JUPITER SEA & AIR
SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91 98407 85202
Corporate News
Letter for Friday March 13, 2025
Today’s Exchange Rates
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CURRENCY▲ |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
DAY's LOW-HIGH |
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92.1625 |
0.122498 |
0.133092 |
92.28 |
92.04 |
92.0675- 92.3675 |
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1.1551 |
-0.0016 |
-0.138327 |
1.1567 |
1.1567 |
1.1532- 1.1574 |
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123.283 |
-0.204201 |
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123.367 |
123.4872 |
123.2503- 123.6059 |
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106.3764 |
-0.317894 |
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106.4643 |
106.6943 |
106.3537- 106.6698 |
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158.893 |
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158.95 |
158.95 |
158.675- 159.235 |
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1.3378 |
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1.3412 |
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1.3361- 1.3413 |
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0.5798 |
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0.5792 |
0.5809 |
99.315- 99.528 |
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/// Sea Cargo News ///
US interior secretary highlights Venezuela’s mineral
wealth, says cooperation has “no limits”
US Interior Secretary Doug Burgum said in
Caracas on Wednesday that opportunities for cooperation between Washington and
Venezuela “have no limits,” highlighting the South American country’s mineral
potential during a visit focused on mining and access to critical minerals.
Burgum met at Miraflores palace with acting
President Delcy Rodríguez and US representative in Venezuela Laura Dogu, in an
encounter briefly filmed by local media.
The agenda included contacts with executives
from foreign mining companies and discussions around supply chains for critical
minerals used across technology and energy industries.
According to EFE, Burgum said US
mining-related companies are “eager” to begin operating in Venezuela and
underscored the country’s “mineral riches.” “The opportunities for
collaboration and synergy… have no limits,” he said.
The trip comes as Venezuela’s National
Assembly prepares a reform of the main mining law in force since 1999. Reuters
said the proposal would include provisions allowing foreign firms to exploit
gold, diamonds and rare earths, as part of an effort to attract investment and
provide greater regulatory certainty.
EFE reported that Rodríguez called for
speeding up the reform, aimed at broadening the legal framework to develop the
sector with domestic and foreign capital.
Washington is seeking to expand US investment
in Venezuela — particularly in oil, gas and minerals — after the US capture of
President Nicolás Maduro in a January 3 operation and Rodríguez’s subsequent
rise as interim leader.
In that context, Rodríguez publicly thanked
Donald Trump for his willingness to work on a bilateral agenda and cited a
message from the US president: “Oil is starting to
flow.” Burgum is expected to meet oil and gas
companies on Thursday to discuss expansion and investment projects.
Oil spills, 20,000 stranded seafarers, and a widening
conflict
The Bahamas-flagged tanker Sonangol
Namibe has just been attacked while at anchor approximately 30
nautical miles southeast of Mubarak Al Kabeer, Kuwait.
The master reported a massive explosion on
the port side followed by the departure of a small craft. According to alerts
from the UK Maritime Trade Operations (UKMTO) and security specialist Vanguard,
the vessel has taken on water and oil has been observed leaking from a damaged
cargo tank.
The location of the strike, Mubarak Al
Kabeer, is situated some 750–800 km from the Strait of Hormuz, the waterway
Iran claims to have blocked. This suggests a strategic widening of Iranian
strikes, which had previously been concentrated in the strait, Bahrain, and the
Gulf of Oman. “There could be some environmental impact,” UKMTO warned, though
the crew is reported safe.
Further south, the 1,740 teu
containership Safeen Prestige was struck by a projectile north
of the Omani Musandam Governorate, suffering an engine fire. Splash records
indicate that at least 10 commercial ships have now been targeted since the war
began.
The tanker market is currently defined by a
“stalemate” as ships pile up on both sides of the Hormuz Strait. Broker
Fearnleys reports that while rate estimates for loading in the Middle East Gulf
or Saudi Red Sea have “skyrocketed,” the figures remain largely academic. “No
cargoes have been physically lifted since the war broke out,” Fearnleys noted,
describing current Baltic rates as a “guestimate” by the broking community
while the physical trade remains frozen.
The gas sector is facing even tighter
constraints. Qatar declared force majeure on gas exports on Wednesday, a move
that could remove 20% of the global LNG supply for at least a month.
