Author: Admin

London – The International Air Transport Association (IATA) will be trialing a CO2 emissions calculation tool specifically developed for cargo flights together with Etihad Airways.

To effectively manage and report on sustainability progress, the entire value chain – shippers, forwarders, investors and regulators – along with consumers are asking for reliable and trustworthy data calculations. This trial will provide a valuable proof of concept for the cargo component of the IATA CO2 Connect carbon calculator.

IATA has been successfully providing IATA CO2 Connect for passenger flights since June this year, with actual fuel burn data of 57 aircraft types representing ~98% of the active global passenger fleet . By using airline specific data on fuel burn and load factors, it is the most accurate in the market.

Calculating the carbon impact of cargo shipments has more challenging parameters, not least of which is the unpredictability of routing at time of booking an air cargo shipment that can often include non-air segments. In addition, cargo can be carried on both dedicated freighter aircraft and in the bellies of passenger aircraft. To achieve equal levels of accuracy to the passenger calculator, it is essential to collect actual data on fuel burn, load factors and other key variables in trials.

IATA will be working with Etihad Cargo to track the necessary data for cargo shipments during a three-month trial. Etihad will be sharing data from flights and advising on various use cases to achieve the highest levels of accuracy, consistency and transparency.

By mid-2023 IATA aims to launch CO2 Connect for Cargo providing the industry with precise and consistent methodologies for both passenger and cargo operations.

“With a strong commitment to innovation, Etihad Cargo actively seeks out and facilitates the development, trials and launch of promising solutions for its customers and partners. The airline’s development with IATA demonstrates the ability and willingness to co create solutions to support Etihad Cargo’s journey to achieving net zero carbon emissions by 2050 and demonstrates the carrier’s agility in adopting state-of-the-art technology and digital solutions. IATA’s CO2 Connect carbon calculator will be an effective tool in making the transportation of cargo more sustainable and will benefit not only Etihad Cargo’s customers but also the wider air cargo sector in the future” said Martin Drew, Senior Vice President Global Sales & Cargo at Etihad Aviation Group.

“Aviation will achieve net zero carbon emissions by 2050. And our customers—travelers and shippers—need accurate information on the emissions related to their activities to manage their own commitments and reporting obligations.  For all these purposes, accurate data is critical. IATA CO2 Connect already provides this for passenger operations. This trial with Etihad will help us in bringing an industry-leading carbon calculator for cargo in the coming months,” said Frederic Leger, IATA’s Senior Vice President for Commercial Products & Services.

About CO2 Connect for Passengers

IATA CO2 Connect is the most accurate tool available for the calculation of aviation emissions in passenger operations. It makes use of airline specific and actual fuel burn information and load factors. This sets it apart from theoretical data models.

IATA CO2 Connect is available to companies within and outside the travel value chain, such as travel management companies (TMCs), travel agencies, airlines or multinational corporations. They can access the relevant CO2 emissions data and integrate it in a customized manner into their existing flight booking tools. Travel managers or travelers can easily see the CO2 emissions per routing. The tool also permits the consolidation of data for reporting purposes.

IATA CO2 Connect utilizes the newly developed CO2 Calculation Methodology, adopted by IATA’s Passenger Service Conference in March this year. This was conceived by leading partners from 20 airlines and major aircraft manufacturers, in consultation with international standard-setting bodies and logistics services providers.

NEWS BRIEF                         

London – The International Air Transport Association (IATA) highlighted four priorities to build resilience and strengthen air cargo’s post-pandemic prospects.

The priorities, outlined at the 15th World Cargo Symposium (WCS), which opened in London today are:

•              Achieving net zero carbon emissions by 2050

•              Continuing to modernize processes

•              Finding better solutions to safely carry lithium batteries

•              Making air cargo attractive to new talent

“Air cargo had a stellar year in 2021 achieving $204 billion in revenues. At present, however, social and economic challenges are mounting. The war in Ukraine has disrupted supply chains, jet fuel prices are high and economic volatility has slowed GDP growth. Despite this, there are positive developments. E-commerce continues to grow, COVID restrictions are easing, and high-value specialized cargo products are proving resistant to economic ups-and-downs. Going forward, achieving our net zero commitment, modernizing processes, finding better solutions to safely carry lithium batteries, and making air cargo attractive to new talent are critical,” said Brendan Sullivan, IATA’s Global Head of Cargo.

