Monday, September 28, 2020
SpiceXpress, the cargo arm of low-cost carrier Spicejet, has also seen a big uptick in cargo volumes and revenue through the lockdown, when the focus switched to freight as passenger travel became almost non-existent.In its first quarter results to June, the carrier claimed it had emerged as "India's largest cargo airline", with cargo revenue up 144 per cent over the period, carrying 50,000 tonnes on 7,000 flights, of which 40 per cent were international.SpiceXpress operates a fleet of 13 cargo aircraft, and in August launched long-haul widebody cargo operations on two Airbus 340s to Europe, central Asia and Africa.Ajay Singh, Spicejet chairman and managing director, said the long-haul flights were a "huge game-changer"."We are confident that our long-haul cargo flights would further help boost Indian businesses, farmers, and pharma companies - providing them with seamless access to newer markets."Karthi Baskar, deputy managing director at Kintetsu World Express (India), said the air cargo recovery has been mostly driven by a strong export market, "mainly due to pharmaceuticals, perishables and e-commerce".He told The Loadstar, UK: "All major airports are showing a positive trend in terms of exports, but import demand is still slow due to the China-India political row, limited capacity and the 'Make in India' initiative gaining strength."Airfreight capacity is still tight, he explained, as scheduled passenger flights were yet to resume, except for 13 "bubble flights" where India has agreed to jointly open borders with partner countries."Most of the airlines are still operating cargo charters and passenger-converted charters, with roughly only 50 per cent capacity available, compared with pre-Covid times," Mr Baskar noted.As a result, he said, freight rates were still two-to-three times higher than usual, depending on the tradelane.Given India's status as a major pharmaceutical manufacturer, Mr Baskar predicted a strong end to the year. "The world is waiting for Covid vaccines, and India accounts for around 50 per cent of the global vaccine manufacturing market. Therefore, we expect a huge surge in the airfreight market late in the year."
The report said the e-commerce giant increased its daily flight activity from 85 flights per day on Thursday, April 23 to 108 flights on Thursday, August 20, a 27 per cent increase. Between May and July, the company expanded its fleet by nine aircraft to 51 freighters, with a further three planes joining the fleet since then."All of the nine planes added between May and July are operated by Sun Country Airlines, one of its newest contractors," the report said. "Sun Country began flying a tenth new plane for Amazon in August."Then, this month, Southern Air and Air Transportation International began flying Amazon Air's 11th and 12th new planes of 2020."The report also found that Amazon was continuing to decentralise its operation. "As a result of Amazon Air's continuing emphasis on point-to-point flying, the share of flights using its Cincinnati/Northern Kentucky (CVG) hub fell between April and August."The share of take-offs and landings involving the three largest hubs similarly dropped. We anticipate its decentralised orientation to persist even after Amazon takes occupancy of its massive new CVG facilities next year." The report also found that the company is operating international flights, although a minimal number. It said that the airline often operates semi-regular flights between the US mainland and both Amsterdam Schiphol and Shanghai Pudong International (Shanghai) airports - facilities widely regarded as focal points for logistics in continental European and China, respectively. Serving these points is most critical to just-in-time restocking."We expect more flying to and from international points over the next several years. How quickly this occurs, however, is hard to predict," the report stated, according to London's Air Cargo News.
The investment in Groupe Dubreuil Aero, which operates an air freight division covering French overseas territories, comprised a US$58 million capital increase subscription and the acquisition of shares. It will give CMA CGM a 30 per cent ownership of Air Caraibes and French Bee airlines that serve Guadeloupe, Martinique, Guyana, Reunion, and Polynesia, the carrier said in a statement."The acquisition of this stake will enable the CMA CGM Group to strengthen its position in air freight," said Rodolphe Saade, chairman and CEO of CMA CGM.The carrier will have access to additional air freight capacity through Hi Line Cargo, a subsidiary of Groupe DUBREUIL Aero that markets the belly cargo capacity of the two airlines. Air Caraibes and French Bee operate a fleet of 14 long-haul aircraft, including eight Airbus A350s that can carry 15 to 25 tonnes of freight.CMA CGM said the acquisition of a stake in Hi Line Cargo will allow the group to offer services "complementary to ocean freight, while keeping a hold on the transport chain in markets served by both groups."Jean-Paul Dubreuil, chairman of Groupe Dubreuil Aero, said the partnership with fellow French company CMA CGM strengthened the airline group's equity capital. He said it would enable the airline to "look forward more confidently to the turbulent period that the air transport sector is going through, by preparing for the rebound and future growth of the division."CMA CGM is already present in the air freight business through its ownership of CEVA Logistics, and this latest acquisition, although in a limited geographical area, continues the carrier's expansion into the wider integrated logistics space, reports IHS Media.
