Pharma shippers consider sea freight - but insist it's not all about price

 Pharmaceutical shippers have insisted airlines to become more trustworthy, in the Life Science and Pharmaceuticals conference in London.

According to Global category leader for AstraZeneca, Julian Wann, that by the completion of next year the pharma company would be transfer 70 percent of its volume by sea, while this present  year it was only 44percent. According to Julian Wann air freight is 78 percent more expensive per kilo  as compared to sea cargo. He further stated that the density of the air cargo supply chain meant that in some situations air freight is considered risky and unsecure. The value is in having the right product at the right place at the right time and the highest percentage of our complications come from air cargo.

Security Measures

Security is very much important for us. If anything happens erroneously, trusting on insurance is not actually the topic. Last year, AstraZeneca changed the way it organizes its supply chain, he stated about  to emphasis on the subjects of velocity, visibility and variability. Price is not the matter of debate. Sea cargo gives trustworthiness that we didn’t have before. According to him velocity does not mean, let’s fly it everywhere. If we become more well-organized we can plan sea freight. There is no loss, and it helps us drive velocity.

Is collaboration needed with airlines?

 Julian Wann  also emphasized on  close collaboration with airlines. This is a chance for the airline industry to get closer to forwarders. Forwarders are working very hard to support us. Airlines, answered that some forwarders did always not give them adequate delivery information. According to a senior manager for special cargo at IATA Andrea Gruber, it was upon the transporter and the forwarder to bring the related parties together. Historically, airlines haven’t wanted to approach the shipper. But the ground handler also needs to be involved and the freight forwarder needs to get the right people together.

What AstraZeneca believes?

According to another airline AstraZeneca was recognized as a general cargo shipper and asked whether more excursions happened when transporters did not pay for the specialized pharmaceutical products presented by the airlines.

Mr Wann answered that the company did use some specialized products, but questioned the paying for the extra cost every time.

The pharma services don’t always give us the security we would like. We don’t always have to spend that. We can get right without it and we want certainty for that additional cost.

DHL connects five major Asian countries via Road

DHL’s united road freight network between Asian countries will be profitable for future economic initiatives to stimulate trade.

DHL Global Forwarding is providing  air, sea and road freight services in Europe and Asia. DHL has turned out  a united road freight network that connects five Asian cities that are Singapore, Penang, Bangkok, Hanoi and Shenzhen. This road freight service between five cities of Asia hits the speed of road freight growth in Asia, which is estimated at an expected compound annual growth rate of 8.3 percent from 2014-2019 and anticipated to move the sector to a value of US$822 billion  by the end of 2019.

Road freight service is more rapid than other modes of transportation 

Road freight is a good alternative then other shipping methods. Road freight service is  providing a more profitable alternative than air and sea freight. Moreover, the shipping  time for sea freight between Shenzhen and Bangkok takes thirteen days while the road freight service  only takes five days. The road freight service takes less time as compared to sea freight and it is less expensive than sea and air freight. There are regular departures from five cities and an example of the transportation time is as, shipping time from Singapore to Penang is one day, Bangkok to Hanoi is three days, Shenzhen to Hanoi two days, Shenzhen to Bangkok five days and from Penang to Shenzhen six days. According to CEO, DHL Asia Kelvin Leung that the company is confident that the trade in Asia Pacific region will continue to increase and the road freight network is also ready to help in the expansion of trade.   

DHL’s integrated road freight network will be profitable and trade stimulating

DHL’s road freight service is a profitable service and also helpful in stimulating the economy.

This  road freight network will be useful for coming financial initiatives supporting trade, having laid the foundation that already connects crucial Asian markets. For example, the ASEAN Economic Community (AEC) aims to build a single ASEAN market. The plan covers cross-border collaboration in many areas comprising capacity building, improved groundwork and communication connectivity, and the improvement of electronic dealings. For good results, AEC will direct a prosperous ASEAN region among the free movement of imports, services and investment. According to CEO, DHL Global Forwarding ASEAN and South Asia Thomas Tieber, that Thailand has a striking chance to make itself as a strong logistic hub in ASEAN.  

Air Bridge Cargo and the Russian market

The air bridge cargo services are facing a newfound pressure with CIS region stressing and pressuring the business. 

A spokesman for the Air bridge cargo service speaking at a conference stated that aside from the challenging market situation there are opportunities and possibilities that can be considered in Russia.

His statement has thus led air bridge cargo services to think further regarding the services they are offering to the Russian market. The pressure is now on as it is believed that the Russian market can increase growth rate and become a solid and steady investor for the industry. Despite the falls there are solid possibility’s and the business is being stressed to do something more. 

