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Etihad Airways and Swissport expand global cargo partnership

Swissport has expanded its global ground handling and cargo partnership with Etihad Airways to extend its scope of work with the airline from 30 to 40 airports. The expanded ground handling and cargo services partnership covers airports across Africa, Europe, North America, the Middle East and Asia. Air Cargo News has asked Swissport to confirm how many of the 40 airports it provides cargo handling services at. Both sides intend to have a long-term partnership, giving them a framework to add airports and services as Etihad's network grows, said Swissport. Majed Al Marzouqi, chief operations and guest officer, Etihad Airways, said: "Etihad is expanding at pace, and each new destination we add depends on the right standard of service being in place on the ground before the first flight arrives. "Working with one partner across 40 airports gives our guests the same experience whether they are departing from Europe, Asia or North America, and gives our operation the consistency it needs to match that expansion. "By combining Swissport's global expertise with Etihad's ambitious plans, we can enhance efficiency, service quality and the guest experience across our operations, while creating a strong platform for what comes next." Warwick Brady, president and chief executive, Swissport, added: "Etihad and Swissport are a natural fit. We share the same ambition for operational excellence and an uncompromising focus on the customer experience. "Etihad is embarking on an exciting phase of growth, and Swissport is proud to support that journey with our global network, our teams' operational expertise and our technology capabilities. "Our track record in managing complex, large aviation hubs will enable us to support Etihad effectively wherever its growth takes it." The MoU also has scope to extend the relationship into airport hospitality through Swissport's Aspire brand, which operates 110 airport lounges worldwide. Swissport's recent expansion efforts have included investment in a new cold chain facility at Kilimanjaro International Airport to cater for perishables, entry into the Chinese market with the launch of operations at Shanghai Pudong Airport, and entry into the Moroccan market through the purchase of Swiftair Maroc.

FedEx 5.9% rate rise masks steeper hikes for ecommerce shippers

Once again FedEx was the first out of the starting blocks to unveil rate hikes for the coming year, and once again the integrator's increases average 5.9%, as they did in the past three years. And once again, the rates that FedEx will implement starting on 4 January, 2027 will be higher than the rate of inflation, which currently stands at 3.4%, according to the US Bureau of Labor Statistics. Further in the time-honoured tradition, the general rate increase (GRI) number veils an array of hikes well above those at 5.9%. Paul Yaussy, head of parcel contract intelligence at logistics data platform Loop, pointed out that five of the seven major services in FedEx's portfolio, are set for increases higher than 5.9%, ranging from 6.01% to 6.65%. The exceptions are the Standard Overnight offering, which goes up 5.16%, and the Express Saver product, which rises by a moderate 3.09%. First and foremost, it is the latter which brings down the average rate of increase, while most shippers stand to face rate hikes north of 5.9%. Mr Yaussy called the low increase in Express Saver rates a defensive move, likely to prevent a shift from deferred air volume to ground service, or in response to competing deferred offerings in the market like UPS's 3 Day Select service. Unlike last year, when rate increases on FedEx Ground for parcels between 11 and 20 lbs were steeper, this time lightweight parcels of 1-5 lbs are seeing the higher increases (6.49%), followed by parcels in the 5-10 lbs and 11-20 lbs brackets, a move that targets the bulk of ecommerce traffic, Mr Yaussy observed. As always, the prices customers end up paying are higher yet thanks to the range of surcharges that the integrators routinely employ. Many of them get an additional boost from fuel surcharges, Mr Yaussy pointed out. Surcharges for additional handling will rise 7-7.6%. Residents of rural areas will be hardest hit, facing a 9.09% increase in the extended delivery area surcharge, another indication that FedEx management is steering the business away from low-margin residential deliveries. The minimum charge for FedEx Ground shipments will go up 5.88-6.9%. Mr Yaussy warned that minimum charges apply regardless of negotiated discounts, adding that this affects a lot of lightweight shipments moving relatively short distances. "The minimum charge is the lowest amount a shipper can pay regardless of any negotiated discount. For lightweight, short-zone shipments it is not a floor you occasionally touch, it is the rate you actually pay on a meaningful share of your volume. Every point of minimum increase erases a point of discount on those packages, and no amount of base rate concession fixes it," he stated. He called the new GRI "another exercise in strategic pricing, where a familiar headline masks a far less familiar structure underneath", and where the real costs sit in the details. For shippers, this means that going by averages is not enough. They have to know their own shipping data in detail to establish how the various elements packed into the 5.9% GRI puzzle work out for them, he warned. For now, FedEx customers have other surcharges to contend with. As of Monday, 21 September, the integrator is levying demand surcharges on shipments to the US from Canada, Europe, Latin America and the Caribbean, and increasing demand surcharges from various origins in Asia. At the same time, charges on US exports to Canada, Europe, Australia and New Zealand, Latin and America have also gone up. On its website the carrier cited stronger traffic volumes, high demand for capacity and increased operating costs as causes for demand surcharges, which are levied on a per-pound basis. According to ShipScience, US imports from China, Hong Kong and Macau as well as from Japan and South Korea are facing the largest increases.

European Aviation completes acquisition of European Cargo aircraft

European Aviation has completed the acquisition of troubled European Cargo's aircraft, including its fleet of A340 cargo aircraft, with plans to restart flights. The company said that it had acquired European Cargo's 16 A340 aircraft, including seven "flight-ready" freighters, a large quantity of Rolls-Royce Trent 553 and 556 spare engines, including several with little time since overhaul. The aircraft acquisition came about after European Cargo fell into administration earlier this year. Also included in the purchase are more than 14,000 line items of spares for the A340 aircraft and Trent engines. News that European Aviation was interested in rescuing the company emerged in August. European Aviation chairman and chief executive Paul Stoddart said: "We are delighted to have concluded our acquisition of all of the assets of [European Cargo] with the joint administrators. "Whilst this is a massive investment from [European Aviation], I feel totally confident that we can keep this excellent fleet of cargo aircraft flying for the foreseeable future." European Cargo began to run into trouble when its largest customer asked for a 30% reduction in service price due to softer volumes. In addition, the wars in Ukraine and in the Middle East resulted in increasing jet fuel prices that negatively impacted the business through reduced profit margin per flight. The airline entered administration in June of this year, with 174 of its 219 staff made redundant. European Aviation, which is owned by ex-Formula One team boss Paul Stoddart, previously owned European Cargo. The company sold 49% of its stake in European Cargo in 2022 and the remaining 51% stake two years later. The airline emerged in April 2020 during the onset of the Covid-19 pandemic, after European Aviation sought to offer the UK government capacity to transport medical equipment from Malaysia. It had been acquiring Airbus four-engined A340-600 passenger jets from carriers such as Virgin Atlantic and initially operated them as temporary freighters. European Cargo subsequently obtained approval to operate the -600s in a permanent cargo configuration, with a 76t payload capability, and has been gradually converting its fleet. The airline had been operating the aircraft between China and Bournemouth and Teesside in the UK, largely carrying e-commerce shipments. No cargo door is added during the conversion process, allowing the aircraft to potentially be turned back into passenger aircraft in the future, but making the cargo loading process more complicated than on a fully converted freighter. European Cargo's most recent financial statement shows it made a full-year net loss of $26m in 2024 -- on revenues of $136m -- a slight improvement on its net loss of $30.6m in 2023.