PRESS RELEASE
August 01, 2014, IAG Cargo today announces its Q2 results from April 1 to June 30, 2014, reporting commercial revenue (flown revenue plus fuel surcharges) of €238m versus €271m for the same period last year. On a like for like basis, adjusting prior year figures to reflect a directly comparable freighter operation*, commercial revenue remains flat versus last year.
Following the cessation of the long haul freighter leasing contract with GSS on April 30, 2014, IAG Cargo ran a significantly reduced freighter programme, which is reflected in the following figures. Volumes of 1,321m cargo tonne kilometres (CTKs) for the quarter decreased by 5.1 per cent compared to Q2 2013, while capacity decreased by 5.6 per cent. Overall yield (commercial revenue per CTK) for this quarter was down 7.4 per cent and down by 2.8 per cent excluding the effect of exchange.
Volumes of 1,321m cargo tonne kilometres (CTKs) on a like for like basis for the quarter* represent an increase of 7.1 per cent compared to Q2 2013, while capacity increased by 3.2 per cent. Overall yield (commercial revenue per CTK) for this quarter was down 6.6 per cent and down by 1.9 per cent excluding the effect of exchange.
Steve Gunning, CEO at IAG Cargo, commented: "The strong second quarter performance is the result of us continually adapting our business to meet challenging market conditions. In particular, the decision to end our longhaul freighter agreement with GSS and instead purchase capacity on Qatar Airways' freighter fleet has delivered real commercial value.
"Over the quarter we have utilised additional line capacity well and have achieved good load factors with notably strong flows from Asia Pacific to North America. Our newest routes to Austin, Texas and Chengdu, China have also performed well with impressive load factors. From a customer experience perspective, we have successfully launched Cargo Connector, our small freight connection service, in two additional US markets during the quarter, a move which has been particularly welcomed by small and medium sized forwarders.
"With the customer-focused changes that we continue to make to the business and a firm handle on costs, we are making good progress towards optimising IAG Cargo's bottom line contribution and we are looking ahead to the remainder of the year with optimism."
PRESS RELEASE
July 31, 214: Norbert Dentressangle, a leading publicly traded international logistics, transport and air and sea company, announced today it has signed an agreement with the private equity firm Oak Hill Capital Partners to acquire all the shares of privately held U.S. third party logistics (3PL) provider, Jacobson Companies.
The transaction is valued at $750 million (€560 million) in cash on a debt-free and cash-free basis, plus a capped earn-out relating to future performance. The acquisition will be financed through a combination of Norbert Dentressangle reserves and available credit lines. The deal, which is expected to close mid-September 2014, is subject to regulatory approvals.
Hervé Montjotin, Chief Executive Officer of Norbert Dentressangle, said, "The acquisition of Jacobson is a key milestone in Norbert Dentressangle's development strategy to become a top-tier player in global supply-chain management and a step change in expanding our global reach. As a leading contract logistics provider in the buoyant U.S. logistics and transport sector, Jacobson is an ideal strategic fit for Norbert Dentressangle. Jacobson's success has been founded on core traditions of operational excellence and customer focus and it has built a strong track record of growth and profitability. Its entrepreneurial spirit and management team will fit perfectly with the Norbert Dentressangle Group. I am convinced this deal will create new opportunities for the employees and customers of Jacobson, and am confident about our ability to quickly and smoothly integrate the Jacobson teams into Norbert Dentressangle. "
"We are very pleased to become part of Norbert Dentressangle, an important player in the European logistics and transport market and a company whose culture and values are highly complementary to our own," said Tony Tegnelia, COO and Co-President of Jacobson. "We value the opportunity to join a thriving organization that will enable us to offer an enhanced suite of global services to our customers."
Denis Nayden, Chairman of Jacobson and a Managing Partner of Oak Hill Capital commented, "Since partnering with Jacobson, we have worked closely with its management team to build the company into a leader in supply chain management in the U.S. Now, as part of Norbert Dentressangle, Jacobson is positioned to be a cornerstone of a world class organization. We are very pleased that Jacobson's employees and customers will be positioned for continued success as part of the Norbert Dentressangle Group."
