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 March 10, 2025
Today’s Exchange Rates
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92.34 |
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92.20 |
91.76 |
92.16- 92.3575 |
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1.1587 |
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1.156 |
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1.1507- 1.1618 |
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123.1519 |
0.902901 |
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122.6039 |
122.249 |
122.5989- 123.3793 |
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106.668 |
0.465698 |
0.438501 |
106.2118 |
106.2023 |
106.2034- 106.8333 |
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158.086 |
0.306 |
0.193941 |
158.00 |
157.78 |
157.756- 158.90 |
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1.3387 |
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99.276 |
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0.292972 |
99.329 |
98.986 |
99.187- 99.695 |
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0.5828 |
0.0014 |
0.240797 |
0.5804 |
0.5814 |
0.5803- 0.5833 |
/// Sea Cargo News ///
Hormuz Tensions
Disrupt Dry Bulk Shipping; Sub-Capesize Segments Most Exposed, Says BIMCO
Escalating attacks on Iran by the United
States and Israel have begun to disrupt vessel movements through the
strategically vital Strait of Hormuz, with knock-on effects emerging for the
dry bulk sector.
According to Filipe Gouveia, Shipping
Analysis Manager at BIMCO, around 4% of global dry bulk cargo volumes and
tonne-mile demand are linked to transits through the Strait. While the corridor
is more critical for the tanker market, ongoing tensions are beginning to weigh
on bulk carrier activity.
Traffic through the Strait has already
declined sharply. During the first three days of March, bulk carrier sailings
dropped to less than one-third of the levels recorded in the previous week. At
least five ships have reportedly been attacked, and Iranian forces have
threatened further action against vessels operating in the area. The United
States has advised ships to avoid the conflict zone.
Although President Donald Trump announced
potential guarantees for ship owners and naval escorts for merchant vessels,
these measures have yet to materialise and are not currently influencing market
dynamics.
Sub-Cape size Segments Face Higher Exposure : Gouveia noted that
sub-cape size segments are particularly vulnerable. Approximately 7% of
Supra-max demand and 5% of both Panamax and handy size demand depend on voyages
transiting the Strait. Despite the reduction in sailings, dry bulk freight
rates have so far remained relatively stable, as vessels continue to transit at
reduced capacity.
Key Commodities at Stake : Grains, Iron ore and
Steel dominate dry bulk imports into Persian Gulf Ports via the Strait,
accounting for 59% of inbound volumes and 70% of inbound tonne miles. Brazil
and Argentina are key suppliers of iron ore and grains to the region, while
China is a major supplier of steel.
On the export side, limestone, Sulphur and
Urea make up 69% of outbound volumes and 63% of outbound tonne miles from the
Persian Gulf. Notably, 52% of global limestone shipments originate from the UAE
through the Strait, largely destined for India and Bangladesh for cement
and steel production. The region also
accounts for 45% of global sulphur shipments and 27% of global urea exports.
Risk of Broader Market Weakness : “If
disruptions in the area remain for an extended period and especially if ships
stop transiting the Strait altogether, they dry bulk market could weaken,
particularly in segments other than capsize”, Gouveia cautioned.
Sustained disruptions could curb import
demand from Persian Gulf nations, as overland alternatives would likely be
inadequate to meet existing requirements. Meanwhile, replacing critical exports
such as limestone could prove challenging in the medium term due to limited
alternative suppliers.
For now, the dry bulk market remains
resilient – but prolonged instability in the Strait of Hormuz could
significantly alter trade flows and freight fundamentals.
RCL
declares End of Voyage for Middle East shipments
Regional Container Lines (RCL) is ending the
voyages for two specific ships immediately. This decision follows the sudden
escalation of war in the Middle East. Because these volatile circumstances
remain beyond its control, the carrier will stop these vessels at intermediary
ports.
