Hellmann becomes sole shareholder of Peruvian JV
In line with its growth strategy, and just a couple of months after acquiring overnight express provider, OptimNet Solutions, in the Czech Republic and Slovakia, augmenting its footprint in Central and Eastern Europe, Hellmann Worldwide Logistics has now turned its attention to South American expansion. The German forwarder has been active in Peru since 1992 – exactly 30 years. In 1998, it founded the Peruvian joint venture, Hellmann Worldwide Logistics S.A.C., with President of the Board, Carlos Augusto Dammert. Until recently, he held 50% of the shares. They have now transferred to Hellmann Worldwide Logistics, which thus becomes the company’s sole shareholder. Carlos Augusto Dammert will act in an advisory capacity in the new set-up, while Jose Luis Moreano takes on the position of General Manager in Hellmann Worldwide Logistics and will continue to steer future developments in Peru. The success of the joint venture was such that Hellmann is recognized as “a leader in the Peruvian logistics market, being one of the largest airfreight export forwarders, focusing mainly on perishable logistics.” This strength will still play a key role in the company, as Hellmann seeks to further expand the business. However, it will be joined by other core industries such as automotive logistics, and the plan is to increase the number of customers also beyond Peru's borders to the entire Americas region.
Reiner Heiken, Chief Executive Officer, Hellmann Worldwide Logistics, commented: “Peru is an important and growing market in South America. Based on our robust operational performance and our strong presence in the region, Hellmann is well positioned to grow the business and to further expand our market position.”
Andreas Lamping, Chief Legal Officer and Head of M&A, Hellmann Worldwide Logistics, added: “The acquisition of future-oriented businesses is an integral part of our global growth strategy. Going forward we will continue to look out for attractive targets which complement and strengthen our global Hellmann network.”
President of the Board of Hellmann Worldwide Logistics S.A.C., Carlos Augusto Dammert, concluded: “I am very happy about the goals we have achieved in the last 30 years together with our team in Peru. Now it is time to fully integrate the company into the global Hellmann network to become an even stronger logistic partner for our esteemed customers in Peru and beyond.”
GEODIS buys Need It Now Delivers
Subject to regulatory review and approvals, GEODIS will be significantly expanding its U.S. footprint by the end of this year, when it takes over the American company, Need It Now Delivers. In the interim, the two companies will continue to operate as independent businesses. Once through, GEODIS group will employ roughly 15,000 people across more than 200 locations in the U.S. and be in a position to generate around $3.7 billion (which is the sum both companies achieved in 2021 in the U.S.) Mike Honious, GEODIS in Americas President & CEO, said: “Our U.S. supply chain business has consistently grown over the last 10 years. With the services, capabilities, and the leadership team of Need It Now Delivers, we will expand our offerings and support the growth strategies of our customers,” meaning in particular contract logistics and last-mile delivery capabilities, augmenting GEODIS’ e-commerce services.
“Need It Now Delivers operates an expansive domestic road freight network with more than 65 company locations and 300 distribution points, providing strong national coverage, particularly in the eastern United States. To offer its customers complete port-to-door logistics solutions, the company specializes in distribution, last-mile delivery, and in multi-channel contract logistics across a wide range of high-growth industry verticals,” the release states.
Marie-Christine Lombard, CEO of GEODIS, commented: “The acquisition of Need It Now Delivers is a key step through which we will strengthen and diversify our offerings in the U.S., providing our customers with a global and integrated end-to-end freight network in the United States, from international transport to last-mile delivery. This new acquisition represents an important milestone as we continue to progress on our strategic plan, Ambition 2023.”
Eric Mautner, CEO of Need It Now Delivers, stated: “Since our inception in 1987, Need It Now Delivers has scaled rapidly to position ourselves as an industry leader with a special focus on omnichannel and last-mile delivery. Together with GEODIS, our teams can continue to build upon this momentum to provide customers with a more expansive network of flexible, efficient and reliable services that will ultimately allow us to successfully meet projected industry dynamics such as continued e-Commerce growth and increasingly complex supply chains that require the need for omnichannel capabilities.”
