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Category: Logistics

Retail News Asia is committed to providing both local and global retailers with the latest Logistics news throughout the Asian market. This on a daily base.

  • Kerry Logistics introduces new Trans-Pacific air freight service

    Kerry Logistics introduces new Trans-Pacific air freight service

    Kerry Logistics Network Limited introduces a new Trans-Pacific air freight service to connect multiple Asian locations to the USA to capture the heightened demands in the pandemic-hit air freight market. Named Kerry Freight Controlled Network (‘KCN’), the freight integrator centres on the Americas hub set up in Huntsville, Alabama, USA. The inaugural flights will originate from Hong Kong in August 2021.

    KCN is a time-definite solution that offers standard air freight services to customers with guaranteed space and long-term pricing, fulfilling the needs of customers looking for stable and long-term solutions. KCN leads the market in heavy air freight integrators with door-to-door solutions for a wide range of products: from small parcels to large and oversized cargoes, including DGR and lithium batteries.

    KLN is partnering with the Huntsville International Airport in the State of Alabama, USA, to establish a hub at the airport, operating inbound and outbound air cargo flights as well as trucking connections to provide seamless transportation of goods across the Americas. KLN will operate multiple aircraft on a weekly basis from select origins in Asia.

    Kevin Bulger, Chief Operating Officer of USA, Kerry Logistics Network, said, “We chose Huntsville as our Americas air freight hub for KCN as it is congestion free and enjoys expedited transfer of cargo to Latin America and Mexico. With cooperation from HSV, we will be able to execute swift dispatch of cargoes to cities within the USA and Canada. KCN will be a welcomed service in the increasingly tight air cargo market and meet the demands of customers looking for a lasting and reliable solution to their air freight needs.”

    Rick Tucker, CEO, Port of Huntsville, said, “The Port of Huntsville is a Southeast gateway to countries all over the world and makes our region a highly sought-after location for business and industry. Home to the Huntsville International Airport (HSV), Jetplex Industrial Park (JIP) and the International Intermodal Centre (IIC), our Port creates efficient, effective, and economical solutions for customers and stimulates the regional economy through a strong transportation infrastructure, global connectivity, and innovative logistic solutions. Kerry Logistics Network will enhance HSV’s global connectivity and speed to market solutions. We welcome our newest logistic partner to HSV and look forward to a long term, prosperous partnership.”

    Backed by its excellent track record in the industry, the support of carriers, its customs clearance capacity and extensive coverage of major air transit hubs across different regions, KLN’s air freight business, from Asia to the world, surged in 2020.

  • Seaport, maritime transport firms more profitable

    Seaport, maritime transport firms more profitable

    Market recovery and larger freights helped Vietnamese seaport and maritime transport enterprises, both state-owned and private, gain bigger profits in the first half of this year.

    Vietnam National Shipping Lines (VIMC) made consolidated revenues of more than VND6.2 trillion (nearly $269.6 million), a 20 percent increase, and consolidated profits of over VND1.1 trillion, doubling against the same period last year.

    Meanwhile, net profits of HCMC-based Saigon Port JSC surged 155 percent year-on-year. The company currently runs many ports in the city, including Tan Thuan, Tan Thuan 2, Nha Rong, Khanh Hoi and Sai Gon-Hiep Phuoc.

    Dong Nai Port JSC in the southern province of Dong Nai saw revenues and profits increase 38 percent and 35 percent, respectively between January and June.

    Profits of Cam Ranh Port JSC in the central province of Khanh Hoa, and of Quy Nhon Port JSC in the central province of Binh Dinh surged 118 percent and 93 percent, respectively.

    Gemadept Corporation’s management board estimated its first-half revenues at over VND1.4 trillion, up 19 percent, and pre-tax profits of some VND390 billion, up 38 percent. The firm owns four ports in the northern region, one port in the central area and three ports in the south. It plans to increase its share in the Vietnamese port market from 11 percent in 2020 to 19 percent in 2021, and 23 percent in 2025.

    Like seaport operators, maritime transport service providers turned profits in the first half of this year, mainly thanks to market recovery and larger freights.