Affected Vessels and Forced Discharge - RCL has declared
an End of Voyage for the following ships. Consequently, all cargo will be
discharged at these locations :
Vessel : Hiranya Bhum (008W). Termination Port : Sohar, Oman.
Mandatory Surcharge : USD 1,000 per Container.
Vessel : Zhong Gu Tai Yuan (V.25049W).
Termination Port : Nhava Sheva,
India.
Mandatory Surcharge : USD 500 per Container.
Critical Terms for Cargo Owners
: The carrier is stopping these transits early. Therefore, shippers must manage
the following requirements.
1 - Mandatory Surcharges : These fees apply to every
container on these vessels to cover extra operational costs.
2 – Discharge Expenses : Cargo owners must pay for all handling,
storage and ancillary charges at the new port.
3 – Risk Transfer : All risks shift to the cargo
owner/s upon discharge. This change follows the standard Bill of Lading terms
and conditions.
4 – Final Delivery :
RCL will not move the cargo further. Thus customers must arrange their
own transport to the final destination.
RCL regrets this necessity. However, safety
and regional stability forced this difficult choice. Please contact your local
representative for immediate support.
Strong
Worker Resistance Mounts Against HMM Busan Relocation Plan
Strong union opposition is intensifying at
South Korea’s largest container shipping company as plans to relocate HMM’s
headquarters from Seoul to Busan face mounting labour unrest.
Major union groups have signalled potential
legal action and a broad strike if the proposed move proceeds without adequate
consultation and agreement with workers.
The HMM Land Workers’ Union has condemned the
relocation push — seen by many in the workforce as politically driven rather
than grounded in commercial strategy — and warned that it will escalate protest
actions in the weeks ahead.
The union argues that moving the headquarters
could weaken management efficiency and disrupt employees’ lives and careers, as
Seoul’s status as a major commercial hub currently provides access to talent,
industry ties and global networks.
Union leaders say they are preparing legal
steps to challenge any shareholder resolutions that alter the company’s
articles of incorporation to permit relocation. They have also indicated that
if talks with management fail, they will pursue injunctions or other court
actions to halt the process.
The union has outlined a series of escalation
actions including weekly morning rallies beginning in Mid-March and a key rally
on April 02, 2026 aimed at securing a general strike mandate. If efforts to
protect worker’s rights are ignored, union representatives have warned that
full scale strike could follow in April.
The relocation initiative is part of a
broader government strategy to bolster Busan’s role as a maritime and logistics
hub, in line with national policy to shift key marine institutions and agencies
to the southeastern port city. While officials emphasise long term
competitiveness gains, the labour dispute highlights tensions over how and when
such structural changes should be pursued.
With tensions rising between management,
government stakeholders and the union, the coming weeks are expected to be
critical in determining whether the HQ relocation move can progress without a
major confrontation.
MSC Shifts Gulf-Bound
Shipments Amid Regional Security Concerns
Mediterranean Shipping Company (MSC), the
world’s largest ocean container carrier, has announced a major operational
shift by diverting cargo originally destined for Gulf ports to safer seaports,
as escalating tensions in the Middle East raise security risks for maritime
trade.
In a customer advisory issued this week, MSC
declared an “End of Voyage” for all shipments under its custody that were bound
for Arabian Gulf destinations. This includes loaded and empty containers
destined for ports in the UAE, Saudi Arabia, Qatar, Kuwait and other Gulf
states.
Ships will now unload at the nearest safe
seaport of discharge rather than proceed to scheduled Gulf calls. The
decision reflects concerns over heightened hostilities in the region,
particularly following recent military strikes and retaliatory actions that
have disrupted normal navigation routes and raised risks to crew safety and
vessel operations.
Analysts note that the Strait of Hormuz –
one of the world’s most critical maritime chokepoints – has been significant
reductions in traffic and safety warnings as geopolitical tensions intensify.
To compensate for the additional operational
costs caused by these diversions, MSC said it will impose a mandatory surcharge
of USD 800 per container on all affected shipments, with the expense to be
borne by cargo owners. Shippers wishing to forward diverted cargo to
alternative destinations must arrange new bookings through MSC’s global agency
network.
