IAG Cargo Sees Surge in Temperature-Controlled Pharma Shipments Amid Global Demand

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IAG Cargo Sees Surge in Temperature-Controlled Pharma Shipments Amid Global Demand

March 19th, 2025 Tim Jay Leave a comment

IAG Cargo has reported a 22% year-over-year increase in tonnage for its Constant Climate product in 2024, highlighting the rising need for temperature-controlled air freight in the pharmaceutical sector.

Designed to transport critical medical products like vaccines, biotech materials, and diagnostic samples, Constant Climate plays a crucial role in the pharma supply chain. Nearly half of these shipments originated from India and Ireland, both of which have seen significant growth in pharmaceutical exports.

Jordan Kohlbeck, Head of Pharmaceutical at IAG Cargo, emphasized the importance of secure, temperature-controlled logistics, stating, “Ensuring life-saving medicines and treatments reach patients in optimal condition is more important than ever. We continue to invest in our facilities and workforce to meet this growing demand.”

Recent industry data reflects this expansion:

Ireland’s medical and pharmaceutical exports rose by €2.9 billion (+48%) in January 2024 compared to the previous year, making up nearly half of the country’s total exports.
India’s drug and pharma exports increased from $2.13 billion in 2023 to $2.31 billion in 2024, accounting for 20% of the global pharma supply chain.

IAG Cargo has also expanded its Constant Climate network, adding approved stations in Cincinnati, Cape Town, and Strasbourg. Additionally, the opening of the New Premia facility at London Heathrow has doubled its cool chain storage and handling capacity, reinforcing IAG Cargo’s position as a key player in pharmaceutical logistics.

With global pharma demand accelerating, IAG Cargo remains committed to providing reliable, temperature-controlled solutions to ensure medicines reach patients safely and efficiently.

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Trump Pressures Boeing Over Delayed Air Force One Production

February 20th, 2025 IndexBox Leave a comment

President Donald Trump has expressed his dissatisfaction with Boeing, following delays in the production of the new Air Force One. According to a report from Fox Business, the timeline for the next-generation Air Force One jet has been pushed back to 2029 or later, primarily due to complications related to global supply chains and changing project requirements.

Trump pointed out that the contract for the Air Force One was awarded several years ago under a fixed price agreement, and the slow progress has prompted him to consider alternative options. The former president mentioned the possibility of purchasing and converting a used aircraft from another country. Despite the delays, Trump ruled out considering Airbus over Boeing, emphasizing the importance of selecting a domestic manufacturer.

Boeing’s Challenges and Industry Impact

The delay in delivering the new Air Force One is attributed to various factors affecting Boeing, including supply chain disruptions, inflation, and workforce challenges. IndexBox data highlights that these issues have significantly impacted not only the aerospace sector but also the broader industrial landscape, as manufacturers globally struggle to cope with supply chain bottlenecks and rising costs. The Boeing 747-8s, which are set to serve as the new Air Force One aircraft, are undergoing extensive modifications to meet military specifications for security and communication capabilities.

As the aerospace industry continues to navigate these hurdles, efforts to accelerate production timelines are ongoing. The modifications and delays are expected to increase pressure on Boeing to streamline operations and meet contractual obligations.

Source: IndexBox Market Intelligence Platform

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Cargoai and CMA CGM AIR CARGO Forge Alliance To Elevate Digital Airfreight Booking

February 5th, 2025 Tim Jay Leave a comment

CargoAi, a leading digital enabler in the air cargo industry, has announced a strategic partnership with CMA CGM AIR CARGO, the air freight division of the global logistics powerhouse, CMA CGM Group. This collaboration is set to revolutionize airfreight booking by integrating CMA CGM AIR CARGO’s extensive network into CargoAi’s advanced CargoMART platform.

Following a successful pilot phase, CMA CGM AIR CARGO will now offer its digital booking services through CargoAi. This integration is designed to provide freight forwarders with an enhanced, streamlined booking experience, granting them access to a broader range of routes and services.

Matt Petot, CEO of CargoAi, shared his enthusiasm: “Partnering with CMA CGM AIR CARGO, a key player in the air cargo sector, underscores our commitment to delivering cutting-edge digital solutions that enhance efficiency and optimize operations in the airfreight industry.”

CargoMART stands out with features like real-time capacity and rate visibility, instant quoting, e-Booking, and comprehensive Track and Trace capabilities. A unique offering of the platform is its sustainability tools, enabling users to compare flight options based on carbon emissions, monitor CO2 emissions per shipment, and purchase sustainable aviation fuel (SAF) as needed.

The integration of CMA CGM AIR CARGO’s services will offer CargoMART users greater flexibility and a wider range of booking options. In turn, CMA CGM AIR CARGO will gain exposure to over 17,000 freight forwarders across more than 130 countries who actively utilize the CargoAi marketplace.