AGI takes on ATS
Alliance Ground International (AGI) has been on a pretty energetic growth spree over the past eight months; from promoting key talent to its team, investing in technology and systems, and expanding facilities in Chicago and Newark as well as acquiring Maestro, TAS, and now Airport Terminal Services (ATS). The acquisition enrichens AGI by more than 5,500 employees in the U.S. and Canada. The company was founded in 1975, in St Louis, Missouri, and offers full-range ground handling services, including passenger, ramp, and cargo handling, aircraft re-fueling and de-icing, for example.
Jared Azcuy, Chief Executive Officer, AGI, commented: “AGI is a dedicated cargo handler and freighter ground handler. This opportunity with ATS will allow us to build our presence in the airport terminal and passenger side of the business. Ultimately, ATS will help AGI maximize customer service, optimize operations, and increase value to all of our customers. We are truly fortunate and excited to welcome the ATS team into the AGI family."
Sally Leible, President/CEO, ATS, said: “We have known Jared for a very long time and are confident this is an excellent fit from all perspectives. This will provide exciting new opportunities for all ATS and AGI team members, we are truly excited to begin this new and exciting next chapter."
While this acquisition predominantly improves North American expansions, AGI is also looking to grow and expand into Europe, as well as further destinations outside of North America.
Start.hub logistics will start at ACF & Transport Logistic Americas 2022
Steven Polmans, TIACA Chair, outlines: “The Innovation Journey [held at the Executive Summit in MAR22] showed how vital it is for the industry to connect and explore innovations that can be applied into our businesses. We knew then that this could not be a one off and innovation needed to be incorporated into our events going forward. The launch of the start.hub logistics in Miami is yet another step toward our vision for air cargo and we are excited that Edmonton International Airport, which has such a focus on supporting innovative start-up businesses will be the first host."
TIACA and Messe München’s air cargo forum & transport logistic Americas 2022, taking place in Miami this November, will therefore see the first start.hub logistics. Edmonton International Airport was selected as host because of its Innovation Expansion Strategy, and being an active supporter of alternative energy, carbon reduction, technical advancements, unmanned operations, and other ventures. New and innovative Start-Ups will be encouraged to show their solutions and to network. Marketed as a “low-cost entry into the world's largest air cargo trade show of 2022,” the start.hub’s all-inclusive exhibitor package is available to companies fulfilling the following criteria:
- present a logistics-related product or solution
- employing 75 people or fewer
- company founded on/or after 01JAN14
- no restriction on sales and earnings.
Speaking for Edmonton International Airport, its Director, E-Commerce, Cargo & Aviation Real Estate, Mammen Tharakan, said: “We're excited to partner with TIACA and Messe München in
launching the inaugural start.hub […]. Exploring new and innovative ideas is inherent to who we are. […] YEG is home to more than 250 businesses and countless partnerships. Not only do we support
the movement of people and goods, but we also appreciate the critical role that cargo plays in our economy and social landscape, and we are proud to support others as they do the
Robert Schönberger, Head of transport logistic exhibitions at Messe München, concluded: “We feel that it is important to be inclusive and offer a wide array of solutions for the logistics industry and start.hub logistics will allow us again to put the spotlight on new innovations and companies that are typically not seen this openly at industry events.”
Cathay Pacific adopts Cargo IQ tracking milestones
FIW stands for Freight into Warehouse control and FOW means Freight out of Warehouse control. These two milestones created by Cargo iQ within its Master Operating Plan (MOP), and launched in MAR22, are designed to improve cargo handling visibility and efficiency, particularly during warehouse and ramp operations. Cathay Pacific is among the first of the Cargo iQ members to put these into practice at its Hong Kong base. Following six months of planning, its ground handling subsidiary, Cathay Pacific Services Limited (CPSL), and Cargo iQ Data Management Platform (CDMP) provider, Global Logistics System (HK) Co. Ltd (GLSHK), will now be capturing and updating FIW/FOW data for the airline, resulting in a better overview of shipment handovers between the warehouse handler and the ramp handler at the airport. In a second step, Cathay Pacific aims to roll out the new tracking milestones across its global network.
“The implementation of the FIW/FOW milestones brings collective benefits for airlines, ground handling agents, and the CDMP provider,” Frosti Lau, General Manager Cargo Service Delivery, Cathay Pacific, explained. “The handling agents have a clearer view on the planned offsets for operational planning, while airlines will gain more visibility of the handover process. This visibility could help to identify any potential areas for improvement in the handling activities, and we are dedicated to refining our process to ensure shipments are ready for customers as planned. We believe airlines and ground handling agents are the parties who would see most benefits of having visibility on the two milestones, and ultimately this assures the delivery promise to customers.”
