ACW 18th April 22 by Azura International

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The weekly newspaper for air cargo professionals No. 1,176

18 APRIL 2022

Macro events take their toll ... DNATA MAKES ITS MARK AT HEATHROW

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INSIDE

AVEM ADDS AN-26 ...

ESTONIA-BASED cargo air carrier AVEM AERO has added an AN-26 to its SAAB340 fleet. It is planning to deliver oilfield gear to Scandinavia. ... PAGE 2

ELECTRIC TOW TRUCK ...

OPERATIONAL data from the first three months of Goldhofer’s battery-powered aircraft tractor at Frankfurt airport is promising ... PAGE 4

KEINYTE TO HEAD BLUEBIRD ...

ICELANDIC ACMI, leasing and airfreight company Bluebird Nordic has appointed Audrone Keinyte as CEO. ... PAGE 6

ubai handling company dnata has opened its new off-airport cargo centre at London Heathrow airport (LHR). It forms part of the company’s ‘dnata City East’ complex which it describes as “comfortably the largest off-site cargo handling operation at the UK’s largest commercial aviation hub”. The new, 10,500sq m Phase II facility was designed to operate in conjunction with the existing 22,500sq m Phase 1 facility which opened in September 2019. Dnata will handle all Virgin Atlantic Cargo and Delta Cargo traffic at dnata City East. Exports will remain at dnata’s Phase I facility while the new Phase II site will cater for all imports, significantly increasing handling capacity. Both facilities incorporate the latest carbon reduction initiatives, including the use of solar PV panels, air-source heat pumps and electric vehicle

charging. The handler now offers cargo services from eight facilities at LHR with a team of over 750 employees, for over 30 international airlines. In 2021 dnata handled over 500,000 tonnes of cargo in London. Alex Doisneau, managing director of dnata UK (Airport Operations), said: “Our newest cargo complex offers bespoke solutions, industry-leading technology and enhanced cargo capacity supporting our customers in achieving sustainable growth at the UK’s busiest airport.” Philip Wardlaw, managing director of Virgin Atlantic Cargo, added: “The opening of the import facility comes at a time where we have extended our cargo handling contract with dnata for a further five years, signalling our continued strong and highly valued partnership.”

THE FUTURE IS BRIGHT ...

WHILE the past two years have created significant uncertainty for the aviation sector, air cargo activity increased at Canada’s Halifax Stanfield in 2021 ... PAGE 7

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NEWS

Estonia’s AVEM adds an Antonov 26 “I worked with AN aircraft in 2017, so I know all their benefits and weaknesses. The main benefit of this plane is its ramp - you can put an elephant in it. A ramp allows us to work with oil well equipment, plane engines, and other big or long cargo,” says Nikolay Kurbanov, AVEM AERO managing director. The aircraft has been leased from Ukrainian air company Constanta on an indefinite lease agreement. AVEM AERO had to seek authorisations from the EU countries, a process that took several months. Kurbanov adds: “We still need to get permission for every charter. But it’s not as difficult as it ESTONIA-BASED cargo air carrier AVEM AERO has added an AN-26 to its SAAB340 fleet. The company says it is planning to deliver oil well equipment and other outsize freight to Sweden, Finland, Norway and the aircraft will also be used for charter operations.