This partnership reflects both companies’ dedication to innovation and excellence in air cargo services, reinforcing their leadership positions within the global logistics landscape.

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Air Cargo Demand Shows Strong Start Despite Projected Slowdown

January 28th, 2025 IndexBox Leave a comment

The air cargo industry has demonstrated a robust beginning to 2025, maintaining momentum from last year’s strong performance. According to a report sourced from Yahoo Finance, analysts predict that demand growth could decrease by up to two-thirds as the market normalizes, yet a 4% growth rate would still be considered a solid year.

Data from the IndexBox platform corroborates this outlook, indicating that the global air cargo volume experienced a modest dip at the start of January 2025. While freight rates decreased by 3.7% sequentially during the first week of January, they remain significantly up by 26% compared to the previous year. Moreover, the airfreight rates along the crucial China-North America corridor have seen a smaller decline than usual from their December peaks.

Despite the initial dip in demand, the early weeks of January present a brighter picture compared to historical trends. The director of revenue management at Etihad Cargo noted minimal declines during the typically slow end-of-year period, suggesting sustained strength into January leading up to the Chinese New Year.

Furthermore, Xeneta’s monthly report highlighted a 12% increase in air cargo volumes over 2024, driven in part by e-commerce, which accounted for more than half of the air cargo out of Asia. This growth is further emphasized by the 15% rise in global spot rates, bringing them close to $3/kg.

Looking ahead, logistics companies like Taiwan-based Dimerco Express Group anticipate a shift in market dynamics, with a more balanced approach between spot market volatility and long-term contracts. The rate of air cargo volume growth is projected to cool slightly to between 4% and 6% this year, with several downside risks identified, including geopolitical tensions and potential trade policy changes by the United States.

Source: IndexBox Market Intelligence Platform

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E-commerce Boom Shields Air Cargo from Volatility Amid Geopolitical and Economic Shifts

January 25th, 2025 Tim Jay Leave a comment

The airfreight industry is bracing for continued volatility as changing global conditions threaten to dampen demand. Despite an 18% surge in air cargo volumes last year, Scan Global Logistics (SGL) cautions that double-digit growth may not be achievable in 2025.

SGL attributes last year’s robust performance to disruptions in ocean freight caused by the Red Sea crisis. However, recent progress in resolving attacks in the region could reduce the reliance on air cargo, potentially impacting demand in the near term.

David Jinks, head of consumer research at UK-based Parcelhero, highlights further challenges, including potential policy shifts under the new U.S. administration. “Traders pushing for growth in U.S. online sales may face tighter scrutiny from the External Revenue Service, while Trump-era tariffs could redirect UK manufacturers back toward the EU,” Jinks explained.

Meanwhile, a report by Danish shipping giant Maersk underscores the growing trend toward localized and regional supply chains. Factors like faster delivery needs, cost reduction, and geopolitical risk mitigation are driving companies to establish manufacturing hubs closer to consumers. This shift poses a long-term threat to long-haul airfreight demand.

Other challenges flagged by Maersk include rising energy costs, geopolitical tensions, and fluctuating global trade conditions. It emphasized the importance of agility for businesses and governments to navigate these uncertainties.

Despite these headwinds, SGL remains optimistic about the airfreight market’s resilience, largely due to the sustained growth of e-commerce. Platforms like TikTok and Instagram venturing into live shopping are further accelerating this trend.

“TikTok Live shopping drove a 93% increase in daily sales last year,” noted Jinks. “Content creation and AI-driven marketing will continue to fuel demand as social commerce expands.”

Maersk’s report also projects steady economic growth in the Asia-Pacific region, a key driver of global airfreight demand. With a forecasted 4.4% growth rate in 2025, underpinned by strong domestic demand and improving labor markets, the region’s recovery from supply chain disruptions is expected to support air cargo volumes.

While geopolitical and economic shifts may challenge long-haul airfreight, the sector’s alignment with e-commerce growth and regional manufacturing trends promises to maintain its critical role in global trade.

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Airfare Prices Drop in 2025: U.S. to Asia Flights Now More Affordable

January 10th, 2025 IndexBox Leave a comment

Planning an international excursion this year? There’s good news for travelers willing to venture afar, as long-haul flights have become more affordable compared to last year. According to data released by flight-tracking company Hopper, flight prices from the U.S. to Asia have dropped by 11%, with fares now averaging $1,087. This decrease comes alongside a 6% increase in capacity expected through mid-2025.

Savvy travelers can also find more affordable flights to Europe, with prices falling 6% to an average of $754. However, flights to Africa and the Middle East have remained steady, while South American routes are 4% cheaper, costing around $685.

