Monday, September 23, 2019
Results were impacted by the continuing airspace blockade on Qatar put into effect by neighbouring countries in June 2017, reported London's Air Cargo News.During the fiscal year the carrier transported 1.4 million tonnes of cargo, up 6.8 per cent year on year, making it the second largest cargo carrier worldwide.Meanwhile, cargo capacity rose by 11.8 per cent as measured by available tonne kilometres. During 2018-19 the carrier's freighter fleet expanded due to taking delivery of three new Boeing 777 freighters.It will receive a further five B777Fs by year-end, raising its all-cargo line-up to 28 aircraft, including two B747-8Fs, 21 B777Fs and five A330Fs."The launch of transpacific freighter services from Macau to North America in October 2018 enhanced the capabilities of the business, allowing customers in China to ship their cargo directly to the US and Mexico over the Pacific, significantly reducing air transport time," the airline said.As well as Macau, freighter services were launched to Guadalajara and Almaty this year. In total, Qatar Airways Cargo now offers 65 freighter flights per day.Qatar Airways Group chief executive Akbar Al Baker said: "While it is disappointing that group has registered a net loss of QAR2.3 billion - attributable to the loss of mature routes, higher fuel costs and foreign exchange fluctuations - the underlying fundamentals of our business remain extremely robust."The airline launched 11 new destinations during the fiscal year 2019 and grew its fleet by 25 aircraft after welcoming its 250th aircraft in March 2019. It has 300 aircraft on order.
Airbus expects air cargo will double by 2038 based on a compound annual growth rate (CAGR) of 3.6 per cent, up from last year's CAGR estimate of 3.4 per cent. Belly cargo is predicted to increase at a faster rate than main-deck freight - by 4.3 per cent and 2.8 per cent per year, respectively. According to the report, 60 per cent of cargo will be loaded onto passenger aircraft by 2038.Of the total dedicated freighters in service by then, Airbus now estimates that 2,500 would be newbuilds and converted passenger planes, with 60 per cent of those replacing existing aircraft and the remainder representing incremental growth. Conversions would account for most of the fleet activity, supplemented by 850 newly manufactured planes, reported New York's FreightWaves.Most newbuild freighters - 500 - are forecast to be in the mid-size freighter category, where aircraft payload ranges from 40 to 80 tonnes. Another 356 newbuild aircraft will be needed in the large category with payloads above 80 tonnes.The air freight market cooled off last year to four per cent growth and volumes have continued to drop throughout this year. That said, trade is still strong enough to support existing capacity. Airbus said that as of mid-2019, storage levels for freighters were at a historic low of six per cent. Only 30 aircraft were retired last year compared to the 10-year average of 108 aircraft per year.The freighter fleet has grown for five years in a row to a record 1,800 aircraft.Airbus predicts that the overall fleet would double to 47,680 aircraft in 20 years. It now estimates that 25,000 planes will handle new business, while 14,210 newbuilds will be replacements. That compares to 26,540 for growth reasons and 10,850 replacement aircraft in last year's forecast.
According to its latest China Commercial Market Outlook, Boeing said the total demand for aircraft and services represents a seven per cent increase over its 2018 forecast.Boeing vice president Randy Tinseth was quoted as saying in a report by Asian Aviation, Singapore: "An expanding middle class, significant investment in infrastructure, and advanced technologies that make airplanes more capable and efficient, continue to drive tremendous demand for air travel."Single-aisle airplanes are expected to remain the foundation of China's domestic and regional fleets, according to Boeing's report. The company said China would need 5,960 new single-aisle airplanes, representing 74 per cent of total new deliveries. The country will also need 1,780 new widebody aircraft, which will triple the country's current fleet size."China's rapidly growing e-commerce and express delivery market will make air cargo a key growth driver as 230 new freighters and 500 converted freighters will be needed," Boeing said in the report.The company also said China's $1.6 trillion services market will include $935 billion in ground and cargo operations services, $390 billion in maintenance and engineering services, $200 billion in flight-operations services and $90 billion in marketing, customer service and corporate services.Worldwide, Boeing projects the need for 44,040 new commercial airplanes over the next two decades valued at $6.8 trillion.
