JUPITER SEA & AIR SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91 98407 85202
Corporate News
Letter for Thursday February
05, 2025
Today’s
Exchange Rates
|
CURRENCY▲ |
PRICE |
CHANGE |
%CHANGE |
OPEN |
DAY's LOW-HIGH |
|
90.42 |
0.150002 |
0.16617 |
90.43 |
90.26- 90.55 |
|
|
1.1819 |
0.00 |
0.00 |
1.1819 |
1.1803- 1.1838 |
|
|
123.9528 |
0.592194 |
0.480051 |
123.8893 |
123.8061- 124.1889 |
|
|
106.8194 |
0.374397 |
0.351728 |
106.9258 |
106.7628- 107.123 |
|
|
156.472 |
0.722 |
0.463563 |
155.75 |
155.699- 156.854 |
|
|
1.3698 |
0.0001 |
0.007302 |
1.3697 |
1.3687- 1.3733 |
|
|
97.479 |
0.042 |
0.043105 |
97.429 |
97.309- 97.526 |
|
|
0.5772 |
-0.0017 |
-0.293658 |
0.5795 |
0.5768- 0.5797 |
/// Sea Cargo News ///
US Firms Eye Higher Hydrocarbon,
Nuclear Energy Exports to India
A high-level United States delegation held talks with Indian oil companies and industry leaders to expand imports of American hydrocarbons and civil nuclear energy technologies, reinforcing energy trade ties at India Energy Week (IEW) 2026.
During the discussions in Goa, the US
delegation, led by Acting Consul General Mike Schreuder, emphasised a
commitment to deepening the US–India energy partnership, with a focus on
expanding reliable American energy exports, strengthening infrastructure cooperation
and advancing energy technology collaboration.
“Our cooperation is centred on action —
expanding reliable American energy exports, promoting transparent and
market-driven growth, and supporting affordable, dependable energy supplies,”
Schreuder said, underlining the strategic economic significance of the
relationship.
Hydrocarbons and Nuclear Export Prospects
The delegation met senior officials from
Indian national oil companies and other industry players to explore possibilities
for increased imports of US Hydrocarbons – including crude oil, LNG and LPG –
as well as civil nuclear energy technologies. The US currently supplies around
10% of India’s LPG demand and discussions included opportunities to expand long
term contracts for US crude oil and LNG deliveries.
The talks come as India seeks to scale up its
civil nuclear power capacity and diversify energy supplies to meet growing
domestic demand, with private sector participation now being encouraged in both
hydrocarbon and nuclear sectors. US companies – with a strong track record in
global nuclear energy
Projects-have positioned themselves to
support India’s expanding nuclear ambitions.
Strategic Partnership and Future Growth
Officials highlighted that stronger energy
trade and technology cooperation can enhance energy security for both
countries, create jobs and build resilient supply chains. The engagements at IEW
2026 signal a continued push go deepen commercial and strategic ties in energy,
part of a broader partnership that has gained momentum in recent years.
Pakistan Exporters Fear Loss of EU
Textile Advantage After India FTA
Pakistan has begun reviewing the implications
of the newly signed European Union–India Free Trade Agreement (FTA), as
industry leaders and exporters raised serious concerns that the deal could
undermine Pakistan’s competitive edge in the lucrative EU textiles and apparel
market.
At a press briefing, Foreign Office spokesman
Tahir Andrabi reiterated Islamabad’s commitment to strong trade ties with the
EU, underscoring the long-standing Generalised Scheme of Preferences Plus
(GSP+) that has provided Pakistan duty-free access on most exports.
However, the new FTA grants India immediate
tariff-free entry across all textile and apparel tariff lines, a shift that
exporters say could neutralise Pakistan’s long-held export advantage.
Former Commerce officials warned that USD 9 billion in annual exports and up to 10 million jobs tied to the textile value chain could be threatened if urgent policy changes are not enacted to bolster competitiveness.
Government Response
While the government says it is assessing the
broader implications of the EU-India trade deal, exporters remain cautious,
urging expedited reforms and targeted support to safeguard Pakistan’s export
performance and prevent erosions of market share in the EU-one of their most
significant overseas markets.
Geopolitical
Strains Hit India’s Banana Shipments to Iran and Beyond
India’s banana exporters are facing severe
disruption to shipments and payments after escalating tensions between Iran and
the United States disrupted trade flows through key Middle East markets,
industry sources say.