Emirates to restart flights to London Stansted in August

seems at first glance “For me, fulfilment of all obligations in spite of the war (most of our team is based in Ukraine) — it’s the best contribution to the victory. And also we will use our new plane for humanitarian missions to Ukraine.” EMIRATES will restart passenger flights between Dubai and London Stansted (STN) in August in response to sustained demand for international travel. It will be the first time Emirates has flown from the UK airport since pausing operations in March 2020 due to the Covid pandemic. It will operate a five times a week service starting August 1, increasing to daily from 1 September, served by Boeing 777300ER aircraft. Flights depart Stansted in the evening and return from Dubai the in the morning. By October 2022, the airline will be serving the UK with 110 weekly flights, including: six times daily to London Heathrow; double daily A380 service to Gatwick; three times daily to Manchester, including a double daily A380 service (starting October 1, 2022); double daily service to Birmingham; five weekly flights to Newcastle (with the fifth weekly flight starting from July 1, 2022); and a daily service to Glasgow. Richard Jewsbury, Emirates DVP in the UK, commented: “Stansted is a key hub for Emirates in the East and South East of the UK and resuming operations will offer better connectivity to businesses and communities in the region while also boosting the UK economy through scaled up inbound travel and additional cargo capacity.” Emirates is scaling up operations around the world including the restart of passenger flights to Bali with five weekly flights from May 1, increasing to daily from July 1; to Buenos Aires via Rio de Janeiro from November 2 2022 with four weekly flights rising to dai.ly from February 1 2023; to Lagos with 11 weekly flights, from July 1, scaling up to a double daily service from September 1 increasing services to Nigeria’s capital city, Abuja to five weekly May 1 2022, and then daily service from September; – ramping up flights to Mauritius from daily to nine weekly flights between April 9 and the end of June then moving to double daily from July; and increasing services to Singapore: from seven weekly to 14 from June 23.

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NEWS

Dubai handler to expand cargo Goldhofer’s Electric tow truck impresses in Frankfurt operations into Germany

DUBAI-OWNED handler dnata is to expand its European footprint through the planned 100% acquisition of Germany-based Wisskirchen Handling Services for an undisclosed sum. Wisskirchen is the exclusive operator of the

12,000sq m facility at Cologne/Bonn Airport (CGN) providing a full range of cargo services with a team of 180 employees. It handles over 85,000 tonnes of cargo annually. CGN is the third largest cargo airport in Germany and has significant capacity for further growth. In 2021 cargo handled increased by 14% year on year to a new annual record. The acquisition is subject to approval by the Federal Ministry for Economic Affairs and Climate Action in Germany. Stewart Angus, dnata’s regional CEO for Europe, said: “This is part of our continued broader investment in cargo infrastructure. Since 2014 we have invested in nine new cargo facilities in Europe. We look forward to playing our role in the next stage of development of Cologne/Bonn Airport as a major cargo hub.”

OPERATIONAL data from the first three months of Goldhofer’s Phoenix E battery -powered towbarless aircraft tractor at Frankfurt airport is encouraging, says Peter Unger, CEO of Lufthansa’s ground support engineering arm, LEOS. “Not only the drivers but also the mechanics in the hangar, for example, are excited about this vehicle. The results to date indicate savings in excess of what we had expected and planned.” The Phoenix E works up to 10 hours a day and can handle up to 20 tows without any loss of power. The Phoenix E, delivered in December, offers speeds of up to 25 km/h and can handle aircraft up to a maximum take-off weight (MTOW) of 352 tonnes such as the Boeing B777 or Airbus A350, some 80% of all aircraft movements at the airport. Goldhofer says it has succeeded in develop-

ing a battery-powered version that delivers the same performance as the equivalent diesel model. It also has lower operating costs and longer maintenance cycles. A hybrid solution with a range extender powertrain is also available. The machine is powered by a 700 V lithium-ion batteries from Akasol, while a thermal management system maintains a constant battery temperature of between +15 and +40°C for greater range and longer battery life. Dedicated charging infrastructure developed and installed by ABB allows for fast and opportunity charging so that the vehicles can complete their long working days without any loss of power. “The data available show that we can perform more tows than assumed in the simulations. Our expectations have been exceeded by far, and we are planning to acquire another Phoenix E at the end of the year,” says Unger.

