SHORT SHOTS

TIACA pacts with Clive Data Services

UPDATE - 9MAR20  -  The International Air Cargo Association and load factor analyzer Clive Data Services have inked a MoU aimed at delivering accurate and timely air freight market and route analyses.
2011 incepted and Amsterdam, Netherlands-based Clive claims that measuring load factors on weight utilization, as usually done, is a misleading figure. “The reality for the vast majority of widebody and freighter flights is that it’s the cargo capacity in cubic meters which is the limiting factor, not the cargo capacity in kilograms. Consequently, existing load factors, based only on weight, underestimate how full planes really are, and thus give a distorted picture of how the industry really is performing,” explains Clive Data Services’ Managing Director, Niall von de Wouw.

To shed light on the load factor issue, Clive has developed applications for better managing airlines’ and forwarding agents’ allocations. An approach, welcomed by TIACA, as the organization’s Chairman Steven Polmans states: “As part of the transformation of TIACA, we are promising to deliver more content to our growing membership - but only content of value to their businesses and which accurately represents and promotes the global air cargo industry. CLIVE’s dynamic load factor is registering a lot of interest because it breaks with tradition and is changing the way air cargo usage is measured based on the realities of today’s market. It is also the fastest source of data, which is also very appealing for our members.”    

“Working with TIACA enables us to put our market intelligence in front of a large group of respected decision-makers, who we hope will embrace our new load factor methodology. This represents another important step forward in getting the industry to accept there is a new and more accurate way to measure how full flights are,” commented Niall van de Wouw.

K+N divests UK contract logistics business

UPDATE - 9MAR20  - Today, logistics giant Kuehne + Nagel announced the sale of major parts of its UK transport logistics portfolio to Connecticut, USA-based XPO Logistics. The deal includes the drinks logistics division, food services and retail & technology businesses, generating a turnover of approximately 710 million euros.

Detlef Trefzger, CEO of Kuehne + Nagel International AG, comments: “One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions. We have now reached a major milestone in this effort, having secured an agreement to sell significant non-core assets in the UK. With XPO Logistics, we are pleased to have found a good new home for our customers and employees.”

K+N emphasizes that the company remains committed to its remaining business units in the UK, retaining the industry verticals aerospace, government and pharma. These are amongst the Group’s scalable leverage areas, reads a K+N release.

Financial details of the deal were not disclosed by the parties. The transaction is subject to customary closing conditions including merger clearance by the competition authorities. K+N expects the transaction to be closed in the second half of this year.

heyworld says Hi to CHAMP’s TRAXON cargoHub

Lufthansa Cargo’s new, international, e-commerce logistics operator, heyworld, has chosen to implement CHAMP’s TRAXON cargoHUB for its digital data exchange. Opting for CHAMP’s cargoJSON format with its modern API interface, the system integration took just a couple of days, and heyworld was then ready and able to immediately start business with a number of partners.

Timo Schamber, Managing Director at heyworld, stated: “As a new player in the e-commerce cargo sector, we are delighted to be part of an established community,” “By selecting TRAXON cargoHUB and using cargoJSON and API we were able to go to market in record time thanks to the speed of integration with our new systems and processes.”

Speaking on behalf of CHAMP, Laurent Jossa, Head of Sales – Distribution Services at CHAMP Cargosystems, also expressed his delight at the decision: “CHAMP is thrilled to be an integral part of e-commerce logistics operators, like heyworld” “Being part of the CHAMP family, it will be invaluable for both us and the e-commerce community. We wish them every success.”

With TRAXON cargoHUB, heyworld is now part of one of the largest air cargo communities. The platform offers electronic access to over 100 airlines and 3,000 forwarders, operating from 9,000 branches worldwide, and improves data quality and quantity throughout the supply chain, regardless of each customer’s IT configuration or system.

