Priority 1 Group to sell cargo aircraft as it enters liquidation

Priority 1 Group, the owner of struggling UK-based freight carrier European Cargo, will look to sell its fleet of semi-converted A340 cargo aircraft after entering liquidation. Leasing and logistics firm Priority 1 Logistics became the sole owner of Bournemouth-based European Cargo in 2024. The carrier was using a fleet of Airbus A340s which were being converted to a freight configuration, although without a main cargo door. European Cargo had been placed in administration at the beginning of June. Teneo Restructuring Ireland has been appointed as provisional liquidator, with Damien Murray and Julian Moroney appointed joint provisional liquidators to the group on 24 June. It said the provisional liquidators' priority with Priority 1 Group is to "pursue a sale of the business and its assets with a view to maximising value for its stakeholders". The group's entities include Priority 1 Leasing, Priority 1 Leasing Holding Ireland, and Priority 1 Logistics Holding. "We will be working closely with the administrators of European Cargo...as we explore the sale of the business and assets of the group," said Moroney, the managing director of Teneo Restructuring Ireland. Teneo Restructuring says Priority 1 Group has experienced "sustained financial pressure" in recent years, leading to a "material deterioration of its financial position". This was the result of lower flight activity, working capital constraints and higher fuel costs, and the situation has been exacerbated by the administration of European Cargo. Priority 1 Group's leasing division holds assets including the A340 fleet, along with engines and spares. Teneo describes the portfolio as "unique" and "well-suited" for long-haul cargo networks. "We welcome expressions of interest from potential buyers for the business, as well as its portfolio of aircraft, many of which are airworthy and of distinguished quality," said Moroney.

Ceva Vietnam-US air service a sign of global tech supply chain shift

Significant growth in Vietnam's tech sector is seeing logistics operators boost capacity in the country to take advantage of potentially high yields. Ceva Logistics has launched a three-times-weekly 777F Hanoi-Chicago service, citing growing demand from manufacturers in Vietnam's technology and industrial sectors for a "dependable long-haul solution into the US". Ceva provides pickup and cargo consolidation across multiple Vietnamese gateways, including Hanoi (HAN), Danang (DAD), and Ho Chi Minh City (SGN), supported by domestic operations teams coordinating multimodal flows, customs brokerage and transhipment activities. Sister airline CMA CGM Air Cargo reportedly recently launched a twice-weekly nonstop widebody freighter route connecting the French and Vietnamese capitals. The moves come amid mounting evidence that Vietnam is evolving into one of the world's fastest-growing hubs for hi-tech manufacturing - and logistics providers are moving quickly to position themselves for the shift. For years, Vietnam was viewed primarily as a beneficiary of the "China-plus-one" strategy, attracting manufacturers seeking to diversify production from China. But growing investments suggest the country is moving beyond a role as a low-cost assembly base to becoming an increasingly important part of global tech supply chains. Taiwan's Well Shin said yesterday it was shifting production of AI server power cords to Vietnam after securing cloud-related orders, and China's Huawei has expanded partnerships in the country, spanning AI, energy and 5G infrastructure. According to Vietnam's National Statistics Office, the country attracted $24.8bn in foreign investment commitments in the first five months of 2026, up 34.9% year on year, with around 65% of this directed towards manufacturing and processing. Among the largest projects announced this year are Samsung's second facility in Thai Nguyen province, Posco Future M's battery materials investment, and automaker BYD's expansion of its electronics production. Vietnam is also seeing increased investment in digital infrastructure. Industry forecasts point to rapid growth in AI-ready data centres, cloud infrastructure, and edge computing facilities. Hyperscale facilities are expected to account for the largest share of this expansion, driven by cloud growth and AI-related computing demand. And the shift is increasingly visible in freight markets. According to consultancy Aevean, Vietnam's AI-related air cargo exports increased 110% year on year in the first four months of 2026, while forwarders reported airfreight capacity out of both Hanoi and Ho Chi Minh City had tightened significantly, with exports to the US facing critical space constraints and elevated rates. According to Rotate, freighter capacity year to date into Vietnam from Europe has gone up 190%, and +50% from North America. Overall freighter capacity growth out of Vietnam has risen 32% over last year. Operators, including Atlas Air, UPS, China Cargo Airlines, Kalitta Air, Turkish Cargo, and AeroLogic have all added capacity- the strongest growth has been recorded on routes linking Vietnam with major manufacturing centres in South Korea, mainland China, and Hong Kong. That pattern suggests Vietnam is becoming more deeply integrated into regional technology production networks rather than simply replacing China as a manufacturing location. Ceva's latest announcement reflects that. Alongside the Hanoi-Chicago launch, the company also renewed its Wuxi-Chicago freighter operation in China, arguing that both routes support customers seeking resilient transpacific supply chains. It's not just air cargo: in April, Ceva parent CMA CGM announced the second phase of expansion at the Gemalink terminal in Cai Mep, southern Vietnam. The project will increase annual capacity from 1.7m teu to approximately 3m teu by 2027. The carrier said the terminal, which opened in 2021 and in which it holds a 25% stake alongside Gemadept, is already operating at full capacity. CMA CGM described the expansion as part of its long-term strategy in Vietnam, where it also operates extensive logistics services through Ceva. And Vietnam's attraction is no longer based solely on labour costs. Increasingly, investment is flowing into electronics, battery materials, telecommunications equipment, digital infrastructure, and other higher-value sectors that generate demand for sophisticated logistics services.