Titan Aviation and Amerijet ink 757 lease deal TITAN AIRCRAFT INVESTMENTS, the joint venture between Titan Aviation Holdings and Bain Capital Credit, have signed a deal for three Boeing 757-200SF converted freighters on long-term dry leases with Amerijet International. They will support the carrier’s network in Central America and the Caribbean and will be managed by Titan Aviation Holdings, a subsidiary of Atlas Air Worldwide Holdings. Titan Aviation Holdings president and CEO, and Atlas Air Worldwide CCO, Michael Steen, said: “We are delighted to welcome Amerijet as a strategic customer and to support its

ACW 18 APRIL 2022

long-term expansion plans. This partnership underscores the trust our customers have in Titan’s expertise in freighters.” Amerijet CEO, Tim Strauss, added: “These aircraft will be a wonderful addition to our fleet, giving us a platform for continued growth as we approach 50 years of continuous service from our home base in Miami, Florida.” Titan Aviation Holdings and Bain Capital Credit formed a long-term joint venture in 2019 to develop a diversified freighter aircraft leasing portfolio with an anticipated value of approximately $1 billion.

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29/03/2022 16:42

ily a D The paper s w Air e N A C A I m T for o Foru Carg 2022

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AZURA

I N T E R N AT I O N A L

Chennault International Airport is the ideal site for locating air cargo operations. Chennault International Airport in Lake Charles, Louisiana, is an emerging national aerospace hub that has kept military, corporate and personal aircraft in tip-top condition for more than three decades. Much of the industry is already familiar with Chennault and the Lake Charles region because of its first-class tenant partners — including Northrop Grumman, Million Air, LandLocked Aviation Services and Citadel Completions. Chennault serves the needs of business, civilian and military aircraft from around the world with world-class infrastructure, state-of-the-art facilities and an array of tenant partners. It is also home to non-aerospace manufacturing and service businesses. Chennault has a 10,701-foot-long runway, the longest at any airport between Houston, Texas, and Cape Canaveral, Florida. It’s capable of handling all aircraft flying today. There’s ample adjacent ramp space.

Chennault is served by an accredited air traffic control tower. FBO services are provided by Million Air. Even with all the development at Chennault, there’s still room to grow. There are more than a dozen tracts of land totaling nearly 1,000 acres available for development. WHY CHENNAULT? Chennault’s attractive competitive advantages include: • Uncongested airspace. • Landing fee incentives / waived landing fees. • A new 10,000-square-foot air cargo facility, with room to expand. • Significant ramp space with room for oversized cargo, equipment staging, and trucks. • Connected to deepwater port by adjacent rail service. • Adjacent interstate .• South-central location. • Experience in hosting air cargo operations. That’s just the top of the list! The proof of Chennault’s power is best seen by its tenant partners and visitors — from Northrop Grumman to Landlocked Aviation … from Citadel Completions to regular Air Force One arrivals … and from FBO Million Air to ongoing military training exercises.

YOUR NEW FACILITY Construction will be completed this summer on the $4 million air cargo passthrough facility, the newest component in Chennault’s emergence as an aerospace center. Upon its completion, the facility can be certified for international cargo by U.S. Customs and Border Protection. “The willingness to change and look for opportunities outside of the norm is critical to remaining relevant in our dynamic world today,” says Chennault Executive Director Kevin Melton. National consultant David Whitaker, who has more than 30 years of airport and air cargo operations experience, is part of the effort. “Chennault is a very robust airport with enormous potential, and Southwest Louisiana is a cargo-rich region of the world,” he says. TOP HONORS Chennault is Louisiana’s reigning Airport of the Year as judged by the state Department of Transportation and Development. It also earned the designation as the 2021 Southwest Region leader in Louisiana Economic Development’s ranking of top achievements statewide. “The willingness to change and look for opportunities outside of the norm is critical to remaining relevant in our dynamic world today,” said Chennault Executive Director Kevin Melton. “Chennault remains a game-changer — we continue to work toward new tenant partners, more development and more jobs.” THE BOTTOM LINE • Chennault offers relief to airlines and freight forwarders who need space and attention. • Chennault offers value for companies to move goods through a brand-new facility built specifically for air cargo. • Chennault provides a low-cost alternative to the larger markets — where expense, ground delays, and airspace delays limit the efficient flow of goods. • Chennault offers capability, capacity and value. LET’S TALK Contact Chennault International Airport’s economic development team at ciaa@chennault.org or 1-800-272-2422.