Consequently, LNG spot rates have surged to over $300,000 per day, a ten-fold
increase from the $30,000 seen just last week.
In the liner sector, the crisis is beginning
to leave a measurable footprint on schedules. Analysis from TimeToCargo shows
average arrival delays for Asia-Europe flows have increased from 2.26 to 3.73
days. However, certain carriers are feeling the heat more than others; HMM has
seen average delays jump from 3.72 days to 10.45 days, while MSC’s delays have
risen to nearly five days.
The situation is most acute at Jebel Ali,
where departure delays have spiked to 4.2 days from a pre-war average of
0.72. Many carriers are now opting for the longer, more predictable route
via the Cape of Good Hope to avoid the carnage. Disruption is likely to begin
to build at major transhipment ports in Asia, something seen in earlier
shipping crises this decade, including covid and the Houthis’ campaign in the
Red Sea.
The financial cost of sailing into the
conflict zone has become prohibitive. According to the Financial Times,
the cost of insuring a ship through the Strait of Hormuz has soared 12-fold.
Shipowners are now being quoted premiums as high as 3% of a vessel’s total
value—up from 0.25%.
In response, Donald Trump has vowed to use
the US Development Finance Corp to provide war risk insurance and guarantees.
He also announced that the US Navy would begin escorting tankers “as soon as
possible.” However, industry experts remain sceptical.
Jakob Larsen, BIMCO’s chief safety and
security officer, noted that while escorts reduce threats, providing protection
for all tankers is “unrealistic” given the number of warships required. He
suggested that if the Iranian threat is significantly degraded, escorts might
eventually push risks below the “acceptance level” for some
owners.
Shipbroker SSY added further caution, noting
that the US Navy has privately signalled a lack of escort capacity until the
initial stages of military operations are complete. Furthermore, US law
restricts the navy from escorting ships that are not US-flagged or
American-owned.
SSY pointed to the Red Sea precedent, where
15 months of naval escorts failed to restore commercial traffic despite downing
400 missiles. “Physical geography favours the attacker,” SSY warned, noting
that a destroyer cannot simultaneously counter drone-boat swarms, sweep mines,
and manage GPS disruption in the narrow two-nautical-mile-wide transit lanes.
With supplies of energy out of the Middle
East under pressure, many nations are taking precautionary steps. Myanmar, for
instance, has instituted an odd/even ruling for cars, where cars with number
plates that start with an even number can only drive on an even date and vice
versa with odd numbers.
In China, meanwhile, the National Development
and Reform Commission (NDRC) convened a meeting to discuss the export of
refined oil products yesterday. A verbal request was made to temporarily
suspend, effective immediately, all refined oil product exports, except for
three categories – bonded aviation kerosene, bonded marine fuel, and supplies
to Hong Kong and Macau.
Three requirements were put forward: first,
suspend the signing of new export contracts; second, try to negotiate the
cancellation of contracts already concluded and with scheduled shipping; and
third, it was advised not to export contracts already concluded but without
scheduled shipping.
CMA
CGM reports revenue of USD 54.4 Billion for 2025.
CMA CGM Group reported revenue of US$ 54.5
Billion for 2025. The figure declined 2.0% compared to 2024, primarily due to
lower container shipping revenue.
EBITDA reached $ 10.5 Billion with an EBITDA
margin of 19.4%. The margin decreased 4.8% points compared to 2024.
CEO Rodolphe Saade said the Group delivered
solid results driven by strong shipping line performance. The company operated
in an environment marked by significant geopolitical uncertainty.
Container shipping transported volumes
reached 24.2 million TEU, up 2.8% from 2024. Fourth quarter volumes increased
5.3%, out performing
the market. Maritime revenue declined 6.1% to
$34.3 Billion. EBITDA stood at $7.9% Billion compared to $11.2 Billion in 2024.
The EBITDA margin fell 7.8 points to 23.0%. Average revenue per TEU was $1,414,
down 8.7%.
CMA CGM took delivery of 27 new vessels
powered by LNG and methanol in 2025. The company has invested nearly $30
Billion ordering LNG and methanol powered ships. More than 200 vessels will run
on low-carbon energies by 2030.
