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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Gatwick Demands another Runway to Compete with Heathrow for Cargo

Gatwick Airport is Concerned about The Future of The Aviation Department of The UK

Gatwick Airport

Gatwick airport, London gave a serious reply on the future of the aviation department of the UK to the Airports Commission report which issued last month. In this report, it claimed that the passenger and cargo scheme of its site, which is 45km in the south of the capital and greater to that of Heathrow airport.

Sir Howard Davies, who chaired the commission said that the third north-west runway at Heathrow would provide more significant economic and strategic profit than any other options fortifying connectivity for passengers and air cargo users and increasing the economic output of the UK.

Heathrow Airport Northern runway

The other two schemes studied by the commission, set up by the government of the UK in 2012, were an extension of the current northern runway at Heathrow and a second runway at Gatwick. In 52 page manuscript which issued this week, Gatwick airport complaints of basic mistakes in the Davies discoveries.

Its own reports, including A Second Runway for Gatwick, Airports Commission Final Report and Areas of Concern negates the statements of Davies about Gatwick expansion would emphasis on short haul routes while Heathrow would use the extra capacity to boost new long haul contacts.

Gatwick Airport Tower

Both Heathrow and Gatwick realize that long haul services are very important and the key of cooperative freight demand. The report issued by Gatwick airport describes that the commission has put a great deal on the forecast freight volumes of the three schemes. But a question arises here that will Heathrow airport deliver fruitful benefits to freight operators?

The Davies report, sponsored by organizations including the Confederation of British Industry and the Chartered Institute of Logistics and Transport, admits that aviation supports protect the place of UK-based manufacturers in difficult worldwide supply chains.

Gatwick Demands another Runway

It records that Heathrow airport controls the UK air freight market, it manages approximately 75 percent of the £140bn worth of the things passed through UK airports in 2014. The commission said that by 2030, pharmaceuticals and chemicals industries are expected to be among the top five export markets of UK because their products are transferred by air.

Gatwick declares that with a second runway it could again produce to competition Heathrow in air freight terms, which give further capacity, a large long-haul component and a condition which more accurate traffic forecasts would reveal. Stewart Wingate claims Heathrow could not provide a third runway in his lifetime and said that Gatwick is much static in the competition. If the government adopts the Davies judgments, Gatwick claims it will take the matter to the court.

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