Connect with us at: www.afklcargo.com

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Advertorial

NEW CONSTRUCTION, AMPLE ACREAGE, RAMP SPACE ALL MAKE CHENNAULT IDEAL FOR AIR CARGO OPERATIONS

NEWS

FedEx Express upgrades break-bulk service

FEDEX Express has enhanced its break-bulk shipment service, FedEx International Priority DirectDistribution (IPD), by shortening the transit times from 2-4 days to 1-3 days for shipments from Asia Pacific (APAC) region to six destinations. It is offering customers in Australia, Hong Kong, New Zealand, Singapore, South Korea and Taiwan the same level of transit time as they would get from FedEx core express international delivery service – FedEx International Priority (IP), without incurring additional costs when shipping goods to these six destinations. FedEx says cargo demand continues to grow in the APAC region. According to the latest data from IATA, APAC air cargo demand grew by 4.9% year on year (YoY) in January 2022, which is nearly double the global average (2.7% YoY), thanks to

ACW 18 APRIL 2022

Air Charter Service prepares for growth in Midwest BROKER AIR CHARTER SERVICE is planning a recruitment drive in the US Midwest later this year. Since opening in Chicago, the company

going forward – we are looking to recruit experienced local salespeople now that we have six times the space of the previous office. “O’Hare Airport is currently hugely expand-

says its sales in the region have surged and on March 25 it move to new, larger premises in Chicago. Caitlin Uhlmann CEO of the Chicago office commented: “When we started, we were just a small team in a small office in the Loop. We outgrew the last office far quicker than we expected, with specialists working across the private jet and cargo divisions. I can’t wait to increase our team further with this expansion

ing its cargo storage and shipping capability and is already the fifth biggest aviation shipper in the US, so the cargo business in the region is only likely to grow further. We believe that the potential for the private jet market here is huge too – Chicago has always been a major hub for aviation and has a number of small executive airports, along with O’Hare International Airport, which is the sixth busiest passenger airport in the world.”

active cross-border trade in the region. According to a recent study by Asia Development Bank, that intra-regional trade momentum has continued to grow over the course of the pandemic. This has helped to better shield Asian economies as supply chain bottlenecks and virus prevention measures have disrupted trade elsewhere. The enhanced IPD solution streamlines the cross-border delivery process by allowing APAC businesses, including e-tailers, to consolidate packages within the destination country/territory into a single shipment at their manufacturing location. Consolidated goods are then shipped internationally where they clear customs under a single invoice. FedEx then unpacks the shipment at the destination and sends the individual packages to multiple locations within the destination country/territory.

Amsterdam Schiphol mandates digitised shipment notification in landmark trial AMSTERDAM AIRPORT SCHIPHOL is to make Automated Nomination, the digital station declaration of a forwarder’s involvement in the handling of a shipment, the standard for inbound shipment. It no longer accepts paper declarations. Prior to Automated Nomination, ground handlers at Schiphol Airport would have to wait for the freight to arrive and review the corresponding paperwork before a forwarder could be nominated to handle the shipment. With Automated Nomination, this process has been completely digitized and now takes place prior to the flight landing at the airport. Ground handlers at Schiphol are now informed about incoming shipments much sooner, reducing the time required to process cargo, while the elimination of manual processing has minimized the possibility of human error and shipment mishandling. “We have been piloting Automated Nomination with growing success since October 2021

and are proud to have now rolled it out officially as a mandatory process at Schiphol Airport,” said David van der Meer, cargo partnerships director for the Smart Cargo Mainport Programme (SCMP), Amsterdam Airport Schiphol. “We aim to have every shipment nominated automatically, which offers benefits for every stakeholder in the cargo supply chain. “Automated Nomination creates a better connection between the air waybill (AWB) and the receiving forwarder.” Developed by the SCMP team, Automated Nomination is an algorithm that predicts which forwarder will collect a shipment using only AWB, airline, and shipper data, with a 99% accuracy rate. The number of digital station declarations at Schiphol has already increased from 1,200 in October 2021 to 3,000 by April 1 this year. Participating forwarders have meanwhile increased from 60 to 140, with numbers still growing.