    Maritime transport units of VIMC started making profits after a long period of losses. Vietnam Ocean Shipping JSC (Vosco), which suffered losses of nearly VND120 billion in the first half of last year, recorded after-tax profits of more than VND220 billion in the first half of this year, the highest since 2009.

    Meanwhile, Hai An Transport and Stevedoring JSC, has been estimated to see pre-tax profits in the first half of this year more than double.

    According to VIMC, the quick recovery of Chinese, U.S. and European economies amid Covid-19 outbreaks led to bigger demand for goods and materials, positively affecting the international sea transport market.

    Data from the General Statistics Office showed Vietnam’s import-export turnover stood at nearly $320 billion in the first half of this year, increasing over 32 percent against the same period last year. The volume of goods through seaports surged, with container outputs rising 24 percent.

    In early July, Drewry World Container Index (for container freight) stood at $8,399, surging 346 percent against the same period last year.

    According to the Vietnam Association of Seafood Exporters and Processors, at some ports, freight in mid-2021 doubled that of late 2020 and rose nearly six times against early 2020.

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  • Cargo could be as powerful as our passenger services says Airasia chief

    Cargo could be as powerful as our passenger services says Airasia chief

    Air cargo has been a “diamond in the rough” for AirAsia during the Covid-19 pandemic and is likely to retain a high importance to the business in the longer term, according to group chief executive Tony Fernandes.

    “What was a ‘nice to have’ has become something that could be as powerful as our passenger services,” Fernandes said during a CAPA Live event on 14 July. “Covid has driven e-commerce to another level, and hence air cargo has become much more valuable.”

    Amid that change, AirAsia is expecting to receive its first dedicated freighter in the third quarter of this year and is currently removing the seats from two of its Airbus A320s before deploying them as temporary freight-only aircraft.

    Air cargo is “no more a stepchild” in AirAsia’s business, Fernandes says. “I never thought we’d have freighters, I never thought we’d be taking seats off the planes to do cargo.

    The move towards cargo has been made easier by AirAsia already having air freight expansion plans in place as the pandemic hit, he explains.

    “Prior to Covid, I began to see the eCommerce revolution and I started building a separate company called Teleport,” Fernandes says of AirAsia’s logistics arm.

    His aim is to do to cargo operations “what we did to passengers… and eliminate the middlemen”. As part of that process, AirAsia began to deal more with freight forwarders, then direct customers. At the same time, Fernandes says AirAsia “consolidated all our space across all the airlines”.

    “We built a blockchain to deal with that, so there was one airline, as opposed to five different airlines,” he says in reference to the freight capacity across AirAsia Group’s carriers.

    “Five our six other airlines have joined us now in selling space together,” he adds.

    Amid that growth, Fernandes is also cautious about the longevity of current market dynamics.

    “There is a false market out there, so we shouldn’t all get carried away, because [the return of] belly space is going to change the economics again,” he states.

    Regardless, air freight is now front and centre of the carrier’s planning.

    ”When a budget plan is put in front of me, it’s now ‘where are the cargo routes, where are the cargo-only routes?’,” Fernandes says. “Models have to be redone, [but] it’s easier at AirAsia because we are a very nimble even though we are big. I’ve always been a change agent so the staff are used to that.”

    And his ambitions stretch to the “whole logistics chain”, he says: “I also want to be in the warehouse game. We are going to cover everything.”

    AirAsia Group has focused on diversifying away from its core passenger-airline business during the pandemic, and in September last year launched AirAsia Digital, of which Teleport is one of three key focus areas.

    The others are an ecommerce-focused ”AirAsia Super App” and a Fintech company that provides payment, remittance and lending solutions.

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  • FedEx’s bot opens possibilities for on-demand, same-day delivery

    FedEx’s bot opens possibilities for on-demand, same-day delivery

    Roxo is an autonomous specialty delivery device, designed to travel on sidewalks and along roadsides, safely delivering smaller shipments to customers’ homes and businesses. Its features include pedestrian-safe technology, multiple cameras and LiDAR allowing the zero-emission, battery-powered bot to be aware of its surroundings. These features are coupled with machine-learning algorithms to detect and avoid obstacles, plot a safe path, and allow the bot to follow road and safety rules. Proprietary technology makes it highly capable, allowing it to navigate unpaved surfaces, curbs, and to even climb deep flights of steps for an extraordinary door-to-door delivery experience.