IndexBox data further corroborates these trends, highlighting an overall increase in flight search interest and capacity expansion to popular global hotspots. Despite flat airfares to Africa and the Middle East, travel operators are witnessing significant demand in regions like Japan, which has seen a surge in international visitors by nearly 50% within the first 11 months of 2024, totaling close to 33.4 million people.

Broader Economic Factors Influence Travel Patterns

This drop in airfares comes as airlines have adjusted their strategies, ramping up capacity to meet balanced demand levels post-pandemic. The decrease in ticket prices is partly attributed to favorable currency exchange rates, making destinations like Japan more attractive to U.S.-based travelers.

In parallel, Kayak reports indicate declines in Caribbean airfares, with significant reductions seen in flights to Dominica (down 21%), Barbados, and St. Lucia (each down 17% compared to last year). Moreover, business class tickets have become a point of renewed interest, with searches for these lucrative seats rising by 19% over last year, suggesting an increased willingness to splurge on travel comforts.

As Delta and other airlines gear up to report their earnings for 2025, they face a complex pricing landscape where discounts on international flights could potentially drive a resurgence in overseas travel, capturing the interest of both economy and premium class passengers.

Source: IndexBox Market Intelligence Platform

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Air Cargo Volume Growth Set to Slow Down in 2025

December 18th, 2024 IndexBox Leave a comment

Air cargo volume growth is projected to halve in 2025, though the year is still expected to be favorable for carriers due to ongoing ocean shipping delays, tight freighter capacity, and robust cross-border e-commerce activities, forecasts the International Air Transport Association (IATA). According to the IATA, cargo volumes are anticipated to reach 80 million tons, reflecting a 5.8% increase from 2024.

IATA reported that this year has seen air cargo demand expand between 10% and 13% year over year, contingent upon whether measurements are based on traffic or tons. This surge was largely fueled during the pandemic, generating volumes nearly akin to Q4 2021’s records.

In line with IATA’s outlook, freight data provider Xeneta forecasts a growth in air cargo demand of 4% to 6% next year, while consultancy Rotate anticipates approximately 4% growth. Concurrently, logistics giant DSV predicts a plateau in air cargo growth.

Market Dynamics and Revenue Insights

The current market stability, despite heavy demand, results from businesses moving shipments proactively and securing space via short-term contracts. IATA expects air cargo traffic in 2024 to rise by 11.8%, nearing all-time highs, with this dynamic upheld in 2025, when cargo revenue could reach $157 billion, contributing 15.6% to total airline revenues, a sizeable leap from 12% in 2019.

E-commerce has recently propelled air cargo growth significantly out of Asia, accounting for over 50% of volumes, while traditional B2B markets could rebound next year, driven by demand for semiconductors in AI and electric vehicles. The average global yield for October was markedly higher than 2019 levels, strengthening IATA’s modest forecast of a -3.5% decline in yield for 2024 and stability in 2025.

Challenges and Opportunities

The sector faces several challenges, such as potential customs regulatory shifts and geopolitical tensions. However, the prospective resurgence of the traditional airfreight market—augmented by logistical adaptations like Middle Eastern and European transshipment options—suggests continued adaptability within the industry.

Anticipated economic developments, like possible U.S. tariff escalations and a shifting regulatory landscape under returning President Donald Trump, may impact growth trajectories. Yet, potential labor disputes affecting U.S. coastal ports could spur increased air shipments, buoying the sector.

Economic Outlook and Strategic Focus

Anticipated total airline industry revenues could surpass $1 trillion next year, reflecting a promising financial trajectory, supported by more affordable jet fuel—expected to average $87 per barrel—and enhanced operational efficiencies. However, supply chain issues with aircraft and engine manufacturers remain a limiting factor.

With labor costs set to rise but unit labor costs remaining steady due to productivity gains, the airline industry faces a tight profit margin. IATA Director General Willie Walsh underscores the need for relentless cost management and efficiency as airlines navigate post-pandemic growth and infrastructure challenges.

Source: IndexBox Market Intelligence Platform

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US Air Traffic Controller Shortage Stalls Aviation and Air Cargo Growth

December 7th, 2024 Tim Jay Leave a comment

A persistent shortage of air traffic controllers (ATC) in the U.S. is hindering the growth of commercial aviation, with ripple effects reaching the air cargo sector.

United Airlines has been particularly vocal about the issue, pointing to disruptions at Newark International Airport, its main transatlantic hub. The airline reported delays, cancellations, prolonged flight times, and extended taxi periods on nearly half the days in November.

The root of the problem lies in ATC staffing, which was 59% below target levels at Newark last month. This shortage is not unique to Newark; it reflects a nationwide crisis. In response, the Federal Aviation Administration (FAA) has temporarily reduced flight requirements at New York City-area airports through October 2024.

