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Today's Feature

Why do carriers continue to add capacity to worsen the formidable oversupply problem?

CARRIERS keep on adding capacity and placing new vessel orders despite the fact that those major east-west trade lanes, in particular transpacific and Asia-Europe routes, are experiencing sluggish growth.

According to maritime analyst Alphaliner's figures, the top 21 ocean carriers have added a total of 892,000 TEU since the second half of 2012 with a growth of 6.3 per cent year on year.


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IAG Cargo offers 'capacity guarantee' to priority customers worldwide

IAG CARGO, the business created through the merger of British Airways World Cargo and Iberia Cargo, is guaranteeing capacity for customers moving express cargo shipments weighing less than 300 kilogrammes using its "Prioritise" service, in an addition to the existing performance guarantee.

Shipments transported on the Prioritise service receive the "fastest publicised cut off and delivery times of any air cargo carrier", a company statement said. "Prioritise" freight is given preferential status at all times at the company's dedicated facilities at London Heathrow and Madrid.

"'Prioritise' has been created for customers who need their goods to get to their destinations quickly and at short notice," said IAG Cargo commercial chief David Shepherd.

"Capacity Guarantee provides our customers with absolute peace of mind by offering a commitment that smaller shipments travelling under the 'Prioritise' product will automatically be accepted when a booking is made," he said.

The company expects the new service offering to appeal in Japan mainly to customers active in the trade of ship spares to markets across the world, including Spain, Gibraltar and the Caribbean on flights from Haneda to London Heathrow. The service would also benefit fragile, time-sensitive cargo to North America, such as fresh flowers.

Europe and the UK will be the most significant destination markets for "Prioritise" shipments from Thailand arriving on flights from Bangkok to Heathrow. As for shipments from Singapore, the company expects its biggest markets to be the UK and Ireland, the US and Latin America with cargo flying via airports in London, Gibraltar, Rio de Janeiro and the east coast of America.


Indian budget cargo carrier Aerospace One will operate from Europe

LOW COST air cargo has come to the industry with the arrival of New Delhi-based Aerospace One that will mostly operate within Europe, according to the company.

As a low cost cargo carrier, the company says it offers competitive rates and high frequencies, deploying a single B747-200F, said to be nearly 30 years old and acquired from Pakistan's Rayyan Air.

Focusing on the European market, as an ACMI and charter operator targeting the heavy lift business, Aerospace One says it will expand beyond this when the time is ripe.

Founder Jaideep Mirchandani plans to build "cargo bridges between continents", principally between Asia and South America via Europe reports Atlanta area Air Cargo World. The carrier's maiden flight was a B747-200F charter from Sharjah, UAE to Jakarta.

Sales will be handled by charter broker chartersphere from London.

"By serving a combination of both, we will be able to draw on the strength of our fleet to complement each other and provide greater flexibility," said chartersphere managing director Paul Bennett.

"But it is likely the B747-200F will focus on the charter side and offer back-up for the B747-400Fs when they arrive, which we envisage being put out on ACMI lease," he said.

"We will be taking delivery of two leased -400F series aircraft, which will be available from August," said Mr Bennett.

"Being an EU operator is very important to us," Mr Bennett said. "It not only provides us with prestigious benefit of EU traffic rights, but it also allows us to respond even faster and more flexibly. As an EU-registered airline, it means we are also able to guarantee standards of maintenance and safety, which I believe offers vital peace of mind to businesses operating in the global marketplace."


Aloha Air Cargo comeback, recruits 50 cargo agents for Honolulu hub

ALOHA Air Cargo, Hawaii's biggest inter-island air freight carrier, is hiring as many as 50 new cargo agents in preparation for the opening of its new cargo facility at Honolulu International Airport in first quarter 2014.

The airline will be recruiting at a two-day job fair at Honolulu Community Centre on July 8-9 from 10am to 2pm, reports the Honolulu Star Advertiser.

Aloha appears well out of the woods, five years after its near-death experience when it shut down cargo operations when the sale to Seattle-based Saltchuk was nearly derailed when the pilots union insisted on their old contracts be honoured. The US$10.5 million deal was rescued when a bankruptcy judge approved a motion to void the company's union contracts.



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