    Roxo is currently undergoing testing in the U.S. to generate data to ‘train’ the self-driving software and validate safe performance, in compliance with all applicable safety regulations and guidelines. There is significant opportunity in Japan to identify local, case-specific applications to make the best use of the technology to benefit FedEx customers.

    “We are thrilled to have Roxo in Japan, a country that is a global leader in robotics implementation. The FedEx SameDay Bot is truly an innovation opening new possibilities for on-demand, same day, hyper-localized delivery,” said Kawal Preet, president of the Asia Pacific, Middle East, and Africa (AMEA) region at FedEx Express. “As we sit at the intersection of physical and digital networks, Roxo brings a glimpse of the future of logistics, where customers can enjoy same day, contactless delivery services at their doorsteps. With businesses of all kinds embarking on digital transformation, we look forward to collaborating with future-ready companies to advance delivery services in Japan and elsewhere in Asia Pacific.”

    The bot is being developed in collaboration with DEKA Development & Research Corp., a prominent research and development company which also produced the Segway. The bot uses DEKA’s established iBOT electric wheelchair base, capable of negotiating rough terrain, traversing steps, and steep inclines. Its sensors maintain 360-degree awareness of its surroundings and uses artificial intelligence, or AI, to choose the safest path or course of action. With a tall profile it is easy for pedestrians and road users to see. It also uses signals, lights and a signaling screen that clearly communicate its directional intent.

    Roxo was unveiled in February 2019 and has been undergoing tests with major retailers in the U.S. U.S. cities where Roxo has been tested include Memphis, Tennessee; Manchester, New Hampshire; and Plano and Frisco, Texas. It made its first international appearance in Dubai, United Arab Emirates in October 2019 for an experimental project with local businesses including Dubai Airports.

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  • Foreign shipping lines impose irrational fees

    Foreign shipping lines impose irrational fees

    Foreign shipping lines have irrationally imposed several fees and created headaches for domestic exporters, an inspection team has concluded.

    The Vietnam Marine Administration has reported the findings to the Transport Ministry.

    The inspection team studied the practices of 10 foreign shipping lines – MSC, OOCL, CMA – CGM, Hapag – Lloyd, ONE, Evergreen, HMM, Maersk Lines, and Yangming – between March and May after they rampantly increased freights and surcharges.

    According to the administration, sea freight started to surge in October 2020, especially on routes to Europe and North America. In April 2021, the freight for a 40-foot container from Vietnam to Europe was $6,500-8,000, and for a 20-foot container to America, $6,000-7,000; an increase of 5-7 times over late last year.

    The key reason for the hike was China’s economic recovery after being hard hit by Covid-19. A large number of empty containers were booked by China, resulting in reduced supply and increased demand, and in turn, higher freight.

    The shipping team found that the shipping lines listed freight on their websites but did not display the time of listing, so it was impossible to know when those came into force. The shipping firms even applied floating freights for small customers without long-term contracts.

    In addition to increasing freights, the shipping lines applied 3-5 surcharges for goods loading and unloading, container cleaning, documentation and lead sealing. Up to 9 shipping firms imposed loading and uploading surcharges of $100-170 per container. Some firms applied feels like petrol surcharges infrequently.

    The team said the shipping lines imposed surcharges without agreements with customers, and without explaining the reason or announcing a time frame it.

    The firms also applied a Verified Gross Mass (VGM) fee of $30-50, but they did not have to pay it the inspection time found.

    It is difficult to monitor surcharges because shipping lines do not have to declare these to agencies.

    “Shipping lines decide freights and surcharges themselves. Small and seasonal Vietnamese customers have no plans to sign long-term shipment contracts, so they face many risks amid volatile markets,” the inspection report said.

    Shipping lines do not have to register transport routes, so they are free to add or remove ships from them, which poses a risk to local exporters.

    The administration has proposed the Finance Ministry to consider amending regulations on freights and surcharges of shipping lines imposed at Vietnamese ports. It has also proposed the Transport Ministry to issue new regulations on registering transport routes, schedules and cargo volumes in Vietnam to prevent shipping lines from unilaterally delaying or quitting voyages, or canceling space bookings, and increasing punishments for freight listing violations.

