Asia Pacific airlines reports year-on-year cargo growth

Asia Pacific airlines recently reported a year-on-year growth in freight tonne kilometres for the month of November 2013. Demand increased by 5.4% compared to November 2012, according to the Association of Asia Pacific Airlines.

The Asia Pacific region constitutes by far the largest proportion of global freight traffic. Increased in demand in Asia Pacific have therefore contributed to the 4.4% increase in global air cargo demand for November reported by IATA this month.

The increase in FTK does not necesarilly indicate that all is rosy for the air cargo sector, however. The average freight load factor remained depress at 67.2% following a 6.1% increase in carrier freight capacity.

AAPA director General, Andrew Herman, commented,  "Air Cargo demand has remained relatively weak, with volumes 0.7% lower compared to the same period last year, but has picked up in recent months in line with steadily improving global economic conditions.

Source: Air Cargo Week

FedEx first quarter growth led by International Economy service

FedEx Corp reported a year-on-year improvement for the first quarter yesterday. Consolidated results showed a 2% increase in total revenue from $10.8 to $11 billion and a 7% rise in operating income from $742 million to $795 million. FedEx CEO Frederick Smith said overall growth in demand was the main cause of the company's recent success.

FedEx Express, the parcel delivery division and by far the largest part of the business, saw a slight 0.3% decrease in revenue from $6.63 to $6.61. This was attributed to lower fuel surcharge revenue and one fewer operating day. Nevertheless, operating income for the division was up 14%year-on-year from $207 to $236 million.  

While US domestic volume and revenue was flat, export volume grew 4% - with most of this coming from the lower end delivery services: FedEx International Economy grew 15% while FedEx International Priority saw a slight decline. 

Speaking of the results, CFO Alan Graf Jr. commented,“We remain confident in our full year earnings outlook despite tepid global economic growth. FedEx Express continued to execute on its profit improvement initiatives during our first quarter. We remain focused and are committed to FedEx Express achieving its $1.6 billion operating profit improvement target by the end of fiscal 2016.”

FedEx Ground, the division for day definite delivery across North America, reported an 11% increase in revenue from $2.46 to $2.73 billion, while the FedEx Freight Segment saw a relatively modest revenue increase of 2% from $1.4 to $21.42 billion. 

DHL reveal service improvement and expansion plans for Americas- Asia Pacific and intra-Asian networks

In a bid to decrease transit times and capture increased trade across the pacific, DHL announced plans this morning to improve their connections between Japan and the US, to increase the frequency of their US- Australia connections, and to introduce new links between Taipei, South Korea and Japan.

 

Image c/o DHL 

The proposed enhancements will be launched by the end of April 2013 and will result in a new next-day delivery service from Japan to the US, and a two-day delivery capability for US, Canadian and Latin American customers shipping to Tokyo.

New connections to Australia from the US will be routed via Japan, with the aim of improving both US- Australia connections, and building capacity for increased trade between Australia and North Asia.

Jerry Hsu, CEO, DHL Express Asia Pacific, said: "The integration and strategic scheduling of additional highly efficient freighter aircraft into our network will directly benefit a large number of markets across three continents. Trade between Asia and the US is predicted to grow 10% per annum up to 20201. We are improving service and adding capacity between Asia and the US to support the continued two-way growth we see on the world's biggest trade lane. By providing more capacity and connections, DHL is helping customers capitalize on this potential."

Source: DHL

Air freight on the rise in the Middle East and Africa

Recent stats published by the International Air Transport Association (IATA) showed some small, but significant improvements in the air freight industry.

Whilst Asia Pacific is still struggling with a decline of 7.3 percent, the Middle East positions itself amongst the growing markets with a increase in demand for air freight by approximately 14.5 percent. According to Analytica, the reason for Asia Pacific’s decrease can be found in the weakening export in China.

Although Western nations continue to face difficult times in current air freight markets, the Middle East and Africa appear to be on the “bright side” of business life. In fact, African carriers can pride themselves with a 6.1 percent increase in demand and an impressive 9 percent increase in capacity.

For more information on freight traffic market shares of regional carriers please refer to the following graph:

Sources: Analytica, Transglobal Express (graph)

DHL Global Forwarding appoints new management staff for Asia Pacific

The Asia-Pacific operating division of DHL Global Forwarding is going to extend its management team by taking on board Lawrence Lee as their new Chief Information Officer (CIO) and Head of Marketing and Sales, Tim Martin.

Lawrence Lee - IT

With a multitude of experiences across the IT sector, Lawrence Lee left his previous position at Walmart Global Sourcing to enter a new role at DHL Global Forwarding. Lee, who maintains an impressive track record of leading IT teams through transformation processes, is going to be responsible for the implementation of DHL’s new IT agenda, having customer-focussed services and cost efficiency at its core.

Tim Martin - Marketing & Sales

Tim Martin, former Vice President of Sales Strategy and Development at DHL Express in Bonn, Germany will be in charge of all sales activity management across 18 international destinations. With 20 years of experience international freight forwarding and courier services as well as having worked across the globe, Martin is widely considered to be an expert in the field of international sales management.   

Both will join the Asia Pacific board and work as part of the DHL Global Forwarding Asia-Pacific operating division.  

Sources: Analytica, Logisticsweek (images)