Audrone Keinyte to head aircraft leaser Bluebird Nordic

ICELANDIC ACMI, leasing and airfreight company Bluebird Nordic has appointed Audrone Keinyte as CEO. Keinyte is taking over the role from Siggi Agustsson, who has held this position since 2020 and becomes a senior advisor to the board chairman at Bluebird’s parent company, Avia Solutions Group. Additionally, Keinyte is also taking over the position of CEO at BBN Cargo Airlines Holdings, the holding company of Bluebird Nordic. Previously she was CEO of Novaturas, the

largest tour operator in the Baltic region, for three years. Keinyte commented: “I am delighted to join Bluebird Nordic and become a part of the global Avia Solutions Group family. There’s no doubt in my mind that, together with an experienced team at Bluebird Nordic and the support of Avia Solutions Group, we will uncover the true potential of the company and win a leading position in cargo aviation. My goal is to lead the airline through the next stages of its development and to strengthen its name as a trusted industry player.”

NEWS

The future is bright: air cargo at Halifax Stanfield WHILE the past two years have created significant uncertainty for the aviation sector, air cargo activity increased at Canada’s Halifax Stanfield in 2021 in comparison to 2020. Recovery is expected to continue as exports remain strong, new carriers enter the market, and the new Halifax Stanfield Air Cargo Logistics Park (ACLP) begins operation. “The COVID-19 pandemic has certainly underscored the importance of air cargo to global supply chains,” said Joyce Carter, president and CEO, Halifax International Airport Authority (HIAA). “Air cargo has supported our collective fight against COVID19 through deliveries of PPE and vaccines, maintained local jobs through exports of Nova Scotia products, and aided our communities through efficient transport of e-commerce orders. In every instance, air cargo has played a critical role in moving important goods to and from our region.” In 2021, Halifax Stanfield processed 34,769 tonnes of cargo, up 5.4% from 2020. The value of exports in 2021 was C$496 million, up 6.3% from the previous year. Air cargo was transported by 12 carriers and Nova Scotia seafood, specifically live lobster, continued to be the top export. In 2021, 15,765 tonnes of live lobster, at a value of $293 million CAD, were shipped from Halifax Stanfield to Asian and European markets. Other top exports were medical equipment (C$53.2 million) and aerospace-related parts (C$41.4 million). As HIAA looks toward its pandemic recovery, air cargo remains a bright light for future growth and opportunities. Carriers are expanding their cargo operations at Halifax Stanfield, including Air Canada Cargo, which is making Halifax part of its regularly

scheduled freighter operations. Air Canada managing director, commercial – cargo, Matthieu Casey, adds: “Our long-standing and strong bond with Atlantic Canada and the Nova Scotia community makes the first Canadian expansion of our freighter network not only a natural and obvious fit, but also one that makes us tremendously proud. We are thankful that we can continue to play a pivotal role and indeed increase our support to the robust and growing trade sector in the region,” he said. Funding for the ACLP construction was announced in 2018 from the Government of Canada (C$18 million), the Government of Nova Scotia (C$5 million) and HIAA (C$13 million).

Turkish Cargo carries 335m doses of COVID-19 vaccine in 2021

TURKISH CARGO says it carried 335 million COVID-19 vaccine doses to 61 countries during 2021. The carrier added that its TK Pharma service, which reaches 132 countries around the world, achieved an 8% market share of the medical products market. Board and executive committee chairman Professor Dr Ahmet Bolat stated: “By establishing a corridor between over 400 international destinations, we ensured that vaccines remained accessible for all.” He added that Turkish Cargo was one of the few carriers flying to Africa, with a million doses delivered to countries including Mauritania, Madagascar, Rwanda and Congo. It also carried 100 million doses to Brazil. Turkey is emerging as a global centre for medical product transportation with Turkish Cargo’s SMARTIST 340,000sq m cargo facility at the new Istanbul Airport which offers a temperature controlled area of 9,000sq m.