The air bridge cargo services currently use three aircrafts for freighter services, the aircraft b737 as well as fifteen Boeing 747 models. The aim of using these carriers is to link the airports around the country and reach a larger scale with efficiency and whilst maximizing the beneifts.

The spokesman Oleg Makushkin also spoke about the fall that was seen in the imports sector of Russia and compared it to the previous year stating a 35 per cent fall.  CIS when compared showed a fall of 25 per cent signifying that action should be taken to increase these rates once again.

The financial aspect of these services seemed to waver and become unstable with a decrease reported. The local currency also fell and limits were changed by the banks and these added to the instability that the market was already facing.

 At present, the market is in a pitiful situation and professionals, specialists and workers are in agreement that the Russian market is falling and decreasing with little sign of improvement. These serious reports put serious pressure on the industry.

On a more positive note a small growth is expected in profits over the next 20 years and is specifically predicted for the CIS area. If steps and necessary evaluation and adaptations take place the market can be improved from the state it is currently in although how significantly it can be improved is unclear at this moment.

Panama Canal Almost Kills Air Freight Industry in the Region

Panama Canal growth flooded the air industry and shifted cargo from air to sea

Air cargo industry in Panama is facing some serious falls in demand of cargo and the Panama Canal stands responsible for this fall in demand. The air cargo industry said that the Panama Canal has pushed the cargo on sea routes from air cargo in the region. It is not the end of this story yet, experts said that this trend is expected to continue as the transportation route is expanded.

What Operators said?

At the air and sea cargo conference in Miami, the cargo director of Copa Air has said that the number of ships passes through the canal route had increased over last few years and left a knock on effect on them (the air cargo industry). 

What else he said?

He further said that the panama route has more and more activity on the sea cargo side, sine in the air freight sector, there is more and more decrease and freight being shipped by sea.

There are more ships coming to panama ports and more frequently collecting the cargo while cargo flights are decreasing with every passing day. 

What is the future?

According to the experts, it is worse and will be even worse by next year, when the number of containers will be increased after the expansion project will be completed. The canal then will be able to allow larger vessels to pass through it. 

One of the experts said that the activity on the Panama Canal is increasing and will continue to grow as it is expected and trends are showing.

DHL expects something else

The chief executive of DHL global forwarding, said that the shippers had been stop using the west coast ports of USA after the industrial action of preceding year which will be very beneficial for the air industry and the truckers. Both parties can get benefits by this action.

He further explained the situation by referring to the trade barriers which had increased in recent years in Latin America and other areas of the continent. He said that, these factors are affecting the air cargo industry very badly and shifting the cargo on sea routes.

Asia-Europe Freight Shipping Rates In The Gyre

Asia-Europe shipping rates of freight services continued reporting declines from 15-weeks – due to volume declines

CARGO SHIP

The spot rates of freight services continuously decreasing since 15 weeks, due to decline in volume. Due to this downfall in volumes, the revenue of the freight companies is greatly affected. it is a situation of high and dry for the freight carrier services to down the revenue back again. the major reason of the declination of spot rates was the drop of the head haul volumes. on the other hand, china’s golden week holiday put a strong impression on trades and shows continuous fall. after golden week holiday of china, carriers start freight services from shanghai containerized freight index described more drop on two major trades of scfi. 

The spot rates of cargo services between north europe and shanghai cut down by 54 dollars this week, reporting 259 dollars per teu as a final value. this year reported the least spot rate as compared to the all decreased values spot rates. on the other hand, mediterranean port’s spot rates also decreased by 69 dollars, reporting 224 dollars per teu as a final value.

SHANGHAI EXCHANGE

in spite of succeeding healthy fundamentals of the market, the spot rates of freight services belonging to transpacific also continued fall. the spot rates cut down to 94 dollars and 119 dollars towards the west and east coasts of us. it is told that the spot rates went low and reaching 1,197 dollars per 40 feet for pacific coast and stated 2,199 dollars per 40 feet for the atlantic.

From these statics  it is very much clear that the latest gri planned by asia-europe carrier companies in september have no effect on the spot rates of freight services. it is seen that the gris of 1000 dollars, driving the spot rates to rise for about two weeks at the start of the month, before showing the loss of gains and more while the rest of the month. from this information, carrier companies have planned to throw more gris in a range of 950 dollars to 1,200 dollars per teu, in between north europe and asia, which may come into result from november 1st, 2015. 

CARGO SHIP

it is estimated that the new gri offers would rise the spot rates of cargo rates, which likened with the full world, would lead to 500 percent increase in spot rates.the present condition of trades of asia-europe shipping rates shows that there will be a continuance in it, mostly in between geneva and copenhagen at least for some future weeks.

