International Air Freight Market Remains Low // Travel Grows

The international air freight market continues to decline as recently confirmed by the Assn. of Asia Pacific Airlines (AAPA). Weak export markets forced a decline of 5.1% FTKs in July alone with freight capacities dramatically decreasing by 5%.  

International passenger traffic, however, grew by an impressive 3.2% RPKs especially on short regional routes with seat capacities increasing by 3.5%. One of Asia’s major airlines, Asia-Pacific, reported an international passenger capacity number of 18.5 million for July 2012.

AAPA DG Andrew Herman said that “Asia-Pacific airlines registered an impressive 8.1% increase in the number of international passengers carried during the first seven months of the year. (…) However, international air cargo demand fell by 4.4% during the same period”.

The current international air freight load factor remains low with an average of 67.2%.

Sources: atwonline.com / thehandyshippinguide.com

UPS proposes public cash offer to TNT Express N.V.

The acquisition of TNT Express N.V. by the global logistics company UPS has reached a new stage with UPS recommending a public cash offer with a price of EUR 9.50 per share (EUR 5.16 billion in total). 

Image c/o TNT Express

The offer is going to apply to all issued and outstanding ordinary shares including TNT Express American depositary shares. Both companies stated that the decision would be fully supported by the Executive Board and the Supervisory Board of TNT Express.

UPS whose offer had been officially accepted on 19^th March 2012 hopes that the acquisition will help to create a global leader in logistics with an annual revenue exceeding the EUR 45 billion mark. By utilising TNT Express’ highly interlinked European express and road freight network, UPS plans to expand its courier services in Europe. Meanwhile, TNT customers may benefit from UPS success in delivering parcels to the USA as well as to Latin America and the Asia-Pacific region.

A request for the EU regulatory appeal was filed on 15^th June; talks between TNT Express shareholders will continue on 6^th August whilst the offer period will commence on 22^nd June 2012.

For further details about the offer, please visit the UPS Website.

Source: UPS / TNT Express