    Some 40 shipping lines frequently operate in Vietnam, securing a lion’s share of 95 percent of the country’s import-export transport. Vietnamese shipping firms have not been able to run routes to Europe and North America.

    Nine shipping lines inspected by the teams currently run routes from Lach Huyen Seaport in the northern city of Hai Phong and from Cai Mep-Thi Vai Seaport in the southern province of Ba Ria Vung Tau to Europe with 2 voyages a week, and 18 voyages to North America.

    Foreign shipping lines typically have representatives in Vietnam in the form of wholly foreign-owned enterprises.

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  • Rivian’s Amazon Delivery Vans Hitting Mass Production

    Rivian’s Amazon Delivery Vans Hitting Mass Production

    Rivian is one of the hottest EV startups doing the rounds. It has deep pockets thanks to investments from Ford, Amazon, and many venture capital firms. Amazon’s investment in Rivian originally was $700 million which entailed the startup producing 100,000 electric delivery trucks. It was supposed to be delivering the first tranche of 10,000 vehicles by the end of 2022.

    Looks like Rivian is right on track with achieving the same. Its vehicles have already been popping up in cities like San Francisco, Denver, and Oklahoma – but these were prototype vehicles that were doing real-world testing.

    Rivian CEO and co-founder RJ Scaringe has posted a photo of eight Rivian vans which look identical to the one that Amazon has been teasing which even feature the “Powered By Rivian” signage. He also shared tweeted videos that showed the initial production process.

    A lot of it is not known about these vans as they have probably been customized and tailored for Amazon’s logistics. These vehicles are obviously different from the R1T and R1S vehicles which Rivian are going on sale soon in July and August.

    The R1T has been even showcased in the Apple TV+ original “the Long Way Up” and is expected to duel with the likes of the Tesla Cybertruck and the Ford F-150 Lightning.

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  • Kerry Logistics recognised as “Most Honoured Company” for sixth year in a row

    Kerry Logistics recognised as “Most Honoured Company” for sixth year in a row

    Kerry Logistics Network Limited (‘Kerry Logistics Network’; Stock Code 0636.HK) is honoured to be recognised as one of the “Most Honored Companies” in Institutional Investor’s annual All-Asia (ex-Japan) Executive Team rankings for the sixth consecutive year. It was also ranked in the top three in five categories under the Transportation sector.

    Kerry Logistics Network and its key executives secured top three in the following categories, based on votes from buy-side analysts, money managers, and sell-side researchers at securities firms and financial institutions that cover the Asian region:

    • Best CEO – William Ma
    • Best CFO – Ellis Cheng
    • Best Investor Relations Professional – Iris Tsang
    • Best Investor Relations Program
    • Best ESG

    William Ma, Group Managing Director of Kerry Logistics Network, said, “We are honoured to be recognised once again for our commitment to a proactive investor relations strategy. While it has been imperative to respond to the challenges brought by the pandemic, in terms of investor relations, we have remained steadfast in maintaining our transparency, stepping up communication with the investment community and addressing investors’ concerns. Despite all the difficulties, we believe it is of paramount importance for us to keep our shareholders and investors up to date, particularly on Kerry Logistics Network’s latest corporate developments, while providing comprehensive disclosure to our stakeholders to ensure we create value for all. We are grateful to Institutional Investor and the investment community for the long-term support, and we will continue doing our best in applying global best practices in our investor relations programme.”

    Kerry Logistics has received the “Most Honored Companies” accolade since 2016. The 2021 All-Asia (ex-Japan) Executive Team rankings were determined by the votes from over 4,000 investment professionals across 1,285 financial services firms. The survey covered several core areas, including “Financial Disclosure”, “IR Services & Communications”, “COVID-19 responses”, “ESG”, “CEO”, “CFO” and “IR Professional”.

