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Muscat-Dubai road feeder expected to remain part of Oman Air network

The emergence of Muscat, in Oman, as a back-up air cargo hub this year, notably for DHL, was a prime example of how the industry adapted to disrupted airspace and airport closures across the Gulf and wider Middle East region. The conflict also saw national carrier Oman Air come into its own, keeping cargo moving with the creation of a daily road feeder service (RFS) between the Oman capital and Dubai. In an interview with The Loadstar, Mike Duggan, head of cargo at Oman Air (above), reflected on the contingency planning and assessed the likely lasting effects of the regional conflict on the carrier's cargo business. "Muscat played an important role during the disruption earlier this year, with additional cargo flows moving through Oman as the industry responded to changing conditions across the region. While some traffic had returned to its usual routes as other hubs reopened, there were still cargo flows through Muscat that were not previously part of the network he explained. "The ongoing uncertainty means some companies continue to view Muscat as a reliable hub for their supply chains." The RFS continues to operate daily between Muscat and the UAE, transporting a broad range of perishables, general cargo, and goods that cannot be accommodated on narrow-body passenger aircraft. "It has demonstrated its value operationally, and from a customs and security perspective. We now expect it to remain an established part of our network." Oman Air Cargo had continued to assess narrow-body freighter options to add capacity on key markets, particularly Mumbai and Dhaka, in Bangladesh, Mr Duggan revealed. "Both are strong cargo markets and additional freighter capacity would feed into Oman Air's wide-body passenger network, including services to Europe." In the meantime, Oman Air has introduced wide-body passenger aircraft on some Mumbai and Dhaka services to provide additional cargo capacity to meet current demand while it considers options for the future. The carrier has yet to disclose its cargo traffic figures for the first half, but Mr Duggan described the performance during the period as "positive", rather than exceptional. "The airline was already operating with high (cargo) load factors before disruption hit the region, which naturally limited the scope for significant additional volume growth. "Demand has strengthened, while pricing has also increased, reflecting higher operating costs, particularly for fuel," he added.

DHL Express invests in China with expanded facility and new flight

DHL Express has expanded its presence in Shenzhen and added a new China-Southeast Asia-Europe flight as part of efforts to capitalise on fast-growing data centre and pharma demand. The expansion of the firm's Shenzhen "Super" Gateway facility at Shenzhen Bao'an International Airport came at a cost of €177m and has tripled processing capacity to approximately 900 tons per day. The expanded facility will support cross-border trade, e-commerce shipments and time-definite international express services. Meanwhile, the express firm has also added a new dedicated air route with a widebody Boeing 767 freighter linking Shanghai, Bangkok, Bahrain and Brussels. DHL said that the new service launch comes as demand is growing among customers in sectors such as technology, industrial manufacturing, semiconductors, healthcare, data centre infrastructure and new energy, "many of which rely heavily on manufacturing and supplier networks in China and across Asia". DHL said the new service would also support its recently expanded Heavyweight Express offering that moves larger shipments through the DHL Express international time-definite network. The company said that while supply chains are becoming increasingly diversified, China remains an important hub for "manufacturing, sourcing, innovation and consumption, and continues to play a significant role in international trade and regional supply chains". DHL Express chief executive John Pearson said: "Global supply chains continue to adapt to changing economic conditions, geopolitical disruption and evolving customer requirements. "Our focus is on ensuring customers have the flexible, reliable and high-quality logistics networks they need to connect with suppliers, production locations and consumers around the world. "These investments enhance the connections between China and global markets and reinforce DHL's role as the logistics partner of choice for international e-commerce and fast-growing sectors such as data centre and semiconductor logistics, life sciences and healthcare and new energy."

Conflict drives up bunker prices, helping intra-Asia rates end six-week decline

Rates on intra-Asia trades have ended six weeks of decline, helped by port congestion in China and a rebound in bunker prices, with average prices up 1% week on week on 6 August, to $970 per 40ft Drewry said the ongoing US-Iran conflict pushed Shanghai-Nhava Sheva rates up 8% from 30 July, to $1,767 per 40ft, with Shanghai-Jebel Ali prices rising 7%, to $7,143. In contrast, rates from Shanghai to Laem Chabang fell 23%, to $687 per 40ft, and to Kaohsiung they were down 7%, to $1,333, supported by easing port congestion. While the peak season for China-Southeast Asia shipments has passed, typhoons Bavi, Noul and Dolphin have caused persistent vessel delays in eastern and southern China. In Shanghai, average vessel waiting times last week were 94.8 hours, up from 77 hours the previous week. At Laem Chabang they fell from 15.33 hours to 11.6 hours in Week 31, while at Kaohsiung, waiting times fell from 14.78 hours to 7.32 hours. Meanwhile, Singapore-based Pacific International Lines will strengthen its South-east Asia network in early September by joining the Indonesia-Thailand-Straits (ITS) service, operated by OOCL and Gold Star Line, connecting Thailand and Indonesian ports via the straits. PIL is replacing Yang Ming in the partnership and will deploy the 2,034 teu Kota Johan to replace the Taiwanese line's 1,805 teu YM Interaction on 4 September. The ITS will enhance PIL's feeder connection across Indonesia and Thailand, providing weekly links between key Thai gateways and Indonesian ports. The renewed hostilities in the Middle East have pushed up marine fuel prices again, causing shipping lines to re-introduce emergency bunker surcharges of $38 to $75 per teu. VLSFO prices now average $848 per tonne in Singapore, the world's largest bunkering port, up from $804 a fortnight ago.