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Air Freight Tracker Q4 2022: When the US Recovers, Air Freight Rates will Recover

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Air Freight Tracker Q4 2022: When the US Recovers, Air Freight Rates will Recover

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The balance of supply and demand in early 2023 will be a mix of mediocre or flat demand combined with strengthening supply, according to Ti Insight in its latest data report – Air Freight Tracker Q4 2022.

In 2023 freight rates will continue to weaken and this will end when the American consumer decides, according to data from Ti Insight’s knowledge platform GSCI, featured in its latest report – Air Freight Tracker Q4 2022 – which takes an in-depth look at the demand drivers of air freight, from a muted consumer economy in the US to Asia-Pacific production.

The extraordinary conditions of the past two and half years have ended, with the notable exception of China. However, the effects of the policies remain in the form of inflation that has resulted in higher interest rates and higher prices.

Key findings & data from GSCI:

–        The US consumer: The way that US consumer demand moves will have a disproportionately high impact on air freight demand, especially in Q3-Q4 2023. Internet-retail volumes in markets such as the US have fallen-back noticeably, affecting both the domestic and international operations of the big air express companies.

–        Inventory: In both electronics and US retail, inventory levels have increased over the past several quarters. In container shipping the so called ‘peak season’ failed to arrive, with demand flatish in Q3 and Q4. This is a strong signal that retailers perceive that their inventory levels are at least adequate and possibly too high- going into Christmas. This is a strong signal that air freight rates will be under downward pressure in Q4 2022 to at least Q1 2023, and very probably following quarters.

–        Asia-Pacific production: The forecast for demand from semiconductor manufacturers suggests that demand will fall between 10-15% year-on-year in Q4 2023. This represents a marked slowing from the perceived wider market trends at the beginning of the year. The result is a much weaker air freight demand environment, especially across and around the Pacific.

–        China & its COVID policies: China’s COVID policies are continuing to depress activity of all kinds, especially air transport. This reduces both the supply of and demand for air freight capacity. However, if China were to return to something like normality, then the implications for the wider global air freight market would be significant with renewed demand surging onto the market.

–        Passenger air travel: The appetite for passenger air travel is returning, yet in many regions the volume of air transport operations is not yet at 2019 levels. However, the trajectory looks promising and there is a real prospect that early 2023 will see the belly freight market returning to the very well supplied conditions seen previous to 2020.

–        Express carriers expand: All of the three large express carriers have expanded their fleets over the past two years, whilst airlines such as Emirates retain enlarged freighter capability. There have also been significant new entrants, such as Maersk and CMA CGM who have engaged substantial fleets of freighters. All of this suggests that the supply side will be very accommodative in 2023 and beyond.

–        Jet fuel: At present it might be tempting to assume that prices will remain high. However, they weakened noticeably through Q2-Q3 2022, so further weakening in the face of any recession in the US and low growth in China should not be ruled-out. Although the war in the Ukraine is perceived to have affected oil prices, the effects of this should not be exaggerated. Oil is more fungible than gas.

 

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Air Cargo, Archives, Global Trade Daily, News

Silk Way West Airlines Invests in New Boeing 777-8 Freighters

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Silk Way West Airlines shows no sign of slowing down its impressive record of growth, having secured a deal to offer even more cargo capacity in the future. The Azerbaijani cargo carrier signed an order with Boeing for two state-of-the-art 777-8 Freighters with options for two additional aircraft, the two companies announced today at the agreement signing ceremony in Everett, Washington. Per the agreement, aircraft deliveries are planned for 2029 and 2030.

Silk Way West Airlines is the first customer in the whole Central Asia region to order the industry’s newest, most capable and fuel-efficient twin-engine freighter. The aircraft can carry over 118 tons of structural payload with a range of over 9,200 km. With its advanced technology, new GE9X engines and composite wing design, the 777-8 offers 30 per cent greater fuel efficiency and emission levels as well as 25 per cent lower operating costs per ton. As a result, the new aircraft will also make an important contribution to the airline’s sustainability goals.

This investment will not only enable Silk Way West Airlines, which serves 40 destinations around the world, to further expand its international network and meet growing demand for cargo transport, but will also strengthen Baku as a key international cargo hub. The Azerbaijani capital has become increasingly important for the Middle Corridor linking Europe and the Western Hemisphere to Asia through the Caspian region.