ACW 18 APRIL 2022

VIEW FROM THE MAINDECK MACRO EVENTS TAKE THEIR TOLL ON AIR CARGO’S RECENT RECOVERY

THE war in Ukraine, resulting sanctions and lockdowns in China muted the growth of general air cargo volumes and capacity in March, according to CLIVE Data Services in its latest report. The analyst, part of ocean and air freight rate benchmarking platform, Xeneta, said the events caused a sudden interruption to the recovery trend of recent months after the peak COVID-19 disruption of the past two years. Weekly data for March, and up to April 3 2022, showed that volumes compared to the pre-Covid level in 2019 fell 6.5% last month and were 4.5% lower than March 2021. Similarly, general air cargo capacity stood at -14% versus March 2019 and at -4% compared to the same month a year ago. This was exacerbated by the closure of Russian airspace and the immediate cancellation of some airline capacity, which led to a quick 20% fall in Europe-north-east Asia capacity. CLIVE’s ‘dynamic load factor’ – which considers both the volume and weight perspectives of cargo flown and capacity available to produce a true indicator of airline performance – was largely unchanged month-over-month at 66%. This was the same level seen in the same month of 2019, but 6% points lower than March 2021 after record load factor levels in the opening weeks of last year. Overall airfreight rates remained at similar elevated levels to

those seen in February, averaging +141% compared to March 2019 and +27% higher than March 2021. CLIVE also identified a rise in the amount of airline cargo capacity being placed on the short-term spot rate market, with particular impact regionally. Spot rates and spot share continued to rise on the Europe to Japan trade lane, for example, with spot rates from Japan to Europe climbing in the last week of the month (March 21-27) to levels of around €5.00 per kg, nearly 50% higher than in the weeks preceding the Ukraine war. The spot share the amount of chargeable weight being ‘sold’ at a spot rate) increased to nearly 60% or 20% points higher than the spot share in early February. “In overall air cargo market terms, March was a step back from the trend we saw late last year and earlier this year. We have been reminded of how the limited control the general airfreight market has over its own destiny and how it is impacted by passenger traffic trends, disruption in the oceanfreight market, and geopolitical events,” said Niall van de Wouw, chief airfreight officer at Xeneta. At 83%, the North Atlantic dynamic load factor from Europe to North America in March was only 5% points lower than in March 2021, when it reached record levels of close to 90% as capacity on this trade lane has increased by around 40%. The marginal decrease in load factor, despite the increase in

capacity, is mainly caused by the 25% increase of volumes from Europe to North America compared to the same weeks last year. Although it is too soon to gauge the effect of skyrocketing inflation in the US, problems with shipping services between these two continents must put some wind in the sails of the air cargo market. With continuously declining schedule reliability of ocean liner services, logistics departments will probably have to resort to airfreight he added. “There are also still many issues with capacity on the ground. One bottleneck got replaced with another one,” continued van de Wouw. “Load factors are lower this year than they were last year, but prices are higher. The latest disruption in Shanghai is not unexpected but it adds to the worldwide issue of staff absence because of high COVID-19 cases. Pilots, cargo handling workers, truck drivers and so on, unlike many others, cannot work from home. It’s hardly surprising then to hear the International Monetary Fund (IMF) blaming soaring shipping costs for driving up inflation rates. Right now, the airfreight and ocean freight markets are, in general, a mess, with shippers and consumers having to pay the price. In the first two months of 2022, we were talking of growing resilience in the airfreight market and a recovery to pre-Covid levels. March data shows how quickly this can change.”

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