The road to Net Zero by 2050

In 2021 the aviation industry agreed a balanced plan to achieve net zero CO2 emissions by 2050. A potential scenario for this is:

•              65% through Sustainable Aviation Fuel (SAF)

•              13% from hydrogen and electric propulsion

•              3% from more efficient operations

•              19% through offsets and eventually through carbon capture, as an out-of-sector solution while technology develops.

“SAF is the key to achieving net zero emissions. Airlines used every drop that was available in 2021. And it will be the same this year. The challenge is SAF production capacity. The solution is government incentives. With the right incentives, we could see 30 billion liters of SAF by 2030. That would be a tipping point by 2030 towards our net zero ambition of ample SAF quantities at affordable prices,” said Sullivan.

Modernization and Efficiency

“The challenges of the COVID crisis gave us confidence that we can change and adapt fast. We need to use that confidence to get even closer to the expectations for modernization that our customers have. And we need to be true to air cargo’s unique selling point and move even faster,” said Sullivan.

IATA highlighted two areas where progress was being made:

•              IATA’s ONE Record is making it possible for everyone across the industry’s value chain to see the same information on shipments. Already 156 companies and four customs authorities are using it.

•              IATA Interactive Cargo Guidance provides a common framework so that tracking devices can monitor the quality and accuracy of conditions of time and temperature sensitive goods.

Government support for the modernization agenda through facilitating trade is also critical.

“The Revised Kyoto Convention which brings standardization, technology, predictability and speed to trade facilitation and the World Customs Organization (WCO) SAFE Framework of standards to facilitate and secure trade are major steps forward in supporting global trade. But we are still seeing far too many diverging requirements by governments in areas that should be harmonized by these two tools. This needs to change quickly so we can continue to support global trade—and its vital contributions to economies and the UN Sustainable Development Goals—with modern and efficient air cargo. Universal adoption and implementation will deliver the greatest benefits,” said Sullivan.

Safety

Safety, specifically finding better solutions to safely carry lithium batteries was highlighted as a priority for the industry.

“We can be proud of the progress that we are making to further improve the safe handling of lithium batteries. For air cargo, this is a top priority. But even the best regulatory structure means nothing if the rules are not followed. Compliance is an issue with the transport of lithium batteries, particularly with the proliferation of new—and inexperienced—entrants in e-commerce activities,” said Sullivan.

IATA called for:

•              Regulatory authorities (EASA and FAA) to accelerate development of a test standard that can be used to demonstrate that fire containment pallet covers and fire-resistant containers are capable of withstanding a fire involving lithium batteries.

•              Government authorities to step up and take responsibility for stopping rogue producers and exporters of lithium batteries.

•              Industry to use technology such as DG Autocheck to more easily and accurately verify that the shipment complies with DG requirements.

To embed best practices on the safe carriage of lithium batteries across the value chain, IATA has expanded its CEIV Lithium Battery program to include airlines and shippers.

People

“People are the core of any improvement in what air cargo can deliver. Sadly, we saw thousands of jobs leave the industry during COVID-19, especially cargo handlers. We are now competing for talent in a very tight job market. And when we do find the right and willing talent, training and longer-than-usual security clearance processes delay their entry into the workforce,” said Sullivan.

IATA called for governments to accelerate clearance processes, including those for security, as a short-term solution and longer term to do a better job of attracting, onboarding, and retaining talent.

IATA also encouraged more cargo carriers to sign on to the industry-wide 25by2025 initiative to promote gender diversity. “The need to create equal opportunities for the female half of the world’s population is highlighted by the situation today where the industry is struggling to attract sufficient talent. Achieving an equal gender balance must be core to any long-term talent strategy,” said Sullivan.

Read Brendan Sullivan’s full speech

Whenever there is a doubt about if the correct label or marking is being used or when there is no regulation in place for a specific cargo or ground handling task, the IATA manuals have become the primary source of information for our users.