The carrier’s move highlights increasing
caution among global shipping lines. Industry data shows that many carriers
have adjusted sailings, suspended Gulf transits or sought shelter at nearby
ports as logistics networks respond to security uncertainties. Disruptions
through the Gulf region have already led to dozens of container ships sheltered
and broader supply chain delays.
The shift comes amid wider concerns over
maritime safety with reports of vessel incidents near UAE and Oman waters and
insurers mostly withdrawing War Risk coverage for Gulf transits. Such dynamics
are prompting carriers and freight forwarders to re-think routing, insurance
and pricing strategies as regional tensions persist.
Trade analysts say the adjustments by MSC and
others underscore how geo-political instability can ripple through global
commerce – affecting not just energy flows but also container traffic, supply
chains and freight costs across Asia, Europe and beyond.
€10M Bail Ordered for
Russian-Linked Tanker Ethera in Belgium
Belgian authorities have ordered a €10
million bail on the Russian-linked oil tanker Ethera after detaining the vessel
earlier this week as part of a crackdown on what officials describe as Russia’s
“shadow fleet.”
The tanker, which was seized in the North Sea
and escorted to the port of Zeebrugge, was found to be operating with forged
documentation and sailing under a false Guinean flag, Belgian authorities said.
Inspectors identified dozens of violations — most related to invalid or
fraudulent certificates — prompting the government to demand the substantial
bail before the vessel is allowed to move.
Belgium’s North Sea Ministry confirmed that
Ethera is on the European Union’s sanctions list, part of broader efforts to
enforce restrictions on Russia’s energy exports in response to its invasion of
Ukraine. The ship will be allowed to
sail again only after the bail is paid, a follow up inspection confirms
compliance with maritime regulations and valid flag and certification
requirements are met.
Defence Mnister Theo Francken said the action
demonstrates Belgium’s commitment to upholding EU sanctions, protecting the
North Sea and curbing financial flows could support Russia’s military
operations.
The tanker’s detention follows coordinated
enforcement efforts by European nations – including a joint Belgian-French
boarding operation – and reflects rising scrutiny of shadow fleet vessels that
have been used to evade international sanctions by changing flags, masking
ownership structures and falsifying paperwork.
While the Russian embassy in Belgium has yet
to issue a formal response, Moscow has in the past characterized similar
seizures as acts of piracy.
With heightened enforcement of sanctions,
European authorities are increasing signalling that shadow fleet vessels may
face tougher legal and financial consequences if they fail to comply with
international maritime and sanctions laws.
U.S. Moves to Protect
Gulf Trade with War Risk Coverage and Navy Escort Plan
The United States has unveiled a bold
strategy to safeguard commercial shipping in the Persian Gulf amid rising
Middle East tensions, offering government-backed war risk insurance and
signaling that the U.S. Navy could escort vessels through the strategically
vital Strait of Hormuz if necessary.
Speaking from the White House on Tuesday,
President Donald Trump directed the U.S. International Development Finance
Corporation (DFC) to provide political risk insurance and financial guarantees
for all maritime trade, particularly energy shipments transiting the Gulf.
The move aims to counteract the sharp rise in
war-risk premiums after insurers pulled coverage for vessels operating in the
region due to escalating hostilities.
Trump also said the U.S. Navy could begin
escorting oil tankers through the “Strait of Hormuz” as soon as possible if
conditions warrant, underlining Washington’s intent to ensure the free flow of
energy supplies to global markets.
“The United States will ensure the free flow
of energy to the world”, Trump wrote on social media, framing the plan as a
combined economic and military effort to stabilize international shipping amid
conflict-linked disruptions.