The Group also invested $2.5 Billion to
expand its portfolio of 66 terminals across 40 countries. Major acquisition
included Santos Brazil in Brazil and stakes in Terminals at Hamburg, Saudi
Arabia, UAE and Egypt.
CMA CGM also acquired CEVA Logistics to
spread their wings in air freight market. CEVA has acquired Boursan Logistik,
Turkey, Freightliner, UK and Air Belgium. The air cargo division operates 8
freighter aircraft.
CGM Media acquired Brut and Cherie 25 in
2025, strengthening its position in the French Media landscape.
The Group announced ten 24,000 LNG powered
vessels will be registered under the French Flag starting in 2026. The French
flagged fleet will reach 40 vessels.
ICTSI
posts record 2025 earnings
ONE expands AX4 Service to key South America and Asia ports
Ocean Network Express (ONE) Line has announced an enhancement to its West Coast South America (AX4) service, reinforcing its commitment and strengthening network coverage across Latin America and Asia.
Service Update : Effective April 2026, the
AX4 service will include the following additional ports :
East bound : Qingdao, China and
Ensenada, Mexico.
West bound
: Callao-Peru and Ecuador.
Revised Service Rotation (subject to change)
: Shanghai – Ningbo – Qingdao – Pusan – Ensenada – Lazaro Cardenas – Manzanillo
– Callao – Ecuador – Shanghai.
ONE emphasizes that these adjustments aim to
improve transit efficiency, connectivity and service reliability between Asia
and South America.
Advancing
air cargo in a dynamic world
Global trade is being reshaped in real time.
Tariffs, geopolitical tensions, and policy uncertainty are altering trade
lanes, fragmenting supply chains, and increasing the premium on speed and
reliability. In this environment, air cargo is no longer just a mode of
transport—it is a strategic enabler of global commerce.
In 2025, air cargo demand grew by 3.4%. But
that headline number masks a more complex reality. Growth was uneven,
reflecting shifting trade patterns, re-routing, and increasingly diversified
supply chains.
There was a clear shift in cargo flows from
Asia–North America to Asia–Europe driven by tariff pressures and the removal of
the US de minimis exemption.
These dynamics are not temporary. As we look
to 2026, volatility is likely to remain a defining feature of global trade—and
adaptability will remain air cargo’s greatest strength.
The question facing the industry is not
whether air cargo can respond to change—it has proven that repeatedly—but how
it can continue to do so faster, more efficiently, and more sustainably.
That challenge sits at the heart of the
discussions taking place at the IATA World Cargo Symposium (WCS) in Lima in
March 2026.
This year’s symposium focuses on advancing
air cargo in a dynamic world by moving from diagnosis to delivery.
Across dedicated tracks on regulation,
digitalisation, and special cargo, industry leaders, policymakers, and
practitioners will examine how to strengthen the foundations that allow air
cargo to perform under pressure.
Regulation is one of those foundations.
Well-designed, globally aligned rules enable trade; fragmented or outdated
regulations constrain it.
As supply chains become more complex,
regulatory frameworks must keep pace—particularly for special cargo such as
pharmaceuticals, live animals, lithium batteries, perishables, and e-commerce
shipments.
At WCS, regulators and industry will engage
directly on how to maintain high safety and security standards while improving
efficiency and predictability across borders.
Digitalisation is another critical
enabler—and one where progress is now tangible. The industry is moving beyond
discussion toward implementation, with initiatives such as ONE Record
demonstrating how standardised, end-to-end data exchange can improve visibility,
reduce errors, and support smarter operational decisions.
Practical sessions in Lima will showcase real
airline use cases and live system demonstrations, underlining that digital
cargo is no longer a future ambition, but an operational necessity.
The symposium will also address how air cargo
can improve environmental performance while continuing to deliver the speed and
reliability global trade depends on.
A dedicated plenary session will explore
practical pathways to reduce emissions, accelerate the adoption of new
technologies and processes, and enhance operational efficiency and resilience
across the supply chain.
Hosting WCS in South America for the first
time reflects the region’s growing importance in global air cargo. The sector
plays a vital role in connecting South American producers to global
markets—particularly for time- and temperature-sensitive exports—and in
supporting economic development across the region.
Lima provides a fitting setting to focus on
how air cargo can continue to enable trade in an increasingly dynamic
environment.
