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 December 16,
2025
Today’s
Exchange Rates
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88.63 |
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1.159 |
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116.6901 |
0.046196 |
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102.8357 |
0.300896 |
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102.9094 |
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155.174 |
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1.3166 |
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99.395 |
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/// Sea Cargo News ///
Philippines Reports Oman Arranged for Release of Crew
Held by Houthis
After four months of captivity, the crew of the bulker Eternity C is expected to be released by the Houthis. The Philippines Department of Foreign Affairs reports it has been advised of the release by the government of Oman, although no timing or details were provided.
The Philippines said it had been discussing
the plight of the individuals with the Omani authorities as it sought to gain
their freedom. The Philippines had made an initial appeal in July when the
Houthis reported they had “rescued” several of the crewmembers from the ship.
The Philippines reports it again raised the
matter with Omanis during a phone call in November.
The statement says that nine individuals will
be released and transferred from Yemen to Muscat, Oman. The DFA expressed
its “sincere appreciation” to the Sultanate of Oman for the assistance in
winning the repatriation of the crew.
The Eternity C was one of
the two vessels attacked in rapid succession by the Houthis in the Red Sea in
July. It marked a renewal of the aggression timed to the war in Gaza.
The vessel was attacked three times by as
many as eight boats firing small arms and RPGs on July 7, and the following
day, again assaulted by the Houthis after the ship had already been damaged.
The reports said that no warships had yet been able to reach the bulker and
that its lifeboat had been destroyed, making it impossible for the crew to
abandon ship.
The ship started to sink on July 9, and
the crew was forced to jump into the water. Cosmoship Management had hired a
salvage team, which was working frantically to rescue the crewmembers. They
were able to save eight crewmembers and two security guards. The body of
another security guard was retrieved, and the death toll was set at a total of
nine.
A mystery ensued with the Houthis saying they
had rescued several of the crewmembers. They released a video showing nine
individuals, and a 10th was shown in a hospital bed. The group said the
crew was receiving medical care and was in good condition.
This is believed to be the last of the crew
detained by the militants. They previously also held the crew of the car
carrier Galaxy Leader for 14 months before the Omanis were
also able to negotiate their release.
Red
Sea container service returns via Suez Canal
Major carrier CMA CGM has announced its
INDAMEX service will transit Suez Canal on fronthaul and backhaul voyages
between India/Pakistan and US East Coast in a notable step towards a largescale
return of container ships to the Red Sea region.
The first vessel to complete a full service
loop via Suez Canal will be CMA CGM VERDI, sailing from Karachi to New York on
January 15. eeSea by Xeneta data shows voyages via Suez Canal rather than Cape
of Good Hope reduces full loop transit time on this service by two weeks, down
to 77 days.
Peter Sand, Chief Analyst at Xeneta – the
ocean freight intelligence platform – said : “We are still some way from a
largescale return of container shipping to the Red Sea, but CMA CGM’s
announcement of a full east-west loop via Suez is certainly a notable step in
the right direction”.
“We have seen carriers, particularly CMA CGM, testing the water recently by transiting Suez canal on a select few voyages, particularly back-haul legs to Asia when there is less cargo onboard”.
He said : “Carriers will be carrying out risk
assessments and the security situation remains fragile. The assessment will
look at the Houthi’s ability, opportunity and intent to attack ships. We know
they have the ability, but carriers will want assurance over their intent,
especially because the opportunity will increase as more ships begin sailing
through the region”.
The shorter transit time on a full loop via
Suez on the CMA CGM INDAMEX means two ships will be dropped from the service –
a pre cursor for the impact a largescale return would have on container
shipping capacity and freight rates.
Sand said: “There is already overcapacity of
supply in the ocean container shipping market and spot rates are falling even
without a largescale return to the Red Sea. Average spot rates on Far East
front-hauls to US East Coast and North Europe are down 57% and 53% respectively
compared to a year ago.
“If we see other carriers follow CMA CGM,
then capacity will flood the market and we could see freight rates fall hard.
This could push carriers further towards loss making territory, but they will
be fully aware of this outlook and ready to respond.”