From reducing errors to avoiding shipment delays or aircraft damage, the IATA manuals have served as essential tools to a variety of companies.

With 94% of IATA manual users stating that these standards helped their business, the IATA manuals have demonstrated that the benefits of using them go beyond complying with international air cargo regulations and ground operations procedures.

 By using the IATA manuals you can rest assured that you follow the latest regulations and comply with international cargo shipment rules. 90% of IATA manual users refer to these standards as their primary source of information for air cargo standards and 74% refer to them as their primary source of information for ground operations. They are your essential guide to shipping and handling cargo via air!

By Damian Brett

Air cargo volumes were down again in June, although the level of decline eased compared with recent months as Covid restrictions in China began to be lifted.

The latest statistics from IATA show that air cargo traffic in June was down 6.4% in cargo tonne km (CTK) terms compared with a year earlier.

Capacity for the month was up 6.7% and the average cargo load factor slipped by 6.9 percentage points to 49.2% – the first time the load factor has dropped below 50% since February 2020.

However, the airline association pointed out that the demand decline in June was an improvement on the drop of 11.2% and 8.3% registered in April and May respectively.

IATA said that trade activity ramped-up slightly in June as lockdowns in China due to Omicron were eased and Latin America and Africa also contributed to growth with stronger volumes.

On the other hand, new export orders, a leading indicator of cargo demand and world trade, decreased in all markets, except China, and the war in Ukraine continued to impact the market.

IATA director general Willie Walsh pointed out that cargo demand was ahead of 2019 levels in the first half.

Walsh said: “Air cargo demand over the first half of 2022 was 2.2% above pre-Covid levels (first half 2019). That’s a strong performance, particularly considering continuing supply chain constraints and the loss of capacity due to the war in Ukraine.

“Current economic uncertainties have had little impact on demand for air cargo, but developments will need to be closely monitored in the second half.”

Looking at regional performance, carriers from Latin America and Africa were the only ones to post increases in demand.

Asia Pacific airlines reported a 2.1% year-on-year decline in CTK for the month, although this was a “significant” improvement on the 6.6% drop for May.

“Airlines in the region have been heavily impacted by lower trade and manufacturing activity due to Omicron-related lockdowns in China, however, this continued to ease in June as restrictions were lifted,” IATA said.

Carriers from North America registered a 6.3% fall in cargo traffic in June as high inflation affected the region.

European carriers suffered the largest decrease in cargo traffic of 13.%, which IATA attributed to the war in Ukraine, labor shortages and lower manufacturing activity in Asia due to Omicron.

There was a drop of 10.8% for Middle East-based airlines and “significant benefits from traffic being redirected to avoid flying over Russia failed to materialise”, IATA said.

On a more positive front, Latin American carriers reported an increase of 19.6% year on year in CTK for June, the strongest performance of all regions.

“Airlines in this region have shown optimism by introducing new services and capacity, and in some cases investing in additional aircraft for air cargo in the coming months,” IATA said.

Finally, African airlines registered a 5.7% increase in cargo traffic for the month as carriers added additional capacity.

By Damian Brett

Supply chains operating through Hong Kong are once again facing restrictions on cross-border truck operations due to Covid-restrictions.

Freight forwarder Dimerco said that increasing Covid cases around Shenzhen have led to the city reducing daily cross-border truck movements from 3,500 to 1,500.

The restrictions began on July 25 and reduce truck capacity to around 10-20% of usual levels.

“In addition, stricter testing policies have been enacted. Truck drivers must show proof of a negative test result within 24 hours, versus the previous 48 hours, from July 24 to July 31,” Dimerco said.

As a result of the truck restrictions, Dimerco is expecting to see a significant rise in demand for sea feeder services to transport cargo to Hong Kong.

Flexport also warned of delays to Shenzhen shipments travelling via Hong Kong.

“Shenzhen-Hong Kong cross border operations have also been affected due to a surge in Covid cases and a subsequent quota reduction of at least 50%,” it said.

“Shipments that need to be trucked to Hong Kong should expect longer transit times.”

Restrictions were also put in place on cross-border truck operations earlier in the year as China battled a series of Covid outbreaks.