The air cargo industry has proven its
resilience through crisis and disruption. But resilience alone is not enough.
Continued success will depend on the industry’s ability to strengthen
regulation, accelerate digitalisation, and invest in the capabilities needed to
handle increasingly complex cargo flows safely, efficiently, and sustainably.
In a dynamic world, standing still is not an
option. The conversations in Lima are about ensuring air cargo continues to
move forward—together.
IATA
World Cargo Symposium conference highlights
This year’s IATA World Cargo Symposium (WCS)
will offer a fresh look at the major issues shaping the air cargo industry as
trade and supply chain developments continue to put operations under pressure.
The diverse programme for the 2026 event in
Lima, Peru, will be based around the theme of ‘Advancing Air Cargo in a Dynamic
World’, which reflects the digitalisation, shifting geopolitics and new
regulations that are shaping the sector and creating fresh opportunities across
the air cargo industry.
The packed conference agenda includes all the traditional WCS topics as well as a new special cargo conference stream and a lithium battery forum.
The WCS will begin on 9 March with a
series of meetings and workshops, including the Competency-Based Training &
Assessment (CBTA) conference and the Future Air Cargo Executives (Faces)
Summit.
On the following day, the opening plenary
will encompass discussion and analysis of major developments in the industry.
After the official opening ceremony and
keynotes, delegates will be offered industry insights with a review of cargo in
2025 and a sustainability and economic outlook. There will also be an air cargo
market dynamics keynote session and a panel looking at how to understand and
use data to help analyse the industry.
Delegates will be able to enjoy an executive
fireside chat and a session on what the future of air cargo might look like, as
well as exploratory panels on the topics of digitalisation and the technology
and infrastructure that support it, plus perishables and pharma. The first day
will finish with the WCS welcome reception.
Day two
Day two will be split into dedicated
regulatory, special cargo and digitalisation streams that have been devised to
deliver deeper insights into the changes the industry faces, as well as
practical solutions to various issues.
The special cargo stream will include an
outlook with particular focus on the Latin American perishables export market,
a session on perishables cold chain handling best practise and discussion
around pharma guidance and standards adoption.
There will also be sessions on sustainability
regulations that are changing how special cargo moves, emerging pharmaceutical
trends and how technologies like IoT and AI can support supply chain
resilience, as well as the latest developments with IATA’s LAR Verify automated
compliance solution to streamline the safe transport of live animals.
A regulatory stream will cover customs, trade
facilitation and physical security, with the aim of helping delegates navigate
global standards and compliance challenges.
Meanwhile, a digitalisation stream will focus
on ONE Record adoption, warehouse innovation and strategies to scale
digitalisation across complex regulatory environments. Spotlight sessions will
further examine the topics of innovation, sustainability and operations. The
day will close with the WCS gala dinner.
Day three
Day three of the conference features an
e-commerce forum that will consider how greater visibility between e-retailers
and cargo operators would improve efficiency, as well as ONE Record training
covering the technical foundations, airline use-case implementation and a live
system demonstration.
A ULD forum will focus on ULD design,
opportunities for AI and how ULDs can collect and report sustainability-related
data. There will also be a session on LAR Verify and a lithium battery forum to
provide insights on safety.
The closing plenary will wrap up the
symposium by summarising the key outcomes and industry focus areas going
forward. It will incorporate a panel session examining the key trends shaping
the future of air cargo, as well as a session exploring how the air cargo
workforce must adapt to remain resilient, competitive and innovative.
Digitalisation:
ONE standard to rule them all
The need for seamless and consistent data
exchange across air cargo players has moved from being optional to a business
imperative in order to deliver the speed, transparency and reliability that
customers expect.
IATA has been working with the industry to
drive digital adoption through the development of its ONE Record data sharing
standard.
The association’s head of cargo
digitalisation, Jonathan Parkinson, explains that ONE Record creates a single
data language for the entire supply chain and replaces patchwork formats,
integrations and different languages with one unified model.
“ONE Record enables true interoperability,
fewer errors and real-time visibility. The benefits of this extend across the
entire supply chain,” he says.
“If you are an airline, there are few
exceptions; operations will be smoother and you’ll have end-to-end visibility.