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  • Logistics Company Cogos To Add 2500 EVs To Its Fleet Over Next 24 Months

    Logistics Company Cogos To Add 2500 EVs To Its Fleet Over Next 24 Months

    Bengaluru-based logistics platform, Cogos, has announced that it will be adding 2500 electric vehicles (EV) to its delivery fleet across Bangalore, Hyderabad, Delhi, and Gujarat, and later in Maharashtra and Tamil Nadu. The company claims that it wants to reduce the carbon footprint of its fleet, and this move will help it achieve a reduction of 15000 tonnes of CO2 when running at full capacity, per year. The EVs will be added to the company’s fleet in a phased manner, over the next 24 months. Cogos has partnered with electric vehicle manufacturers like Altigreen, Mahindra, and Piaggio among others procure these EVs.

    Talking about the development, Prasad Sreeram, Co-founder and CEO, Cogos said, “It is important for us, as a logistics company, to focus not just on efficiency and cost, but also on sustainability. With this fleet augmentation of 2500 EVs, we are on track to achieve as much as 30 percent of our revenues from green technologies by 2023. We want to give customers a significant edge in efficient and responsible distribution and last-mile delivery solutions. EV is the future of mobility and city logistics have higher operating costs and lower traveling distances, hence are best suited for EV adoption for the logistics sector.”

    While currently, the company operates with three-wheeler commercial vehicles that have a payload capacity of 500 kgs, it is already working with the OEMs for four-wheeler EVs with a capacity of 1 tonne. The EVs will be used for the e-commerce, grocery, distribution, and mobility sector. Cognos has already entered into deployment agreements of 500+ vehicles for leading E-Com Enterprise and another 300+ with Food, FMCG, and Mobility enterprises.

    Cogos aims to strengthen the ecosystem by promoting EV ownership and creating a pool of fleet-owning entrepreneurs focused on sustainable growth. The company says that it will have a special focus on women empowerment through entrepreneurship and upskilling, along with evangelizing the benefits of EV to finance providers. To realize that, the company has entered into a tripartite agreement with the owner-operator and the financing entity, to support better financing for driver-partners. Cogos is also educating potential fleet owners on the benefits of EVs, like the fact that the cost of operating a commercial EV is only 50 paise per kilometer, which is multiple times lesser than fossil-fuel-based vehicles.

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  • Global delivery firms increase flights to Vietnam amid e-commerce boom

    Global delivery firms increase flights to Vietnam amid e-commerce boom

    Express delivery giants like DHL and UPS are increasing their transport capacity to Vietnam thanks to rising demand due to the Covid-19 pandemic.

    Germany-headquartered DHL Express recently announced a new delivery route from Hong Kong to Ho Chi Minh City using wide-body Airbus A330 aircraft.

    There would be six one-way trips a week, each with a capacity of up to 62 tons of cargo, it said.

    This is to mainly serve the rising online shopping demand, it added.

    It will also upgrade the aircraft used on the Hanoi – Hong Kong route from Boeing 737-400s to 737-800s to serve Vietnam’s surging exports.

    Most consumers are now looking at delivery speed as a key component of their shopping experience, Bernardo Bautista, CEO of DHL Express Vietnam said.

    Last year U.S.-based UPS launched its first service to Vietnam from its hub in China to increase delivery speed.

    Vietnam does not have a dedicated cargo airline, and industry insiders estimate foreign companies hold an 80 percent aviation logistics market share.

    Johnathan Hanh Nguyen, chairman of retail company Imex Pan Pacific Group, recently announced plans to establish a cargo airline at an investment of $100 million.

    Vietnam’s e-commerce market expanded by 18 percent last year to $11.8 billion, the only country in Southeast Asia to record double-digit growth amid the pandemic, according to the Vietnam e-Commerce and Digital Economy Agency.

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  • AirAsia to add first dedicated freighter in 3Q21

    AirAsia to add first dedicated freighter in 3Q21

    AirAsia Group has announced it would significantly expand its presence on the cargo market with the planned addition of its first dedicated freighter, a B737-800(F), in the third quarter of 2021.

    The Boeing dedicated freighter will be based out of Bangkok Suvarnabhumi from where it will operate on behalf of Air Asia’s logistics arm, Teleport, to regional destinations in South-East Asia, India, Korea, Japan, Taiwan, China, and Hong Kong Int’l. The group did not disclose the identity or the exact variant of the aircraft. It also did not specify the Air Operator’s Certificate (AOC) on which the aircraft would be placed. ch-aviation has reached out to the group for comment.

