English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Lufthansa attracts an Integrator

FRANKFURT: FedEx Trade Networks, the Integrator's forwarding arm, is talking to Lufthansa Cargo about a block space or regular capacity agreement.

A spokesperson for the German airline that will operate four new B777 freighters and 14 MD-11Fs in its summer schedule, said an agreement is expected by mid-year.

As Lufthansa Cargo talks growth for 2014, the AF-KL-MP Cargo combine says it will further reduce its cargo fleet – now managed by Martinair – to eight aircraft this summer. This follows the coincident move by IAG Cargo to cancel its agreement with Atlas Air to operate three 747-8Fs for British Airways.

Otto LufthansaAndreas Otto (right), member of the Lufthansa Cargo executive board with responsibility for product and sales, says the company is expecting air cargo industry growth rates of around four percent per annum until 2020 – a far cry from an 8.2 percent average between 1971 and 1990, 6.6 percent for the next decade - but half a point higher than during the last 13 years.

Noticeably, between the period 1991 and 2013, the industry experienced five years of negative growth. Four of those years occurred during a political or economic crisis relating to the U.S.

Since a low period of minus 13 percent in January 2012, Lufthansa Cargo says its traffic results have steadily risen to a five percent growth forecast this year. In 2013 the company says it had a 25.4 percent share of its home market – its nearest competitors being Cargolux and Emirates at 6.6 percent and 5.7 percent respectively.

Otto says Lufthansa Cargo will make another profit in 2013 –  but less than the 104 million the previous year. Full year results are due in March. By comparison he cites continued losses by AF-KL-MP Cargo and Singapore Airlines and suggests the only aircraft that can be operated sustainably out of Europe is the B777 freighter. Ironically Air France cancelled part of an order it had for such equipment in favour of retaining older B747s – now parked or disposed of.

A decision as to whether Lufthansa Cargo can afford a further five B777Fs will be made in August.

Citing a recent face-to-face question put to 200 shippers, Otto says 90 percent want the company to continue operating dedicated freighter equipment and are prepared to pay for it – which is slightly at odds with a finding from Lufthansa Cargo's 2013 customer satisfaction index. While all other KPIs met or exceeded the industry average, it was its lone price-performance ratio that was around seven points below the 75 percent average.

Otto suggests the result is indicative of its customers' historic willingness to enjoy the company's  service quality while balking at the sticker price – despite the KPIs. Fortunately for the airline, 2013 saw a dramatic reduction in European-centric all-cargo capacity. So maybe any price hike it imposes this year will hold.

News

Written on 24/05/2017, 20:42
hapag-lloyd-takes-a-big-step-with-uascHAMBURG: May 24, 2017. Hapag-Lloyd and the United Arab Shipping Company (UASC) have completed their merger. Shareholders at the annual general meeting on...
Written on 23/05/2017, 21:03
dhl-adds-rail-link-between-shenzhen-and-belarusSHENZHEN: May 22, 2017. DHL Global Forwarding has launched the first regular LCL and FCL rail service that connects Shenzhen to Minsk in Belarus in less...
Written on 22/05/2017, 19:48
cathay-pacific-launches-restructuring-with-layoffsHONG KONG: May 22, 2017. Cathay Pacific is making 600 head office staff redundant following the announcement in March of a three-year business...
Written on 18/05/2017, 21:59
air-zimbabwe-banned-from-europeBRUSSELS: May 17, 2017. In an update to its Air Safety List, the European Commission has banned Air Zimbabwe from flying to the 28 EU Member States "due...
Written on 17/05/2017, 22:43
russian-logistics-network-signs-development-agreementMUNICH: May 17, 2017. Meeting at the transport logistic trade fair last week, members of Russia's Associated Cargo Experts Alliance (ACEX) and the...
Written on 17/05/2017, 19:41
oman-to-adopt-tir-conventionMUSCAT: May 17, 2017. The International Road Transport Union (IRU) is to support the Oman Global Logistics Group (OGLG) in developing Oman as a major...
Written on 15/05/2017, 21:56
record-port-call-for-savannahSAVANNAH, GA: MAY 15, 2017. COSCO Development, at 13,000 TEU the largest box ship to call at an U.S. East Coast port, moved a record 10,000 containers...
Written on 11/05/2017, 14:24
lufthansa-cargo-still-caring-for-humansMUNICH: May 10, 2017. Lufthansa Cargo has celebrated the 10th anniversary of its employee-inspired humanitarian logistics program Cargo Human Care (CHC)...
Written on 10/05/2017, 20:34
renewed-b-logistics-rebrands-as-lineasMUNICH: May 10, 2017. Less than two weeks after it re-launched itself as Lineas, rail logistics company B Logistics has come to transport logistic in...
Written on 09/05/2017, 21:52
cranes-get-a-lift-from-hansaHAMBURG: May 09, 2017 – Hansa Heavy Lift (HHL) has moved two 870 tonnes cranes from a decommissioned power station at London's port of Tilbury to...
Written on 09/05/2017, 18:49
ups-to-handle-dubai-expo-logisticsDUBAI: May 09, 2017. UPS is to sponsor the logistics for World Expo 2020 Dubai, to be held between October 2020 and April 2021. The company has also...
Written on 09/05/2017, 16:51
cargolux-carrier-of-choice-emirates-skycargoMUNICH: May 09, 2017. Emirates SkyCargo and Cargolux are to share aircraft capacity, networks and respective hubs in Dubai and Luxembourg in a new...
Written on 05/05/2017, 20:30
new-multipurpose-service-links-u-s-and-mediterraneanLEER, Germany: May 03, 2017. Multipurpose vessel operator BBC Chartering is adding ocean capacity between the Mediterranean and the US- East Coast, with...
Written on 04/05/2017, 20:42
royal-schiphol-group-costs-klm-millions-claimAMSTERDAM: May 04, 2017. KLM reported Q1 2017 revenue of €2.2 billion - a 3.3 percent rise over the same period last year. EBITDA increased €14 million to...
Written on 04/05/2017, 19:06
bmw-to-increase-rail-link-to-chinaMUNICH: May 03. China's news agency Xinhua reports BMW plans to increase its use of 'Silk Road' rail networks to ship components from Europe. According...
Written on 03/05/2017, 20:21
ethiopian-provides-support-for-drought-reliefTOULOUSE: May 02, 2017. German NGO humedica e.V and UK non-profit Aviation without Borders have used an Ethiopian Airlines A350 XWB delivery flight to...
Written on 28/04/2017, 19:13
amazon-3rd-party-fulfillment-revenue-up-34-percentSEATTLE: April 28, 2017. Amazon has reported net income of US$724 million on sales of US$35.71 billion for the first quarter of 2017. Results for the...
Written on 27/04/2017, 19:19
ai-to-feature-at-transport-logistic-in-munichMUNICH: April 27, 2017. A survey of German logistics executives says 70 percent of respondents are investigating the use of artificial intelligence...
Written on 27/04/2017, 17:28
hapag-lloyd-best-shipping-line-brandBERLIN: April 26, 2017. Readers of "Logistik Heute" magazine and a panel of experts from the German Logistics Association (BVL), have recognized...
Written on 27/04/2017, 15:54
british-brands-hit-by-brexitLONDON: April 27, 2017. Valuation and strategy consultant Brand Finance says British brands have lost 6.0 percent of their value since the Brexit vote...

- powered by Quickchilli.com -