If you are a freight forwarder, it will be much simpler and everything will be
consistent from a digital exchange perspective with reduced manual
interventions. If you are a ground handler, you can expect faster acceptance,
standardised handovers and trusted data.”
Parkinson adds that an IT service provider
will have one model to build on, with one language that is interoperable and
scalable, and customs or border authorities can benefit from real-time
standardised data that strengthens compliance and oversight.
Valuable feedback
Last year, IATA carried out a survey to find
out what supply chain players would like to see to help increase adoption of
the standard.
The survey showed that 70% of respondents had
awareness of ONE Record, while 50% indicated readiness to use the standard,
which on 1 January became IATA members’ preferred standard for cargo data
exchange.
Currently, there are more than 30 pilot
projects underway that use the standard covering e-AWB submission, shipment
tracking, customs status updates, digital booking exchanges, real-time booking
pre-advice, automation of shipment records and piece-level export processing.
Companies that have taken part in pilot
projects include Cathay Pacific, CHAMP, Turkish Cargo, Shandong Airlines,
Korean Air, GLS-KR, Schenker, Riege, Lufthansa, Intel, time:matters and PACTL.
To further the adoption of the standard, 78%
of survey respondents said they would like to see more pilots and
demonstrations, 75% wanted additional peer examples and shared learnings and
80% asked for regular communication and guidance on the standard.
Next steps
In response, IATA says it hopes to continue
to support ONE Record adoption by expanding pilots, providing training,
webinars and certification opportunities, sharing best practices and
implementation examples, and working with regulators and IT service providers
to help align adoption efforts.
“We took all of that feedback and IATA will
be expanding pilots across all major stakeholder groups, whether you are an
airline, forwarder, handler or border authority, there will be pilots for those
groups,” says Parkinson.
“We will continue with our regular training
webinars, ONE Record certification and hackathons, and we will be publishing
best practices and success stories and engaging with regulators.”
Parkinson adds that one of the most asked
questions from companies looking to adopt ONE Record was where they should
start. He says that IATA worked with companies that had signed up to its
digital charter to narrow down the potential areas of adoption.
“The purpose of this charter was to span the
ecosystem with senior leaders from across the industry,” he explains.
“We often see with technology adoptions that
it is a journey and we wanted these senior leaders to help guide the industry
as a whole.
“Out of 1,000 possible choices you can start
with, they have recently helped narrow that down to around 30 specific use
cases, depending on what kind of stakeholder you are in the industry.”
The charter was launched at the IATA WCS Hong
Kong in March 2024 with seven companies. It has now expanded to over 40
signatories, showing the growing importance of digitalisation in air cargo.
“Digitalisation is fundamentally about
unlocking value, not adding complexity,” says Parkinson. “For years, the
industry treated digitalisation as a technical projec,t but today it is a
business imperative.
“Customers expect real-time predictability
and every supply chain partner needs cleaner, more structured data.
Digitalisation reduces manual work, cuts errors and enables automation and AI.
“It is no longer optional, it is required and
essential, and the backbone of this foundation is ONE Record.”
Positive
outlook for e-commerce
E-commerce faced a rocky regulatory road in
2025, but IATA believes there is still scope for the vertical to drive air
cargo demand growth.
The trade body is confident that consumer
thirst for e-commerce will remain firm, despite challenges including a global
crackdown on import rules and the need for increased airfreight industry
efforts to embrace digitalisation.
Andre Majeres, head of e-commerce and cargo
operations at IATA, says: “E-commerce will remain one of the strongest drivers
of air cargo demand in 2026. We expect global air cargo volumes to grow by
around 2.4%, reaching over 71.6m tons, and a significant share of that
will be linked to cross-border e-commerce.”
He adds that air cargo demand growth within
and out of e-commerce hotspot Southeast Asia is particularly strong: “Asia
Pacific will continue to lead the way, with robust growth of 6%.”
“While overall cargo growth is moderating
compared with the pandemic boom, e-commerce is still a structural growth engine
for our industry,” he continues.
Southeast Asia has been growing as a trade
hub for over a decade and is benefiting from a continued shift of production
away from China in line with the China+1 diversification strategy utilised by
shippers to reduce costs and reliance on the country.