    “It was evident at the end of last year that the demand for cargo capacity was not going to be served with passenger belly capacity alone in the long run. So, we evaluated the option to utilize dedicated freighters to transport cargo. This is also part of our strategy to build the capacity and connectivity to offer 24 hours door-to-door delivery across all of Southeast Asia,” Teleport’s Chief Operating Officer Adrian Loretz said.

    Teleport’s spokesperson Jessica Tan told ch-aviation that the aircraft will be operated by a third-party cargo airline on behalf of the logistics arm of AirAsia Group and not by any of AirAsia-branded airlines. She did not, however, disclose the identity of the operator just yet.

    The group will also remove seats from two A320-200s to use them as makeshift freighters on behalf of Teleport. One of the pair of Airbus narrowbodies will be based out of Bangkok Don Mueang and the other out of Kuala Lumpur Int’l.

    The first dedicated freighter and the two makeshift converted aircraft will complement the existing fleet of non-converted passenger aircraft used by AirAsia Group for Teleport’s operations. The holding said that last month, it had operated two A320-200s and six A330-300s for cargo-only flights on behalf of its in-house logistics arm.

  • DB Schenker, Volocopter develop heavy lift cargo drone

    DB Schenker, Volocopter develop heavy lift cargo drone

    DB Schenker and urban mobility air firm, Volocopter, have teamed up to develop solutions for the fast and emission-free transport of goods using heavylift drones.

    Volocopter exhibited its test VoloDrone aircraft, along with a sample transport container from DB Schenker, at Germany’s National Aviation Conference last week.

    In a statement, DB Schenker said the heavylift drone, which can take off and land vertically, is autonomously and electrically operated and can transport up to 200 kilograms (kg) of cargo with a range of up to 40 kilometers.

    The VoloDrone weighs 600 kg, it is 9.15 meters in diameter, 2.15 meters tall.

    Jochen Thewes, CEO of DB Schenker said the possibilities of utilizing the drone in logistics is “limitless.”

    “When the infrastructure for conventional means of transport is overburdened or non-existent, cargo drones offer an opportunity to rethink logistics routes. The possible applications in logistics are limitless. Through our partnership with Volocopter, this vision is gradually becoming reality. Drone transport is becoming increasingly tangible,” he said.

    DB Schenker noted that the first flight took place in 2019. Since then, regular flight tests have been conducted in southern Germany.

    Florian Reuter, chief executive of Volocopter, said: “Our VoloDrone will be put to use, where classical ground transportation meets its limits in logistics, construction, or agriculture.”

    The logistics company said the future logistical applications for the heavy-lift drone include places that are difficult or slower to reach by other means, such as islands, land-to-ship deliveries, transport to mountainous regions, or places isolated from road networks following natural disasters.

    Intra-city deliveries are also possible targets for such drone operations.

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  • DHL adds Sustainable Marine Fuel option for full-container load shipment

    DHL adds Sustainable Marine Fuel option for full-container load shipment

    DHL Global Forwarding is introducing another Sustainable Marine Fuel (SMF) service for ocean freight as part of its sustainability strategy.

    In a statement, the air and ocean freight arm of Deutsche Post DHL Group, said they are now extending the carbon reduction option to Full-Container Load (FCL) shipments following the success of the launch of a similar service for Less-than-Container Load (LCL) shipments.

    It said offering the option of using SMF is another step towards cleaner and greener ocean freight, in line with Deutsche Post DHL Group’s Mission 2050 of net-zero emissions logistics.

    “As one of the leading ocean freight forwarders globally, we take a serious commitment in our fight against climate change. With the strong demand for ocean freight in the Asia Pacific, we are in a prime position to offer our customers a new and easier way to reduce their carbon footprint, by choosing sustainable biofuels and decarbonizing their entire ocean freight trade lanes,” said Kelvin Leung, CEO DHL Global Forwarding Asia Pacific.

    He added that the launch of this new service “reinforces” DHL’s push toward a more sustainable supply chain.

    The SMF service is now available for all ocean freight shipments. DHL said the carbon reduction is achieved by DHL Global Forwarding purchasing SMF through partners and matching it with the amount consumed in the FCL shipment.