Background : Rising Risks in the Gulf – The
announcement comes after a surge in attacks on commercial vessels and growing
threats by Iranian forces in the Strait of Hormuz, a narrow chokepoint through
which roughly one-fifth of the world’s oil trade passes. Several insurers had
already cancelled war risk coverage for the area, prompting carriers to suspend
transits and re-route ships away from the Gulf.
Analysts say that without government-backed
insurance, commercial traffic through the waterway could remain stalled,
worsening global energy supply uncertainties and adding upward pressure on oil
prices-which have already jumped amid the crisis.
Industry and Policy Impact – Shipping
associations have given mixed responses to the plan. Some applaud the effort to
underwrite risk and encourage resumed transits, while others note logistical
and operational limits of deploying naval escorts in contested waters.
U.S. officials are also exploring additional
measures including strategic petroleum reserve releases and coordination with
international partners to mitigate broader market impacts.
COSCO Suspends New
Container Bookings Across Middle East-Gulf Lanes
COSCO Shipping, the Chinese state-owned
maritime and logistics powerhouse, has suspended all new container bookings for
routes to and from the Middle East and Gulf region in response to escalating
regional tensions and restricted maritime traffic through the Strait of Hormuz.
In an official statement, COSCO Shipping
Lines said the decision was taken “with immediate effect and until further
notice” after conducting a risk assessment that highlighted rising
conflict-related dangers and navigation limitations in key Gulf transit
corridors. The suspension affects bookings for ports in the United Arab
Emirates, Saudi Arabia, Bahrain, Iraq, Kuwait and other Gulf states.
Impact on Cargo and Operations – COSCO indicated
that it is currently evaluating contingency plans for cargo already loaded or
in transit, including identifying alternative discharge ports and managing
logistical arrangements under the terms of existing bills of lading.
The move reflects a broader trend among
global carriers: several major lines have paused bookings, re-routed vessels or
imposed war risk surcharges as maritime traffic through the strategic Strait of
Hormuz – a key chokepoint for global energy and goods shipments – becomes
increasingly perilous.
Wider Shipping Industry Response – Other shipping
giants, including Maersk and MSC, have taken similar steps by suspending
bookings or adjusting operations in and out of Gulf markets amid growing safety
concerns. Some carriers are also exploring longer detours via the Cape of Good
Hope to avoid the volatile region.
Market Repercussions – Logistics analysts
warn that the booking suspensions – coupled with stops in Gulf port operations
and surcharges on war risk routes – could ripple through global supply chains,
causing increased freight costs, longer transit times and pressure on
manufacturers and importers dependent on Gulf trade links.
Hapag-Lloyd Suspends
Strait of Hormuz Transits Amid Escalating Middle East Tensions
Amid the evolving conflict in the Middle East
and the increasingly strained security situation in the Strait of Hormuz,
Hapag-Lloyd has announced the suspension of all vessel transits through the
critical maritime corridor until further notice.
In an official communication, the German
container shipping major stated that the decision has been taken as a
precautionary measure to safeguard its crews, vessels, and customers’ cargo in
light of heightened regional instability.
The Strait of Hormuz, a vital gateway
connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea, is one
of the world’s most important energy and trade chokepoints. Any disruption to
shipping activity in the waterway has immediate implications for global supply
chains, energy markets, and regional trade flows.
Upper Gulf Services Impacted – As a direct
consequence of the suspension, services carrying cargo to and from the Upper
Gulf are expected to experience delays, re-routing and schedule adjustments.
The company also confirmed that it has implemented a booking suspension for all
cargo types moving to and from Upper Gulf destinations until further clarity
emerges on the security situation.
The move is likely to affect shipments
destined for key Gulf ports, with vessels either being held back, diverted via
alternative routes or awaiting further operational guidance. Industry observers
note that prolonged disruptions could lead to congestion at trans-shipment
hubs, higher freight rates and extended transit times.
Industry Wide Precautionary Measures – Hapag Lloyd’s
decision follows growing concerns across the global maritime industry regarding
the safety of vessels navigating the region. Shipping Lines have been closely
monitoring developments, particularly amid reports of missile and drone
activity, as well as electronic interference affecting navigation systems in
surrounding waters.