CMA CGM KRYPTON joins Phoenician Express
CMA CGM has officially named its new
dual-fuel methanol vessel, the CMA CGM KRYPTON, in South Korea. The ship is commanded by Captain Vadym
Byelash, and the godmother is Ms. Eun Hyung Lee, Professor at Kookmin
University.
The CMA CGM KRYPTON has a capacity of 13,000
TEUs. It will operate on the Phoenician Express (BEX2) service, connecting
Asia, the Mediterranean and the Middle East.
This vessel marks a new step in connecting
regions and supporting global trade. CMA CGM wishes KRYPTON fair winds and safe
travels.
Coastal trade concerns over SCI’s frequent withdrawal of coastal vessels
The Coastal trade community has raised
serious concerns over the Shipping Corporation of India’s (SCI) recent
operational approach, stating that frequent withdrawal of vessels and sudden
schedule disruptions are adversely impacting the growth of the country’s
coastal shipping sector.
The trade highlighted that SCI’s repeated
vessel cancellations, last-minute service changes, and diversion of ships for
chartering have shaken confidence within the trade. According to the community,
these actions contradict the Government’s push to shift cargo from road and
rail to more sustainable and cost-efficient coastal transport.
However, the current instability in SCI’s
coastal services is creating multiple challenges for the trade. The trade and
industry warned that reduced PSU participation could lead to private carriers
gaining monopoly power, resulting in higher freight rates, unreliable services,
and disruption of supply chains for coastal customers. It added that such
inconsistency undermines the Government’s strategy to increase coastal cargo
volumes and discourages stakeholders who mobilize cargo for SCI.
“As the National Line, SCI has not only
commercial responsibilities but also a national obligation to support coastal
cargo movement”, the coastal
trade noted. Without stable and consistent
deployment from SCI, the trade fears that the Prime Minister’s vision of
strengthening coastal shipping as a key pillar in India’s logistics network
could face setbacks.
The coastal trade community has urged the
Ministry to intervene with the following measures :
+ Direct SCI to prioritize coastal deployment
over chartering activities.
+ Secure a firm commitment from SCI for
consistent service availability.
+ Review SCI’s operational strategy to ensure
coastal shipping remains a core focus.
The trade community warned that a weakened
SCI presence could leave the coastal trade vulnerable to monopolistic practices
by private operators, ultimately harming trade interests and national logistics
goals.
The trade community reaffirmed its commitment
to supporting Government initiatives aimed at expanding coastal shipping and
requested the Ministry’s guidance to ensure SCI fulfils its critical role in
developing India’s coastal container trade.
HD Hyundai to set up its first Indian shipyard in Tamil Nadu’s Thoothukudi
South Korean shipbuilding giant HD Hyundai
announced on Sunday that it will establish its first shipyard in India,
selecting Thoothukudi in Tamil Nadu as the project site. The decision was
formalised through a memorandum of understanding (MoU) signed in the presence
of Tamil Nadu Chief Minister M.K. Stalin, Industries Minister T.R.B. Rajaa, and
senior leadership from HD Korea Shipbuilding & Offshore Engineering (KSOE).
The investment size has not been disclosed.
According to sources, HD Hyundai had been evaluating multiple states —
including Andhra Pradesh and Gujarat — but Tamil Nadu emerged as the preferred
destination due to its strong policy framework, thriving heavy engineering
ecosystem, and conducive environment for large-scale manufacturing.
Tamil Nadu Industries Minister T.R.B. Rajaa
said the development underscores the global industry’s confidence in the
state’s stability, vision and economic strength. “Thoothukudi offers the
climatic and geographic conditions needed for a world class shipyard. With a
strong industrial base and major port infrastructure investments underway,
there is a clear pathway for expansion”, he said.
He added that Tamil Nadu identified viable
sites early and backed them with talent, infrastructure and incentives. “The
state has provided a dependable and scalable environment for long-term shipyard
operations”, Rajaa noted.
The proposed shipyard is expected to
significantly boost Tamil Nadu’s maritime manufacturing capabilities and
strengthen India’s position in the global shipbuilding ecosystem.
