I Air Freight Vol­umes In­creases: Air­lines up­beat on prospect in 2014

Cargo Talk - - Contents -

Ac­cord­ing to the IATA fig­ures for Novem­ber 2013, world­wide air-freight vol­umes are show­ing an up­ward turn af­ter an ex­tended pe­riod of weak­ness in 2013. It wit­nessed a strong growth in de­mand in Novem­ber that helped the freight load-fac­tors rise above as com­pared to the same pe­riod in the pre­vi­ous year. Car­gotalk high­lights views from a few ma­jor air­lines to high­light the re­cent de­vel­op­ments in this sec­tor.

lufthansa Cargo in­formed it had in­creased its cargo load fac­tor in 2013 to 69.9% by trans­ported 1.7 mil­lion tonne of cargo and mail. Lufthansa Cargo also added the Mex­i­can me­trop­o­lis of Guadala­jara and the Peru­vian cap­i­tal Lima to its sched­ule.

“We are able to hold our own even in a dif­fi­cult mar­ket en­vi­ron­ment and have laid the ba­sis in 2013 for im­por­tant de­vel­op­ments in our com­pany,” said Karl Ul­rich Gar­nadt, CEO, Lufthansa Cargo. Lufthansa Cargo will fur­ther mod­ernise its freighter fleet in 2014.

The com­pany al­ready ac­cepted de­liv­ery of two brand new Boe­ing-777 freighters in Novem­ber of last year. An­other two of these mod­ern, fuel-ef­fi­cient air­craft will be handed over to the air­line in the first six months of the cur­rent year.

Ac­cord­ing to Keki Pa­tel, Cargo Man­ager, In­dia & Nepal, Emi­rates SkyCargo is presently wit­ness­ing an up­beat out­bound de­mand from In­dia which is a pos­i­tive sign for In­dian ex­ports. Pharma, chem­i­cals, per­ish­ables, ma­chin­ery spares for OEM, and valu­able cargo will con­tinue to show strength in the com­ing months and be­yond.

“We are main­tain­ing good cargo load­fac­tors from all our 10 sta­tions in In­dia and con­tinue to op­er­ate our sched­uled freighter op­er­a­tions Mum­bai– Dubai turn-around,” he added.

Emi­rates has catered to few cus­tomers’ ur­gent lo­gis­tic needs through additional

char­ter ser­vices, ex-BOM and ex-DEL, and en­sured their com­pet­i­tive edge in their mar­ket-place.

Pa­tel is ex­pect­ing In­dian air ex­ports to im­prove in ton­nage and bet­ter re­turns for the value-added ser­vices the air­line of­fers. “We hope to see more ma­tu­rity com­ing in the in­dus­try with ac­tive and se­ri­ous par­tic­i­pa­tion in the projects like e-Freight and CASS Ex­port Billing,” he em­pha­sised.

Pravin Singh, Area Commercial Man­ager South Asia, IAG Cargo Air Cargo has seen vary­ing lev­els of re­gional per­for­mance and the Asian mar­kets have been rel­a­tively buoy­ant. IAG Cargo has in­tro­duced ca­pac­ity into the mar­ket over the last two years at Seoul and Chengdu air­ports. They have also noted a grad­ual shift in China’s pro­duc­tion cen­tres from East to West, as part of China’s ‘Go West’ pol­icy. “To meet the sub­se­quent shift in de­mand, we re­cently launched a thrice-weekly cargo ser­vice be­tween Lon­don Heathrow and Chengdu in the South-West. We are look­ing at additional op­por­tu­ni­ties in the re­gion and we see China as a key strate­gic mar­ket,” he shared. He pointed out that there have been in­creases in the flow of goods from Asia Pa­cific to South Amer­ica–specif­i­cally, hi-tech goods and drugs from In­dia to South

Amer­ica. “We wit­nessed in­creased ac­tiv­ity through the end of 2013 with some credit to be at­trib­uted to ma­jor tech­nol­ogy launches as well as on-go­ing eco­nomic re­cov­ery in the Euro Zone,” he said.

In 2013, IAG Cargo has an­nounced a num­ber of sig­nif­i­cant en­hance­ments for the In­dian mar­ket. Hy­der­abad and Chen­nai have ben­e­fited from additional ser­vices, mean­ing that IAG Cargo now of­fered daily flights to the ma­jor phar­ma­ceu­ti­cal hub of Hy­der­abad, and 6 ser­vices a week in Chen­nai. With these an­nounce­ments, IAG Cargo now op­er­ated 46 line flights a week into In­dia. “With im­proved con­nec­tiv­ity at our global hub in Lon­don and Madrid, cus­tomers can ac­cess 350 des­ti­na­tions around the world. We have also in­vested in our dig­i­tal dis­tri­bu­tion chan­nels – IAGCargo.com and the IAG and Cargo App to en­sure that cus­tomers can in­ter­act with us via the chan­nel that suits them best,” Singh said.