The transaction increases the scale of Norbert Dentressangle, both globally with a +15% increase in annual revenue to $6.8 billion USD (€5 billion), and also in the U.S. logistics and transport market where the group becomes scalable with approximately $800 million USD (€600 million) of annual gross revenues in 2013. It will enable Norbert Dentressangle to expand its geographical footprint in the fast-growing U.S. logistics and transport market, with significant room for further development.
Additionally, by including the current air and sea presence of Norbert Dentressangle in the U.S., the combination creates opportunities to offer fully integrated value-added services to its customers and those of Jacobson, both in the U.S. domestic market and globally.
In addition to the current development opportunities in the growing U.S. market, the acquisition of Jacobson will create new cross-selling business opportunities both across the U.S. and globally, with respective customers and through strengthened expertise in key selected vertical markets. The combined companies will share best practices (including engineering, IT, and automation processes) and further expand co-packing activities, reverse logistics and e-commerce logistics, particularly in contract logistics.
Upon completion of the transaction, the leverage ratio of Norbert Dentressangle is expected to be in the range of 3.2x by the end of 2014 pro-forma, in accordance with the group's bank covenants. This leverage ratio is below the one reached with the acquisition of Christian Salvesen in 2007 and comparable to the one reached with the acquisition of TDG in 2011, the last two large strategic moves undertaken by the group.
The Jacobson transaction will be accretive to Norbert Dentressangle on an EBITDA, EBITA and earnings basis within the first year after the acquisition. Upon completion of the transaction, the U.S. market will represent 14% of Norbert Dentressangle's annual revenue, making it the third largest operating country for the company.
PRESS RELEASE
July 31, 2014: Virgin Atlantic Cargo has taken delivery of its first 802 lightweight air cargo containers and will add a further 250 new units in the coming weeks as part of its sustainability programme to save fuel and reduce its carbon footprint.
The airline will ultimately replace all 3,200 of its LD3 units. The first phase of its new composite container fleet will enable Virgin Atlantic to achieve further fuel efficiencies and reduce its CO2 emissions by an additional 565 tons in 2014.
Neil Ferdinando, Virgin Atlantic's General Manager Cargo Operations, said: "This is one of a wide range of sustainability initiatives across the entire airline and is closely linked to our brand values. We have been trialling lightweight containers over several months and with the first delivery we have replaced 25% of our LD3s with composite containers that are 16 kilos per unit lighter. This provides a dual benefit to the airline of improved fuel consumption and makes another valuable contribution towards our target of reducing aircraft CO2 emissions by 30% by 2020."
Virgin Atlantic is sourcing its lightweight containers from Nordisk and Advanced Composite Structures (ACS).
Fleet improvement is one of the airline's main commitments to reducing emissions. The 10 Airbus A333 that joined Virgin Atlantic's fleet in 2012 and its new Boeing 787-9s, which commence deliveries in the autumn of 2014, are both more efficient per trip than the aircraft they replace. As well as the introduction of new fuel management systems, Virgin Atlantic continues to work behind the scenes to make sustainable fuels a commercial reality, which could lead to their use as soon as 2015.
PRESS RELEASE
July 30, 2014: Hong Kong Air Cargo Terminals (Hactl) – Hong Kong's largest cargo handler - is the first handling facility at the airport to achieve Good Distribution Practices (GDP) accreditation, bringing it in line with the World Health Organisation's (WHO) quality assurance guidelines for the handling of pharmaceuticals.
To meet the GDP guidelines, Hactl has enhanced the temperature-controlled zones in its SuperTerminal 1 facility, to accommodate pharmaceutical products requiring temperatures of 15°C to 25°C, 2°C to 8°C, and -15°C to -25°C; these are equipped with temperature mapping and 24-hour monitoring by trained operatives.