Back in April 2021, the cargo airline signed a purchase agreement for five Boeing 777s, setting the course for further fleet growth. Now, the new 777-8 aircraft complement SWWA’s fleet development plans by enabling the necessary operational commonality, enhancing a long-term strategy of sustainable growth as well as allowing the Azerbaijani carrier to continuously improve service to its customers.

About Silk Way West Airlines

Founded in 2012 in Baku, at the heart of the Silk Road, Silk Way West Airlines operates hundreds of monthly flights across the globe via its fleet of 12 dedicated Boeing 747-8F and 747-400F aircraft based at Heydar Aliyev International Airport. On April 28, 2021, Silk Way West Airlines signed a strategic fleet expansion agreement with Boeing for the purchase of five state-of-the-art 777 Freighters. The airline’s annual cargo turnover exceeds 500,000 tons, while its growing route network covers over 40 destinations across Europe, the CIS, the Middle East, Central and Eastern Asia, and the Americas. South Korea’s Incheon Airport honored Silk Way West Airlines with the prestigious ‘Cargo Airline of the Year 2020’ award.

About Boeing

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future and living the company’s core values of safety, quality and integrity.

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Advantages of Air Freight vs Ocean Freight

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When it comes to shipping goods globally, there are two main freight transportation types: air freight and ocean freight.

Both have their own unique advantages and disadvantages, so it can be difficult to decide which is the best option for your business.

In this blog post, we will discuss the pros and cons of both air freight and ocean freight, so that you can make an informed decision about which type of shipping is best for your company.

Advantages of Air Freight

Planes are able to go hundreds of miles an hour in a straight line, so the travel time for your goods is going to be significantly shorter than it would be if you were shipping by cargo ship.

If you need your goods to arrive at their destination quickly, then air freight is the way to go.

In addition, planes typically fly directly from point A to point B, so there are no stops along the way (unlike ships, which often have to make several stops at different ports). This means that your goods are less likely to be damaged or lost in transit.

Another advantage of air freight is that it is not affected by weather conditions as much as ocean freight. Ships can be delayed for days or even weeks due to bad weather, but planes will almost always be able to take off and land regardless of the weather.

Disadvantages of Air Freight

The biggest disadvantage of air freight is that it is much more expensive than ocean freight. If you are shipping a large number of goods, then the cost of air freight can quickly become prohibitive.

In addition, there are weight and size restrictions on what can be shipped by air, so if you are shipping large or heavy items, you may need to use ocean freight instead.

Another disadvantage of air freight is that it has a larger carbon footprint than ocean freight. If you are shipping goods internationally, you will need to take this into consideration if your
company is trying to position itself as an economic and environmentally responsible organization.

Advantages of Ocean Freight

When choosing ocean freight, you will be able to take advantage of its low cost. Shipping by boat is much cheaper than shipping by plane, so if you are shipping a large number of goods, it will be more affordable to use ocean freight.

In addition, ocean freight is not as affected by weight and size restrictions as air freight. This means that you can ship larger and heavier items by ocean freight without having to worry about
your cargo being charged extra fees.

Another advantage of ocean freight is that it has a smaller carbon footprint than air freight. If you are concerned about the environmental impact of your shipping, then ocean freight is the more eco-friendly option.

Disadvantages of Ocean Freight

One of the main disadvantages of ocean freight is that it takes much longer for your goods to reach their destination. If you need your goods to arrive quickly, then you should use air freight
instead.

In addition, ocean freight can have several weather delays depending on how bad the conditions are. If your cargo is time sensitive, you may not want to use ocean freight for your
shipping.

Another disadvantage of ocean freight is the number of stops ships tend to make before reaching the final port. Not only does this lead to a longer shipping time, but it could increase the possibility of your goods being lost while in transit.

If you prefer to minimize some of the risks involved with shipping, you may want to stick with air freight.

Maps Can Help You Choose

Integrating a map API into your business is a good idea if you are going to be shipping internationally. Using a map API, you’ll be able to get live updates on ship and plane locations, as well as estimated arrival times.

This will help you make more informed decisions about which freight shipping method to use for your business and which one is saving you the most money. You can even use the data from your map’s API to ensure your shipping carriers are using the most efficient route.
Since the API integrates into your entire system, you can view it using any browser, giving you more information no matter where you are.

Choosing Air Freight or Ocean Freight

If you need your packages to be delivered quickly and aren’t worried about price, then air freight is the best option for you. However, if you are shipping a large number of goods or heavy items, ocean freight will be the more affordable option. Each method has its advantages and disadvantages so the decision will ultimately depend on your business’ needs.