Airline Demand falls after slowdown

DELTA AIRLINE

Air freight at west coast ports suffered from a slowdown and unfortunately it has still not fully recovered. According to Delta air lines Inc. there was a 20% decrease in revenue which indicates that U.S handlers are finding the prices harsh and in turn this seems to be causing the decrease. The strike of the west coast port has ended yet the effects remain on the cargo airlines. 

Statistics have been provided to further emphasize the decrease and tough effect of the slowdown on the air line. Last year Delta’s cargo revenue was $244 million yet from the quarter to September it had dropped to $196 million, decreasing by a 10% fall in three months.

Ed Bastian, the president of Delta stated that the cargo business and passenger business are going through the same issue. Domestic and local seems safe and steady while internationally, it’s decreasing.

PASSENGERS

Although the airlines went through a high in business early in the year while all the port disruptions went on, it seems that the boost only lasted up till summer. Trade groups report the increase slowly trailed off leaving a lower revenue then before the west coast port disruptions.

When it comes to domestic Cargo then the airline does succeed others yet in regards to freight volume it falls behind. Freight volume leaders are United Continental Holdings Inc. as well as American Airlines Group Inc. after these two comes this airline which is based in Atlanta. 

Although more of Deltas running system is based on Trans – Atlantic routes rather than pacific trade lanes statistics show that united and American faced less declines then Delta. 

US AIRLINES

Out of all the U.S airlines the first to have third quarter income has been Delta. With cargo becoming less essential handlers are looking for other opportunities and investments to make up for the loss they seem to be suffering and the decrease in what is the core of the cargo industry, the passenger business.

Looking at the statistics it’s important that Delta take progressive steps to avoid a further fall in revenues. 2007 had reached a peak of $1.7 billion yet last year’s cargo revenues totaled a mere $934 million. This has been a significant blow to Delta and the financial crisis and west coast port disruptions, strike and slowdown seems to have had its effect on the financial earnings and cargo revenues of this particular airline quite heavily.

What on Earth is happening at UPS?

                                   UPS predicts a 5% rise in Air Cargo

UPS AIR CARGO

The costs of air cargo and ground cargo has been raised by about 5 per cent when it was previously declining. The UPS will show us an increase. An Atlanta based company will be raising rates by about 5 per cent and road delivery costs as well as air cargo globally will also rise by 5 per cent more or less. For reliable and cost effective air cargo services to caribbean contact with www.cargotocaribbean.co.uk 

These rates need to be increased according to some, in order to cover labour charges and the cost of equipment as well as receiving a good enough reward for what it provides. Though customers will see the rate slightly higher than average it doesn’t look any more likely to decrease.

GRAPH BAR

This is not the only areas where increase will be seen in the industry. UPS also intends to charge more for fuel and depending on the type of delivery prices will increase. Heavy packages will now cost more and the fuel price will go from 4.75 per cent to 5.25 per cent. The cost of air cargo and global packages will increase by 1.5 per cent.

Normally costs of fuel change monthly and are related to the prices of diesel and airline fuel. This means that with lower prices the UPS revenue suffers and the low fuel prices means that the cost of the company drops and although it has increased revenue it’s not always suited to UPS.

ROAD SERVICES

From January to June 2015 revenue shot up to $2.26 billion which meant there was a 65% increase over just a year. Last year results suffered a loss as health plan costs meant $665 million had to be paid out.

Company shares have increased by 94 cents reaching $103.80.  This has decreased by about 7 per cent in 2015 with the previous year’s showing a 20 cents growth.

Asia-Europe Freight Shipping Rates In The Gyre

Asia-Europe shipping rates of freight services continued reporting declines from 15-weeks – due to volume declines

cargo ship

The spot rates of freight services continuously decreasing since 15 weeks, due to decline in volume. Due to this downfall in volumes, the revenue of the freight companies is greatly affected. it is a situation of high and dry for the freight carrier services to down the revenue back again. the major reason of the declination of spot rates was the drop of the head haul volumes. on the other hand, china’s golden week holiday put a strong impression on trades and shows continuous fall. after golden week holiday of china, carriers start freight services from shanghai containerized freight index described more drop on two major trades of scfi.