State-owned ports to
join Bharat Container Shipping Line as equity partners
In a significant step toward strengthening
India’s maritime logistics ecosystem, state-owned ports such as Chennai Port
Authority and Kamarajar Port Ltd are likely to be inducted as minority equity
partners in the upcoming Bharat Container Shipping Line, a joint venture being
established by Shipping Corporation of India Ltd (SCI) and Container
Corporation of India Ltd (CONCOR), according to multiple sources.
SCI and CONCOR — both Navratna public sector enterprises — will hold the majority stake in the new national container line, while the two Chennai-based ports will support the venture with strategic port-side integration. Notably, Kamarajar Port Ltd is fully owned by Chennai Port Authority, reinforcing coordinated participation from the region.
CONCOR has recently made strong inroads into
the shipping sector by sending its own cargo containers to the Middle East,
with encouraging two-way load factors.
“We have made a serious foray into the
shipping sector… We are getting loaded traffic both ways with more than 30%
margin per container,” said Sanjay Swarup, CMD-CONCOR, during the Q2 earnings
call. The company is also exploring services to the Far East, he added.
A Step Toward Reducing Dependence on
Foreign Lines :
Currently, 99% of India’s EXIM Container
cargo is carried by foreign shipping giants such as MSC, CMA CGM, Maersk, Hapag
Lloyd, Evergreen, Wan Hai and Yang Ming.
SCI, India’s only mainline container ship operator, owns just three
vessels – SCI Delhi, SCI Mumbai & SCI Chennai.
For decades, exporters have highlighted the
need for a strong Indian container carrier to ensure reliability, competitive
rates and reduced dependency on global shipping companies.
The establishment of the Bharat Contianer
Shipping Line – backed by SCI, CONCOR and key state owned ports – marks a
crucial move toward fulfilling that long-standing demand and strengthening
India’s maritime self-reliance.
India is preparing for a major expansion of
its merchant fleet, with the government expecting around 300 foreign-owned
vessels to be re-registered under the Indian flag by 2030, senior officials
said.
The move is part of a larger strategy to
enhance domestic shipping capacity, lower logistics costs and boost the
country’s export competitiveness. According to officials, the re-flagging
process for nearly 50 vessels is already underway and is likely to be completed
within the next three months.
“Around 11 global shipping majors have
expressed intent to shift part of their fleets to the Indian registry,
reflecting the growing confidence in India’s maritime framework and regulatory
stability,” they said.
Shipyards have also been classified as
infrastructure, giving them access to long term credit, tax breaks and smoother
capital inflows. Large maritime infrastructure projects, including the
Rs.76,000 Crore Wadhwan Port and major capacity expansions across non-major
ports, are further strengthening the ecosystem.
With reforms accelerating and global carriers
showing early commitment, officials believe the country is on track to
significantly scale up its fleet strength by 2030, supporting India’s long-term
export-led growth ambitions.
India, Quad Nations
Eye Closer Collaboration to Boost Port Infrastructure in Bay of Bengal
A new policy paper has highlighted how India, the United States, Japan and Australia — both individually and collectively through the Quadrilateral Security Dialogue (Quad) — are emerging as key players in strengthening port infrastructure and maritime connectivity across the Bay of Bengal (BoB), one of the world’s most crucial trading hubs.
Ports serve as gateways to global commerce, handling over 80% of global merchandise trade. The BoB region alone processes nearly 30% of global trade flows, with Colombo (Sri Lanka), Chennai (India) and Chattogram (Bangladesh) among its most critical ports. Yet despite its strategic value, the region continues to suffer from infrastructural gaps, fragmented governance, inefficiencies, and rising geopolitical tensions.
IATA: Cargo volumes to rise 2.4% in
2026
Trade body
highlights sector resilience amid global trade challenges, with e-commerce and
time-sensitive shipments driving growth. Air cargo volumes in 2026 are expected
to increase 2.4% year on year, according to IATA’s latest analysis.
Credit:
tratong/ ShutterstockThe trade
body said air cargo volumes are expected to reach 71.6m tonnes in 2026,
noting that the "resilience in air cargo has been particularly
impressive" within the context of the challenges the market has faced.