The company has been well established for many years in both countries through network partnerships and decided to open its own offices in each location to offer customers a full spectrum of multi-modal services, a company statement said.Air, ocean and ground operations will be headquartered in Ecuador's second city, Guayaquil, and multi-modal operations have been established in the capital Quito. CEVA Logistics' teams in Ecuador will keep serving existing local customers and develop business to provide end-to-end solutions for the perishables, consumer and oil and gas sectors.Ecuador is a strategic market in the region. Production of perishable products is especially diverse (flowers, cocoa, seafood, fruits and vegetables) and has a high potential.Furthermore, Ecuador offers access to key export markets, in other Andean countries such as Colombia and Peru, as well as the US, Asia and Europe.With a head office in Montevideo, CEVA Logistics' own operation in Uruguay will especially serve customers in agriculture and livestock farming, focusing on exports in products such as rice, citrus fruits, wood, leather, meat and dairy products.The team will also target key markets such as the technological, industrial and healthcare sectors.CEVA Logistics will offer customers a range of multi modal services across air, ocean, road and Contract Logistics. These will include intermodal services through to Argentina and Paraguay along with Customs Brokerage services for imports and exports. The main export focus will be on ocean and ground including multimodal transport up to Argentina and Paraguay.Uruguay is a logistics hub in the area thanks to the port of Montevideo, which is the main point of departure for ocean traffic, especially for shipments from Paraguay.As part of the CMA CGM Group, CEVA Logistics will create synergies to develop new domestic and international ground services. Furthermore, Mercosul Line, one of the leading players in Brazil's domestic container shipping market, services will be a key asset to further promote business between Brazil, Uruguay and Paraguay.Nadia Ribeiro, managing director LATAM, CEVA Logistics, says: "Our LATAM services are growing at a fast pace and this expansion of our own offices network is the next step to serve our customers and offer the most innovative and best-in-class services."
The violations occurred during 2017 and 2018 and were discovered during routine audits of the company's vessel visits, which found that MOL had not met the three-hour diesel operational time limits and had not reduced auxiliary engine power generation by 70 per cent as required under California law, at the time of the offence. This year California increased the required auxiliary power reduction to 80 per cent.The company was fined a total of $253,300, which will go to the state's Air Pollution Control Fund to support efforts to improve air quality, and to comply with all applicable CARB regulations."Emissions from ships pollute communities adjacent to the Port, and also contribute to smog," said CARB executive officer Richard Corey. "This regulation requiring shipping fleets to reduce their diesel emissions while at berth has a profound impact on helping clean up air quality, especially in communities located near ports."According to CARB the original rule was introduced in 2007, but recent updates to the law mean it is now more stringent, though even before the tightening of the regulation CARB said it had helped to achieve an 80 per cent reduction in harmful emissions from more than 13,000 vessel visits since 2014, reports UK's Container News.
The handling of export-import cargo shrank 19.7 per cent year on year to 100.8 million tonnes last month, leading the overall decline.Hit by the coronavirus pandemic, container cargo last month dropped 3.9 per cent to 2.32 million TEU compared to August 2019.A total of 130,000 TEU of export-import freight was processed, down 4.3 per cent from a year earlier, and transshipment cargo, or cargo processed en route to final destinations, also decreased 3.2 per cent from a year ago to 1 million TEU.Busan on the southeastern tip of South Korea was the country's busiest maritime gateway last month, with its container cargo handling totalling 1.73 million TEU, followed by Incheon, west of Seoul, with 274,000 TEU, according to Yonhap News Agency.
HMM has completed the delivery of all twelve 24,000 TEU containerships in September while all the eight 16,000 TEU containerships will join its fleet in the second quarter of 2021. All 20 vessels feature smart ship solutions, Colchester's Seatrade Maritime News reported.The Fleet Control Centre provides an integrated platform for vessel-to-shore data and increased connectivity. The real-time monitoring system offers full visibility including vessel performance, locations, fuel consumption, weather and cargo information.The vessels can also benefit from a remote control system that supports a wide range of vessel operations including inspection and repair works on the machinery on ships. "Digital capabilities have become a key element in securing a competitive edge," said Bae Jae-hoon, president and CEO of HMM."We will accelerate efforts to enhance operational excellence and efficiency in our fleet management. We will also gradually apply the smart ship solutions not only to our newbuilds but also to the other ships already in operation," he added.HMM said it will also continue to analyse the operational efficiency and explore the commercial viability of autonomous ships based on data collected from the centre.
Australian ports, particularly Sydney, are struggling to clear a severe cargo backlog brought about, not only with the industrial action, but with bad weather that has affected shipping schedules and a mounting trade imbalance.However, Zim announced that it will launch its new China Australia Express (CAX) service in the middle of next month, with an 11-day transit time from South China to Sydney, which its claimed is "one of the fastest in the market", The Loadstar, UK reported.The CAX service, with a port rotation of Ningbo, Shanghai, Yantian, Sydney, Melbourne, Brisbane and back to Ningbo, will deploy six 2,500 TEU vessels with "extensive capacity and plugs for refrigerated cargo"."A fleet of new, advanced reefer units fitted with ZIMonitor system for constant monitoring and damage prevention will be available to customers on the new service," the company said.ZIM president and chief executive Eli Glickman added: "We are very pleased to start operating in the Australian trade in view of the high demand in the market. I am sure this new service will provide a solution to customers' growing needs in this trade."We see great opportunity in the Australian trade and believe our unique Z Factor and innovative yet personal approach will be appreciated and valued by customers in this market."According to liner shipping database eeSea, the Asia-Oceania trade will have a headhaul proforma capacity of 379,000 TEU in October. At the time of writing, out of 82 scheduled sailings, seven are set to be blanked.Meanwhile, CMA CGM's Australian subsidiary ANL has announced that North China-Australia A3 service will omit a call at Sydney and a call at Melbourne next month as it continues to recover its schedule following "delays due to poor weather in Asia and ongoing port congestion in Australia".
The shipping line said that "in response to the expected demand change in the market", it has now reinstated the October 27 sailing of the East Coast China 2 (ECC2) service.The port rotation of the ECC2 service is Qingdao, Ningbo, Shanghai, Pusan, Colon, Savannah, Charleston, Boston, New York, Colon and returning to Qingdao.
Asia-Mediterranean rates rose .047 per cent to $1,193 per TEU. Rates from Shanghai to US west coast were up 1.1 per cent $3,910 per China-US east coast rates increased 2.2 per cent to $4,634 per FEU, double the rate of a year ago.