 

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Air Freight Rates May Be Spiking Now but a Fall in Rates Looks Possible

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The airline sector is recovering. As Willie Walsh, the former CEO of British Airways and now Director General of IATA said on Thursday, “the recovery in air travel is gathering steam as governments in many parts of the world lift travel restrictions.

States that persist in attempting to lock-out the disease, rather than managing it, as we do with other diseases, risk missing out on the enormous economic and societal benefits that a restoration of international connectivity will bring,” Willie Walsh is, of course, referring to China, which continues the most savage response to COVID-19 outbreaks. This is placing a break on the bounce-back of air traffic at the global level.

The rest of the world is doing its best to compensate. Total air traffic measured in revenue passenger kilometers increased 115% year-on-year in February 2022, although this is still 45.5% less than the volumes seen in February 2019. In particular international traffic is recovering violently, with a 256.8% increase year-on-year, although this is 59.6% lower than 2019, showing how severe the crash in international air traffic has been.

In terms of demand, air cargo is a very different market. Over the past two years the market for cargo has often been extraordinarily strong in the face of a near absence of belly freight. Demand is still respectable, with global traffic measured in cargo ton-kilometers up 2.9% year-on-year for February, with a slight bias to domestic operations, possibly due to e-commerce traffic in markets such as the US. However, IATA also reports that actual ton-kilometers, that is the volume of cargo carrying capacity available, increased 12.5% year-on-year in February, whilst load-factors fell 4.9%.

Cargo capacity is still 5.6% below February 2019, but demand is not increasing as fast as it was in December 2021. If these trends are sustained the implications are that the balance between air cargo capacity supply and air cargo demand will tip towards lower prices.

The disruptions in China and Hong Kong are taking their toll, as is the avoidance of Russian airspace by many airlines, with air freight rates reportedly spiking on China-Europe routes in recent days.

However, as Willie Walsh commented “Demand for air cargo continued to expand despite growing challenges in the trading environment. That is not likely to be the case in March as the economic consequences of the war in Ukraine take hold. Sanction-related shifts in manufacturing and economic activity, rising oil prices and geopolitical uncertainty will take their toll on air cargo’s performance”.

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Archives, Foreign Trade Zones, Global Logistics, Global Trade Daily, News, War

Supply Chain Pressures from COVID Lockdowns in China, Russia- Ukraine War and Rising Oil Prices

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Implications of the Russia-Ukraine war 

“Logistics companies are wary of trade lanes, trade partners and shipments to and from Russia. Market volatility has caused uncertainties in the market which has caused massive delays and reduced capacities.”

“COVID induced lockdowns in China and the Russia-Ukraine war has torn apart the expectations of recovery of the supply chain, which has been grappling to keep up to the pressures of implications resulting from these and many more disruptions.”

“The War has impacted Europe greatly. First, Containers are stuck in the terminals waiting for transhipments to Russia and the result is a huge pileup there. The second significant impact is on the China- Europe rail. The northern corridor is still open, but volumes are massively reduced due to uncertainty in the market. That has pushed cargo towards sea freight and even in some cases towards air freight. Low-value cargo has largely suffered because high-value cargo has been pushed to the ocean transport.”

“On a more global scale, the rise in oil prices has been a major repercussion as a result of the war. More logistic players are unclear about the restrictions of doing business with many companies because there are second order and third order sanctions that are also required to be considered while doing business. Companies are hesitant to make decisions, selection of new partners is significantly impaired.

China lockdowns  

There is market commentary about expectations of significant decrease in freight rates. I don’t think that will happen necessarily in the short term, but in the mid-term to long term, this will lead to increase in rates.

“It’s almost like in a traffic jam. Some people now stepped on the brakes really heavily and the problem is that this will lead to a significant sort of bulk up in demand for freight services which will essentially be unleashed once the factories reopen. And when the demand is back, the carriers will again not have enough equipment on the ground because not enough equipment went into China during the Port lockdowns and not enough vessels are available so that will push up prices once again.

So this will continue pushing the volatility in the market and the congestion situation on the Transpacific will also not significantly improve because it’s almost like a start-stop situation. It will just come back worse than it was because the way you remove the traffic jam is not by stopping something violently and then hitting the accelerator again. It’s sort of making sure that the traffic flows at a certain speed.”