Cargo
revenue is forecast to reach $158bn in 2026, up 2.1% on $155bn this year.
Revenue will be particularly driven by time-sensitive shipments and
e-commerce volumes.
Despite
positive predictions for volumes and revenue, cargo yields are expected to
be down -0.5% on 2025, although this is within the context of a slowdown
in global trade and yields will still be approximately 30% above pre-pandemic
levels, pointed out IATA.
Willie
Walsh, IATA’s director general, said: “The resilience in air cargo has been
particularly impressive. As trade flows adapt to a protectionist US tariff
regime, air cargo has been the hero of global trade buoyed in part by robust
e-commerce and semiconductor shipments to support the boom in AI investments.
"Notably,
air cargo enabled front-loading to deliver products ahead of tariff deadlines,
and it flexibly accommodated demand surges as tariffed goods normally destined
for the US found new markets. The critical role of air cargo is front and
center as the global economy adjusts to new realities."
Swiss WorldCargo and Lufthansa Cargo
deepen their ties
Both carriers embark on a new strategic cooperation to enhance customer value. This will be achieved by jointly creating operational synergies and upping commercial activities. The carrier’s electronic booking system for air freight is also to be unified.
Lufthansa
Cargo and Swiss WorldCargo intensify their collaboration –
image: LHC / SwissA key
point from Swiss WorldCargo’s perspective is that both brands will continue to
exist side by side and thus independently. To be clear: Swiss WorldCargo will
not become Lufthansa Cargo, despite the announced intensified cooperation.
This means
that Swiss Air Lines’ cargo division will escape the fate of Lufthansa
subsidiaries, Austrian Airlines and Brussels Airlines, which no longer have
their own cargo divisions and whose air freight business is managed by
Lufthansa Cargo from its Frankfurt headquarters. A future candidate for this
model is the Italian airline, ITA, whose cargo personnel have already been
taken over by Lufthansa Cargo and whose customers already book their shipments
via Lufthansa Cargo’s booking tool (e-booking) for most intercontinental ITA
routes.
SkyChain
or e-booking – only one platform will survive
It remains to be seen whether the Lufthansa Cargo IT-system, which has been
online since AUG25, or its counterpart, SkyChain, at Swiss WorldCargo will
establish itself as a uniform platform.
SkyChain,
which replaced the old IT platform ‘SwissWorks’ just a few days ago, is said to
have been launched with great success, according to the Swiss cargo airline.
Different
product priorities
The joint release stresses that both partners will focus on their proven
strengths when it comes to products.
Swiss
WorldCargo has made a name for itself as a premium carrier. It wants to keep it
that way by concentrating on high-value, care-intensive, time-critical air
freight items, transported in the bellies of its passenger fleet and offering
personalized and high-quality services across more than 130 destinations
worldwide.
Lufthansa
Cargo describes itself as the efficiency leader with a global capacity offering
of both belly and freighter capacity, and a broad network, leading in
digitalization and well-known for its innovative solutions, reads the carriers’
joint release. Retaining both individual brands and combining their unique
strengths into a more distinct and comprehensive product and service portfolio
will benefit customers and partners, both carriers reason.
Combined
network
“We are building on the complementary strengths of Lufthansa Cargo and Swiss
WorldCargo – two brands with distinct identities, shared values, and a
continuous commitment to quality and care. By combining our capabilities,
expertise, and market presence, we will create new, industry-leading synergies
and provide greater value to our customers. Together we are shaping the future
of specialized and premium air cargo services across our combined network,” says
Alain Chisari, Head of Swiss WorldCargo.
The joint
press release does not address the impact that the intensified cooperation will
have on corporate communications. However, as both companies will continue to
operate as independent brands under their respective names, which also applies
to the cargo business of Swiss subsidiary, Edelweiss, there will probably still
be two press departments based in Frankfurt and Zurich respectively.
There is
also no indication of whether parts of Lufthansa Cargo’s B777F long-haul fleet
will take off from Zurich in the future or even be stationed there.
