustainability” certificates for the SAF quantities used. These certificates are based on externally verified standards and document emission reductions, compared to conventional jet fuel, in a traceable manner.

SHEIN’s roadmap to a shining future – credit: SHEIN

In addition to the necessary coordination of processes for compliant verification and greenhouse gas reductions, “we will jointly examine further options for integrating sustainable transport services for SHEIN. Examples of other areas of our cooperation include knowledge transfer and approaches to improving traceability and the collection of operational and environmental data. We plan to engage in ongoing dialogue on other aspects of sustainability to identify and leverage joint learning and potential synergies,” states Lufthansa Cargo’s communications department when asked by CargoForwarder Globaltospecify the areas of collaboration.

Broader decarbonization strategy
“Through this partnership, we aim to pilot and gradually expand the use of SAF where feasible, while continuing to explore additional ways to reduce the carbon footprint across our delivery network. While the use of SAF is one step towards reducing our transportation and distribution emissions, we recognize it as part of a broader decarbonization strategy that should also include optimizing logistics, fleet efficiency, and exploring other low-carbon solutions,” commented Ethan Shen, SHEIN’s General Manager of Global Fulfillment. The manager went on to say: “Lufthansa Cargo has extensive experience in driving the adoption of SAF and will provide SHEIN with opportunities to adopt lower-carbon air cargo options.”

Costly experiences
At the end of 2020, the cargo carrier teamed up with agent Schenker to introduce weekly SAF-based flight rotations between Frankfurt and Shanghai. However, about two years later, these were stopped, despite high CO2 reductions.

Although well-known brands such as Siemens, Nokia, Lenovo, Merck, and Mercedes Benz had participated in the financing, medium-sized freight forwarders shied away from the additional fuel costs, which terminated the project since it became too expensive.

“Signing this memorandum with SHEIN represents Lufthansa Cargo’s commitment to implementing high-performance logistics solutions responsibly and with operational excellence. It demonstrates the importance of concrete measures and reliable implementation in the international air freight business.

Together with all stakeholders within the supply chain, we are driving the development of more sustainable global supply chains in line with our purpose: Enabling Global Business,” said Ashwin Bhat, CEO of Lufthansa Cargo.

An industry first
SHEIN’s air freight transport is managed by freight forwarders. Are these agents bound by any SAF agreements between SHEIN and Lufthansa Cargo, or could they opt for other carriers, we asked the airline. “Lufthansa Cargo sells SAF that meets the highest certification standards. The Proof of Sustainability (POS certificate) is only issued to Lufthansa Cargo after transport. The partnership between SHEIN and Lufthansa Cargo aims to pilot and gradually expand the use of SAF. Over the next six months, the possibilities for using sustainable aviation fuels and offsetting the corresponding costs will be examined,” the airline replied

Is the agreement an industry first or do similar MoU’s exist between Chinese e-trading platforms and cargo airlines? “We are currently not aware of any comparable agreements. At SHEIN, we are the first and currently the only airline partner to have signed an MoU on sustainability,” notes Lufthansa Cargo.

Are more MoUs on the horizon?
When asked what volume SHEIN contributes to Lufthansa Cargo’s total sales, the airline refused to provide any information on sales figures or percentages for individual customers.

Since Lufthansa Cargo cooperates with many customers, the question arises as to whether there are plans for a similar MoU with Temu, Shaoke or other such e-traders. “Lufthansa Cargo is an experienced partner when it comes to the safe purchase and use of SAF.

We are pleased that our very strict approach, which is based exclusively on externally audited POS, is appreciated by the market. We are happy to provide our customers, partners, and new prospects with advice and operational support when it comes to the further implementation of sustainable transport,” the cargo airline stated.

LHC and ITA intensify cargo cooperation
As Lufthansa Cargo further announces, it will market the lower deck capacity of ITA Airways on continental and intercontinental routes under its own AWB number from the end of October – including flights departing from Rome Fiumicino. Thus, the LHC-ITA cooperation launched in JUN25 is almost fully rolled out, offering Lufthansa Cargo customers an additional hub in southern Europe and prospectively almost 20% more capacity.