The impact of COVID lockdowns on key markets will have wider reaching impacts leading to equipment scarcity in China, hike up of rates and worsening of the traffic jam on transpacific.

The problem will continue to remain after that because there are also labour union disputes in the US waiting in the month of May which historically always leads to slow down at the west coast ports.

Into the Future?  

“We will need more resilient supply chains and that means less concentration on high volume routes. While China-US will still be significantly massive, more smaller trade networks will increase to other countries in Southeast Asia, countries potentially in Africa and South America, who will pick up some of this uncertainty and some of the volume that now gets diverted from the big supply nation. This will be a very gradual process. And again, it doesn’t mean that freight demand from China will decrease now, but I think it might not grow as much anymore.”

Emergence of small trade networks 

The implications of emergence of smaller trade networks. One is you don’t really need these huge vessels on smaller trade networks. There will be an increase in demand for smaller vessels. Secondly, the model of just a few stops in China, then crossing the Pacific, then a few stops in the US, and then going back will, I think, decrease in importance.

And there will be an uptick in more complex networks with more stops and longer turnaround times, further increasing the turnaround times of containers because they just spent more time on the water or an increase in trans shipments. So, for example, more stops in Southeast Asia, then all of this goes into, let’s say, Singapore or Hong Kong in a major hub and then re-export to across, for example, the Pacific. That again, not only increases sort of intraregional traffic, but it also increases the importance of these transit hubs, which will need to build up further capacity to cope with the demand.

And then lastly, I think it will increase the importance of smaller players in the market, and that can be smaller feeder operators and can be smaller who basically pick up this intra-regional traffic or even the transpacific traffic. But that doesn’t start from the big hubs, depending on, I guess, the network model of the carrier.

Pre-pandemic times, supply chain was all about efficient prices and just in time delivery model to make more profits.

Rising Oil prices 

The rising oil prices are bound to have a limited impact on containerized trade in the short run. But generally high oil prices hit hard when the freight rates are very low. Currently, when the freight rates are astronomically high for the past two years (for instance, $10,000 for a 40 ft high cube from China to the US) the impact of a fuel prices hike will not have a large impact on the short term. What remains to be seen in future is how the war pans out in the future and how the supply chain builds resilience in the end.

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Air Cargo, Archives, Global Logistics, Global Trade Daily

Air Freight Market Update

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Many freight forwarders are showing a continued growth trajectory for air freight shipping. Perhaps it is a sign of the times, as shippers are continuing to use different strategies to work around persistent and significant supply chain disruption. To keep high-priority shipments moving, shippers have, at times, been choosing air over ocean in recent years.

However, overall demand for air freight dropped slightly in January this year, which may have shippers wondering – does this mean we may start to see demand and capacity levels regulate? Will air freight no longer be as necessary this year? The short answer is no, not anytime soon. In fact, demand for air freight is forecast to increase this year amidst significant capacity constraints and continued high depend for goods along with the need for inventory replenishment. While demand did drop early 2022, air freight will continue to be a key strategy for shippers.


 

For Many, A New and Necessary Strategy

A January 2022 C.H. Robinson customer research study confirmed that a significant number of shippers are using new strategies to manage through continued disruption, which has included a shift of more freight from ocean to air. Specifically, 52% leveraged new modes, ports, or trade lanes during the pandemic that they plan to continue using in 2022. And, over a quarter of shippers (28%) say that a top strategy was transporting freight by air that had previously been by ocean.

Interestingly, many have said shifting strategies has been a silver lining to the pandemic, with 44% of shippers reporting that one of the positive outcomes of the past year and a half is that they used new transportation strategies they hadn’t in the past, creating more choices for their business.

We continue to see interest from our customers in charter flights and ocean-to-air conversions, especially for moving high-priority freight such as we did for a customer moving emergency COVID-19 test kits when Omicron surged in January. Additionally, high tech and heavy industries such as automotive have leaned on air freight to help catch up with demand and mitigate high levels of disruption.

An Alternative to Ocean Port Congestion

Continued uncertainty in ocean shipping is likely to continue motivating ocean-to-air conversions. Port congestion is still causing significant delays, with vessels sitting at anchor for days waiting to berth. Global schedule reliability is at its lowest recorded level since 2011.

We’re advising shippers to consider the estimated average delays in vessel schedules (7-30 days depending on the port) and add them to the overall expected transit time to ensure proper planning to meet delivery schedules. In addition, long anchor times outside U.S. ports will cause vessels to be late on their return to Asia.