Hactl has also designated a fast-track "Golden Route" to ensure that all pharmaceutical cargo enjoys the fastest possible transit between the apron and the handling areas.
Hactl supervisors and corresponding managers have undergone professional GDP training on standards, operating procedures and quality issues. All pharmaceutical handling areas are now regularly cleaned and sanitised in accordance with GDP hygiene standards.
Says Miranda Kwan, Deputy Director of Systems & Services Certification for SGS Hong Kong, which undertook Hactl's GDP certification: "We congratulate Hong Kong Air Cargo Terminals Limited on being certified by SGS for compliance with World Health Organisation Good Distribution Practices (GDP) for Pharmaceutical Products.
"Air cargo handling is an important activity in the supply-chain management of pharmaceutical products. We appreciate Hactl's commitment to ensuring the quality and identity of pharmaceutical products during all aspects of the air cargo handling process."
Adds Hactl Chief Executive Mark Whitehead: "As the leading cargo terminal in Hong Kong, Hactl has a tradition of adopting all internationally recognised best practices in all aspects of its business.
"Given the growing importance of pharma traffic to the airfreight industry, we see it as our duty to our customers to introduce the highest-possible standards for the handling of such cargo, and we have pioneered this in Hong Kong with our GDP certification."
PRESS RELEASE
July 22, 2014: United Airlines today announced the launch of CarbonChoice, a new business tool for corporate cargo customers to easily track and offset the emissions associated with their air freight accounts. Cargo customers with large-scale, regular shipments on United can receive customized emissions reports with simple options to offset their company's carbon footprint through the airline's partner, Sustainable Travel International.
United is introducing the business tool to allow cargo customers to more easily incorporate carbon-neutral business practices into their overall corporate strategy.
"United Cargo shippers consistently tell us they're focused on understanding their company's environmental impact, and they've asked us specifically for a large-scale program like this," said Jan Krems, United's vice president of cargo. "CarbonChoice provides our customers the detailed data they need to better achieve their own companies' sustainability commitments."
In 2013, United became one of the first airlines to offer an online cargo carbon calculator that customers could use to enter their individual shipment data and track emissions. With CarbonChoice, United now offers cargo shippers hassle-free, customized reports sent directly to each customer on a regular basis. United's calculation approach recognizes weight, actual flight data related to aircraft type, routes and seasonality, and applies a next-generation CO2 emissions calculation methodology informed by the International Air Transport Association's recommended practice for airlines to calculate CO2 emissions from freight transport.
United offers one of the most robust carbon offsetting programs in the industry, with specific options for its entire range of customers, including MileagePlus members, individual business and leisure travelers, and now CarbonChoice extends that to the airline's cargo account customers.
United partners with Sustainable Travel International to ensure all of the airline's carbon offset projects have obtained independent third-party verification and are registered with well-respected carbon offset programs.
"Reducing United's emissions through our fuel efficiency programs and helping our customers offset carbon emissions are some of the best ways United can be an environmentally responsible airline," said Angela Foster-Rice, United's managing director of environmental affairs and sustainability.
PRESS RELEASE
July 30, 2014: FIATA and essDOCS open their digital casket for global distribution.
The anticipated and eagerly awaited digital FIATA Documents are now a reality. The Digitalisation Platform, powered by CargoDocs, has now been launched in the FIATA constituency.
After testing the product through FIATA's Association Membership, FIATA and essDOCS have agreed that the product was ready to be opened up to interested parties wanting to implement the system in their day- to-day business. "This is as close as you can get to plug-and-play in dealing with transport documents", said Marco Sorgetti, DG of FIATA.
When FIATA and essDOCS first came together to provide CargoDocs, they were aware of the issues that could occur from stepping into "logistics cyberspace" as Sorgetti called it at that point in time. Therefore, they utilised the initial period as a testing phase to gather feedback from parties willing to test the CargoDocs software on the Fiata Multimodal Bill of Lading. This feedback was later analysed and incorporated back into the product to further customise and tailor CargoDocs for FIATA freight forwarding Members.