The problem is not new. A 2022 report revealed that 77% of critical ATC facilities in the U.S. were understaffed. Canada faces similar challenges, with Nav Canada attributing flight delays and cancellations to personnel shortages.

The COVID-19 pandemic exacerbated the issue, prompting massive staff cuts and the suspension of training programs for new controllers. As of early 2024, the FAA employed 10,700 certified controllers, a 10% drop from 2012. Despite hiring over 1,800 new controllers this year, the FAA still lags by about 3,000 personnel.

Efforts to address the issue include expanding training programs to simulator-based flying schools and adopting more efficient air traffic management practices. However, the FAA’s progress is hampered by chronic underfunding, aging communication systems, and deteriorating facilities.

The consequences are significant. Flight schedules are constrained, leading to delays and cancellations, while overcrowded airspace strains ATC personnel. Overworked controllers often face six-day workweeks with overtime, contributing to an uptick in safety incidents, including runway incursions and near-misses. Since May, the FAA has recorded 1,115 runway incursions and over 180 operational errors attributed to ATC decisions.

The cargo sector has not reported major disruptions from the ATC crisis, but the impact on passenger flight schedules inevitably affects airfreight operations. Delays particularly challenge sensitive cargo, although industry experts suggest the effects on perishables are limited to standard goods without specialized handling.

Retired industry veteran Ram Menen noted that cargo planes often receive lower priority than passenger flights, exacerbating cost pressures for airlines due to increased fuel consumption and asset inefficiency.

United Airlines CEO Scott Kirby has a bleak outlook, predicting the ATC shortage will persist for years. This projection underscores the long-term challenges facing both the aviation and air cargo sectors as they navigate growing demand amid operational constraints.

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Air cargo, Global Logistics, Global Trade Daily, News

CargoAi and Aircargonet Join Forces to Revolutionize Airfreight Logistics

November 18th, 2024 Tim Jay Leave a comment

CargoAi and Aircargonet International GmbH have announced a strategic alliance that promises to reshape airfreight logistics through enhanced digital distribution. This partnership enables seamless access to real-time rates and capacity booking for Aircargonet’s represented airlines, including Amerijet International, Middle East Airlines, Uzbekistan Airways, and Royal Jordanian.

By integrating with CargoAi’s advanced digital platform, Aircargonet streamlines its booking process, providing users with a simplified, data-driven experience. A key innovation of this collaboration is the real-time availability of rates and capacity, allowing freight forwarders to make informed decisions and optimize operations with greater speed and accuracy.

“This partnership is a pivotal step in our digital strategy,” said Philipp Gladigau, Business Development Manager at Aircargonet International. “By connecting our freight capacities to CargoAi’s platform, we enhance our ability to meet market demands swiftly and efficiently, reinforcing our commitment to top-tier service delivery.”

Matthieu Petot, CEO of CargoAi, highlighted the transformative impact of the collaboration: “This partnership with Aircargonet elevates airfreight logistics by offering real-time tools that simplify navigating the complex airfreight market. Together, we are setting a new standard of excellence in the industry.”

CargoAi’s marketplace, CargoMART, and its APIs, CargoCONNECT, will now distribute over 40 airlines in the German market, further cementing its role as a leader in airfreight innovation. This alliance underscores a shared vision of driving efficiency and innovation across the global airfreight ecosystem.

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Vienna Airport Secures IATA Certification for Safe Lithium Battery Air Cargo Handling

October 4th, 2024 Tim Jay Leave a comment

Vienna International Airport has achieved a major milestone by receiving the IATA CEIV certification for lithium battery handling, enhancing its safety protocols for air cargo. This certification, granted by the International Air Transport Association (IATA), underscores Vienna Airport’s commitment to meeting the growing demand for safe, reliable, and efficient handling of lithium battery shipments.

Julian Jäger, Joint CEO and COO of Flughafen Wien AG, highlighted the airport’s strengthened position as a key European cargo hub, stating, “This certification reinforces our reputation as a secure and reliable cargo hub. We are committed to expanding our services while ensuring the highest levels of safety in air cargo traffic.”

Michael Zach, Senior Vice President of Ground Handling & Cargo Operations, noted that the certification showcases Vienna Airport’s success in upholding stringent global safety standards. As the demand for lithium batteries continues to surge, the airport’s expertise in handling these sensitive goods ensures safe transport across Europe.

Lithium batteries, commonly found in consumer electronics, pose potential hazards if not handled properly. The IATA CEIV Lithium Battery Certification assures that Vienna Airport’s staff, infrastructure, and processes comply with the highest global safety standards. Through comprehensive training and rigorous audits, the airport is now equipped to minimize risks and improve efficiency in air cargo operations.

IAG Cargo Sees Surge in Temperature-Controlled Pharma Shipments Amid Global Demand

Boeing’s Challenges and Industry Impact

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