While the ongoing congestion at the Ports of Long Beach and Los Angeles, specifically, has resolved a bit in recent weeks, inventory is still backed up in transit from trans-Pacific routes. Additionally, trans-Pacific routes coming from China will continue to operate at a high level of variability due to stringent COVID-19 protocols, leaving shipments vulnerable to more delays.

In general, to help mitigate these issues, we’re advising shippers to move ocean freight two to three months in advance of normal timelines as opposed to the traditional 4-5 weeks. But, in cases where that isn’t possible, air freight can be a helpful alternative to keep shipments moving.

Latest Air Market Trends

As shippers consider air, it’s important to stay updated on trends that will affect capacity and pricing. While recovery times at airports remain elevated relative to pre-COVID-19 conditions, there are fewer extreme delays. However, throughout March and into Q2, global demand for air freight is expected to creep up and congestion will likely return.

Globally, the return of passenger flights has been slow and inconsistent. Surges in the COVID-19 Omicron variant continue, and markets with stricter policies are putting downward pressure on air capacity. That said, lowering of travel restrictions in some key markets may lead to capacity additions. It’s also important to consider using surface transportation when an outbreak arises, with past unforeseen shutdowns, C.H. Robinson has helped multiple companies shift their freight to another airport via truckload to keep their freight moving.

Tips for Next Steps

Overall, as shippers continue trying to navigate disruption and decide how best to move freight, here are some of the most impactful ways we’re seeing them find success:

-Seek creative solutions – Consider what different modes, trade lanes, or inland transportation strategies can keep shipments moving. It might be something new.

-Use information and technology – Find tools that provide timely market updates, visibility into shipments, and the predictability needed to know when to adjust.

-Closely communicate and collaborate with supply chain partners – Especially in this kind of market, it’s good to have a partner that can provide a range of options from global forwarding to surface transportation to customs and more. Working closely together, you and can better understand challenges coming from all sides be able to quickly adapt to changing circumstances.

To help stay updated on market trends and how they will impact capacity and pricing, check out the monthly updates on our Global Freight Market Insights page.

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Global aircraft charter specialist Chapman Freeborn Airchartering has appointed NAQEL Express as its exclusive partner in the Kingdom of Saudi Arabia.

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NAQEL Express, as well as Chapman Freeborn, are both well-respected companies in the aviation industry. This partnership will enable clients to receive a complete end-to-end solution, delivering an entire range of logistics covering all industries. The collaboration will strengthen both partners’ presence and coverage in the Kingdom of Saudi Arabia as well as support the Kingdom across multiple industry verticals.

Neil Dursley, Chapman Freeborn Chief Commercial Officer Cargo comments:

“We believe that this new strategic partnership will allow us to grow and develop our offering to our global clients and suppliers. Chapman Freeborn has almost five decades of experience within the air charter industry globally, this new partnership with NAQEL will allow us to service our clients’ needs far more effectively and efficiently, now more than ever.

The combined strength of Chapman Freeborn, its parent company Avia Solutions Group, and NAQEL Express will give existing and new potential clients in the Kingdom a fantastic service offering. Capabilities include access to our family members’ fleets of both passenger and freighter assets globally and in the region.

Chapman Freeborn has decades of experience in the Middle East Region and neighbouring countries and has supported missions in many challenging environments for many years and continues today with innovative solutions to support our clients.”

Michael Harradine, NAQEL Express Director, Global Freight Forwarding Division says:

“NAQEL enables the world to do business in Saudi Arabia with simplicity and transparency. The new partnership with Chapman Freeborn enhances our offerings.

This strategic partnership gives our clients within Saudi Arabia a direct access to the vast cargo air charter, passenger charter, and on-board courier capabilities of Chapman Freeborn.

Now there will be direct control with transparency for the fulfilment of air charter needs of global and local firms in Saudi Arabia.

NAQEL Express is one of a select group of firms operating as Authorized Economic Operator (AEO) for Saudi Customs.

We are also the leading and largest overland express carrier with the largest reach among any express carriers in KSA.

NAQEL is a key player in building transparent connectivity between KSA and its global economic partners, as part of Saudi Arabia’s VISION 2030.

NAQEL is also a committed leader in developing its people by enhancing leadership (Future Leaders Program) and business management skills”.