Exporters told FreshPlaza that a bunch of
containers carrying green Cavendish bananas are stuck in Iran with no payments
being received, forcing traders to resort to barter arrangements — including
swapping banana consignments for apples — as a workaround to secure any
compensation at all.
Iran has traditionally been a major buyer and re‑export hub for Indian bananas destined for Afghanistan and the wider CIS region, but currency volatility and frozen remittances linked to the geopolitical standoff with the U.S. have strangled payment channels and slowed shipments.
MSC Rules Out Northern Sea Route Over
Safety and Environmental Concerns
Mediterranean Shipping Company has reaffirmed
it will not use Russia’s Northern Sea Route, with chief executive Søren Toft
warning that navigation risks remain too high for crews and that Arctic
transits threaten fragile ecosystems, according to a statement posted by Toft
on social media.
The carrier said it “do not and will not use
the Northern Sea Route,” arguing that safe navigation cannot be assured and
that operational exposure for seafarers remains unacceptable.
Toft said any increase in traffic would
intensify pressure on vulnerable environments and local communities, adding
that MSC has no operational need for the Arctic corridor as its existing fleet
deployment and global network already support worldwide cargo flows.
The company has reiterated the same position
in earlier customer and corporate communications including a September 2025
advisory stating that the route remains underdeveloped
for commercial shipping and offers no
operational rationale for MSC’s services.
Environmental risks have consistently underpinned for MSC’s stance.
Freight Headwinds Lead to $88M Q3 Loss
for ONE
Ocean Network Express (ONE) has reported its
financial results for the third quarter of FY2025, covering the period from
October to December 2025. The carrier posted revenue of $4.07
billion for the quarter and recorded a net loss of $88 million.
Jeremy Nixon, CEO of Ocean Network Express,
says, “Our 3Q FY2025 results reflect a challenging operating environment as we
continue to navigate the complexities of the current global landscape.
“Although market dynamics have impacted our
performance during the quarter, we remain focused on disciplined capacity
management, cost control, and ongoing network optimisation to enhance
operational resilience. By leveraging strategic partnerships, we reinforce
a reliable service network to better serve our customers.”
Recently, ONE revamped its Spain Turkiye 2
(ST2) service and introduced two new Mediterranean services, Aegean Spain 1
(AS1) and Alexandria Spain (AS2), enhancing connectivity and reliability for
shippers.
CMA CGM Implements Route Changes
Following Severe Atlantic Conditions
Global shipping giant CMA CGM has announced temporary route adjustments for several vessels traversing the Atlantic Ocean in response to severe weather conditions impacting key shipping lanes.
The company said the rerouting is a
precautionary measure to ensure the safety of crews, cargo, and vessels, while
minimizing delays in service.
The affected routes primarily involve
transatlantic services connecting Europe, North America, and South America. CMA
CGM officials noted that weather disruptions in the Atlantic — including high
winds, heavy seas, and storm systems — have made certain traditional passages
unsafe, prompting alternative routing and scheduling adjustments. Customers are
being informed of expected arrival changes and operational updates through the
company’s tracking platforms.
Bangladesh Approves Leasing of Chittagong NCT to DP World
The Bangladesh government has approved the
leasing of Chittagong’s New Container Terminal (NCT) to global port operator DP
World, following a favorable court verdict that resolved longstanding legal
challenges.
The move allows DP World to assume
operational control of the NCT, one of Bangladesh’s busiest container
terminals, which handles a significant portion of the country’s maritime trade.
The leasing arrangement is expected to boost
terminal efficiency, increase cargo handling capacity, and attract further
investment in port infrastructure.
Officials said the agreement aligns with
Bangladesh’s broader strategy to modernize its port operations, streamline
logistics, and strengthen its position as a regional trade hub.
DP world will be responsible for managing
terminal operations, implementing digitalization initiatives and optimizing
cargo throughput and turnaround times.
///// AIR CARGO NEWS /////
Athens Added to Hong Kong Air Cargo
Freighter Network
Hong Kong Air Cargo, the freighter division of Cathay Pacific, has officially added Athens to its growing freighter network, expanding its European reach and strengthening cargo connectivity between Asia and Greece.
The new Athens service is part of the
airline’s strategy to enhance its global air cargo footprint, catering to
rising demand for high-value and time-sensitive shipments including
pharmaceuticals, electronics, and perishables.