The spot rates of cargo services between north europe and shanghai cut down by 54 dollars this week, reporting 259 dollars per teu as a final value. this year reported the least spot rate as compared to the all decreased values spot rates. on the other hand, mediterranean port’s spot rates also decreased by 69 dollars, reporting 224 dollars per teu as a final value.

graph bar

In spite of succeeding healthy fundamentals of the market, the spot rates of freight services belonging to transpacific also continued fall. the spot rates cut down to 94 dollars and 119 dollars towards the west and east coasts of us. it is told that the spot rates went low and reaching 1,197 dollars per 40 feet for pacific coast and stated 2,199 dollars per 40 feet for the atlantic.

From these statics  it is very much clear that the latest gri planned by asia-europe carrier companies in september have no effect on the spot rates of freight services. it is seen that the gris of 1000 dollars, driving the spot rates to rise for about two weeks at the start of the month, before showing the loss of gains and more while the rest of the month. from this information, carrier companies have planned to throw more gris in a range of 950 dollars to 1,200 dollars per teu, in between north europe and asia, which may come into result from november 1st, 2015.

europe to asia

It is estimated that the new gri offers would rise the spot rates of cargo rates, which likened with the full world, would lead to 500 percent increase in spot rates.the present condition of trades of asia-europe shipping rates shows that there will be a continuance in it, mostly in between geneva and copenhagen at least for some future weeks. For cheap sea cargo services to Pakistan, Astarcargo.co.uk is a best and reliable company for sea cargo to Pakistan.

Freight Services Rates Facing Decline on Asia-Europe Route

Asia-Europe Shipping Rates of Freight Services drops due to Volume declines

CARGO SHIP

Due to the decrease in volume, the rates of the freight services also decreasing since 15 weeks. This declination also affected the revenue of the shipping companies. Carrier cargo services are feeling abandoned to wear away the revenue back again. The major factor behind the decrease of container spot rates was a decrease of head-haul volumes. On the other hand, golden week holiday of China has shown much impression on trades, reporting constant drops. Instantly after golden week holiday of China, airlines offering freight services from Shanghai Containerized Freight Index described more drop on two major trades of SCFI. It is recognized from a source that the spot rates of freight services between North Europe and Shanghai fell by 54 dollars this week, reporting 259 dollars per teu as an ultimate value. It is the smallest spot rate listed this year compared to all dropped values spot rates. On the other hand, the spot rates of Mediterranean ports decreased by 69 dollars and reporting 224 dollars per teu as a final value.

Asia to Europe

These records show that the latest GRI offered by Asia-Europe carrier companies in September has no effect on the spot rates of cargo services. It is observed that the GRIs of 1000 dollars, making the spot rates to rise for about two weeks at the start of the September, before showing the loss of increases and more while the rest of the month September. These records show that the carrier companies have planned to throw more GRIs in a range of 950 dollars to 1,200 dollars per teu, in between North Europe and Asia, which may come into result from November 2015.

CARGO TERMINAL

It is seen from Container Trade Statistics that volume more decreased by 6.7 percent in trades of Asia-Europe Shipping Rates as compared to past years. Even all the procedures taken for development like rise in capacity failed totally attaining traditional slack time of year. The chief executive of Maersk Line Soren Skou, stated that they are thoughtful to use further mechanisms in order to show soft demand and an obvious growth in volumes with additional tonnage. He further added that they are discerning to remove two or four major strings of the east-west side in the previous three months, along with a delay of freight services and withdrawal of sailings. The present condition of trades of Asia-Europe Shipping Rates shows that there will be a continuance in it, mostly in between Geneva and Copenhagen at least for future weeks.

New Cargo Pricing Structure by BAC

After Lufthansa and World Cargo, Brussels Airlines Cargo to Introduce New Freight Pricing Structure

LUFTHANSA

Brussels Airlines Cargo (BAC) is going to announce new freight pricing, which will be a comibination of net price and surcharges. The new pricing structure will be applicable from October 2015. According to a report, two sister companies named Swiss World Cargo and Lufthansa Cargo are also following the similar price structure for their air freight services.
Brussels Airlines Cargo expects that the changed price structure would fulfill the demand in the market, growing their transparency. According to Brussels Airlines, they want to include the only single freight surcharge which is consolidated. They are not interested in adding any other surcharges on freight rates.

AIR CARGO FREIGHT

This strategy will increase traffic for the freight services and on the other side, it will completely decrease the losses. After the announcement of the increase in freight prices two sister companies, Swiss World Cargo and Lufthansa Cargo also announced that they are going to set new pricing structure for the coming winter season. Contact to www.cargotopakistan.co.uk for reliable freight services to Pakistan at affordable prices.
According to BAC the new price is unique in the market and new price structure with single surcharge will continue in future without addition of any other surcharges. BAC stated that in new pricing structure only one surcharge will be included, mainly on the air freight. The only two elements in the price structure of Brussels Airlines Cargo are fixed price of freight and air freight surcharge.