The software is an entirely web-based system ready to power FIATA's highly demanded Bill of Lading (FBL) through electronic distribution. It is easily accessible requiring users to simply register as users, and then access the services through a bank-grade security token.
Some of the benefits of adopting CargoDocs include reduced time for drafting and approving documents, no courier fees or delays, significant time and cost saving, minimised risk of fraudulent B/Ls and many more. "This is the natural evolution of our services, which are already well established in the commodities' trade," said Alex Goulandris of essDOCS.
essDOCS in conjunction with FIATA would be happy to provide parties interested in a commercial demonstration with the opportunity. Simply write to us at This email address is being protected from spambots. You need JavaScript enabled to view it. and copy This email address is being protected from spambots. You need JavaScript enabled to view it. to request further details. For more information on the product and its benefits please visit http://fiata.com/about-fiata/fiata-documents/digital-efbl.html
About FIATA
FIATA, the International Federation of Freight Forwarders Associations was founded in Vienna, Austria on May 31, 1926. It is a non-governmental organization that today represents an industry covering approximately 40,000 forwarding and logistics firms, employing around 8-10 million people in some 160 countries. www.fiata.com
About essDOCS
essDOCS is a leading provider of electronic document & data solutions that facilitate international trade, automating and accelerating documentation processes relating to operations, finance and compliance of physical cargo movements.
essDOCS has been selected by FIATA to assist shippers and forwarders to transition from the paper-based FIATA Bill of Lading to its electronic equivalent, the eFBL (electronic FIATA Bill of Lading). essDOCS' unifying solution, CargoDocsTM, is currently used by over 1,600 customers: from half of the Fortune Global 10 Companies to innovative SMEs across 63 countries. For more information please visit www.essdocs.com
PRESS RELEASE
July 23, 2014:Australia's largest mover of freight, Toll Group, has opened the doors to its new A$170 million express facility, the largest express parcel freight depot in Australia.
The Minister for Industry, the Hon. Ian Macfarlane MP, joined Toll Group Managing Director Brian Kruger and Toll IPEC Executive General Manager Rodney Johnston to officially open the new facility today in Bungarribee north west of Sydney.
The 53,000 square metre facility, custom-built for Toll on an 18-hectare site has been designed for market leading express road freight business Toll IPEC.
Mr Kruger said the suburb of Bungarribee, 37 kilometres north west of Sydney's CBD, with its immediate access to major arterial routes was an ideal location to allow Toll to service its diverse range of customers.
The facility features state-of-the-art design and planning with close proximity to the key transport routes to service Sydney and the rest of Australia.
Mr Johnston said that while the new depot incorporates the latest equipment with a focus on customer centricity, its key design features are those related to safety.
"The facility allows for greater segregation of forklifts and pedestrians, reducing the need to share space on the floor," Mr Johnston said. "The entire facility has a much stronger traffic management plan than in previous depots, due to key design initiatives relating to freight profile, truck type and traffic flow. This will help us to maintain our capacity at peak times.
"For our freight handlers, the chutes have been redesigned to allow for easier lifting and manoeuvring. And lastly, we have implemented scissor-lifts to prevent injuries while unloading pallets."
In addition to increasing safety through a range of state of the art features, the facility provides the capacity for Toll IPEC to grow with the changing needs of its customers and better manage high volume work periods, boosting parcel sorting capacity to an unprecedented 35,000 parcels an hour.
"The selection of this site was not an accident – it is a testament to the hard work of some of the best minds in the logistics industry," said Mr Kruger. "This facility itself is key to consolidating Toll's position as a leading provider of logistics services and in growing our extensive national distribution network over the next 20 years and beyond."
Mr Kruger said he was looking forward to seeing the new facility play a significant role in the local and national economy.