The route will be operated using dedicated
freighter aircraft, offering regular scheduled services between Hong Kong and
Athens. Officials from Hong Kong Air Cargo highlighted that the Athens addition
improves transshipment options across Europe and the Middle East, enabling
faster delivery times and better logistics integration for shippers and freight
forwarders.
The new route also supports Greece’s ambition
to become a regional cargo hub, leveraging Athens International Airport’s
infrastructure and strategic location at the crossroads of Europe, Africa and
the Middle East.
Hong Kong Air Cargo said the expanded network
is aligned with its broader goals of network optimization, fleet efficiency and
market responsiveness, ensuring customers benefit from reliable and flexible
freighter services in a competitive air cargo environment.
The Athens service is expected to commence in February 2026, with weekly operations initially, before scaling frequency based on demand and market conditions.
Menzies
Aviation secures 15-year ground handling deal at KIAB
Menzies Aviation has been awarded a 15-year license to provide ground handling services at Kempegowda International Airport Bengaluru (KIAB) (BLR Airport).
The license, awarded by Bangalore
International Airport Limited (BIAL), is effective from 1 April 2026, with
operations expected to commence immediately upon securing required regulatory
approvals. The award builds on Menzies Aviation’s more than 15-year presence at
BLR Airport, where it has delivered air cargo services supporting global and
domestic carriers.
Under the new license, the company will
provide a full suite of ground handling services across Terminals 1 and 2,
including passenger, ramp, and baggage operations, enabling airline customers
to benefit from integrated ground and cargo services at the airport.
As part of the agreement, Menzies will launch
a local recruitment programme, with approximately 1,000 new employees expected
to join the business during the first three years, expanding its existing 1,700‑strong
cargo team.
All new colleagues will receive comprehensive
training aligned with Menzies Aviation’s global safety and operational
standards. Menzies will also invest more than US$9.2 million to modernise and
standardise its ground support equipment (GSE) at BLR Airport, including the
introduction of electric GSE as part of its long‑term sustainability strategy.
This aligns with BIAL’s own ambitions,
reflected across the airport campus, and supports a shared commitment to
decarbonisation and operational efficiency.
Cathay
Cargo looks forward to A350Fs and perishables growth
Cathay Cargo is looking forward to growing
its capacity with Airbus A350 freighters as well
as developing its perishables business.
The Hong Kong-based cargo arm of Cathay
Pacific benefits from ample belly capacity in
its fleet, with more passenger aircraft due to arrive this year, but has
more limited freighter capacity. Of 179 own-controlled aircraft in
total, 20 are freighters, all Boeing 747Fs.
Therefore, the additional capacity
from the six A350Fs ordered from Airbus in December 2023,
alongside rights for 20 more units, will provide vital support
on busy routes out of Hong Kong, explains James Evans, general manager,
Cargo Commercial Cathay Cargo.
“We’ve got huge capacity in our bellies,
but we’ve only got 20 freighters,” points out Evans.
The A350F was a logical choice
for Cathay. The carrier already has 47 A350s of the
passenger type. The arrival of the A350Fs will be a welcome step up in
terms of modernisation.
Cathay’s six 747-400ERFs are all owned and
have an average age of 14.5 years, while its 747-8Fs have an average age of
10.4 years. The 747-400s will be nearing 20 years of age when deliveries of the
A350Fs, already pushed back, are due to start.
The A350Fs will offer a payload capacity of
up to 111 tonnes and a range of 4,700 nautical miles, as well as up to 40%
lower fuel burn and CO₂ emissions compared to older in-service freighters.
However, Cathay’s
first freighter variant won’t be delivered until at
least 2028, with deliveries due to continue through 2029.
“In terms of our freighter capacity,
we’ve got a steady state, or a pinch from now until deliveries begin,” says
Evans.
While there has been speculation about
a widebody cargo capacity shortage stemming from supply
chain parts shortages, feedstock shortages for conversions and delays
to new generation aircraft entering the market, Cathay has
no current plans to lease freighters ahead of the A350F’s
entry into market.
But the
airline hasn’t completely ruled out adding capacity as a
stopgap, should the need arise, says Evans.
“We’d always be on the lookout for
opportunities like that, but right now, our focus is on getting
ready for the A350 freighters.
“We’re always keeping a close eye on how
the market is changing. But ACMI rates have
been quite high and our focus is very much on
optimising the capacity and network we’ve got.”
He adds: “We are looking at
the 2030 horizon now as part of the next five-year plan, and
obviously those A350Fs are a big part of that, and they are a growth aircraft.