Maritime security agencies and governments
are also reviewing protective measures for commercial vessels operating in the
Persian Gulf and adjoining areas. For now, Hapag Lloyd has advised customers to
stay in close with local offices and account representatives for updated
schedules and alternative routing options. The carrier said it will continue to
assess the situation and resume normal transits once safe passage through the
Strait of Hormuz can be assured.
The development underscores the vulnerability
of global trade routes to geopolitical tensions, with the shipping industry
once again navigating uncertainty in one of the world’s most strategically
sensitive maritime corridors.
Xeneta
warns of spiralling airfreight rates due to Middle East crisis
Consultant and data provider Xeneta is
expecting airfreight rates to spiral due to the Middle East crisis and has
recommended to shippers on affected trade lanes that they delay signing longer
term deals until the situation eases.
Xeneta chief airfreight officer Niall van de
Wouw said that global
airfreight capacity is down by around 16-18% as a result of carriers
having to ground operations and cancel flights due to the outbreak of war in
the Middle East. However, he pointed out that the impact on some markets was
“much more dramatic” than others.
“The key example is India. Capacity out of
that market is dominated by Qatar, Emirates, and Etihad combined, and they are
no longer able to serve that market,” he said.
“So that 16-18% means low single-digit impact
in certain markets and 50, 60, 70% in other markets.”
He said that even those operations not going
through the Middle East could be affected. For example, services operating from
India through Istanbul may see prices rise as well because of the wider impact.
“So even if you’re not operationally
affected, you will be commercially affected, because airlines that are still
able to serve these markets will try to maximise or optimise their benefits,”
said van de Wouw.
On expectations for freight rates, he likened
the situation to Covid when flights across the world were grounded and the
market saw rates “double, triple, quadruple in certain markets”.
“I think that is likely to happen in these
markets as well if the situation prolongs. I’m also not a sensationalist, but
the number one and two global carriers from an airfreight perspective [Qatar
and Emirates], they’ve been crippled.
“They were no longer able to operate their
services. That has a dramatic impact. And there’s the uncertainty, because we
do not know how long this might take.”
Cargo on the ground with an airline in Middle
East at the moment was likely to be stuck, he said, although if a freight
forwarder in the region is in possession, there could be some hope they will
find a way to move the goods.
Cargo in Asia could also be delayed and
charter operations are likely to increase, he added. “Shippers will have to pay
for the freight forwarders to find a way. The industry has been very effective
over the last 10 years in dealing with these situations. They will find a way,
but it will come at a cost,” explained van de Wouw.
“Load factors from Asia to Europe for many
Asian gateways were around 80% before the crisis. That’s our tipping point of a
buyer’s and seller’s market.
“Take away 10% of capacity and you’ll have a
run at capacity. Charters
will be discussed as we speak now, but you have to look at landing rights.
And it will come at a much higher rate than we saw prior to the start of the
war.”
Van de Wouw added that many shippers will
also be in the process of negotiating deals for the year. If this is the case,
he recommended that discussions on affected trade lanes be postponed.
“If you’re moving across the Pacific, the
impact will be less profound than moving from Asia to Europe or from the Indian
subcontinent to Europe. If your lanes are less affected, it’s business as usual
with a slight nuance.
“But if you’re on lanes affected by this war,
postpone it. You will be vulnerable to the short-term market, but that is what
it is. “Any longer-term rate you agree now could be far too expensive if this
is resolved quickly or far too cheap if this takes too long. What’s the value
of that?
“Stay close to your freight forwarders, live
with the uncertainty, and once there is a bit more clarity, then set the scene
for a longer price validity. A paper agreement now is probably not going to
survive reality for a long period of time.”
