Logistics Bulletin

Monday 06 July 2020

This week’s Logistics Bulletin reports on a slight improvement in May for global air freight markets, though capacity remains unable to meet demand as a result of the loss of belly cargo operations on passenger aircraft that have been parked. Global demand fell by 20.3% in May (-21.5% for international operations) compared to the previous year. That is an improvement from the 25.6% year-on-year drop recorded in April. Global capacity shrank by 34.7% in May (-32.2% for international operations) compared to the previous year, a slight deceleration from the 41.6% year-on-year drop in April. Belly capacity for international air cargo shrank by 66.4% in May compared to the previous year due to the withdrawal of passenger services amid the COVID-19 crisis (up slightly from the 75.1% year-on-year decline in April). This was partially offset by a 25.2% increase in capacity through expanded use of freighter aircraft.

As FedEx reported its annual results this week, the Company exited May with total intercontinental volumes showing year-over-year growth. However, the Company anticipates air cargo capacity recovery will take at least 18 months to return to pre-COVID levels. It is actively pursuing opportunities to increase both market share and revenue quality, especially for international priority freight and international economy freight services and believes that it is well-positioned to profitably gain share from the freight forwarders.

Elsewhere this week, Wincanton has been chosen by Waitrose to create a Customer Fulfilment Centre for Waitrose.com online grocery home deliveries, a ‘first’ for the third-party logistics market. As part of an initial five-year contract, Wincanton will be responsible for operating the CFC (or ‘dark store’) and making deliveries to Waitrose customers in the West London area.

The latest responses to the COVID-19 pandemic from 3PLs around the globe can be viewed across Analytiqa.com.

A message from Analytiqa:

As analysts serving global markets, our clients are being impacted by the Coronavirus / Covid-19 situation to varying extents in different countries. In the current climate, we wanted to ensure all our clients that we will continue to serve them to the best of our ability during the coming weeks. Flexibility in our working practices has been a key part of our business over the last 18 years and our staff regularly work from home or away from the office. We will continue to provide clients with our usual high standards of service, though we will be prioritising communications by telephone and online conferencing, etc. rather than face-to-face meetings. Should you have any questions, please do not hesitate to contact us.

Stay safe and well.

Corporate and market news...

• FedEx expects air cargo capacity recovery will take at least 18 months
• Air freight markets decline 20.3% in May
• YRC Worldwide expects to receive CARES Act Loan from US Treasury
• Royal Mail records lower than expected annual growth in parcel volumes
• Royal Mail sees surge in parcel volumes
• Barloworld continues to deliver despite tough trading environment
• Currie European Transport acquires Laser Transport International
• PostNL completes sale of Nexive’s business to Mutares
• Platinum Equity acquires L&R Distributors
• Tosca to acquire Contraload

Service developments... 

• UPS and Estafeta make it easier for small businesses in Mexico to go global
• Tesco doubles online capacity
• GEODIS launches e-Logistics to help brands grow their online sales
• Royal Mail launches Inflight options for parcel deliveries
• Bolloré Logistics Myanmar launches truck-to-air solution via Bangkok
• DB Schenker launches new logistics service for the battery industry
• GEODIS agrees deals to become Hellmann’s transport partner in France
• P&O Ferrymasters and Scan Global Logistics partner to connect Benelux and Sweden
• Trafertir forms European Pallet Distribution partnership with United Pallet Network

Outsourcing news...

• Waitrose awards logistics contract to Wincanton to support expansion in online grocery home delivery
• CEVA Logistics wins new contract extension with Volkswagen in Brazil
• Nisa Retail extends logistics contract with DHL
• Kuehne + Nagel provides eCommerce fulfilment for Huel in Poland
• Shell awards logistics contract extension to Peterson
• Red Cross and DSV supported families after Malawi flooding
• Aramex partners with Mubadala Healthcare in UAE
• Bolloré Transport and Logistics Burkina Faso and Bolloré Logistics UK partner on mining project
• Gebruder Weiss and Sika achieve success through real-time planning
• Suttons wins contract with Ryse Hydrogen to supply hydrogen gas to Transport For London
• Sino-Global charters ships to support JYF contract

Warehouse and distribution centre developments...

• DSV builds Europe's largest logistics centre in Denmark
• Amazon set for second fulfilment centre in Ottawa
• DHL Supply Chain to expand life sciences and healthcare capabilities in North America
• NewCold expands as demand for cold storage outstrips supply
• Amazon to launch its first robotics fulfilment centre in Australia
• DHL signs up for logistics centre in Derby, UK
• Zarys International invests in logistics operations
• Marken doubles GMP facility in Frankfurt and adds cryogenic storage services
• cargo-partner expands iLogistics Center in Dunajska Streda

IT, fleet and environmental developments...

• ZTO Express invests in environmentally friendly fleet
• DHL plans ‘perfect flight’ from Leipzig to New York City
• BWG is first FMCG group to launch fleet of Biogas delivery vehicles in Ireland
• Geek+ helps streamline Winit's warehouse operations
• Groendyke Transport deploys SmartDrive Program across entire fleet

Personnel and  HR developments...

• Coles introduces product limits until chilled distribution centre returns to full capacity

The Logistics Bulletin has provided global supply chain professionals with the latest insight, news and analysis for 18 years. To receive this highly valued service direct to your in-box, register here. Press releases and articles for inclusion can be sent by email to logisticsbulletin@analytiqa.com