BRUSSELS AIRLINES

The single surcharge in the new price structure will replace all other surcharges. According to a source the single surcharge air freight surcharge (ASC) consists of few other charges like airport taxes, security and fuel cost etc. All these are external surcharges beyond the control of Brussels Airlines.
BAC remarked that all these external expenses may fluctuate according to the conditions. Due to these fluctuations, the air freight charges may also fluctuate from time to time. According to BAC that the new price structure will not dishearten the customers. Compared to old pricing structure, the new price is adjusted according to the unbiased effect on prices.
The new price structure which was announced by the Lufthansa Group for freight services is very much different from the rate model which was announced by Emirates and also different as compared to other rate models offered by IAG and Qatar Airways. It is yet to be seen if the new price structure announced by Brussels Airlines Cargo is successful or not.

FinnAir Explores Asia

            Finnair Continues to Explore New Routes in Asia

finnair

It is understood that the Finnair is struggling to further develop its network in the Asian region. In Asian region Finnair is also taking interest in expansion of business as well as traffic by opening more bellyhold routes to Guangzhou and Fukuoka. Finnair also wants to construct the route in Asia in such a way that in which Fukuoka links to Japan and Guangzhou links to China.
Finnair is determined to open this route before the coming summer season in 2016. According to the chief executive and president of Finnair Pekka Vauramo that it is their vision to increase their traffic twofolds in the Asian region by 2020.

Finnair route

He further states that these two destinations would be important for their airlines assisting them in getting their aim. Finnair has maintained its standard and tradition of fast connections between Asia and Europe. According to Pekka Vauramo, Finnair is enthusiastic to further enhance their network for the Asian and
Europen markets soon.According to the Finnair, they are going to announce a direct route to Fukuoka which is located in the southern region of Japan. They will open this new route for Fukuoka Japan in the summer season of 2016. 

This  new service from the new route will make Finnair rank high as compared to the other European airlines. Finnair is the only European airline which flies to different cities of Japan. According to a sources, Finnair is ready to offer its services to other four cities of Japan, which includes Osaka, Tokyo Narita and Nagoya.
Finnair is also ready to open a new route to China.

Fukuoka

The airlines stated that it is going to run its passenger flight services to China from its own hub Helsinki. Further, the new service will start its job from Helsinki to Guangzhou China. Guangzhou will be the sixth destination for Finnair in China.
According to Finnair these two destinations Guangzhou and Fukuoka will be offered using Airbus A330 airlines. Finnair is ready to link Guangzhou and Fukuoka to further 60 destinations around the world via their own Helsinki hub.
Check out www.cargotoindia.co.uk before hiring cargo services from UK to India any other company.

DHL raises a concern

China and Europe to become air cargo competitors

 

DHL AIR CARGO

DHL Eastern European operations have raised a concern for those in the air cargo industry stating that the China Europe services are attracting more attention from customers and is becoming increasingly popular to shippers.

Many customers are attracted to the China Europe rail service and it’s becoming a more accepted option by the day. According to Kerem Inanc this could be because of the emphasis on CO2 emissions and the speed of the rail services.
 

RAIL CARGO

Although it is rumored that rail services from china did not consist of high margin goods Kerem disregarded this as just a rumor. The rail services are improving and considering how the services used to be we can see that there has been significant progress. According to the spokesperson all types of goods of high value can be shipped and the aim is that the rail services will eventually be able to handle any goods.

As stated above the low emissions and brilliant speed that these rail services operate at remain a huge factor in the growing popularity. Other air cargo services take longer and also have many capacity restrictions which can be avoided when shipping by rail.

The air cargo industry has all but been warned that the china Europe services intend to exceed their demand and become at the forefront of the shipping business. 

CHINA RAIL 

With the rail services all measures are taken to ensure they are as reliable as possible and prices are kept at a rate that will keep them attractive to shippers. Kerem Inanc further stressed the issue of cost by stating that the rail prices of the coming month are known to operators beforehand.

The modes that provide more information to shippers are more likely to be successful and air cargo is thought to be lacking in data and technology.

The increase in rail popularity could also be due to the fact that in air cargo the temperature varies more than in sea freight. Not to mention that costs are 20% less the air modes. For Columbia – Europe services the cost went up to 40% less than air freight and the infrastructure was better in rail services.

However it’s not all bad for air freight as a significant amount of people still prefer to use air services whether due to the freighters or the type of market. Fruit is mostly sent by air cargo and it’s not expected that rail services will overtake this particular market.

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