At the time, Hong Kong-hubbed airline Cathay Pacific said the trucking restrictions were one of the main reasons for its demand declines.

By Damian Brett

Lufthansa Cargo ALFH B777F Source: Lufthansa Cargo

Lufthansa Cargo ground workers are tomorrow set to join strike action being called by Germany’s ver.di union.

The union has called on the 20,000 Lufthansa ground workers it represents to take part in a strike running from 03:45hrs on Wednesday until 06:00hrs on Thursday over pay.

Ver.di is currently negotiating for the approximately 20,000 employees at Lufthansa AG Boden, Lufthansa Technik, Lufthansa Systems, Lufthansa Technik Logistik Services (LTLS), Lufthansa Cargo and Lufthansa Service Gesellschaft (LSG) as well as Lufthansa Engineering and Operational Services (LEOS).

A Lufthansa Cargo spokesperson said it is monitoring the situation very closely and taking measures to maintain cargo operations for our customers in the best possible way.

“We are in close communication with all parties involved in order to avoid delays or flight cancellations of freighters. However, it is currently difficult to estimate how many of our ground employees at Lufthansa Cargo will respond to the strike call,” they said.

“Lufthansa Airlines has significantly reduced its flight schedule for Tuesday and Wednesday.

“Given these circumstances, shipments booked to be transported during the strike period as belly cargo will be rebooked.”

Lufthansa Cargo’s freighter connections are expected to operate as scheduled, provided no operational adjustments become necessary at short notice.

“Traditionally, Lufthansa Cargo stands for reliability and team cohesion,” the spokesperson added.

In Frankfurt, a total of 678 flights will have to be canceled, including 32 already today (Tuesday) and 646 on Wednesday.

At the Munich hub, a total of 345 flights will have to be canceled, 15 of them already today (Tuesday) and 330 on Wednesday.

The effects of the strike may still lead to individual flight cancellations or delays on Thursday and Friday, Lufthansa warned.

The union warned of disruption: “Since all ground workers, including Lufthansa Technik responsible for maintenance and the LEOS employees who use pushback vehicles to ensure that the aircraft are pushed back into the appropriate positions, are called on to go on warning strike, there will be major flight cancellations and delays come.”

Ver.di is demanding a salary increase to reflect the current working conditions being faced by the staff but has so far rejected offers from Lufthansa.

“The ground handling services and security forces that remain after two years of the pandemic, including massive job cuts, are doing their best every day to keep air traffic going. But the workers are out of breath. Mainly because their employers hardly do anything to improve their situation,” the union said.

It added: “The situation at the airports is escalating; the overburdening of employees due to a significant shortage of staff, high inflation and a three-year wage cut would put the employees under increasing pressure.”

In response, Deutsche Lufthansa chief officer human resources added: “After only two days of negotiations, ver.di has announced a strike that can hardly be called a warning strike due to its breadth across all locations and its duration.

“This is all the more incomprehensible given that the employer side has offered high and socially balanced pay increases – despite the continuing tense economic situation for Lufthansa following the Covid crisis, high debt burdens and uncertain prospects for the global economy.

 “After the enormous efforts to stabilize our flight operations, this represents a renewed, substantial and unnecessary burden for our passengers and also for our employees beyond the strike day.”

Negotiations are set to restart on August 3 and 4.

Geneva – The International Air Transport Association (IATA) welcomed progress by states towards a long-term aspirational goal (LTAG) of net-zero aviation carbon emissions by 2050 in line with the Paris Agreement’s temperature objectives. This is noted in the summary of discussions for the International Civil Aviation Organization’s (ICAO) High Level Meeting held in preparation for the 41st ICAO Assembly later this year.

 “The ICAO High Level Meeting’s support of a long term goal for states that is in line with the aviation sector’s net-zero by 2050 commitment is a step in the right direction. A formal agreement at the 41st ICAO Assembly would underpin a common approach by states to decarbonize aviation. That’s critical for the aviation industry. Knowing that government policies will support the same goal and timeline globally will enable the sector, especially its suppliers, to make the needed investments to decarbonize,” said Willie Walsh, IATA’s Director General.