__________________________________________________

About Chapman Freeborn:

The Chapman Freeborn group was established in the UK in 1973. The company has offices worldwide including North America, Europe, Africa, Russia, Asia, and Australia. In the cargo market, Chapman Freeborn Airchartering specialises in the charter and lease of aircraft for a wide-ranging customer base, including freight forwarders, multinational corporations, governments, humanitarian agencies, and a host of industries around the globe.

In addition to freight services, Chapman Freeborn offers specialist passenger services including private jet charters for executive travel and large aircraft for crew rotations and international group travel. As well as on-board courier services. Chapman Freeborn is a family member of Avia Solutions Group, a leading global aerospace services group with almost 100 offices and production stations providing aviation services and solutions worldwide.

Avia Solutions Group unites a team of more than 7,000 professionals, providing state-of-the-art solutions to the aviation industry and beyond.

For more information, please visit www.chapmanfreeborn.aero / www.aviasg.com

About NAQEL Express

NAQEL Express’s journey started as Hala Express in 1993 with 150 vehicles. In 2005, NAQEL Express was born as a joint venture between Saudi Post and Hala Express.

NAQEL Express is providing seamless end-to-end logistics solutions for most industrial sectors in the Kingdom of Saudi Arabia.

Being the largest logistics network in the Kingdom, with 5000+ employees and 4000+ vehicles, they serve the remotest locations and deliver to both businesses and individuals.

They offer door-to-door air and sea freight services from the rest of the world into Saudi Arabia and Middle Eastern countries.

Their freight service desk based out of the United States, Europe, United Kingdom, China, India, and Egypt ensures that you have a smooth and hassle-free experience in importing your goods from around the world.

NAQEL Express clears your shipments based on their multi-modal presence at the key airports, land ports, and seaports. They have own facilities at all the three key airports – Riyadh, Jeddah, and Dammam.

They are the first logistics company in the Kingdom that received a customs clearance license. They clear your shipments as well as deliver them to your doorstep.

NAQEL Express has now expanded their operations to 16 countries – Saudi Arabia, UAE, Kuwait, Oman, Bahrain, Jordan, Egypt, Lebanon, UK, Turkey, China & Hong Kong, USA, Germany, India, Russia, and Qatar. This presence helps their vision of uniting across borders and horizons a reality.

They are further expanding in line with their mission of giving you access to new markets and removing distance as a constraint for your business operations.

For more information, please visit www.naqelexpress.com

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Traxens Raises 23M€ and Acquires NEXT4 To Become the World Leader of Shipping Container Tracking

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TRAXENS, the leading smart-container service provider for
the global supply chain industry, announced today a new financing round of €23 million ($25+ million) from the company’s existing shareholders. The funds will be used to fuel Traxens’ international expansion starting with the acquisition of NEXT4, a fast-growing French supplier of removable and reusable shipping container trackers.

Traxens’ Internet-of-Things (IoT) solution is based on a breakthrough technology that enables access to the most comprehensive, precise and timely data for managing assets in transit anywhere in the world. In addition to tracking container geolocation, it detects shocks and monitors temperature and humidity, as well as the open-or-closed status of container doors.

The acquisition, confirmed today, will allow Traxens to streamline and merge NEXT4’s offering into its suite of solutions, providing customers with the best of both solutions — including shipments scheduling, collaborative risk management, and analysis reports. The newly consolidated company is now the market frontrunner in providing overseas cargo visibility and offers Traxens’ customers a technological edge in container tracking solutions.

“Integrating NEXT4 into our company dramatically increases our ability to serve the growing needs of our customers as they digitalize their business processes, while adding freight visibility, cargo security and goods integrity,” said Traxens CEO David Marchand.

Founded in Toulouse in 2018, NEXT4 provides trackers that can be attached to containers from point of origin to the final destination. This provides freight forwarders with a premium tracking solution and gives customers 24/7, real-time data on the status and location of their goods via sensors inside the containers.

Tens of thousands of NEXT4 trackers have been adopted by leading freight forwarders such as Bolloré Logistics and DB Schenker. Airlines have also approved the latest version of its trackers, a smaller and more versatile device, that allows them to be adapted to the needs of the air freight industry.

The €23 million round of financing follows a Series C funding round of approximately €20M ($22.7M) raised in 2019. This new acquisition will enable the consolidated French company to continue deploying its smart-containers worldwide, while building new relationships with major players in the supply chain, including companies focused on container leasing, insurance and
transport management systems.

