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Transpacific airfreight rates take off in October

Airfreight rates on the transpacific trade lane increased rapidly during October as the air cargo industry headed towards its traditional fourth-quarter peak season. Figures from data provider TAC Index show that average airfreight rates - a combination of spot and contract - on services from Hong Kong started October at $7.16 per kg but ended the month at $8.17 per kg. Compared with last year, rates on the trade ended the month 38.7% up on last year's levels. Meanwhile, for the month as a whole, airfreight rates from Hong Kong to North America averaged $7.64 per kg, up 34% on the year-ago level and ahead of the $7.02 per kg recorded in September. The increase as the month progressed pointed towards a busy peak season on the transpacific, a trade which was already booming due to strong demand for AI/data centre-related shipments. Figures from IATA show that in September, Asia-North America volumes were up 17% year on year. Rates will also have been affected by sky high jet fuel prices as a result of the conflict in the Middle East. Jet fuel is said to make up around one third of an airline's costs and IATA/Platts data shows that in the week ending 23 October jet fuel prices were up 118.5% compared with last year. Prices have risen in recent weeks, with TAC suggesting the Ukraine war has also been driving up prices. "Rates have been at elevated levels most of the year ever since conflict in the Middle East between the US, Israel and Iran erupted in late February," TAC said in its weekly round-up. "With Ukrainian strikes on Russia also hitting global production of oil products, the 'crack spread' has also widened." Rates from Hong Kong to Europe have also been climbing in line with peak season demand. In October, the average monthly rate stood at $5.31 per kg, which is 15.7% up on a year ago and an increase on the $4.80 per kg registered in September. Demand growth on the Asia-Europe trade has weakened in recent months as a result of the European Union's €3 charge for packages with a value of less than €150 to tackle the rapid rise of e-commerce volumes heading into the bloc. A further €2 handling charge is set to be added on 1 November. According to IATA, Asia-Europe volumes grew by 6% year on year in September. Looking ahead, TAC is expecting further rate increases as the peak season continues. "With demand yet to reach the top of peak season highs and jet fuel supplies so tight, sources suggest that pressure for rates to rise further is still very much increasing," TAC explained.

SmartKargo launches AI apps

Air cargo tech firm SmartKargo expanded in the world of AI with the release of four new apps that aim to drive revenues, reduce costs and reduce risks. The four apps launched by the company cover revenue and capacity management (AIRCAM); control tower services (AIRNOC), ULD and asset management (AIULD), and messaging and interoperability (AICTX). AIRCAM forecasts capacity, predicts demand, and recommends dynamic spot rates in real time, while AINOC provides a single view across the network, finding exceptions before they become delays. Meanwhile, AIULD tracks and forecasts ULD location, condition, and availability and AICTX connects cargo systems through a standards-based messaging layer. SmartKargo said that each app runs on top of an airline's existing cargo management system so there is no need for a system migration. Meanwhile, the apps are modular and "go live in weeks, not years", letting airlines start with a single use case and expand. "Artificial intelligence is everywhere in air cargo conversations right now. Every vendor has a roadmap, every conference has a panel, and every airline is being told AI will change everything," said Olivier Houri, chief revenue officer of SmartKargo. "At SmartKargo, we start with something far more useful than hype: a business question." SmartKargo claimed its apps are designed to drive revenue, reduce costs or reduce risk. "Every app that ships delivers on one, two, or all three -- and operates responsibly and securely, because airlines trust SmartKargo with their operations, their data, and their customers," the company said in a press release. "These apps aren't a research project or a roadmap slide," Houri continued. "They're built to plug into whatever cargo system an airline already runs, start delivering value in weeks, and grow with the airline from there. That's what flexible, responsibly built AI should look like." SmartKargo added that it would look to extend its portfolio of AI products in the future, as well as building on the capability of existing services.

Singapore Airlines appoints Menzies to handle cargo at Western Sydney

Singapore Airlines (SIA) has awarded Menzies Aviation a contract to deliver cargo, ramp and passenger services at Western Sydney International (Nancy-Bird Walton) Airport (WSI). Menzies will support SIA's ad hoc freighter operations and daily passenger flights at the new airport from the start of the airline's operations on 23 November. The 24-hour cargo precinct at WSI officially opened for business in July and passenger services started in October. The contract will be supported by Menzies' new 12,500 sq m cargo facility at WSI, announced in April, that is capable of handling up to 200,000 tonnes annually, making it the company's largest cargo warehouse in Oceania and Southeast Asia. Menzies' new facility is equipped to handle a broad range of cargo, including pharmaceuticals, perishables, e-commerce shipments and heavy freight. The operation also utilises MACH, Menzies' next-generation cargo management platform, providing customers with enhanced visibility, efficiency and real-time shipment tracking. Menzies and SIA already work together on freighter ramp handling operations in Sydney and Melbourne, while Menzies was also awarded SIA's ground handling contract in Brisbane and Cairns earlier this year. Darren Masters, executive vice president Oceania, Southeast Asia & China, Menzies Aviation, said: "We are proud to be appointed by Singapore Airlines, our first airline customer at Western Sydney International Airport. "This builds on our long-standing partnership with the airline and reflects our ability to deliver world-class passenger, ramp and cargo services. "Our new airside cargo facility and integrated service offering will support airline growth, strengthen supply chains and help establish the airport as a major aviation and cargo gateway for Australia." Foo Chai Woo, regional vice president South West Pacific, Singapore Airlines said: "As we prepare for the launch of operations at WSI from 23 November 2026, Singapore Airlines is working closely with Menzies to ensure we are ready to deliver the high-quality passenger, ramp and cargo handling services our customers expect from us." The contract builds on Menzies' growing presence across Australia, where the company provides air cargo and ground services at 15 airports nationwide. WSI is Menzies' 11th cargo operation in Australia.