"This new facility will be home to around 600 employees – currently spread across four sites in Moorebank, Homebush and Bankstown – and provides the ability to grow these numbers as capacity increases.
"In this site's construction phase, more than 200 full-time equivalent jobs have been created and I congratulate and thank everyone who has been a part of building this impressive facility."
Toll Group is the Asia Pacific region's leading provider of transport and logistics, employing more than 45,000 people across some 1,200 locations in more than 50 countries. Toll's specialist logistics capabilities incorporate a range of sectors including defence & government, industrial, manufacturing, mining & resources, retail and automotive.
PRESS RELEASE
July 29, 2014: Rapiscan Systems, Inc., a leading global supplier of security inspection systems, today announced that it has been awarded a contract by the United Kingdom Civil Aviation Authority (CAA) to determine the feasibility of automatically detecting batteries in air cargo.
The contract with the UK CAA, supported by UK Department for Transport funding, calls for Rapiscan to develop advanced detection algorithms to establish the extent to which lithium batteries transported within air cargo can be identified.
"The transport of undeclared lithium batteries through air cargo presents a safety risk that the CAA continues to address," said Ian Shaw, CAA's State Safety Programme Manager. "The CAA chose Rapiscan for this important project because they have the technical expertise to gather and process significant test data".
The International Air Transport Association (IATA) has identified the need to regulate the transport of lithium batteries. According to a recent IATA report, beginning January 1, 2015, lithium-metal batteries transported as cargo will be restricted to cargo aircraft only.
Over the nine-month contract period of performance, Rapiscan will examine various cargo configurations and develop, test, and evaluate advanced image-processing software tools for their efficacy. Results of this study may be used by the CAA to propose new air-cargo handling policies, and may encourage further technology advancement toward the commercial use of software tools to assist air cargo inspectors.
"Rapiscan is pleased to have been chosen by the UK CAA to work with them on this important project for our air cargo customers," said Brad Buswell, President, Rapiscan North America. "Rapiscan Labs, our corporate research and development division, is a technology leader in the area of advanced threat detection algorithms. Rapiscan has a successful track record in the development of detection technologies for the aviation industry, and this project will further expand our support for air cargo safety and security."
PRESS RELEASE
July 23rd, 2014. Cargolux Airlines International S.A. today announced that it will take delivery of its 10th 747-8 freighter from Boeing. The aircraft, registered LX-VCK and named 'City of Contern', is scheduled to leave Boeing's Paine Field in Seattle on July 24th. After stopovers at Seattle Tacoma and Calgary, where the new freighter picks up a load of cargo, LX-VCK arrives in Luxembourg on July 25th.
'The delivery of the 10th 747-8F has helped us bring down the average age of our fleet - already one of the youngest in the industry - to a mere 5.8 years', said Dirk Reich, President & CEO. 'Apart from the increased fuel efficiency and reduced noise footprint, the 747-8F is the ideal aircraft for the implementation of our dual hub strategy between Zhengzhou and Luxembourg. Our goal is indeed to operate multiple daily connections between both locations with the -8F', Reich added.
As a launch customer of the 747-8F, Cargolux became the world's first operator of the type in 2011. The type has performed extremely well in Cargolux's services and reached an average daily utilization of 15:58 hours in 2013. The airline expects to take delivery of its 11th 747-8F out of a total order of 14 units later this year. Cargolux also operates 11 747-400 freighters.
PRESS RELEASE
July 28, 2014: Accenture has released a new version of its Air Cargo Pricing software designed to help air cargo carriers better compete through advanced, flexible rate construction and prevent revenue leakage by increasing visibility and maintaining price integrity across the entire quote-to-ship cycle.
Part of the Accenture Freight and Logistics Software portfolio, Accenture Air Cargo Price 6.4 offers air carriers more options in rate creation and maintenance, enhanced features to support the current interline market and can help increase productivity for users.