And then we’ll need to see how we can plan our capacity needs
into the next decade.”
Strong GBA demand
Cathay is well used to efficiently managing
capacity. Six years ago, operations
were curtailed by government-imposed pandemic lockdown
and quarantine restrictions that severely restricted passenger
flights and belly capacity.
“Passenger capacity was down to 2% for quite
some time. Our freighters were the workhorses, and we
were operating cargo-only passenger flights,” recalls Evans.
In the following years, the airline has gone
from strength to strength.
Cathay Cargo’s 2025 volumes were up 9.4%
year on year as it benefited from solid demand for specialist
cargo handling throughout the year, as well as a stronger than expected peak
season.
According to
Evans, Cathay Cargo is seeing healthy demand out of its home hub
at Hong Kong International Airport (HKG).
The airport is a regional transhipment hub
and air logistics gateway to
the Guangdong-Hong Kong-Macao Greater Bay Area (GBA),
and strong production and export demand will see Cathay’s home
market continue to grow, says Evans.
“There are huge volumes and business out of
the Greater Bay Area. Hong Kong sits at the heart of that,” says Evans.
Cathay Cargo is well
positioned to benefit as its current passenger and freighter
fleet gives it between 25% to 30% of the total capacity share
out of Hong Kong.
The airline also benefits from
Hong Kong’s role as a transit hub for air cargo out of Southeast
Asia, which is seeing increased production and strong air cargo capacity
demand.
“There has been double-digit growth out
of Southeast Asia and we’ve been beneficiaries of that as well,” says
Evans.
Demand out of Hong Kong, the GBA and
Southeast Asia combined has helped Cathay maintain high
freighter load factors to the Americas, including Mexico.
“Our capacity to the Americas has held
pretty consistent,” confirms Evans.
He points out that air cargo demand
can quickly move from area to area, so agility is needed
but Cathay is always prepared to shift its capacity.
“With planes, you’re lucky that you can
redeploy to where the capacity is needed. You need to be able to
be in a position to pivot and adjust.”
For example, Hanoi capacity
was increased in the fourth quarter and flights to Madrid also took place
during the peak season.
But, says Evans: “We will continue
to operate the vast majority of our freighter capacity into
the Americas. We operate anywhere between 33 to
38 flights a week and sometimes increase that in the
peak season.
“We also look at how we can optimise the
fleet and complement flights with more network support feeding
on to those lanes.”
The stability of capacity to the US is
an interesting topic, given the reduced e-commerce demand
on the transpacific trade lane last year after the US decision to end the
de minimis exemption.
Speaking about
the initial reduction in e-commerce volumes from Asia to the US,
Evans says that while Cathay did “have a hit on the Americas
lane”, as an airline Cathay saw plenty of business on its Asia-Europe and
Asia-Middle East routes and was able to move capacity accordingly.
He adds: “E-commerce doesn’t only go to
North America, it goes to the Middle
East and Europe. We’ve seen growth in e-commerce as
a result of where platforms are trying to grow their
businesses.”
Moreover, Asia-US e-commerce trade has now
largely recovered, and
e-commerce is just one commodity within a wide
range of goods transported by Cathay Cargo.
Cathay Cargo’s fresh service will continue to
be developed to grow perishables business supported by the Air-Land Fresh
Lane, opened last year, to improve the efficiency of moving goods across
the Hong Kong–Zhuhai–Macao Bridge (HZMB).
In fact, Cathay was the first airline to
utilise the lane, developed by the governments of Guangdong and Hong Kong SAR
to facilitate the efficient cross-border movement of perishable goods.
The initiative allows fruit and live or
chilled seafood arriving at HKG to be transported seamlessly into the GBA via
temperature-controlled trucks equipped with GPS tracking and accredited
e-locks, all under a single air waybill.
Fresh is one vertical in particular
where Cathay Cargo is confident there will be volume growth.
“We see the air-land, fresh lane out of
Hong Kong into the GBA as a great opportunity. The GBA is a big
consumption market,” Evans says.
“We’re very bullish on those opportunities
and glad that we’ve hit these milestones with working with the key
stakeholders, including Hong Kong Airport.”
Last September, Cathay completed trial
shipments of live lobsters and geoducks, a type of shellfish.
Alongside this, Cathay is refining terminal
handling, trucking and logistics integration,
cross-border arrangements and end-to-end documentation.