As it moves into new markets in the U.S., South America and Asia, Traxens will also use the funding to further expand its portfolio of solutions to address the increasing needs of freight forwarders and beneficial cargo owners (BCO) for supply chain transparency.

“Joining the Traxens group enables us to market our innovative solution on an internationalNEXT4 will operate as a wholly-owned subsidiary of Traxens with offices in Toulouse. In addition
to remaining as CEO of NEXT4, Rosemont will serve as Traxens’ chief marketing officer. scale and to jointly develop new products and solutions with their team,” said NEXT4 CEO and founder Cédric Rosemont. “Our highly complementary solutions will meet the current and future challenges of shippers and their logistics providers. This means NEXT4’s customers also can benefit from Traxens’ solutions, which are now being widely deployed by container owners.”

NEXT4 will operate as a wholly-owned subsidiary of Traxens with offices in Toulouse. In addition to remaining as CEO of NEXT4, Rosemont will serve as Traxens’ chief marketing officer.

Both CEOs will be available for interviews about this strategic merger at the TPMTECH (Feb.24-25) and TPM22 (Feb. 27-March 2) trade shows in Long Beach, Calif.

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Air Cargo, Archives, Global Logistics, Global Trade Daily

CEVA LOGISTICS ADDS SUSTAINABLE AIR TRANSPORT TO LOGISTICS SOLUTIONS

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Sustainability continues to underscore operations and initiatives in logistics. Last year, the industry saw even more attention on reducing carbon emissions, specifically for airfreight transportation–from commercial airliners to leading logistics companies. As seen with the maritime industry with IMO 2020, reducing the overall carbon footprint is the primary goal, but the logistics industry is taking a piecemeal approach to cover all bases. Notable companies linking arms to fight the issue of carbon emissions in the airfreight logistics sector include DHL, Yusen Logistics, Bollore Logistics and, of course, CEVA Logistics. In April 2021, CEVA Logistics announced its position on the issue through the joining of United Airlines’ Eco-Skies Alliance as an official partner (along with the other aforementioned companies). 

Known for being the world’s leading supply chain management organization headquartered in Marseille, France, CEVA is no stranger to stepping up in the name of sustainability. As part of parent company CMA CGM Group’s mission, CEVA is committed to acting for people, the planet and responsible trade–and that’s exactly what the logistics company is accomplishing through initiatives such as switching to sustainable aviation fuel (SAF), for example. Not only does this move support the Group’s mission, but it also supports collaboration along the supply chain. 

“One long-term benefit and advantage of SAF is that it is a concrete opportunity for shippers, freight forwarders and carriers to work together to improve the air freight industry,” explains Peter Penseel, chief operating officer of Air Freight at CEVA Logistics. “This type of collaboration can extend beyond SAF and environmental topics to ones like safety. As an example, we were recently the first company to receive IATA’s new CEIV Lithium Certification for the safe air transport of lithium batteries, so we’re encouraging other industry participants, whether freight forwarders, ground handlers, or carriers, to support this important safety topic as well.”

The leaders behind the CEVA mission capitalize on what can be done now to reduce problems for the future. This proactive approach differentiates the business from competitors while creating a competitive advantage for customers. This serves as a primary driver behind the CMA CGM Group’s goal of becoming carbon neutral by 2050.

“The Group aims at becoming carbon-neutral by 2050 and is significantly investing in research and development to help the emergence of future energy sources and technologies to reduce the impact of transport and logistics on the planet,” Penseel adds. “Encouraging the use of SAF in air transport is a direct outflow of this corporate commitment. Whether or not SAF is the long-term answer in air freight logistics, CEVA is taking tangible action today, with an eye on the solutions of tomorrow.”

What some logistics organizations might misunderstand that CEVA does not is the critical blending of customer needs and environmental needs. And in the modern world, it seems all players in the logistics arena are feeling the pressure to support sustainability more now than ever.

“Reducing emissions in the supply chain requires alignment with customers,” said Penseel. “We work alongside them to offer and encourage the right products and services, including alternative fuel options. We must embark on this journey together with a common vision and roadmap. To that end, we are a part of the Sustainable Air Freight Alliance (SAFA), which advocates for responsible transportation. The organization is made up of shipping companies, airlines and freight forwarders that are committed to measuring and reducing their carbon dioxide emissions.”