In the
end, the customers benefit, claim the carriers
“Thanks to deeper cooperation, customers will have access to one of the
broadest networks in the industry along with a wide product portfolio with
highest quality combined with many years of expertise.
We are
very pleased to be able to offer our customers even more tailored solutions for
the transport of their freight. By aligning the two organizations even closer,
we further strengthen Lufthansa Groups’ purpose of connecting people, cultures
and economies in a sustainable way,” explains
Ashwin Bhat, CEO of Lufthansa Cargo.
As former
head of Swiss WorldCargo (2015-2021), the now announced close strategic and
operational cooperation of the two freight carriers is likely to be very much
in his interests.
Frankfurt CargoHub resilient and
optimistic
Global
trade is entering a new phase of realignment, and Frankfurt Airport’s cargo hub
has proven its strength in navigating shifting market dynamics. CargoForwarder
Global’s guest author, Sebastian Bartscher, Senior Business-Analyst Cargo at
Fraport AG, illustrates Frankfurt CargoHub’s 2025 achievements in the face of
rising trade tensions and tariff adjustments, and how the German hub continues
to consolidate its role as Europe’s gateway for cross-border e-commerce and
resilient supply chains.
Frankfurt
CargoHub stays resilient in 2025: e-Commerce and Asian exports boost air cargo
amid trade conflicts.
The
international trade landscape is undergoing a noticeable transformation. While
some regions are forging ahead with impressive momentum, others remain at a
standstill. In the first half of 2025, global trade grew by 4.9% year-on-year,
driven primarily by strong exports from Asia (up 10.4%), whereas exports in
Europe stagnated.
With the
overall macroeconomic situation improving, trade relations remained robust in
regions not affected by tariff increases. So far, the negative effects of U.S.
tariff hikes and ongoing trade uncertainty have been lower than expected, as
other countries – apart from China – have refrained from implementing
significant countermeasures.
As a
result, the WTO has revised its global trade forecast for the full year 2025
upward – from -0.2% in April to +2.4% in October. Reflecting this positive
trend, global air cargo volumes are also projected to increase by approximately
2.5% overall. The main growth drivers are airports in Asia, which are forecast
to achieve robust growth of about 5% in 2025. In contrast, European airports
are likely to experience more moderate growth of around 2%, while North
American airports are expected to stagnate.
The
effects of de minimis
The abolition of the de minimis trade rule in the U.S. – which previously
allowed low-value imports to enter the country without payment of customs
duties or taxes – has caused notable shifts, particularly in global e-commerce
shipment patterns. As a result, China’s exports to North America fell by 13.6%
during the first nine months of the year (down 18.5% to the U.S. alone), while
exports to Europe soared by 58.5% year-on-year.
This
development reflects a broader trend in how trade adapts to changing regulatory
environments in key markets. Several European countries, including Belgium,
Hungary, and Germany, experienced substantial growth in e-commerce volumes from
China, with Germany recording an 83.8% increase in value and reaching a total
of around USD 1 billion.
At Frankfurt Airport (FRA), cargo unloaded from China flights has once again
become the main growth driver, with 214,500 metric tons of air cargo marking a
32.3% increase and setting a new historic record. Notably, the share of
e-commerce tonnage on routes from China to Frankfurt has risen sharply and is
currently estimated at around 35%. This momentum underscores the growing
importance of the e-commerce sector as a key growth driver for the Frankfurt
CargoHub.
Sino-German
collaboration
To further strengthen the freight corridor between Asia and Europe, Frankfurt
Airport and Shanghai Pudong International Airport recently signed a Memorandum
of Understanding, establishing a strategic cargo partnership. Building on years
of close cooperation – including last year’s roadshow in China – the new
partnership aims to streamline regulatory processes, enhance efficiency in
cross-border e-commerce, and jointly set new standards for handling global
cargo flows.
With
e-commerce volumes between China and Europe rising sharply, and Shanghai
serving as an important strategic market, the enhanced collaboration will
enable both hubs to respond even more effectively to dynamic market
developments.
