CMA CGM set to double its freighter fleet following Air Belgium ...

CMA CGM's planned takeover of Air Belgium's cargo operations has taken a step forward after it gained court approval for the deal, which includes the firm's fleet of four freighters. The Marseille-based shipping giant gained authorisation for the takeover from the Brabant Wallon Business court on 27 March after it submitted a proposal on 19 March. The offer includes the full takeover of Air Belgium's cargo operations, along with its fleet of four aircraft: two Airbus A330-243F and two Boeing 747-8F. CMA CGM Air Cargo currently operates four freighters; three Boeing 777Fs, plus a single Airbus A330F. In the short term, two more 777Fs are expected to be delivered to the airline. The airline has also ordered eight Airbus A350Fs, although Airbus has recently pushed back the entry-into-service date of its A350F to the second half of 2027. The acquisition also aims to retain 186 employees out of a total of 401. "Positions in administrative, operational, ground, and flight staff, as well as flight crew (across all aircraft categories), will be maintained, regardless of contract type," Air Belgium told Air Cargo News. "The company's activities will continue to develop from Brussels and Liège airports." The decision allows the company to restart the transfer process of its activities, Air Belgium said. The two companies know each other well. When CMA CGM Air Cargo first entered the market, its flights were operated by Air Belgium. Air Belgium's operations have been in trouble for quite some time. In September 2023, Air Belgium said it had decided to discontinue its own passenger business and focus exclusively on "cargo and ACMI for passenger and cargo flights" due to economic challenges that have resulted in the airline acquiring debt. But while the airline underwent a judicial restructuring, it had been seeking investors to provide financial stability. A previous takeover proposal fell through in March, casting doubt on the future of the Belgian airline. Another company, Air One Belgium, gained approval for their proposed takeover of struggling Air Belgium's cargo business in December but the proposal was later rejected. The Nivelles enterprise court revoked the acquisition process, stating that the takeover by the Air One Belgium JV was taking too long and had therefore failed. The court gave Air Belgium a final deadline of 27 March to find an alternative investor or face liquidation.

Trump tariffs: Lower airfreight demand and China de minimis end ...

Last night saw US president Donald Trump reveal a slew of new tariffs and also confirm the date from which Chinese goods will no longer benefit from the de minimis exemption. In what the president has dubbed 'liberation day', Trump announced a universal 10% tariff on imports into the country, while certain nations are subject to higher levels. A chart highlighting the tariff changes on a country-by-country basis showed that imports from China would be subject to tariffs of 34%, the European Union 20%, Vietnam 46% and Taiwan 32%. These are due to come into force on 9 April, giving countries little time to negotiate with the US. According to forwarder Flexport, China's tariffs are on top of section 301 tariffs, the 20% tariff implemented in early March, and baseline US tariffs. Last week, the Trump administration also announced a 25% tariff on autmobiles that starts today, along with a 25% tariff on automobile parts due to come into force in May. He has also previously implemented a 25% tariff on all Canadian and Mexican imports that are not covered by the North American free-trade agreement. Market analyst Xeneta said it is not expecting the tariffs to result in an immediate jump in airfreight rates but could result in demand decreases as a result of lower consumer demand due to higher prices. Niall van de Wouw, Xeneta chief airfreight officer, said: "We saw an uptick in air cargo rates from China and Europe to the US at the end of March but nothing to set alarm bells ringing. The more likely scenario is a decrease in air cargo rates if tariffs result in higher prices and lower consumer demand. "We could also see lower demand for US exports if there is growing anti-US sentiment across consumers in regions hit by the tariffs. Consumer sentiment has the potential to be even more powerful than tariffs. "We should also consider there will be more capacity added to these trades in the coming weeks as airlines start summer schedules, which will also put downward pressure on rates." According to Xeneta figures, air cargo spot rates currently stand at $4.16 per kg from Shanghai to US, down from the peak season high of $5.75 per kg in the week ending 10 November. Spot rates from western Europe to the US stand at $2.16 per kg, down from the peak season high of $3.51 per kg in the week ending 15 December. De minimis update Amongst the various executive orders issued by the White House yesterday was an update on the end of the de minimis exemption for imports from China. The US had tried to end the exemption that allows packages worth less than $800 to enter the country tariff-free and with minimal customs scrutiny in February. But the country was forced to backtrack on its plans when it became clear customs did not have the systems in place to process the millions of packages that arrive from China every day. However, the White House yesterday issued an update, saying that it planned to remove the exemption for China packages from 2 May. Packages that are sent through international postal networks will be subject to a different set of duties than those that are sent by other modes of transport. "Imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties, which shall be paid in accordance with applicable entry and payment procedures," the White House said. "All relevant postal items containing goods that are sent through the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption are subject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025). "This is in lieu of any other duties, including those imposed by prior orders." The different rules depending on how items are sent is likely to differentiate between small-scale shippers and e-commerce giants such as Shein and Temu which have such large volumes that they are able to charter aircraft and create direct commercial agreements with airlines to move their goods. The impact of the removal of the de minimis exemption on e-commerce volumes, which has helped fuel a boom in air cargo in recent years, is debated. Some are expecting it to have a large impact on the market, while others argue that the goods are so cheap anyway that adding a few extra dollars on top won't make too much of a difference. Others, however, say the need for customs to process packages will slow delivery times and make the overall proposition less attractive to consumers. There are also expected to be changes to e-commerce supply chains, with Chinese firms utilising a more traditional distribution setup, with warehouses in the US to store goods and an increased use of ocean shipping. They could also export from countries that are still able to benefit from the de minimis exemption or go through Mexico and Canada. Shipping upside While the latest developments are likely to be a blow to air cargo demand expectations, there is one geopolitical development that is expected to result in increased volumes if it is implemented. The Office of US Trade Representatives (USTR) has proposed a fee ranging from $500,000 to $1.5m per US port call by any Chinese carrier, Chinese vessel, or other carrier that has Chinese vessels as part of their global fleet. Ocean container carriers are expected to try and avoid the fees by calling at fewer ports, which could cause major congestion and delays to the US. Xeneta's van de Wouw said: "The proposed fees on Chinese vessels and carriers entering US ports could have a more significant impact if congestion in ocean container supply chains causes shippers to move more goods by air. "With around 98% of the world's goods transported by ocean, it doesn't take much of a percentage shift to have major implications for air freight, as we saw during Covid-19 and the Red Sea crisis."

DHL Group - break-up talk ahead of investor day - The Loadstar

DHL Group's Capital Markets Day (CMD) on Thursday 3 April is high on Premium's agenda as well as all others in our sector. What to expect with regard to tariffs, geopolitical risk and a "splashy Liberation Day" will be widely covered, but DHL executives will likely be challenged on other key value-drivers for shareholders. Management recently gave guidance that looked fair, yet it's on the finance side of things where focus will be... extraordinary corporate matters?