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air freight

Record Cargo performance for Heathrow in April

London-Heathrow airport cargo volumes enjoyed their 21st consecutive record month in April 2018, as trade growth at the UK’s largest port by value increased by 2.3% year on year to 141,215 tonnes compared to the same time last year.

The US (+4.1%), India (+7.1%) and China (+10.9%)  were among the fastest growing countries for cargo in April.

For the January to April 2018 period, Heathrow handled 557,950 tonnes, 3.8% increase, while in the running 12 months from May 2017 to April 2018, the hub handled just over 1.7m tonnes, an 8.8% rise.

Heathrow chief executive John Holland-Kaye said: “We’re seeing more passengers and trade flow through Heathrow than ever before. A third runway is a tremendous opportunity to grab a greater share of this global growth for Britain and we’re counting on our politicians to seize it with a ‘yes’ vote on Heathrow expansion this summer.”

Source: Air Cargo News / Heathrow Media Centre

emissions

Shipping emissions to be halved by 2050

Following on from our earlier article concerning shipping emissions, over 170 countries reached agreement on Friday (13 April) to reduce CO2 emissions from shipping by “at least” 50% on 2008 levels by 2050, ending years of slow progress.

Despite opposition from nations including Brazil, Saudi Arabia and the US, the states came to a final agreement on Friday, signalling to industry that a switch away from fossil fuels is fast approaching.

Ultimately the goal is for shipping’s greenhouse gas emission to be reduced to zero by the middle of the century, with most newly built ships running without fossil fuels by the 2030s.

Kitack Lim, Secretary-General of the International Maritime Organisation (IMO), said the adoption of the initial strategy “would allow future IMO work on climate change to be rooted in a solid basis”.

The compromise plan to halve shipping emissions by 2050 leaves the door open to deeper cuts in the future, placing a strong emphasis on scaling up action to 100% by mid-century.

“Meeting this target means that in the 2030s most newly built ocean-going vessels will run on zero carbon renewable fuels. Ships, which transport over 80% of global trade, will become free from fossil fuels by then,” the European Climate Foundation said in a statement.

European Union countries, along with the Marshall Islands, the world’s second-biggest ship registry, had supported a goal of cutting emissions by 70 to 100% by 2050, compared with 2008 levels.

But opposition from some countries – including the United States, Saudi Arabia, Brazil and Panama – limited what could be achieved at the IMO session last week in London.

In Brussels, the European Commission hailed the deal as “a significant step forward” in the global effort to tackle climate change.

“The shipping sector must contribute its fair share to the goals of the Paris Agreement,” said EU Transport Commissioner Violeta Bulc and her colleague in charge of Energy and Climate Action, Miguel Arias Cañete.

While the EU had sought a higher level of ambition, the Commission said the deal was “a good starting point that will allow for further review and improvements over time”.

Shipping currently represents 2-3% of global CO2 emissions and could reach 10% by 2050 if no action is taken, the Commission reminded.

Dr Tristan Smith, an energy and shipping reader at the UCL Energy Institute, said that the 2050 target is likely to be tightened even further in the future.

“Even with the lowest level of ambition, the shipping industry will require rapid technological changes to produce zero-emission ships, moving from fossil fuels, to a combination of electricity (batteries), renewable fuels derived from hydrogen, and potentially bioenergy,” he said.

While he admitted that such changes are “massive” for a global industry with over 50,000 ships trading internationally, Smith said these reductions can be achieved “with the correct level of investment and better regulation”.

“What happens next is crucial,” said John Maggs, president of the Clean Shipping Coalition and senior policy advisor at Seas At Risk, an umbrella organisation of environmental NGOs.

“The IMO must move swiftly to introduce measures that will cut emissions deeply and quickly in the short-term. Without these the goals of the Paris agreement will remain out of reach,” he warned.

According to the text produced by the IMO working group submitted to member states, the initial strategy would not be legally binding for member states.

A final IMO plan is not expected until 2023.

Source: Edie.net / Independent 

Heathrow Cargo

Air Cargo figures start the year strong according to IATA

The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 8.0% in January 2018 compared to the year-earlier period. This was up from the 5.8% annual growth recorded in December 2017. 

Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 4.2% year-on-year in January 2018.

The continued positive momentum in freight growth into 2018 reflects the fact that demand drivers for air cargo remain supportive. Global demand for manufacturing exports is buoyant and meeting this strong demand is leading to longer supply chain delivery times. Demand for air cargo may strengthen as a result, with companies seeking faster delivery times to make up for longer production times.

“With 8% growth in January, it’s been a solid start to 2018 for air cargo. That follows an exceptional year in which demand grew by 9%. We expect demand for air cargo to taper to a more normal 4.5% growth rate for 2018. But there are potential headwinds. If President Trump follows through on his promise to impose sanctions on aluminium and steel imports, there is a very real risk of a trade war. Nobody wins when protectionist measures escalate,” said Alexandre de Juniac, IATA’s Director General and CEO.

All regions reported an increase in demand in January 2018.

