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.  

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.

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.