TIACA
honoring past and future with initiatives
The International Air Cargo Association
(TIACA) launched a tsunami of press releases last week, in the wake of its
media web-conference on 04MAR26. While the press conference detailed a great
many points from member growth, through to white papers on e-commerce or food
& farm for health, its sustainability survey, and an overview of recent and
upcoming events, the emphasis on the following initiatives showed a clear focus
on learning from and preserving experience so as to pass it on to future generations,
as well as promoting the ideas and inspiration from the air cargo industry’s
new talent. Here’s a summary.
Two completely new knowledge-sharing
initiatives were unveiled: the TIACA Reading Room and TIACA Future Thinkers are
planned to go live in the second quarter of this year. Both platforms will be
hosted on the association’s website, reinforcing TIACA’s mission to promote
education, innovation, and cross-generational collaboration within the global
air cargo community.
The Reading Room
The TIACA Reading Room will act as a digital library, referencing books and
thought leadership from industry figures, academics, and researchers. It will
showcase curated titles covering all kinds of background information on air
cargo, sustainability, digitization, and logistics, along with detailed author
profiles and information on how to access each publication.
TIACA invites industry authors to submit
their works, so as to create what it describes as a ‘living library’ of sector
expertise and insight. TIACA explains that the motivation to set up the Reading
Room is ‘the belief that knowledge shared becomes wisdom gained’.
Future Thinkers
The TIACA Future Thinkers platform will feature graduate and postgraduate
research related to aviation and logistics, offering visibility to students and
recent graduates whose projects explore innovative or emerging industry themes.
The initiative aims to connect academic
talent with cargo businesses seeking new ideas and potential collaborators.
Roos Bakker, TIACA Chair, explained: “These two initiatives reflect what
TIACA stands for at its core, bringing our industry together not only to do
business, but to share knowledge and cultivate future leadership. The Reading
Room honors the experience and insight that have shaped air cargo over decades,
while Future Thinkers ensures we are listening to the new voices that will
define what comes next. Strong industries are built on both legacy and fresh
perspective.”
Glyn Hughes, TIACA Director General, added: “Our
industry thrives when ideas move freely across generations and geographies.
With the Reading Room, we are creating a home for industry intelligence and
thought leadership. Through Future Thinkers, we are opening the door for
emerging talent to step into the global conversation. These initiatives
strengthen the bridge between academia and industry and help ensure that
innovation remains at the heart of air cargo’s evolution.”
New sponsor for Inspirational Leader Award
Cargo Service Center India has stepped up to serve as the official sponsor of
the TIACA Inspirational Leader Award from 2026 to 2028. As part of TIACA’s
broader Air Cargo Leadership Awards program, the Inspirational Leader Award
highlights those working in airlines, airports, freight forwarding, ground
handling, technology providers and other industry stakeholders, who drive
progress, support digital transformation, and inspire future generations within
the sector.
Nominations for the 2026 edition are open
until 08APR26, and the winner will be recognized during TIACA’s Executive
Summit 2026, in Warsaw, Poland, from 01-03JUN26.
Roos Bakker commented: “Strong leadership is essential to ensuring the
continued resilience and evolution of our industry. The Inspirational Leader
Award recognizes individuals who motivate others, drive innovation, and help
shape the future of global air cargo.”
Tushar Jani, Chairman, Cargo Service Center
Group, underlined: “CSC believes in the individual leadership and collective
spirit of people, companies and communities. We are proud to be associated with
this very special recognition which reflects our values of a People-First
approach and purposeful inspirational leadership.”
Glyn Hughes added: “Recognizing
inspirational leadership helps foster a culture of innovation and collaboration
across the air cargo ecosystem. We are delighted to welcome Cargo Service
Center India as sponsor of this important industry award.”
Rising Star Award
The Executive Summit in Poland will also honor a Rising Star in the industry
and TIACA’s Rising Star Award is now being sponsored by Hong Kong Air Cargo
Terminals Ltd. (HACTL) through to 2029. This award celebrates young
professionals under the age of 35 who demonstrate excellence, innovation,
inspiration and outstanding contributions to the air cargo and logistics
community, and nominations here are also possible until 08APR26.