Laura Rodriguez, Manager Implementation and Quality Assurance, Cargo iQ, said: “With their great commitment to implement these new events, Cathay Pacific Cargo and their partners in Hong Kong are reinforcing the importance and usefulness of monitoring the point of handover from warehouse to ramp and vice versa. With this information, the industry will be able to identify pain points and make vital improvements to operational processes. It also gives us, for the first time, the possibility to visualize the complete warehouse process from start to end within Cargo iQ. We are currently supporting all our members in the implementation of these milestones, and we look forward to seeing the benefits of uptake on an industry-wide scale.”
Six more freighters for Qantas
With the sharp rise in e-commerce over the past couple of years, and the lack of adequate cargo capacity, Qantas is the latest to invest in converting passenger aircraft to freighters. It announced last week, that it would be stocking up its domestic fleet with six converted A321 planes. They will eventually replace five B737 aircraft that are ready for phase-out, at the same time offering greater capacity overall. from online shopping. With the six newcomers, Qantas’ A321 freighter fleet will increase to nine – each with a payload of 23 tons compared to the 14 tons that a B737 can offer. “The A321 freighters will be sourced from the open market and converted from carrying passengers to cargo subject to commercial negotiations,” the airline said. They will likely be delivered between early 2024 and mid-2026. The conversions are being carried out by Singapore Technologies Engineering Ltd, which has seen orders explode in recent months, and is now offering deliveries from 2025 onwards. Such is the capacity shortage on the market, currently, that many older aircraft are being kept on longer than originally planned, and the interest in converting passenger aircraft is greater than ever before.
This situation has also given rise to inflated air cargo rates, and – for Qantas, too – cargo has played a key role in the airline’s revenues, leading to “record first-half earnings” this year, already – notably through a huge shift towards online shopping. Alan Joyce, Chief Executive of Qantas, stated: “While some of that shift is temporary, demand remains well-above pre-pandemic levels even with the lifting of almost all COVID-related restrictions.”
Pilot fatigue the cause?
When you board a flight, you put your trust into the crew – particularly the two pilots in the cockpit – to get you to your destination safely and on time. When you see your destination below you, whilst still cruising at 37,000 feet, you wonder what is happening. As does the tower… On 15AUG22, Ethiopian flight ET343 overshot its destination. ADD air traffic control had been continually trying and failing to contact the crew, as the aircraft continued cruising past on autopilot at 37,000 feet instead of descending to land at Addis Ababa Bole International Airport (ADD). This triggered an alarm. The aircraft eventually began to descend and land safely circa 25 minutes later than originally expected.
The airline eventually issued a statement on 19AUG22: “We have received a report which indicates Ethiopian flight number ET343 en route from Khartoum [Sudan] to Addis Ababa [Ethiopia] temporarily lost communication with Addis Ababa Air Traffic Control on 15AUG22. The flight later landed safely after communication was restored. The concerned crew have been removed from operation pending further investigation. Appropriate corrective action will be taken based on the outcome of the investigation. Safety has always been, and will continue to be, our first priority.”
The two pilots had apparently fallen asleep on the short flight which normally lasts around 75 minutes but is scheduled for 03:30 in the morning and therefore not optimum time – otherwise referred to a “circadian low”. The incident, reported on commercial aviation news site, Aviation Herald, sparked a key debate regarding the very real dangers of accumulated pilot fatigue. It was picked up by aviation analyst, Alex Macheras, who tweeted on 18AUG22, that “Pilot fatigue is nothing new, and continues to pose one of the most significant threats to air safety – internationally.” With the pandemic having led to severe staff shortages alongside the disruption to normal schedules, and the pressure on remaining crews to deal with volatile situations as crew members continue to contract Covid, underlying pilot exhaustion is, indeed, a highly worrying issue. Shocking, too, that this happened to an airline that is highly regarded, but – as many pilots and aviation experts online have pointed out – it could happen in any airline. The problems increase, however, in those countries and those airlines that do not have pilot unions and no systems for pilots to call time-out when they realize that they are over-tired.
In other news last week: the airline announced that it would be launching thrice-weekly, domestic cargo connections to Dire Dawa and Jigjiga, from 30AUG22, with a Q400 preighter aircraft.
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