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WFS and American Airlines Cargo extend handling partnership in Europe

Worldwide Flight Services (WFS) has secured a new five-year cargo handling agreement with American Airlines Cargo (AAC) than spans eight European countries. The handling agreement extends the longstanding partnership between the two companies and will support American Airlines Cargo's operations at its stations in Denmark, France, Germany, Ireland, Italy, the Netherlands, Spain, and the UK. "Our longstanding partnership with WFS has played an important role in supporting our operations across Europe," said Greg Schwendinger, president at American Airlines Cargo. "Together, we're continuing to provide the reliable service and global connectivity our customers expect from American Airlines Cargo." As part of the agreement, WFS will continue to provide cargo and mail handling, security screening, customs and documentation support and specialised handling for shipments including pharmaceuticals, live animals, dangerous goods and e-commerce. American Airlines Cargo and its customers will also continue to benefit from WFS' European road feeder services network, providing additional connectivity between key gateways and greater flexibility across the region. "Our relationship with American Airlines Cargo spans more than 40 years and continues to grow in strength," said Dan Parker, senior vice president commercial EMEA at WFS. "This long-term renewal reflects the trust we have built together and the strength of WFS' European network in supporting American Airlines Cargo's operations. "By combining our network and cargo handling expertise with American's global connectivity, we can continue delivering reliable service for customers across Europe and beyond. We are proud to continue this longstanding partnership." Beyond Europe, WFS also supports American Airlines Cargo across a number of key international cargo gateways in North America and Asia.

STB turns UP-NS merger fight into inquiry over shipper intimidation

Union Pacific must disclose Jim Vena's conference video and produce records about possible retaliation. The railroad denies making threats, and regulators have yet to decide whether anyone was intimidated - or whether the merger review should continue. For a regulator assessing the largest proposed US railroad combination in a generation, a customer's silence is an ambiguous thing. It may signify approval, indifference - or a calculation that speaking out could be expensive. The Surface Transportation Board (STB) has now ...

DHL forwarding sees airfreight rise but some volumes move to express

DHL reported increases in airfreight revenues, profits and volumes in the third quarter but saw some potential volumes move over to express. The company's forwarding division saw third-quarter airfreight revenues increase by 30.4% year on year to €1.5bn, while airfreight gross profits increased by 28.4% to €321m and airfreight volumes were up 12% on last year to 497,000 tonnes. The company said that volumes were up on demand out of Asia, while performance had also been boosted by higher airfreight rates. "The [forwarding] division helped customers adapt transport routes to changing trade flows and maintain reliable supply chains," the company said in a press release. Overall third-quarter forwarding revenues also improved, up by 23.4% to €5.6bn and operating profits stood at €259m, up 32.7%. The company said that overall growth also reflects the successful pass-through of cost and fuel inflation to customers. Overall market airfreight rates and volumes have been on the rise this year due to higher fuel costs, a surge in demand for the transport of data centre-related goods, overall market strength, the conflict in the Middle East and capacity tightness from certain markets. Express shift The express division reported a 19.2% increase in third-quarter revenues to €7bn, while ebit was up 50% to €1bn, in part because of constraints in airfreight. "DHL Express benefited from a continuing gradual rise in weight transported throughout the network. Capacity constraints in the airfreight market also had a positive effect on earnings of around €100m," DHL said. "The positive earnings performance from increased capacity utilisation was additionally supported by effective cost and yield measures." Time Definite International daily shipment weight was up 9.7% year on year as the express division targets heavier cargo. Earlier this year, Mike Parra, the chief executive of DHL Express for Europe, told Air Cargo News that the shift to heavier shipments has been partly driven by e-commerce platforms moving away from the integrators to lower-cost bulk transport and 'local hero' last-mile networks, resulting in the share of heavier shipments increasing. However, the current geopolitical unpredictability and war in Iran have helped accelerate the change as an increasing number of urgent heavier items find their way into the express network because of the speed, certainty and uncomplicated pricing model on offer. To capitalise on the trend and as part of its strategy to refocus on industrial customers, at the start of the year, DHL Express launched a Heavy Weight Express (HWX) service that can transport shipments of up to 1,000 kg per piece and 3,000 kg per shipment. Forwarding comparison Compared with its forwarding rivals, Kuehne+Nagel saw airfreight revenue rise by 38% year on year in the quarter while volumes were up 10%. DSV saw air forwarding revenues increase by 16.6% despite a drop in volumes of 3%. Earlier this year, DHL Group raised its operating profit outlook for the year thanks to the strong performance of its express division and expectations for a good peak season. The logistics and express giant now expects to post earnings before interest and tax (ebit) for the year of €7bn, compared with its previous forecast of €6.5bn.