In October 2021, IATA member airlines committed to net zero emissions by 2050. The path to achieve this will involve a combination of sustainable aviation fuels (SAF), new propulsion technology, infrastructure and operational efficiencies, and carbon offsets/carbon capture to fill any gaps.

 “Net zero by 2050 will require a global transition for aviation to new fuels, technologies and operations. The significant investments to get there will need a solid policy foundation aligned with a global way forward. That is why it is so important for states to carry the momentum of the High Level Meeting through to a formal agreement at the 41st ICAO Assembly in a few weeks,” said Walsh.

21 / 07 / 2022

By Damian Brett

Transportation rates are expected to stay above pre-pandemic levels for the foreseeable future despite the recent slowdown in demand.

Seko Logistics chief growth officer Brian Bourke said that demand had slowed this year compared with 2021 and that the constant peak season experienced over the last two years has been replaced by pre-covid seasonal trends.

He said the slowdown has been caused by rising inventory levels, inflation and the return of spending on services as opposed to goods in certain sectors.

However, he said the industry is likely to experience a peak season this year and he pointed out that volumes were still ahead of pre-pandemic levels and supply chain disruption continues.

 “Predictability has disappeared post-pandemic and we don’t see it coming back,” said Bourke.

 “Are volumes down?” he asked. “Yes they are, it is what we used to call slack season – it’s back, it has returned.”

 “It seems apocalyptic because for the first time [in a few years] we are seeing a decrease in volumes, but if you look at it compared with prior to the pandemic, trade is still strong and volumes are still high.

 “We do expect a peak season, albeit a very muted peak season. So we see that volumes are down but it isn’t anything that is earth-shattering.”

And despite a slowdown in demand compared with the last two years, Bourke said that rates were likely to stay at an elevated level due to supply chain disruption caused by labour shortages, possible Covid restrictions, capacity shortages, the war in Ukraine and ongoing port/airport congestion.

Bourke added that air cargo capacity would be reduced as the summer travel season came to an end.

He said: “We advise our clients not to expect rates to revert to pre-pandemic levels in the short-, medium, or long-term.

“It is important for shippers to take that into consideration as they start to think about next year’s budgets.”

He added: “Relative demand in air and ocean will remain a challenge from an air and ocean capacity standpoint which will create continued bottlenecks and congestion in the near and medium-term.”

Also speaking at the event was Seko vice president global carrier management Akhil Nair. He said that trade volumes had not bounced back as quickly as many had expected following the easing of covid restrictions in Hong Kong and Shanghai.

This is reflected in the latest finding from the DHL Hong Kong Air Trade Leading Index (DTI).

The index shows that “0nly” one-fifth of local air traders reported that their current businesses had grown after the situation involving cross-boundary land transport of goods improved.

A similar percentage of the respondents said their businesses have been better in June than in May 2022 amid the region’s relaxation of social distancing measures.

“Despite the slow recovery momentum in June, a more optimistic outlook for overall air trade to and from China is observed in thrid quarter 2022.”

Flexport’s latest market update suggests that airlines are continuing to lower rates in line with volume slowdowns, although prices remain well above pre-pandemic levels.

“Covid cases are increasing again in Shanghai but there has been no impact on airfreight and trucking at the moment,” said the forwarder.

“Meanwhile, Pudong Airport has already reached pre-lockdown levels of daily tonnage turnover.

 “Shanghai is also experiencing its hottest week in recent years which is leading to payload reductions ranging from 3-10%.

 “As a result, some cargo may be offloaded at the last minute and may cause service delays. For Frankfurt (FRA) bound volume, continue to expect delays of two-four days due to manpower shortages and flight cancellations.”

TAC Index figures show rates declined in June, while CLIVE Data Services data for the same month also showed rates cooling.

By Rebecca Jeffrey

Boeing 777-8 freighter. Copyright: Boeing

Over the next 20 years the global freighter fleet will grow by 80%, with conversions accounting for two third of deliveries, predicts Boeing.

Carriers will need 2,800 additional freighters overall, said the airframer in its Commercial Market Outlook (CMO) for 2022-2041.

 “Over the next 20 years, the freighter fleet will grow from pre-pandemic levels by 80%, which represents 3% average annual fleet growth,” said Boeing.