Roos Bakker said: “We are delighted to
partner with HACTL in fostering the next generation of leaders in air cargo.
This collaboration highlights the importance of nurturing young talent and
supporting innovation that will shape the future of our industry.”
Michelle Choi, Acting Chief, Hong Kong Air
Cargo Terminals (HACTL), stated: “Nurturing the leaders of the future is
vital in any industry. It’s a commitment to ongoing success and that’s why
HACTL is delighted to take on the long-term sponsorship of TIACA’s Rising Star
Award. For the last half century we have designed, developed and implemented
training programs which enable us to grow our own future management, so it is
only fitting that we become the sponsor of this award.”
Glyn Hughes announced: “We are deeply
grateful to HACTL for their generous and continued support of the association
by sponsoring the Rising Star Award for the next three years. This long-term
partnership reflects a shared commitment to investing in people and ensuring
our industry’s future is shaped by talented, passionate professionals. HACTL’s
dedication to recognizing and empowering emerging leaders sends a powerful
message about the importance of developing the next generation of air cargo
leaders.”
Who will be TIACA’s new Director General?
While it is difficult to imagine TIACA with Glyn Hughes who has held the
Director General position since 2021 – 5 years that, he said, “have flown by
tremendously fast” – (pun may or may not have been intended – one of his
many skills), he announced that he will be leaving, though left the precise
date open-ended, since it depends upon a smooth transition to the next Director
General.
He confirmed that he will stay on for as long
as it takes to on-board his successor and announced that applications are now
open for the position. “As Chief Executive Officer of the Association, the
Director General operates under the direction of the Board and is responsible
for supervising the affairs of the Association, ensuring both financial and
operational success,” the release explained, going on to add other
responsibilities such as:
leading the execution of TIACA’s vision and
strategy, being accountable for delivering agreed projects and programs while
providing robust operational and financial reporting, being TIACA’s primary
representative and spokesperson, maintaining strong relationships with members,
partners, media, and industry stakeholders worldwide, and developing and
implementing a commercial action plan to ensure TIACA remains relevant,
attractive, and financially sustainable.
Roos Bakker emphasized: “The Director
General plays a critical role in shaping the future of TIACA and ensuring we
deliver measurable results for our members and the broader air cargo community.
We are seeking a visionary yet practical leader who can execute our strategy
with discipline, strengthen our global partnerships, and drive sustainable
growth. This is a unique opportunity to guide a respected international
association at a time of significant industry transformation.”
Glyn Hughes concluded: “Serving as
Director General since 2021 has been an honor. Together with our Board,
members, and team, we have reinforced TIACA’s global presence and strengthened
our value proposition. The next Director General will inherit a strong platform
and an engaged global community, and I am confident they will continue to
advance TIACA’s mission with energy and purpose.”
LH
Cargo has grown its market position in 2025
Driven by positive annual figures, the
Frankfurt-based cargo airline managed to join the club of the leading top five
global air freight carriers. This ranking is confirmed by business data cited
in its annual balance sheet presented by Lufthansa Cargo management on 06MAR26.
In fiscal 2025, the company generated an
operating profit of EUR 324 million (2024: EUR 251 million). This represents a
strong increase of 29% compared to the previous year. Lufthansa Cargo thus made
an important contribution to the Lufthansa Group’s adjusted EBIT of around EUR
2 billion in 2025 – up 19% compared with 2024.
New strategy pays off
The main driver of Lufthansa Cargo’s positive results was the BOLD MOVES
strategy implemented in 2023. The scheme concentrates on three pillars: A
competitive core business, profitable growth, and a focus on employees and
corporate culture. According to the scheme, Lufthansa Cargo should rank among
the world’s top five cargo airlines by the end of 2026, based on Revenue
Freight Kilometers.