    It added that through the “book & claim” mechanism, there is no requirement for physical traceability of the fuel through a supply chain, as the environmental attributes of the SMF are separated from and can be purchased independently of physical fuel.

    “With the goal of ‘burn less, burn clean,’ the logistics provider aims to optimize carbon consumption across its network, fleet, and real estate. As part of this, DHL has a GoGreen carrier rating program that allows the freight forwarder to give preference to carriers with strong environmental performance,” DHL said in its statement.

    It said offering a sustainable alternative fuel for ocean freight is also another step within the Group’s sustainability efforts. By 2030, DHL said it wants to invest EUR 7 billion in climate-neutral logistics solutions and cover at least 30% of its fuel requirements with sustainable fuels.

    DHL noted that its customers can easily choose the use of sustainable biofuels via the myDHLi Quote + Book function, which also includes a carbon calculator.

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  • FedEx To Test Package Deliveries With Self-Driving Startup Nuro

    FedEx To Test Package Deliveries With Self-Driving Startup Nuro

    FedEx Corp and robotics company Nuro on Tuesday announced a multi-year agreement to test self-driving vehicles in the package delivery company’s network, starting with a pilot program in Houston. The partnership comes as parcel companies race to reduce the cost of last-mile delivery, which surged during the pandemic. The companies will target delivery scenarios where Nuro’s low-speed, unmanned vehicle can provide “the biggest bang for your buck,” Cosimo Leipold, Nuro’s head of partnerships, told Reuters in an interview.

    That will likely include inefficient tasks like late-night pickups in out-of-the-way places, said Rebecca Yeung, FedEx vice president for advanced technology and innovation. “Instead of dispatching a driver to get those packages, a device like Nuro could be super helpful,” said Yeung, who called the FedEx/Nuro tie-up a “very serious, long-term commitment” that aims to reduce headaches, not human drivers.

    Nuro vehicles are already making deliveries for U.S. supermarket operator Kroger Co and Domino’s Pizza Inc in the Houston area. Nuro continues to test its technology in Arizona. Nuro, whose R2 unit has space for delivery cargo but not a human driver, said last year it has raised $500 million. In a separate project, FedEx is using DEKA Research & Development Corp’s smaller robot, dubbed “Roxo,” for on-demand, same-day deliveries in Plano, Texas.

    Nuro vehicles are already making deliveries for U.S. supermarket operator Kroger Co and Domino’s Pizza Inc in the Houston area.

    Rival United Parcel Service Inc is centering its unmanned delivery efforts on drones. UPS has ordered electric delivery vans from British startup Arrival. Those vehicles are fitted with sensors and cameras that should gradually enable autonomous features, but will still require a human driver.

    Transporting people via self-driving taxis is proving more difficult and expensive than delivering packages and food. As a result, freight and logistics companies are exploring ways to roll out the technology on predictable and simple routes, including on highways.

  • Airlines carry freight, charter flights to survive Covid hit

    Airlines carry freight, charter flights to survive Covid hit

    Airlines have strengthened freight services and offer charter services and discounts on passenger fares as they seek to recover from the slump caused by Covid-19.

    Vietnam Airlines recently converted one of its Boeing 787-9 aircraft to transport 40 tonnes of lychee from Hanoi to Ho Chi Minh City.

    Before the pandemic its Dreamliners had a busy schedule, flying to Europe, Australia and the ultra-busy Hanoi-HCMC sector, and few thought lychees will replace passengers on the modern airplane with a capacity up to 270.

    The carrier has also deployed other planes to transport lychee.

    Budget airline Vietjet has also been offering freight services to compete with leading logistic providers as demand balloons by the day. It has set up an online freight service, Swift247, in which it owns a 67 percent stake.

    In the first three months of 2021, Vietjet transported over 18,000 tonnes of cargo, with its cargo subsidiary contributing nearly 50 percent of total revenues.

    Since May, Bamboo Airways has been offer charter flights.

    To compete in the summer, the high season for air travel, carriers have offered big discounts on fares and promotions like free check-in baggage to attract customers back.

    Bamboo Airways reduced fares by 35 percent when booking five seats or more.