This shift was accelerated by the most recent
US-China trade war, which saw airlines move capacity from China to Southeast
Asia. There was also a supply chain shift away from the transpacific trade lane
to Asia-Europe, as businesses responded to uncertain trade conditions caused by
US tariff policy. FedEx, for example, reduced its own-controlled transpacific
capacity by 25% last year.
A challenging year
But alongside Southeast Asia’s boost to
e-commerce, there have also been difficulties.
The US government’s decision in April last
year to end the de minimis exemption for imports from China valued at less than
$800 resulted in increased costs and a drop in demand on the route. The policy
was extended to apply to all countries of origin from the end of August last
year.
China’s e-commerce export volumes shifted
from China-US to China-Europe, although volumes to the US have now recovered to
around 90% of what they were previously, according to air cargo consultancy
Aevean.
While volumes from China to Europe were
boosted by de minimis changes, they are also now under threat. European Union
(EU) member states have agreed to introduce a €3 customs duty charge per item
on e-commerce parcels valued below €150 from July 2026. This is intended to
bridge the gap until the EU Customs Data Hub is launched in 2028. The UK also
plans to end the de minimis exemption by March 2029 at the latest.
Airfreight rate analytics platform Xeneta has
also predicted slower e-commerce growth this year due to increased shipper
costs, tax reporting requirements in China and declining consumer purchasing
power.
Majeres stresses that while the Asia-US trade
lane remains soft, overall e-commerce trade is strong and supply chains have
adjusted: “The removal of de minimis led to an initial drop in low-value
e-commerce shipments on the Asia-North America trade lane and that softness has
persisted, with the lane now in contraction for six consecutive months,” he
remarks.
However, highlighting business resilience,
Majeres says the decrease in Asia-North America e-commerce trade “hasn’t meant
a collapse in e-commerce demand”.
He explains: “IATA data show that in October,
other corridors recorded double-digit or near double-digit growth – including
within Asia, between the Middle East and Europe and between Europe and Asia.
“This points to a redistribution of flows
rather than a loss of demand. Growth is normalising but e-commerce remains
resilient, and air cargo continues to play a critical role for high-value and
time-sensitive shipments.”
Operational complications
Despite continued robust e-commerce flows,
IATA has identified several obstacles to growth.
Regulatory complexity represents one such
challenge – despite successful supply chain and air cargo industry adaptations
– as demonstrated by the de minimis changes. “Changes to customs rules and tax
thresholds, like the de minimis adjustments, create friction for cross-border
flows for small parcels,” says Majeres.
He adds that the composition of e-commerce
parcels also creates operational challenges. “E-commerce shipments are often
smaller and more fragmented, which puts pressure on handling, and agility is
required in optimising freighter and belly capacity planning.”
Capacity management is always a careful
balancing act, but with potential widebody freighter capacity shortages ahead,
finding enough of the right kind of capacity may be a challenge.
Meanwhile, although sustainability may have
been somewhat overshadowed by geopolitical turmoil last year, it continues to
pose a third major challenge.
Majeres emphasises: “Consumers and regulators
are demanding greener logistics, so airlines need to accelerate the adoption of
sustainable aviation fuel and improve emissions transparency.”
Lastly, Majeres says suitable infrastructure
is also a must. “Airports and ground handlers need to keep pace with the surge
in express and last-mile requirements, looking into new technologies and
innovative solutions which we described in our ‘2025 Vision for the Future of
Air Cargo Facilities’ white paper,” (see below).
Optimisation strategies
IATA is advocating five strategies for the
air cargo industry to optimise e-commerce business. These include focusing on
e-commerce products and services to build market share; digitalisation to
increase speed; system compliance with common standards for customs clearance;
investing in air cargo products to address crisis and capacity risks; and
competing through responsiveness and value-added services to reduce processing
times.
Majeres is championing digitalisation and
service innovation as tools to better support e-commerce operations:
“Digitalisation is key; we need to standardise data sharing. IATA’s ONE Record
data sharing standard has now been endorsed by the air cargo industry as the
preferred way forward and is critical to speeding up operations, planning, and
improving visibility,” he explains.
“Service innovation is another area: offering
tailored products and services for e-commerce, such as track and trace,
prioritisation, first/last mile networks, and as described in our white paper
on ‘Cargo Operations Efficiency and Excellence’ (see below), where IATA
standards form the minimum baseline for seamless operations and innovative
tools and solutions lead organisations to excellence.”