But data shows that this goal was already
achieved in 2025 – a year ahead of schedule. Now, management has raised the bar
for success even higher: the goal now is to secure a rank among the three
largest freight carriers worldwide, come 2030.
Satisfying results
When taking a closer look at the 2025 balance sheet, it becomes evident that
Lufthansa Cargo succeeded in improving most of its business targets: Revenue
increased by 4% to EUR 3.4 billion (previous year: EUR 3.26 billion), the
adjusted EBIT rose by 29% to EUR 324 million.
Available freight capacity also went up,
reaching 14.45 billion freight ton kilometers (+ 5.4%). Sales increased by 7%
year-on-year to 9.1 billion freight TKM. The average load factor improved
slightly, reaching 63% (+1.1% year-over-year). Furthermore, quality measured in
‘delivery on time’ increased by 5% compared to 2024. However, management
omitted to disclose the overall satisfaction level.
Multi airline and hub concept
In 2025, Lufthansa Cargo grew both organically and through M&A activities.
In mid-2025, the German freight carrier began marketing the cargo capacities of
Rome-based ITA Airways. This includes nearly the entire continental and
intercontinental network of the Italian airline. However, routes to and from
the U.S. and Canada are excluded until regulatory approval is granted.
With Rome as its fifth hub, Lufthansa Cargo
strengthens its presence in Southern Europe and will expand global lower deck
capacity by around 20% in the long term, its release states. Already today,
Lufthansa Cargo is the home carrier in five of Europe’s ten most important air
freight markets including Germany, Switzerland, Italy, Belgium, and Austria.
Success has many fathers
Ashwin Bhat, CEO of Lufthansa Cargo, commented: “Being back among the
top 5 global air freight providers already in 2025, is proof of the impact of
our BOLD MOVES strategy and of the outstanding commitment and ambition of our
team worldwide. We have taken decisive steps in a short period of time to continue
improving quality, customer satisfaction, and efficiency at the same time –
exactly where our customers experience the greatest value.
In parallel, we are advancing our network in
a targeted way: Our partnerships with ITA Airways and Swiss WorldCargo open
additional opportunities for our customers. Both bring us closer to our goal of
making Lufthansa Cargo one of the world’s top three air freight providers by
2030.”
Gregor Schleussner, CFO and CHRO of Lufthansa
Cargo, added that the annual result “impressively underscores the quality,
reliability and economic strength of our business model. It is particularly
noteworthy that we also exceeded our margin target – a clear sign of our
consistent cost management and the high profitability of our operating
business. This strong performance gives us additional financial leeway to
continue investing in future technologies, infrastructure and high-quality
services for our customers. At our hub Frankfurt alone, we are currently
investing EUR 600 million in our new, modern freight center.”
Network grew further
Further to this, the carrier managed to expand its own regional and
intercontinental network during the last 12 months, both in terms of long-haul
routes and routes within the EU to North Africa and the Middle East. These are
served by leased A321P2F aircraft. New destinations include Katowice (KTW),
Rome (FCO), and Beirut (BEY). However, flights to Lebanon have been suspended
until 28MAR26, due to the war in Iran.
In intercontinental traffic, freighter
connections to Almaty (ALA) and a new route from Shanghai (PVG) to Los Angeles
(LAX) across the Pacific were launched, complemented by a broad offering of up
to 50 weekly frequencies in Asia-Pacific and more than 30 destinations served
in North and South America.
Level playing field still not in sight
The freight carrier also strengthened its competitive position in the fields of
high-value products such as pharmaceuticals, automotive components, aviation
items, and semiconductors.
But like its European peers, Lufthansa Cargo
is constantly facing headwinds resulting from unfair competition by airlines
based in the Middle East, Turkey, and China. Thanks to government subsidies,
these cargo players are facing a lower cost base compared to their European
rivals, Lufthansa Cargo, Air France-KLM Cargo, Finnair Cargo, or SAS Cargo.
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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