This further strengthens the freight carrier’s offering, making it the broadest network to, from and within Europe, as well as to destinations worldwide. However, due to the lack of U.S. regulatory approvals, ITA routes to and from the United States and Canada are still excluded from the sales deal for the time being. 

 

airBaltic maps out next phase of growth

New brooms sweep clean, as the saying goes. Latvian national airline airBaltic is now following this motto by placing the airline’s management in the hands of an experienced financial expert. His name: Erno Hildén. The Finnish native will take command of airBaltic on December 1, 2025. His main job will be to drive new growth.

“I appreciate the trust placed in me by the Supervisory Board. It is a privilege to take on this responsibility at airBaltic. My focus will be on ensuring continuity, supporting the Executive Board, and working together with the team to maintain operational stability and contribute to the company’s long-term objectives. I also look forward to applying my international aviation and financial experience to support the company’s next stage of development,” exclaimed Erno Hildén following his nomination.

Tough market conditions

Until DEC25, Pauls Cālītis will lead the airline as interim CEO but will resume his duties as Chief Operating Officer (COO) once Hildén takes office. Hildén has earned a reputation in the industry as an excellent restructuring expert at Scandinavian Airline SAS, which was in serious financial trouble at the time.

As a member of the SAS management team, he was also responsible for securing the company’s solvency by tapping into new sources of financing. With Air France’s recent acquisition of a majority stake in SAS, Hildén’s chapter at SAS has also come to a close.

His appointment as CEO of airBaltic is evidence of the airline’s intention to grow and consolidate its market position. It has suffered setbacks in the recent past, losing part of its route network to Russia due to the Putin regime’s invasion of Ukraine and the subsequent sanctions imposed by the West.

Lufthansa is on board
But now the Latvian airline is poised to expand once again. To finance this expansion, the airline is receiving €14 million from the government in Riga. The Lufthansa Group contributes the same amount. In return, it secures itself a 10% stake in the airline which includes getting a seat on the supervisory board of the Latvian state-owned company.

Lufthansa’s investment is based on a cooperation that has existed for several years, in which Lufthansa leases aircraft and crews from AirBaltic under a wet lease agreement. According to a statement, the conversion of the previously acquired convertible shares into common shares, which has now been announced, will enable the Lufthansa Group to improve the quality of its route network and tap into additional markets.

Further investors are welcome
Lufthansa’s investment is based on a long-standing partnership in which Lufthansa leases aircraft and crews from AirBaltic under a wet lease agreement. According to a press release, the conversion of previously acquired convertible shares into common shares will enable the Lufthansa Group to improve the quality of its route network and tap into additional markets.

Latvian Transport Minister Atis Švinka stated that “having one of the aviation industry leaders as a strategic investor in airBaltic increases the value of our national airline and confirms its leading position in the market.” He added to this that this will help attract other investors since it demonstrates the sustainability of the Baltic airline’s business strategy.

Cargo is a side product
It serves more than 70 destinations from its hub Riga International (RIX), using a uniform fleet of 50 Airbus A220-300 aircraft. It has also placed 40 orders for this Canadian-built Airbus variant.

The A220 has a nonstop range of 6,700 km and the belly compartments offer 28 cubic meters of space for air freight. This is slightly less than the cargo capacity of its competitor, the Boeing 737 MAX. However, ground staff is needed to load and unload both aircraft types, as the lower deck compartments are too small to fit standard ULDs.

Meanwhile, investors in Estonia and Lithuania are still evaluating a financial commitment in airBaltic. In contrast, the Estonian government has rejected a stake in the carrier on the grounds that it would rather spend the money on expanding Tallinn Airport as it expects air traffic to grow successively. By 2030, 5 million passengers are expected there. Tallinn Lennart Meri Airport recorded 3.5 million passengers in 2024, an 18% increase year-on-year.

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, Cargo Forwarder Global  &  Air Cargo News.