These changes do not come without their own set of unique challenges, however. Penseel adds that the current infrastructure landscape poses specific roadblocks that could potentially impede progress in the pursuit of carbon neutrality, warning that careful planning and collaboration along each step of the shipping process is critical and shouldn’t be compromised. 

“As an air freight industry, we need to be conscious of the production and infrastructure capacities for SAF,” he says. “As we ramp up the use of this alternative fuel, we need to ensure that we can deliver on our commitments. If the industry offers more SAF options, we need to work closely with the entire upstream environment to ensure the needed supply and infrastructure will be there to meet the demand we as an industry are creating.

“Estimating carbon footprint and planning accordingly is the first step toward a more sustainable supply chain. For example, we offer an eco-calculator on our website and through our MyCEVA digital booking platform to estimate the logistics carbon footprint of a shipment via ocean, air, or ground.”

Looking to the future, CEVA has more carbon-neutral tricks up its sleeve. Penseel confirmed the organization is currently discussing additional SAF options and programs with numerous air carriers to confront and resolve near-term environmental concerns. 

2022 has officially greeted the industry with CEVA taking it by the horns with customer and environmental needs at the forefront of its dedicated solutions. The organization capped off 2021 with its latest acquisition of Ingram Micro’s Commerce & Lifestyle Services business, representing another feather in the CMA CGM Group’s hat in the ecommerce planning and omnichannel sectors, further positioning them as leaders in all things shipping and supporting the goal of becoming a name among the top five global third-party logistics players. 

“The acquisition of Ingram Micro CLS is strategic for the CMA CGM Group,” Rodolphe Saadé, chairman and CEO of the CMA CGM Group, said in a December release. “After completing its turnaround this year, our subsidiary CEVA Logistics will accelerate its development and join the world’s top four in contract logistics.”

Customers can continue to look forward to maximizing their opportunities in meeting their own customer needs while playing an active role in contributing to a cleaner, greener and more eco-friendly way of conducting business. 

“We look to help our customers make the best decisions when planning their logistics and freight transport operations to reduce environmental impact as they balance the business and timing needs of their supply chain processes and shipments,” Penseel concludes. 

To learn more about CEVA Logistics, please visit cevalogistics.com.

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Peter Penseel is chief operating officer at CEVA Logistics.

CEIV
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Dachser Air Receives CEIV Pharma Certification Expanding Companies Network Services Globally

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In March 2021, Dachser’s fifth location, Shanghai, is to receive the Center of Excellence for Independent Validators in Pharmaceutical Logistics certification (CEIV Pharma) that will expand the company’s network services for its customers, specifically in the life sciences and healthcare (LSH) sectors. Following the Frankfurt, Atlanta, Mumbai, and Hyderabad locations, Shanghai is their most recent CEIV certification from the International Air Transport Association (IATA).

The CEIV Pharma certification ensures compliance to international standards including European Union and World Health Organization Good Distribution Practices (GDP), United States Pharmacopeia, and IATA temperature control regulations. The standards insist on secure, compliant, and efficient air-freight services, which Dachser successfully displayed.

“At Dachser, the safe and efficient transportation of pharma products is a key priority for us, and our CEIV Pharma certified locations in Germany, the US and Asia enables us to serve our customers in the key regions around the world,” says Ralph Riehl, Managing Director Americas at Dachser Air & Sea Logistics. “With this latest certification, we are demonstrating our continued emphasis on constantly enhancing our service quality as well as showcasing we are a reliable partner for transporting vital and temperature-sensitive products.”

In 2018, Dachser received its first CEIV Pharma certification for their Frankfurt branch in Germany. By 2019, their United States branch in Atlanta and two Indian branches – Mumbai and Hyderabad, had received the CEIV Pharma certificates. The certificates highlight Dachser’s commitment to LSH logistics excellence in delivering high-value, time-sensitive, temperature-controlled products leveraged by  Dachser’s global network of speed, consistency, and efficacy.

“A resilient and highly efficient transport network, tailored to the specific needs of the LSH industry, has never been more crucial than today. Dachser is committed to superior service and further confirms our exceptional competence in the handling of sensitive life-saving pharmaceutical products based on the highest international standards quality standards,” added Mr. Riehl.

Responding to the globally growing demand, Dachser invested its services in the field of life sciences and healthcare to substantially provide efficient air-freight services globally leading to CEIV Pharma certified facilities. With this certification, Dachser Shanghai now joins a limited number of logistics companies in Asia to be recognized by IATA.