    Vietjet offered free insurance to all domestic passengers, including VND1 million compensation per day for loss of income in case of forced quarantine or Covid-19 infection as a result of traveling with it.

    Newcomer Vietravel Airlines, which has a fleet of three airplanes, is pricing tickets at below breakeven level, according to Nguyen Quoc Ky, its chairman.

    Vietnam Airlines and Vietjet have joined the effort to trial a vaccine passport.

    Next month, Vietnam Airlines will implement the International Air Transport Association’s Travel Pass initiative that allows people to store verified Covid-19 test and vaccination certificates on a smartphone app.

    This is seen as one of the keys to convincing countries to reopen borders to international travelers.

    According to Planespotters, an online database on commercial aviation based in Berlin, Germany, over half of all aircraft in Vietnam are idling in near-empty airports.

    Vietnam Airlines is currently operating only 47 of its over 100 planes, including 15 of its 29 wide-body airplanes (A350 and B787).

    In the case of Vietjet Air, over 50 out of its 74 airplanes are not flying.

    In the first quarter, Vietnam Airlines suffered losses of nearly VND5 trillion ($218,4 million). To generate sufficient cash flows, it is now selling 11 of its A321 CEO planes.

    Bamboo Airways has the least number of idle aircraft, nine out of 27.

  • New cargo airline to advance Vietnam logistics

    New cargo airline to advance Vietnam logistics

    A fully-fledged cargo airline in Vietnam would boost logistics development and stir up competition in the aviation sector amid an e-commerce boom, experts say.

    “Vietnam needs a cargo airline to boost the transport of goods domestically and internationally. It will bring about many economic benefits,” said aviation expert Nguyen Thien Thong.

    He was commenting on a proposal by retail company Imex Pan Pacific Group (IPPG) to establish a cargo airline by next year, the first fully-fledged such company in Vietnam.

    With an initial investment of VND2.4 trillion ($103.6 million), IPP Air Cargo will start with five freighters. It estimates revenues of $71 million in the first year of operation.

    It would be the only cargo-dedicated airline in Vietnam, where all six carriers prioritize passenger transport.

    Vietnam ranks eighth among the top 10 emerging logistics markets globally, but 80 percent of the market is in the hands of foreign companies, according to the Vietnam Logistics Association.

    Logistics costs in Vietnam account for over 20 percent of its GDP, while the global average is 11 percent.

    This shows that there is a need for domestic companies to step up and take over the industry from foreign companies and reduce costs, experts say.

    Former Prime Minister Nguyen Xuan Phuc had in September last year ordered the Ministry of Transport to research the possibility of establishing a cargo airline to help distribute agriculture and electronic goods.

    In 2008, Trai Thien Air Cargo had received a permit for domestic and international transport, but it was not active for three years and the permit was canceled in 2011.

    IPP Air Cargo seeks to be the cargo airline the country needs. IPPG chairman Johnathan Hanh Nguyen said that the company will focus exclusively on cargo and not branch into passenger transport, avoiding competition with other airlines.

    Nguyen, a professional with experience in logistics and aviation, said he targets claiming 38 percent of Vietnam’s logistics market.

    The company will negotiate with foreign airlines to establish linked routes to 16 airports in Vietnam which will help transport goods directly from localities of origin instead of through big airports, he said.

    He also told the Thanh Nien newspaper that he had been developing a logistics network over the past year to prepare for the airline.

    However, his airline will not be the only cargo carrier in the sky. Vietnam Airlines has long been eyeing the establishment of its own cargo fleet, and during the pandemic, it removed seats from 12 wide-bodied aircraft and converted them into cargo carriers.

    Both Bamboo Airways and Vietjet have also mentioned plans to develop their own cargo fleet, but neither has made any concrete move towards this.

    Tong said that there could be competition in the industry, but eventually, it will benefit the development of e-commerce when a network of air cargo transport is established.

    “Coffee from the central highlands, lychee from the northern province of Bac Giang and seafood from the Mekong Delta region can be transported within a day to any locality if cargo air routes existed,” he said.

    Having a cargo airline is a necessity as most countries have at least one, and the recent boom in e-commerce means there is high demand for such transportation. This is the right time, therefore, for Vietnam to establish its own cargo airline, he added.

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