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.


Free customs clearance on any air freight bookings this month!

For this month only, we would like to offer our loyal customers free customs clearance on any air freight bookings made!

We have electronic links to all UK airports. This means that our team can skilfully arrange customs clearance for your cargo. With knowledge of all customs clearance procedures, home use, CFSP, IPR, OPR and warehousing entries we can also organise BTI classification for your goods.

Our team of highly skilled experts at our office at Heathrow Airport have extensive knowledge of handling all aspects of air shipments, with daily nationwide collections and an air freight consolidation service. We are able to offer a range of direct and indirect shipment options from any airport worldwide.

Contact us now to take advantage of this great offer! Call 02380 337778 or email [email protected] 



delivery drone

Drone delivery experimented by UPS

The experiment, in Lithia Florida, involved launching a drone from the top of a vehicle, delivering its package and returning by itself, all whilst the delivery driver is able to continue driving at the same time.

“This test is different than anything we’ve done with drones so far. It has implications for future deliveries, especially in rural locations where our package cars often have to travel miles to make a single delivery,” said Mark Wallace, UPS senior vice president of global engineering and sustainability.

Rural delivery routes are the most expensive to serve due to the time and vehicle expenses required to complete each delivery; hence the consideration UPS is giving to an unmanned aerial vehicle (UAV) option for last-mile type deliveries.

However, this doesn’t mean the end for drivers. According to UPS, drivers are the face of the company, so this isn’t something that will change. It will be a tool to aid them in terms of time and distance. During the test the drones route was preset, but routes could be determined by other sorts of navigation.

Amazon has also experimented with drones. In December 2015 it successfully delivered a tv streaming stick and a bag of popcorn to the garden of a customer with a large garden in Cambridgeshire. This could suggest that this is something they can offer to all their customers going forward, but that would be a premature assumption. At the moment it can only be used for customers with large gardens that live close to the depot. The drones can only fly in daylight and with good weather conditions. Amazon hopes to start expanding this service over the coming months, although it will only work on packages up to 2.6kg.


Lorry pothole claims rejected by road transport group

The poor state of Britian’s roads does not lie with the logistics industry say the Freight Transport Association (FTA)

According to the Local Government Association (LGA) there are more potholes and wear of the roads because of the 5% rise in lorries on British roads since last year, an increase of 1.7bnt.

LGA transport spokesman Martin Tett said…

“Our local roads network faces an unprecedented funding crisis and the latest spike in lorries could push our local roads network over the edge. Lorries exert massively more weight on road surfaces than cars, causing them to crumble far quicker.”

According to the Department of Transport’s road freight statistics the food and drink industry accounted for nearly a quarter of the road traffic in the UK in 2015. However, the FTA refute this, instead calling the lack of government spending on repairs the real issue. The FTA insist that the cuts to local insfrastructure have caused a repair backlog on a national level.

The FTA’s head of policy Christopher Snelling said the LGA’s report was an attempt to escape responsibility for the problem…

“The real issue is the need for increased funding from central government to address the potholes problem nationwide, local authorities are facing large bills – one-off costs of approximately £69M per council – to bring their roads up to a reasonable condition.”

Snelling continued…

“The transportation of essential goods on our roads is crucial to the continued health of the economy. To claim that lorries are the cause of the potholes across the country is simply not true. Larger lorries do not cause increased damage to the road surface – in fact, they have more axles which spread payloads more evenly. When combined with road-friendly twin tyres and road-friendly suspension, this reduces the impact of road usage by lorries.”

When responding to a recent RAC survey on potholes, Martin Tett had this as his response…

‘’Councils are fixing more potholes than ever – one every 15 seconds – and keeping roads safe is one of the most important jobs we do. However, councils face a £12 billion backlog of road repairs, which would already take councils more than 10 years to clear. Over the remaining years of this decade the Government will invest over £1.1 million per mile in maintaining main roads and motorways, which make up just three per cent of all total roads. However, it invests £27,000 per mile in council-controlled local roads, which make up 97 per cent of England’s road network. This difference in funding puts the country’s businesses at a competitive disadvantage and provides poor value for money’’

The state of Britain’s roads has long been a source of contention, but with increased usage and little money to make improvements, unfortunately our industry will always be under scrutiny.

solent 250

Supreme Freight features in the latest Solent 250

Supreme Freight are proud to announce that we have been featured in the latest Solent 250 for 2017.

The annual listing is compiled by The Business Magazine and sponsored by law firm Irwin Mitchell, business advisers KPMG and HSBC bank. It groups private unquoted companies across the Solent and South Coast by turnover, and the 2017 companies share a combined turnover of £13.5 billion.

The Solent 250 will be celebrated at a special dinner at Lainston House, near Winchester, on March 21. Guest speakers include Mark Berrisford-Smith – HSBC economist, and Spencer McCarthy – chairman and CEO of Churchill Retirement Living.

Click here to find out more about the Solent 250.