Asia-Pacific airlines saw demand in freight volumes grow 7.7% in January 2018 and capacity increase by 2.2%, compared to the same period in 2017. The increase largely reflects the ongoing strong demand experienced by the region’s major exporters, China and Japan which has been driven in part by a pick-up in economic activity in Europe. However, the upward-trend in seasonally-adjusted volumes has paused.

North American airlines’ freight volumes expanded 7.5% in January 2018 year-on-year, as capacity increased 4.2%. The strength of the US economy and the US dollar have improved the inbound freight market in recent years. However, this may be offset by the weakening in the dollar although the recently-agreed US tax reform bill may help to support freight volumes in the period ahead. Seasonally-adjusted volumes are broadly trending sideways.

European airlines posted a 10.5% increase in freight volumes in January 2018. Capacity increased 5.3%. The strong European performance corresponds with a very healthy demand for new export orders among the region’s manufacturers. Seasonally-adjusted volumes jumped 3% in month-on-month terms in January – the largest increase since March 2017.

Middle Eastern carriers’ freight volumes increased 4.4% year-on-year in January 2018, the slowest growth of all regions. Capacity increased 6.3%. Seasonally adjusted freight volumes continued to trend upwards during the first month of the year, however, the region’s carriers remain affected by the ongoing challenging political environment in the Middle East.

Latin American airlines experienced a growth in demand of 8.0% in January. Capacity increased 5.4%. The pick-up in demand comes alongside signs of economic recovery in the region’s largest economy, Brazil. Seasonally-adjusted international freight volumes are now back to the levels seen at the end of 2014.

African carriers’ saw freight demand increase by 12.9% in January 2018 compared to the same month last year. The increase was helped by very strong growth on the trade lanes to and from Asia. Freight demand jumped by 59% between Africa and Asia in 2017 following an increase in the number of direct flights between the continents, driven by ongoing foreign investment flows into Africa.

Source: IATA

Heathrow Cargo

Record breaking figures for Heathrow

Freight travelling through Heathrow reached record levels for the start of the year, as over 133,000 tonnes made its way through the airport in January, with export volumes growing by 10.6%.

The top destinations for cargo growth were the US (1,214t), Spain (1,070t) and China (966t).

Heathrow CEO John Holland-Kaye said:

“Heathrow is off to a flying start, with record passenger numbers and cargo volumes and the start of our public consultation on the third runway.  Heathrow expansion will provide the global trading routes to super-charge Britain’s economy as we leave the EU.”

Heathrow has now launched one of the largest public planning consultations in the country’s history – the next milestone in the airport’s plans for expansion. The 10-week consultation offers the public the opportunity to shape the airport’s plans, enabling Heathrow to deliver the benefits of expansion while the keeping commitments made to local communities.

Heathrow remains the UK’s busiest port by value with over £100bn of goods travelling through the airport each year.

why use us air freight

Air Freight – Why use us?

When it comes to international shipping, there are many choices as to how to move goods.  The main decision to make is what kind of transport to use.  Deciding between ocean freight and air freight is an important choice. Here, we give you the reasons why its a good idea to choose air freight.  

Going by air is the most time efficient. Its the fastest shipping method which means that goods can be moved quickly and is usually the more cost effective for smaller cargo.

The routes for air freight are large and diverse.  Most destinations in the world are covered and relatively easy to get to.  Air offers reliable departure and arrival times – a large amount of flights depart daily and this means that the risk of delay is lower than that of sea freight, with container ships usually on a weekly schedule.

Supreme freight specialise in restricted and hazardous goods, and dangerous cargo by air.  These types of goods need more rigorous checks, and with air freight comes a higher level of security generally, airport safety controls are paramount meaning that the restrictions can be difficult to navigate.

We have a team of highly skilled experts at our Heathrow Airport office with a broad range of experience in handling all types of shipments. We can:

Arrange daily nationwide collections

Offer an Air Freight consolidation service

Offer Direct and indirect shipment options

Create house airway bills on your behalf

We offer very competitive rates and we can invoice in USD to avoid any high currency exchange rates.

Why not contact us and see what we can offer?

enquiries@supremefreight.com

02380 337778

cargo plane

Record losses for Air France’s KLM Cargo Division

2016 saw a record loss for the cargo division of the Air France KLM group.

The French-Dutch airline recorded a full-year operating loss of €244m, compared with a €245m loss in 2015. This was a 14% year on year decline as a result of structural industry overcapacity and a decline in traffic of 6.3% to 8.4bn revenue tonne km (RTK). Its full-freighter operating loss for the year was €28m, compared with a €42m loss in 2015. According to KLM “The group continued to restructure its cargo activity resulting in its gradual turnaround, in order to address the weak global trade and structural industry overcapacity, and to maximise its contribution to the group,”

Looking at fourth quarter results, revenues declined by 10.8% year on year to €546m and its operating loss sank to €28m from a loss of €23m during the fourth quarter of last year. Fourth quarter traffic was down 3.9% year on year to 2.2bn RTK. The average cargo load factor for the 2016 period stood at 63.2%, which was the same level as a year earlier.

From 2017, AF-KLM will be merging the reporting of its cargo business into its overall financial and passenger results to reassess its performance. Previous years have seen the company drastically decrease the size of its freighter fleet as it tries to bring down the overall heavy losses under previous calculation methods.