Com­ment­ing on the fu­ture prospect, Singh main­tained that the In­dian mar­ket has been mostly buoy­ant. With the aug­men­ta­tion in phar­ma­ceu­ti­cal in­dus­try, IAG Cargo has in­vested heav­ily in this tem­per­a­ture and time­sen­si­tive com­mod­ity that re­quires spe­cial han­dling through our phar­ma­ceu­ti­cal spe­cific prod­uct, ‘Con­stant Cli­mate’.

“As an air­line, we have re­sponded promptly to the de­mands of a chang­ing mar­ket and have pro­vided spe­cialised so­lu­tions. We have com­pleted the con­struc­tion of our Con­stant Cli­mate Cen­tre in Lon­don, to en­sure that ter­mi­nat­ing and tran­sit­ing pharma ship­ments are kept in the op­ti­mal con­di­tions,” said Singh.

“We are com­mit­ted to in­vest­ing in our in­fra­struc­ture, in­clud­ing tech­nol­ogy, to im­prove the cus­tomer ex­pe­ri­ence. In ac­cor­dance with IATA’s e-air­way bill rec­om­men­da­tion, we are com­mit­ted to cre­at­ing a 100 per cent paper-free air cargo sup­ply chain”, he said.

IAG Cargo is wit­ness­ing a di­ver­gence in the num­ber of prod­ucts be­ing pro­duced in In­dia, and be­ing de­manded by In­dian con­sumers. “We are plan­ning con­tin­ued in­vest­ment in our ex­press so­lu­tion Pri­ori­tise and our phar­ma­ceu­ti­cal so­lu­tion Con­stant Cli­mate. With the additional ca­pac­ity, and even im­prov­ing prod­ucts, In­dian businesses

will be able to send goods fur­ther, faster and more se­cure than ever be­fore,” Singh added.

IAG Cargo has an­nounced new routes for the next gen­er­a­tion B-787 and A-380 air­craft, which will be de­ployed across a num­ber of key routes in the IAG Cargo net­work through 2014. The air­line re­cently an­nounced that its 787s would be­gin serv­ing Hy­der­abad from March 30, 2014. The B-787, equipped with spec­i­fied air-con­di­tion­ing ca­pa­bil­i­ties in the hold, will prove ben­e­fi­cial to cus­tomers in the phar­ma­ceu­ti­cal man­u­fac­tur­ing hub of Hy­der­abad; en­sur­ing sta­ble on­board con­di­tions to ex­port tem­per­a­ture sen­si­tive goods from the re­gions.

Ashish Ka­pur, Re­gional Cargo Man­ager – South Asia, Mid­dle East & Africa, Cathay Pa­cific Air­ways, says that, “With North Amer­ica com­ing out of re­ces­sion and Europe show­ing pos­i­tive trends, we ex­pect the cur­rent surge to con­tinue through 2014”. He also main­tained that the In­dian mar­ket has per­formed well and has been a grow­ing mar­ket for Cathay Pa­cific this year. “In our as­sess­ment, pharma will be a high-growth area, and we also feel that the gar­ment in­dus­try is set to re­bound in 2014 which could be a sur­prise pack­age. 2013 has been a good year for Cathay Pa­cific in In­dia. We have lifted close to 56,000 tonne on our freighters from In­dia in this year,” he said.


iata eco­nom­ics: www.iata.org/eco­nom­ics

We are main­tain­ing

good cargo load­fac­tors from all our 10

sta­tions in In­dia ”

Keki Pa­tel Cargo Man­ager, In­dia & Nepal, Emi­rates



We are able to hold our own even in a dif­fi­cult mar­ket and have laid the ba­sis in 2013 for im­por­tant


Karl Ul­rich Gar­nadt

CEO, Lufthansa Cargo

We are com­mit­ted to in­vest­ing in our in­fra­struc­ture, in­clud­ing tech­nol­ogy, to im­prove the

cus­tomer ex­pe­ri­ence.”

Pravin Singh Area Commercial Man­ager,

S.Asia, IAG Cargo

In our as­sess­ment, phar­ma­ceu­ti­cals and gar­ments will be high­growth ar­eas in this year”

Ashish Ka­pur Re­gional Cargo Man­ager - S Asia, ME &

Africa, Cathay Pa­cific Air­ways

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