With
around 106,000 metric tons handled at FRA between January and September 2025,
cargo from Shanghai accounted for about half of the incoming tonnage from
China, an increase of about 20% compared to the previous year. In 2024, the
Frankfurt–Shanghai route was Europe’s top air cargo route, with around 120,000
metric tons of cargo unloaded at Frankfurt Airport and a total volume of about
215,000 metric tons.
Air cargo
forecast 2026: stable outlook despite global risks
For 2026, the WTO has revised its trade forecast downward from +2.5% in April
to only +0.5% in October, partly due to the expected pull-forward effects from
the increase in U.S. tariffs in 2025 and their long-term impact. In contrast,
the Airports Council International (ACI) projects higher growth of around 3%
for European and global airports in its latest World Airport Traffic Forecast
for 2026.
Given
developments in 2025, the ACI forecast for Europe appears optimistic but not
unattainable, as air cargo traffic performed better than initially expected.
For Frankfurt Airport, we anticipate moderate growth in 2026, comparable to
that of 2025.
The
decisive factor will be how the main trade routes develop amidst the ongoing
tensions between the U.S. and China, the two largest air cargo markets.
Overall, most industries have remained stable despite the global uncertainties,
with key economic indicators such as Purchasing Managers’ Indices (PMIs)
recently rising again.
Air cargo
demand has been growing for over two years now, driven primarily by strong
e-commerce. However, there is a risk of growth being dampened in the coming
year by persistent trade tensions, new EU regulations in e-commerce – including
the planned abolition of the 150-euro duty-free threshold from 2026 – and a
gradual shift from air to sea transport.
Flexibility
is key
For logistics providers, flexibility remains crucial for responding quickly to
short-term changes. Frankfurt’s CargoHub demonstrates its strength above all
through close cooperation with a strong network of international partners. In
an environment shaped by changing regulations, shifting trade flows, and
geopolitical uncertainties, these partnerships form the backbone of a resilient
and future-proof cargo hub.
The air
cargo industry as a whole has shown its ability to adapt flexibly to evolving
circumstances – an advantage that benefits Frankfurt as well. By maintaining
open dialogue with stakeholders and continuously adapting to market needs, the
Frankfurt CargoHub will continue to successfully navigate challenges and seize
opportunities in global air cargo. This strong partner network ensures that
Frankfurt Airport remains competitive and well-equipped to meet the diverse
requirements of customers – both now and in the years to come.
Author:
Sebastian Bartscher
Senior Business-Analyst Cargo, Fraport AG.
Wheels for wings: Europe’s Hidden Air
Network
How Road
Feeder Services Keep Cargo Flying – and Their Digital Road Paradox Holding Them
Back
Every
night, hundreds of trucks leave Warsaw, Budapest, Prague, and Bucharest bound
for Frankfurt, Amsterdam, and Liège – each carrying air freight under an IATA
flight number. To the untrained eye, they’re just road transport. To the
cargo world, they are the ground layer of Europe’s air network.
RFS as the
silent extension of Europe’s air network
Road Feeder Services (RFS) act as an extension of the air network – essentially
flights on wheels. An estimated 30-40% of intra-European air cargo now moves
this way, carrying automotive parts, electronics, semiconductors,
pharmaceuticals, medical devices, and other time-critical exports.
The
customs-bonded trucks move under airline codes, following strict schedules that
mirror short-haul flights. And although some flows move from West to East, the
dominant direction runs East to West, where the main hubs provide long-haul
capacity.
According to a 2025 market study by Mordor Intelligence, the European Road Feeder Services market is valued at approximately USD 7.5 billion, underscoring the scale and economic weight of these ‘flights on wheels’. (Source: Europe Road Feeder Services Market Size & Growth to 2030, Mordor Intelligence)
Jan de
Rijk’s road feeder fleet is part of Europe’s air network – photo:
company courtesyWhy East
dominates West
The RFS network grew out of necessity, not design. Airspace congestion,
short-haul cost pressures, and environmental limits pushed airlines to replace
feeder flights with trucks.