Growing demand drives up China-India box rates, despite capacity boost

Container freight rates from China to India have substantially strengthened in the past few weeks, thanks to strong demand for vessel space by Indian importers, according to industry sources. For example, spot rates from Shanghai to Nhava Sheva (JNPA) have surged 25% to 30% since end-May, after cooling for a while, sources said. Carriers are booking cargo for the port pair at around $2,300 per teu and $2,400 per 40ft, from $1,800 and $1,900 a month ago. Growing booking demand for India has sent Shanghai-Chennai rates up even steeper: for 20ft bookings, a near 50% gain in a month, to $1,800 per teu from $1,200: while for 40ft boxes, up to the same level from about $1,400, according to data. India is a large consumer of goods imported from China, both for the industrial and household sectors. Seasonality is a factor for the current surge in demand and rate activity by carriers, sources believe, as imports typically gather pace ahead of the local festival season that begins in August/September. Pushpank Kaushik, CEO and head of business development for Indian subcontinent, Middle East & SEA at Hyderabad-based Jassper Shipping, told The Loadstar: "While businesses may need to account for some market fluctuations, trade volumes between India and China remain strong." The elevated China-India rates come despite more capacity entering the tradelane, especially from CULines. The Chinese carrier began two new shuttle services connecting China and India to the Middle East in April, branded the CGX China-Middle East Express and CGS China-Khor Fakkan Express. The former, a standalone service, includes a call at Mundra in India. Other regional carriers, like Interasia Lines, SITC, and Sinolines, have also boosted capacity on intra-Asia trades connecting to India to capitalise on soaring volumes out of China. Cosco, Wan Hai, RCL, Evergreen, and TS Lines are the predominant intra-Asia operators. China is New Delhi's largest trading partner, though the bilateral commerce pattern hugely favours Beijing. According to provisional official data, Indian imports from China in fiscal year 2025-26 were valued at some $132bn, up 16% year on year, compared with just some $20bn of trade in the reverse direction. Meanwhile, CULines is rapidly expanding services beyond the mainstay intra-Asia market coverage in a bid to transform itself into a mainline operator. It recently established a subsidiary in Turkey to support intercontinental trunk and regional feeder services. "Following the successful establishment of its CUL India, CUL West Asia (Dubai) and CUL Japan operations over the past year, it completes the layout of the company's Europe-Asia-Africa regional service network," it said.