IATA’s e-commerce takeaways
·
Globally,
one in five packages are bought online. By 2027, this could be one in three
packages.
·
E-commerce
online transactions make up 20% of air cargo volumes.
·
Cross-border
e-commerce could comprise 30% of total air cargo volumes by 2027.
·
Consulting
firm McKinsey expects e-commerce will likely stabilise as one-third of total
air cargo volumes.
·
Over
80% of cross-border e-commerce was transported by air in 2024, shows ICAO,
McKinsey and PwC analysis.
·
Data
from eMarketer predicts that worldwide e-commerce retail sales could total as
much as $8trn from 2026-27.
·
In
2024, $6.2trn was generated from online worldwide e-commerce retail sales. This
was up 82% from $3.4trn in 2019.
Research supports improving operations
‘2025 Vision for the Future of Air Cargo
Facilities’ white paperIATA’s Vision for the Future of Air Cargo Facilities white
paper highlights the need for investment in air cargo facilities to cater for
e-commerce volumes efficiently.
In fact, says the association, the e-commerce
boom has already significantly contributed to developing new technological
solutions for air cargo, as e-retailers focus on optimising processes and
increasing visibility and digitalisation.
The rapid expansion of e-commerce has
fundamentally changed the requirements for cargo facilities worldwide, with
rising consumer demand for fast deliveries driving investment in automated
sorting, tracking and processing capabilities.
Some European airports have expanded their
express cargo facilities to accommodate the surge in online retail shipments
and have developed integrated advanced sorting systems, digital tracking and
strategic partnerships with e-commerce logistics providers to ensure a
streamlined, high-speed cargo operation. Similar developments are seen in North
America, where some airports have scaled up operations to meet the demands of
major e-commerce players, says IATA.
The need for efficiency and sustainability
means facilities that once relied on manual processes and outdated
infrastructure now need to focus on emerging technologies. Demand is growing
for specialised infrastructure, such as automated high-speed sorting hubs.
Technological advancements will help air cargo facilities become smarter and
more adaptable, improve operational performance, enhance transparency and
reduce the industry’s carbon footprint.
Cargo facilities are attracting significant
investment from private equity firms, infrastructure funds and public-private
partnerships. Yet the successful adoption of new technologies requires
significant hurdles to be overcome, including legacy infrastructure
constraints, workforce adaptation, integration complexities and regulatory
compliance. These challenges must be addressed through proactive investments,
workforce training and collaborative industry-wide standards, stresses IATA.
‘Cargo Operations Efficiency and Excellence’
white paperIn
its Cargo Operations Efficiency and Excellence white
paper, IATA focuses on how operational efficiency and operational excellence
underpin successful air cargo operations, which is key to supporting e-commerce
growth.
IATA says operational efficiency is about how
an organisation achieves its objectives of higher productivity and reduced
costs. It describes the processes involved, such as preventing bottlenecks,
automating manual tasks and improving workflows.
According to the IATA Cargo Handling Council
(ICHC), operational efficiency can be measured by various metrics, including
throughput, dwell time of processes and error rates. In comparison, operational
excellence involves streamlining processes, optimising resource allocation and
leveraging technology to enhance performance.
By concentrating on these areas, industry
players can ensure more dependable, efficient and resilient operations, says
IATA.
This approach not only helps in meeting
current demand but also prepares the industry for future challenges, fostering
a culture of continuous improvement and innovation.
Focusing on excellence involves considering
how to add value to operations, how a company can grow overall and how it can
operate at the highest level possible. Looking beyond standards, excellence
involves developing initiatives to prepare for the future, such as utilising
tools for better resource planning and adopting artificial intelligence
technology.
Adopting IATA standards and ensuring
compliance helps achieve operational efficiency and operational excellence
within the air cargo industry, says the association. Standards provide a
consistent framework that enhances the reliability and quality of operations
across all stakeholders, including carriers, GHAs and freight forwarders.
By adhering to IATA standards, organisations
can streamline their processes, reduce inefficiencies, and ensure that safety
protocols are rigorously followed. This leads to higher productivity and
reduced costs, key components of operational efficiency. These standards
further foster a culture of continuous improvement and excellence, points out
IATA.
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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