It is also building intermodal network
capacity through trucking into and out of the GBA.
This year, Evans says: “The Hong Kong, GBA
home market is really important. Building on these trials and growing
intermodal connectivity into and out of the GBA is a big focus for us.”
Cathy Cargo has also seen “significant
tonnage growth in expert and pharma” and will continue to look at those
opportunities, says Evans.
Digitalisation propels growth
Digitalisation will also be essential to
support the development of intermodal services for fresh products, as well as
other specialist business.
Last month was the implementation deadline
for IATA’s ONE Record, designed to make shipment information relevant to
stakeholders visible and accessible before, during and after the transport
process.
In December 2024, Cathay Cargo became
the first carrier to adopt the IATA ONE Record data protocol in some
of its operations with forwarders.
The forwarders started exchanging electronic
air waybill (eAWB) and shipment status information with Cathay Cargo using an
application programme interface (API) designed to ONE Record data protocols.
Then, in January
2025, Sinotrans Hong Kong Air Transportation Development became the
first Hong Kong forwarder to submit eAWB information and was able to
review shipment information from Cathay Cargo using ONE Record data protocols.
In October last year, Cathay Cargo also began
using the IATA ONE Record data protocol to offer real-time customs
clearance updates for customers, another first for the industry
and an important step in reducing reliance on manual ground
handling updates and minimising congestion.
The service enables customs status updates
from authorities, including Europe (ICS2 Import Control System), the
US, Canada and UAE.
Initially, the service was available to
Cathay Cargo customers subscribed to the EzyCargo platform or those
with ONE Record API links, but it is being rolled out for other customers this
year.
Overall, Evans is confident in its
capacity offering and business growth in 2026.
“I remain positive for next year, partly
because of the scale of the capacity we have and the location and our ability
to pivot quite quickly, and the indicators from our big customers about what
BSA (block space agreement) levels they they’re looking at,” he says.
“Cathay Cargo’s carrying capacity is
going to grow in the 5-7% range. So not the same steep growth curve
that we’ve seen in previous years as we came out of the pandemic, but
there’s still good capacity growth. That’s mainly through the passenger
bellies.
“That gives us lots of network opportunities to feed on, and so we’re really looking at optimising our capacity.
ANA
revenues decline while tariffs put pressure on NCA volumes
All Nippon Airways (ANA) saw international
cargo revenues decline despite a volume increase over the first nine months of
the year, while Nippon Cargo Airlines saw volumes affected by US tariffs.
ANA saw international cargo revenues decline
3.4% year on year to Y138.4bn during the first nine months of the financial
year (running 1 April to 31 December) but international cargo tonnage increased
3.5% to 551,000 tonnes.
The revenue decline was due to a drop off in
demand in some of the firm’s higher-paying business segments.
”International freight carried increased year
on year due to stronger demand for shipments from Asia to North America,” ANA
Holdings said. ”However, revenue declined year over year, reflecting reduced
automotive-related cargo and e-commerce demand.
“Cargo demand from China to North America via
Japan, previously declined due to the US tariff policies, is showing signs of
recovery.”
On the domestic front, nine month cargo
revenues were down 1% year on year to Y17.3bn and domestic cargo tonnage fell
1.8% to 206,000 tonnes.
In response to the changing market
conditions, the company said that it adjusted freighter routes and capacity in
response to demand fluctuations.
On North American routes, ANA “further
enhanced profitability” by continuing to operate charter flights for other
carriers.
NCA performance
Meanwhile, sister airline NCA saw demand fall
as a result of US tariffs. At this stage, year-on-year comparisons are not
possible as ANA Holdings’ acquisition of NCA was only completed in August last
year, however, revenues over the first nine months of the financial year
totalled Y75.3bn and cargo tonnages stood at 217,000 tonnes.
“NCA experienced a decline in trilateral
cargo demand from China to North America via Japan, due to the US tariff
policies, though demand has begun to recover,” ANA holdings said.
“Concurrently, since October, NCA has
proactively secured strong cargo demand from Asia to Europe and North America.”
During the period, NCA launched the
Narita-Frankfurt route in September and from October, extra flights were
operated on key routes, including Narita to Hong Kong and Narita to Los
Angeles, to “optimise revenue”.
NCA began code-sharing with ANA on European
and North American routes in October and will “continue strengthening
collaboration to enhance the Group’s cargo business and deliver high-quality,
competitive services”.
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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