The conferences will act as a global networking platform for regional and international service providers involved in the cold chain, logistics and packaging solutions, shippers, producers, and transport providers to connect the gap between the supply chain and logistics business.Since the launch of this event in 2016, Kenya Flower Council (KFC) and Kenya Plant Health Inspectorate Service (KEPHIS) have continued to offer industry support for these two events.It is important to note that the conferences in October take place against the backdrop of the African Continental Free Trade Area (AfCFTA), a single continental market for goods and services that will come into force by July this year. Along with AfCFTA, the Single African Air Transport Market (SAATM) will also provide huge support to the African aviation industry in general and to African air cargo industry in particular.
The weekly train connections are perfectly aligned with CMA CGM's deep-sea services, reports AJOT.Operated in cooperation with TFG, a major containerised seaport hinterland transport for German ports, the Rhine Valley Rail service will officially start with its first train departure in Dortmund on October 18. A total of six departures per week between the Port of Rotterdam and the German inland hubs of Dortmund, Duisburg and Ludwigshafen will enhance CMA CGM's intermodal offer and provide customers with a reliable and fast rail connection between Germany and Europe's busiest port.In Rotterdam, the trains will call at three different terminals (Euromax, RWG and ECT), thus allowing a maximum of flexibility. Moreover, the train schedules are perfectly synchronised with the arrivals and departures of the CMA CGM Group's vessels, providing customers with a steady and seamless connection to the Group's deep-sea services.There'll be two departures weekly on the Rotterdam-Duisburg service and one departure per week on the Rotterdam-Dortmund, Duisburg-Rotterdam, Dortmund-Rotterdam and Ludwigshafen-Rotterdam services.The train service will provide a reliable alternative to truck and barge transport along the Rhine river allowing customers to lower even more their carbon impact."It is yet another example of CMA CGM's continuous commitment to offer its customer the most environmentally friendly services. It is also in line with CMA CGM's strategy to offer reliable intermodal end-to-end transport solutions to its customers. An alternative to road and water transport, this new service is independent of the road and barge congestion and Rhine river water levels, resulting in more planning certainty for the customers," the shipping line said.
"Like many other sectors, automation is sweeping the marine industry world-wide with steep declines in employment of up to 90 per cent. It's only a matter of time before such automation happens here too," Rob Ashton, president of the ILWU Canada, said.ILWU noted that the provincial economy "stands to take a material hit from income lost in excess of CAD600 million (US$453.3 million) annually, with tax revenues declining more than CAD100 million a year."The study forecasts that 11 per cent of middle-income employment (CAD70,000+ per year) and 23 per cent of high-income employment (CAD100,000+ per year) in the community of Delta alone risk being eliminated due to future automation in the marine terminal industry. In Prince Rupert, one quarter of middle-income and two-thirds of high-income employment is at risk of elimination."The companies that automate these jobs out of existence stand to benefit. It is equally clear that workers, communities and governments would be left to pick up the pieces after the damage is done," said Mr Ashton.To address job loss from automation in the marine terminal and other sectors of the economy, the ILWU Canada is calling on all federal party leaders to commit to modernise Canada's approach to labour market adjustment, reports Rotterdam's World Maritime News.The union is also calling on all governments "to stop rewarding companies with tax breaks and subsidies when they automate good middle-class jobs out of existence to their exclusive benefit"."Disruption on this scale will be felt by the provincial economy and will have an acute effect in some local communities, particularly those that rely on this industry for good jobs and the economic benefits they bring locally," John O'Grady, founding partner of PRISM Economics and Analysis, added.
The naming ceremony for the 23,756 TEU ultra large container vessel (ULCV) was held recently at the Port of Bremerhaven. The MSC Samar is currently on its maiden voyage from Asia to Europe and arrived in Bremerhaven after making a stop in Algeciras, Spain.The 228,100 dwt newbuilding was completed at Samsung Heavy Industries (SHI) shipyard in South Korea in late July 2019, according to data provided by VesselsValue reports World Maritime News, Rotterdam.