Accenture Air Cargo Pricing version 6.4 provides a reliable and automatic rating engine that supports the calculation of applicable rates and charges for each transaction. This improves transparency across the supply chain and can help improve cargo yield. New enhancements enable carriers to:
Easily create and update cargo rates: The newest version of Accenture Air Cargo Pricing has a flexible rate maintenance process through a new, innovative Referential Model that standardizes rating methods. The Referential Model allows rates to be built based on a static rate and then adjusted for factors such as product, commodity, unit load device and market fluctuations. This enables carriers to quickly and easily create and manage unique, competitive rates that match the needs of their customers.
Effectively manage rates with partners: New features in auto-rating allows for easier rate creation when partner airlines are involved. Rate changes are automatically updated across the system, reducing errors. These features also ensure that agents receive an accurate commission for booked flights.
Improve operational efficiencies: An enhanced user experience includes automatic alerts that help avoid delays in decision making and a customizable workflow to match customer business processes. Integration with Accenture Air Cargo Reservations software creates a highly efficient freight reservation process.
"For maximum profitability, carriers need transparency at every point of the shipping process, starting with the initial pricing quote," said Malcolm McNamara, global managing director of Accenture Freight and Logistics Software. "Accenture's Air Cargo Pricing software prevents revenue leakage through an easy-to-use framework for pricing, creating centralized decisions and increased visibility into every quote."
The new version of Accenture Cargo Price can be implemented as a standalone product or as part of Accenture Freight and Logistics Software's Air Cargo Suite. Combining an experienced team with leading-edge software and a global delivery capability, Accenture Freight and Logistics Software helps organizations realize value from their technology investments and manage the escalating challenges of volatile markets.
PRESS RELEASE
July 23, 2014: General cargo moving through Abu Dhabi's commercial Ports has increased by 37% this year.
ADPC's commercial ports (Musaffah, Khalifa and Zayed Ports) have handled 6.4 million FT of general cargo in 2014, compared to 4.7 million FT in the first half of 2013. This is an increase of 1.74 million FT (freight tonnes) in 2014, compared with the same period in 2013.
"These figures show a strong first half of 2014 and indicate a promising six months ahead", said Capt. Mohamed Juma Al Shamisi, CEO, ADPC. He adds: "The volume of cargo moving through our ports is on the up. We expect that we will handle more than 12 million FT by the end of this year, compared to 9.5 million FT handled last year."
While Abu Dhabi's ongoing economic growth explains some of the increased volumes, another reason is ADPC's work with key customers to consolidate and maximize their supply chain efficiencies. These include local and international businesses such as Emirates Aluminium (EMAL), Emirates Steel, Abu Dhabi National Oil Company (ADNOC) and Emirates Nuclear Energy Corporation (ENEC).
EMAL is the anchor tenant in the aluminium cluster of the Khalifa Industrial Zone Abu Dhabi (Kizad). The company has a purpose built wharf at Khalifa Port to shorten the supply chain of raw materials direct from sea to smelter. EMAL and ADPC have also signed a ten year agreement contracting ADPC to handle all of the logistics involved in exporting high quality aluminium products from EMAL's production site to more than 150 customers worldwide. EMAL expects the volume of exported metal to increase from 600,000 tonnes in 2014, to more than 750,000 tonnes from 2015 onwards.
Another reason behind the growing import and export activities at Abu Dhabi's commercial ports is the progress of several key infrastructure projects, which are requiring increased import and export volumes.
These include the midfield terminal at Abu Dhabi Airports, as well as the upcoming Louvre Museum Abu Dhabi, the Guggenheim Museum, and various building projects in the Western Region, many of which require specialized project cargo and increased volumes of building materials.
Against this backdrop, ADPC is enhancing its capacity for general and bulk cargo at Abu Dhabi Ports, with a special focus on Zayed Port. After announcing an AED-20-million investment in essential maintenance work at Zayed Port and the Free Ports in March, ADPC is now remapping all of Zayed Port's processes, and upgrading the port's equipment and analyzing its business efficiencies to meet cargo flows in the most efficient way.