Airlines are grounding staff in response to coronavirus situation

Earlier last month, Cathay Pacific’s 33,000 employees were asked to take unpaid leave of 3 weeks between March and June this year, in an effort to help alleviate the major financial problems caused by the coronavirus situation. According to CEO, Augustus Tang, over 25,000 staff have agreed to do this, and he thanked them “for selflessly making your own contribution” in an internal memo. The airline has grounded 120 aircraft at the moment, given that around 90% of its China flights will be cancelled over the next two months, and it predicts that its financial results in the first half of this year will be ‘significantly down’ compared to previous year. Following on from a turbulent year of demonstrations, the coronavirus poses the next serious challenge.
Singapore Airlines has also temporarily suspended more than 3,000 flights, from February until the end of May, and its management team is taking a 15% pay cut. In addition, it too is offering a voluntary no-pay leave scheme to employees. Hong Kong Airlines has had to start making employees redundant, sacking 170 flight attendants just 24 hours after grounding a number of its flights, and looking to let around 400 of its 3500 staff go, whilst asking those remaining to also take unpaid leave between mid-February until the end of June.
Not just Asian carriers, which are looking at predicted revenue losses of around USD 27.8 billion this year, according to the International Air Transport Association, are having to take serious measures to cope with the knock-on effect of the crisis, but European carriers are now also following suit, with Lufthansa this week publishing its plans to reduce 50% of its flights and request staff to go part-time or take unpaid leave (more in: LH considers grounding A380s, halves flights).
EasyJet, have reported a huge drop in passenger figures, whilst FlyBe went bankrupt this week as corona was the final straw in its beleaguered financial struggle. Alitalia? Well… It would be a surprise if it makes it through this crisis on top of all its own ones. Airline shares around the world have taken a large dip over the past couple of weeks.

Air Canada Cargo’s new Brussels service

Starting 01MAR20, in addition to its existing Montreal (YUL)-Brussels (BRU) route, Air Canada Cargo will be offering a new non-stop 5-days a week service between Toronto (YYZ) and Brussels (BRU), offering belly capacity on B787-8 aircraft. Given both YYZ’s CEIV Pharma certified facility which is handled by GTA dnata, and BRU’s strong focus on specialized shipment handling (pharma, perishables, dangerous goods and valuables), the carrier will be offering the following Air Canada Cargo products: AC Absolute°, AC Pharmacair, AC Fresh, AC DGR and AC Secure, and points to the excellent on-forwarding connections:
“Our global hub at Toronto Pearson International Airport provides quick and seamless connections to dozens of cities across Canada, the United States, Central and South America.”

Commenting on the upcoming service, Air Canada’s Vice President of Network Planning, Mark Galardo, said: “We are pleased to launch new non-stop, year-round flights from Toronto to Brussels, complementing our successful Montreal-Brussels service now celebrating its tenth anniversary. This is a further expansion of Air Canada’s reach to Europe and beyond. This new service will conveniently connect our extensive North American network through our Toronto Pearson global hub directly to Brussels, where our Star Alliance partner Brussels Airlines offers far-reaching connections throughout Europe and Africa.”

Inconsistent implementation of EU’s customs rules hurts cargo carriers

The lack of consistent implementation of the new EU customs rules causes unnecessary administrative costs and thereby impacts the competitiveness of the EU cargo carriers. This is one of the 5 ‘gaps’ still lacking in the implementation of the European Single Aviation Market, identified in a study by ICCSA-University of Bergamo and commissioned by Airlines for Europe (A4E). While the exact amount of the impact on cargo carriers remains unidentified, the total cost of the unfinished implementation of Europe’s Single Aviation Market is estimated at €37 billion. Nearly half of that amount, €17.4 billion, could be saved by updating and implementing the Single European Sky Regulatory Framework. Apart from the latter and the lack of consistent implementation of the new customs rules, the other ‘gaps’ in the system are the unilateral aviation taxes, airport charges and the reintroduction of border controls within the Schengen market (which affect the passenger market).

Brigitte Gledhill  /  Marcel Schoeters

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