However, the newbuilds, mostly consisting of ultra large container vessels (ULCVs), have arrived at a time of weaker demand growth across the world's major tradelanes, which is driving shipping lines to cancel a significant number of headhaul sailings, reported London's Loadstar.Indeed, 2M partners, Maersk and MSC have just announced that the "temporary suspension" of their AE2/Swan Asia-North Europe loop would commence one week earlier than planned, with the final schedule sailing from Qingdao on September 25 also being cancelled.Ocean carriers received 91,000 TEU of newbuild tonnage in the last week alone, including two further MSC Gulsun-series 23,000 TEU+ vessels; the 21,230 TEU Cosco Shipping Planet and the 20,240 TEU Ever Globe.Most of the new mega ships will be deployed on the Asia-Europe tradelane, triggering a cascading affect that will push the incumbent tonnage to secondary routes which is likely to pull down freight rates in those markets.The scrapping of older ships has stalled, with only 165,000 TEU reported to have been sold for demolition to date, due to a strong charter market driven by the demand for substitute vessels to cover scrubber installations on the existing fleet."Some of the demand increase since June is related to vessel downtime for scrubber installations. A total of 44 ships with an overall capacity of 465,000 TEU are currently undergoing retrofit work at various shipyards," said Alphaliner.Brokers in London and Hamburg have confirmed to The Loadstar in recent weeks that open mid-sized container tonnage has become "very scarce", especially in the panamax and above sectors, and there are anecdotal reports of daily hire rates doubling within six months for the most sought-after ships.However, this artificial charter market demand, caused by the looming International Maritime Organization's 0.5 per cent sulphur cap regulations on marine fuels, is masking the weakening fundamentals of global trade.Last week, shipping association Bimco reiterated its expectation for containership scrapping at some 200,000 TEU for the full year but warned that the "fundamental balance of the container shipping market will worsen this year".
"It is our goal at DHL Express to support our customers in reaching their business goals by tailoring our services to the needs of their business. As a prerequisite, we have been investing heavily in our international network," said Herbert Vongpusanachai, senior vice president and managing director, DHL Express Hong Kong and Macau.DHL Express said the annual price adjustment allows the company to invest in its infrastructure, enabling it to utilise innovative technologies and individual delivery processes to ensure best-in-class customer solutions."The growing e-commerce market has increased the demand for logistics expertise and in response, DHL Express have invested comprehensively in new lower carbon-emissions aircrafts, expanding its green fleet, developing its global hub and gateway network and top-of-the-line sorting technology armed with multiple processing capacities. These advances and those to come will help us, our customers and partners, to contribute a significant part to improving our ecological footprint."DHL Express pointed out that prices are adjusted on an annual basis, taking into consideration inflation and currency dynamics such as administrative costs related to regulatory and security measures."These measures are updated by national and international authorities on a regular basis in each of the more than 220 countries and territories that DHL Express serves."Depending on local conditions, price adjustments will vary from country to country, and will apply to all customers where contracts allow," the company said.
The operator is selling its interests in Nanjing Longtan Terminal, Yangzhou Yuanyang Terminal and Zhangjiagang Terminal while also announcing that it intends to sell interests in Taicang International Container Terminal and Jiangsu Petrochemical Terminal.The company noted that it intends to build a global terminal network with controlling stakes and it believes the sales could improve the overall quality of its Yangtze Delta terminal portfolio, reports UK's Container Management.According to CSP, "the transactions are in line with the company's strategic plan to divest assets in order to achieve capital recycling, which will add momentum for the future development".Through various subsidiaries, it has a 16 per cent stake in Nanjing Longtan terminal, a 56 per cent stake in Yangzhou Yuanyang Terminal and a 51 per cent stake in Zhangjiagang Terminal. Meanwhile, it has a 39 per cent stake in Taicang International container Terminal and a 30 per ten stake in Jiangsu Petrochemical Terminal.The company stated that it aims to improve asset quality, optimise domestic terminal portfolio and improve operating efficiency of the Company."Disposal of interest in various port assets, the throughput and profit contribution from which is relatively small, will further streamline our terminal portfolio and enhance our profitability," it added.In 2018, Nanjing Longtan Terminal handled 2.9 million TEU, Yangzhou Yuanyang Terminal handled 500,000 TEU and Zhangjiagang Terminal handled 760,000 TEU, while Taicang International Container terminal handled 560,000 TEU.
Shanghai-US west coast rates declined 7.5 per cent to $1,338 per FEU while China-US east coast dropped 6.6 per cent to $2,351 per FEU.