“We forecast approximately 2,800 production-plus-conversion deliveries, with approximately half replacing retiring airplanes, and the remainder expanding the fleet to meet projected traffic growth.

“Roughly two thirds of deliveries will be freighter conversions from passenger airplanes, about 70% of which will be standard-body passenger aircraft.”

The expected 2,800 freighters includes 940 new widebody models in addition to converted narrowbody and widebody freighters over the forecast period, said Boeing.

In the standard body segment, the fleet is projected to grow by 90% over 2021 levels, with a projected 1,300 conversions.

In comparison, Airbus’ 2022 Global Market Forecast for the 2022-2041 period expects that the world freighter fleet in service will reach 3,070 aircraft by 2041, with nearly 70% of the current fleet anticipated to be replaced.

The Asia Pacific freighter fleet is forecast to grow larger than any other region and is expected to “become roughly the same size as the North American fleet by the end of the forecast period,” said Boeing.

In comparison, the North American fleet is projected to grow by one third. However, Boeing added the North American fleet will “need roughly as many deliveries as Asia-Pacific to efficiently and sustainably replace the existing fleet”.

The 2019 world freighter fleet consisted of 2,010 jet airplanes. By the end of 2021, the fleet had grown to 2,250 freighters. Additionally, freighter utilisation has been operating at approximately 125% of normal levels.

Overall air-cargo capacity has rebounded to 2019 levels with dedicated freighters hauling roughly two thirds of all air cargo, explained Boeing.

For the period 2022–2041, Boeing forecasts that air cargo traffic, in revenue tonne kilometers, or RTKs, will grow at 4.1% annually, an increase from last year’s forecast of 4%.

Development of global supply chains, express and e-commerce will drive continued demand for freighters. Ongoing oceanfreight disruption is also increasing demand.

Supply chain diversification is likely to increase air cargo demand because: “The pandemic has highlighted the value of air cargo’s speed and reliability as a tool to reduce supply chain risk”; and “Supply chains with more nodes in the system can profit from the flexibility of air cargo and point-to-point service.”

Air Cargo News‘ sister title FlightGlobal has also reported that Boeing plans to open a second surge line for 737-800 freighter conversions at its facility near London Gatwick airport. Conversion work on the new line will start in November.

By Rebecca Jeffrey

Airbus expects sustained demand for freighters over the next 20 years with nearly 70% of the current fleet anticipated to be replaced.

The airframer’s 2022 Global Market Forecast for the 2022-2041 period shows that the world freighter fleet in service will reach 3,070 aircraft by 2041.

This new report, published on July 8, anticipates there will be demand for 2,440 newbuild or converted freighters over the next 20 years, with nearly 900 newbuild freighters expected.

Of this expected freighter demand over 2022-2041, 990 will be 10-40 tonne single-aisle aircraft, 890 will be 40-80 tonne mid-sized widebody aircraft and 560 will be 80 tonne + large widebody aircraft.

2,030 aircraft were in service at the beginning of 2020. 31% will stay in-service (including 2020 & 2021 deliveries), while 69% will be replaced.

Express air cargo is predicted to outpace general air cargo.

The airframer said that in 2019, express air cargo made up 17% of the airfreight market, while general air cargo encompassed 83%.

But by 2041, express air cargo, boosted by e-commerce is expected to climb to comprise 25% of the market.

Airbus expects world air cargo traffic growth of 3.2% CAGR from 2019-2041.

The positive expectation of freighter demand over the coming years comes as Airbus recently announced the development of a new large widebody freighter model – the A350F.

Air Cargo News reported on July 11 that an unnamed customer has placed an order for seven Airbus A350 freighter aircraft.

Silk Way West Airlines signed a purchase agreement for two A350Fs last month.

Air France-KLM finalised its order for four A350Fs with purchase rights for an additional four aircraft in April, after signing a Letter of Intent (LOI) with Airbus in December.

In December, Singapore Airlines (SIA) signed an LOI to purchase seven A350Fs, with options to order another five aircraft, while in November, CMA CGM signed up for four A350Fs.

Air Lease also placed a provisional order for seven A350Fs in November, making it the launch customer for Airbus’ new freighter programme.