Western
Europe’s big hubs – Frankfurt (FRA), Amsterdam (AMS), Paris (CDG), Brussels
(BRU), Liège (LGG) – became consolidation platforms for global cargo. Meanwhile
Central and Eastern Europe (Poland, Czechia, Hungary, Romania, Bulgaria)
developed strong export industries but relatively few long-haul flights,
feeding goods westward overnight.
Central and Eastern Europe manufacture and globally export high-value
automotive components, pharmaceuticals, electronics, and machinery. Global
freight forwarders such as DHL, DSV (including the DB Schenker acquisition),
and Kuehne+Nagel route this cargo through their Western ‘gateway hubs’ for
customs clearance and onward flights.
A typical
truck from Warsaw to Frankfurt covers around 1,000 km in 11 hours, arriving
before the morning long-haul departures, with major freight airlines operating
extensive RFS networks across the EU. And even if trucks generate emissions,
they replace short-haul flights. Industry observers estimate that a fully
loaded RFS truck may carry the equivalent volume of 2-3 short-haul feeder
flights – though public data does not yet document this ratio formally.
The next
frontier will be electric and biofuel-powered RFS fleets, and most importantly:
optimized two-way utilization.
Western hubs have bonded warehousing and customs pre-clearance processes
optimized for RFS handling with infrastructure maturity (e.g., automated cargo
handling) enabling RFS turnaround. This gives them a competitive edge when
attracting new cargo services.
Some cargo
moves in reverse (West to East), but it only accounts for about 20%-30% of the
RFS volume, as several e-commerce giants have distribution centers in Eastern
Europe. Specialized express and high-value goods flows also move this way, but
in smaller volumes.
The
digital inequality problem
The strong advance in digitally managed truck arrivals, customs pre-advice, and
dock scheduling has not fully translated to RFS operations. The development of
APIs, geolocation systems (real-time GPS) and AI to forecast cargo arrival
based on flight delay, weather, and traffic data promise to solve these
problems – but often only per hub.
The
digital Western advantage – Frankfurt’s Fair@Link, Amsterdam’s Smart Cargo
Mainport Program, Brussels’ BRUcloud – contrasts with Eastern Europe where
truck slotting is often manual or semi-automated. This digital inequality
creates inefficiency across the network.
A further
challenge is the fragmentation among RFS operators themselves. Europe has a mix
of large road feeder providers and dozens of smaller subcontractors, each using
different IT tools, processes, and communication standards. This lack of
harmonization makes it difficult to create end-to-end visibility or a uniform
data flow across the entire RFS chain.
The result
is a patchwork system where cargo may be digitally visible at one hub,
partially visible at another, and not visible at all once it leaves national
borders.
A missing
link: Cross-Airport Data Exchange
Airlines and airports are working to align RFS with digital air cargo
initiatives like IATA ONE Record, Airport Community Systems,
and SESAR data exchange. That said, the EU-level challenges – and
the issues behind the failures – are clear:
·
No single European airport governance
framework – airports operate under national rules.
·
Fragmented digital
infrastructure (different data systems for slots,
cargo, and customs).
·
Uneven funding access – larger hubs get more EU grants, leaving smaller ones
disconnected.
·
A purely competitive
mindset instead of adopting gain-share or co-funded
projects that allow more airports to benefit from the same outcome. This is
probably the most notorious obstacle and the one that needs a mindset shift.
The Future
Towards a Digital Network
Imagine this case scenario:
·
A driver in Sofia books a slot at Liège
directly via a shared EU RFS platform.
·
Customs pre-clearance travels with the
digital shipment record.
·
Each truck’s ETA, emissions, and cargo
milestones update across systems automatically.
·
Airports coordinate landside and airside
flows in real time.
Eastern
airports can build interoperable API-based truck slot management systems from
scratch and align customs and pre-clearance with EU digital initiatives.
Real-time data exchange between airports and RFS operators – with slots managed
dynamically, tied to airside schedules, and supported by cross-border customs
pre-clearance – would enable predictive routing and shared regional control
centres.
In effect,
RFS moves millions of tons annually and Europe could gain a virtual air
network on wheels – but only if its digital roads finally catch up
with its physical ones.
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.
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