Air Freight

Air cargo demand lost momentum toward the end of 2018 in the face of weakening global trade, sagging consumer confidence and geopolitical headwinds. Still, demand grew by 3.5% compared to 2017—which was also a banner year.

Exclusive column by Peter Moore discussing the LTL and Airfreight markets.

The many moving parts that have been part of the interactions in recent months between Basel, Switzerland-based global 3PL and airfreight forwarder Panalpina by Hedehusene, Denmark-based global 3PL DSV, in regards to the latter’s pursuit of the former as an acquisition target, have taken yet another turn, with the companies announcing today that they are going to merge.

The “Amazon Effect” has had two definite impacts on the air cargo industry – increased package volumes and changing customer expectations.

Skip Dokken, a consultant with London-based Drewry Supply Chain Advisors, tells Logistics Management in an exclusive interview why he’ s bullish on the air cargo industry this year.

With the passing of last month’s annual Air Forwarders Association conference in Las Vegas, LM caught up with the AfA’s executive director Brandon Freid for this exclusive interview.

C.H. Robinson announced yesterday it has acquired Madrid, Spain-based international ocean and air freight forwarder The Space Group, in an effort designed to further expand its Global Forwarding business segment.

While the shockwaves stemming from regional less-than-truckload New England Motor Freight announcing this week it voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey in Newark on February 11 are still intact, documentation surfacing in recent days helps to tell the story of what led the fabled 101-year Elizabeth, N.J.-based carrier to make this decision.

The company announced yesterday that as part of a “long-planned succession process”, effective May 9, Chief Operating Officer Robert ("Bob") Biesterfeld, will become Chief Executive Officer, as well as being nominated to stand for election to the company’s board of directors. Biesterfeld will replace C.H. Robinson Chairman and CEO John Wiehoff, whom will continue as Chairman of the Board when Biesterfeld becomes CEO.

While the outcome had been predicted in industry circles, the verdict that Basel, Switzerland-based global 3PL and airfreight forwarder Panalpina will not be acquired by Hedehusene, Denmark-based global 3PL DSV is now official.

FedEx officials said that it has had a 30-year relationship with Flying Cargo Group, adding that this agreement was reached at the time that the service agreement between the companies was set to expire. And they added that this agreement is expected to be made official during the first half of 2019 and subject to regulatory approval.

Hedehusene, Denmark-based global 3PL DSV said this week that it confirmed that it made “an indicative and private proposal” to the board of directors of Basel, Switzerland-based global 3PL and airfreight forwarder Panalpina to acquire the company.

Chicago-based third-party logistics (3PL) services provider SEKO Logistics recently announced it made an intra-city acquisition, with the purchase of GoodShip International, a customs brokerage and compliance consultancy.

All regions and trade lanes are expected to report profits for air and ocean carriers in 2019.

Logistics Management Group News Editor Jeff Berman recently caught up with Brandon Fried, executive director of the Washington, D.C.-based Airforwarders Association (AfA), an organization representing more than 275 member companies dedicated to moving cargo throughout the supply chain, with business models varying from domestic to worldwide freight forwarding operations.