GECAS signs up for 35 converted B737s as Farnborough freighter frenzy continues

Boeing’s run of freighter orders during the Farnborough Airshow continued this afternoon with lessor GECAS placing an order for 35 Boeing 737-800 converted freighters (BCF).

The deal, which includes 20 firm orders and an option for 15 more, would take GECAS’ B737-800BCF order book from 15 to 50 and enable GECAS to “serve the growing express air cargo market”.

“This order and future commitment with Boeing reflects the confidence GECAS has in the 737-800BCF to replace and grow the narrow body freighter market,” said Richard Greener senior vice president and manager GECAS Cargo Aircraft Group.

“With total firm and option aircraft commitments now at 50 737-800BCFs, GECAS will commit nearly $1.5bn worth of 737-800s with conversions to the narrow body freighter sector.”

The commercial aircraft leasing and financing arm of General Electric is the launch customer of the new 737-800BCF. It took delivery of the first converted jet in April and leased it to West Atlantic.

“The 737-800BCF is a great example of how Boeing’s Global Services business can extend the life of an airplane with new technology and help operators reduce their operating costs,” said Ihssane Mounir, senior vice president of commercial sales and marketing for The Boeing Company.

“We are delighted that GECAS intends to commit to a big repeat order for the airplane. We look forward to finalising this deal and adding to their world-class portfolio.”

This agreement, which is subject to GECAS board approval, would take the total commitments for the B737-800BCF programme to 80 from more than half a dozen customers.

The 737-800BCF carries more payload – up to 23.9 tonnes (52,800 lbs) – and flies farther – 2,000 nautical miles (3,750 km) than 737 Classic freighters.  The converted jet also offers operators newer technology, better fuel efficiency and reliability than previous standard-body freighters.

Existing B737-800 passenger airplanes are modified at multiple facilities, including Boeing Shanghai Aviation Services Co. Ltd., and Taikoo (Shandong) Aircraft Engineering Co. Ltd., also known as STAECO, in China.

Modifications include installing a large main-deck cargo door, a cargo-handling system and accommodations for up to four non-flying crew members or passengers.

This is the third big cargo deal announced by Boeing at the Farnborough Airshow. DHL has placed an order for 14 B777Fs, while Volga-Dnepr and CargoLogicHoldings have ordered a combined five B747-8Fs and 29 B777Fs.

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H&M tests same day delivery

Fashion retailer H&M is experimenting with same day delivery. Currently, this delivery method is only being tested with customers who live in Berlin, but chances are H&M will roll it out in other cities or even countries, when the pilot is a success.

Textilwirtschaft found out that H&M is currently testing same day delivery in Berlin. This express delivery method is only applicable to orders received before 10:00 AM. These orders will then be delivered between 7 and 10 PM on the same day.

H&M charges a delivery fee of 5.99 euros for same day delivery. This is only one euro more than what it charges for standard shipping. According to Internet World Business, H&M plans to expand the service to other German cities after the test in Berlin happens to be a success. In addition, the Swedish fashion retailer now also offers next day delivery in some cities across Germany.

Complaints about slow deliveries

The new delivery windows come at a crucial time for H&M, which has received some serious complaints in Europe about deliveries taking longer than what consumers expected. The retailer also asks a delivery fee for standard deliveries if a customer isn’t a H&M Club member. Compare this, for example, with its competitor Zalando that charges no fee at all for standard deliveries. For next day delivery, Zalando charges a fee of 5.9 euros.

H&M could beat competitors like Zalando

So, if H&M can successfully offer and expand its same day delivery service, it could get a decisive advantage over its competitors in Germany, and on the long term, in Europe.


DHL orders 14 B777Fs to kick off Farnborough Airshow

DHL has placed an order for 14 Boeing 777 Freighters with purchase rights for seven additional freighters valued at $4.7bn based on current list prices.

The order, which will double the size of DHL’s B777 fleet, was unveiled at the opening of the 2018 Farnborough International Airshow.

The order is in response to rapidly growing express volumes and will be used to replace ageing aircraft, the companies said.

Ken Allen, chief executive, DHL Express, said: “The acquisition of the 14 Boeing airplanes reflects a gradual replacement of our older intercontinental fleet.

“As the most fuel-efficient, most reliable freighter type with the best long-haul range, these aircraft will contribute to our emissions reduction targets and allow us to serve even more markets with non-stop flights.

“DHL was an early adopter of this type of aircraft for the logistics industry and took delivery of the 3rd B777F produced by Boeing in 2009. With extensive experience operating this freighter type, it has proven to be superior in all aspects of operation making it a logical choice.”

The 14 aircraft are capacity neutral, but operational wise offer “significant cost, efficiency and reliability benefits”, DHL said.

DHL Express has in the past chiefly leased aircraft to operate its global network on the routes.

“The purchase of fully owned freighter aircraft will improve the cost position of the DHL Express division going forward,” it said.

For 2018, pre-payments have already been included in the group Capex guidance.

“We are delighted to announce the acquisition of 14 new 777 Freighters as we renew part of our long-haul fleet with this best-in-class fuel efficient freighter type that will make a significant step towards DHL’s zero emissions target by 2050,” added Charlie Dobbie, executive president of global network operations & aviation.

“The 777 Freighter is an airplane perfectly suited to DHL’s needs, offering an outstanding payload capability, with incredible range to service its extensive intercontinental network and unmatched reliability,” said Boeing Commercial Airplanes president chief executive Kevin McAllister.

The order comes as global airfreight demand grew by nearly 10% last year, with demand growth outpacing capacity growth by a factor of three.

And expanding cross-border e-commerce sales are expected to grow to $4.5trn by 2021, which means a growth of 19.2% per year. DHL’s investment in the B777F is a direct answer to the growing demand for global express capacity.

As the largest twin-engine cargo airplane in the world, the B777F is capable of flying 4,900 nautical miles (9,070km) with a cargo load of 102 tons.

The B777Fs will reduce CO2 emissions by 18% versus the aircraft being replaced.

The DHL order continues a boom for the B777F in 2018, with FedEx ordering 12 B777Fs in June, Qatar Airways signing a letter of intent for five aircraft, an order worth $1.7bn at list prices, while Lufthansa Cargo has ordered two more of the 103 tonne capacity long-range jet.

Turkish Airlines kicked off the year with a confirmed order for three B777Fs, to be delivered this year, on top of the two it already operates, while Japan’s All Nippon Airways (ANA) is acquiring two B777 freighters — for delivery in 2019 — in response to the “expanding market in Asia, China, and North America”.

The secondary market saw US-based aircraft lessor Atlas Air acquire two B777-200 freighters in March from LATAM Airlines, South America’s biggest cargo airline. Both aircraft will operate in aircraft, crew, maintenance and insurance (ACMI) service for DHL Express through Atlas’ Southern Air subsidiary.

In February this year, FedEx rival operator UPS  ordered an additional 14 Boeing B747-8F cargo jets and four new Boeing 767F aircraft to provide additional capacity in response to demand growth.

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Airbus partners with DB Schenker for US parts deliveries – Logistics Manager Magazine

Airbus has partnered with DB Schenker to develop a logistics plan to use waterways to transport components to its final assembly plant in Mobile, Alabama, reducing the use of road transport.

Using a new roll-on/roll-off terminal, its barge, and a newly-dredged section of river, Airbus can now use larger vessels to transfer the components by water.

The solution borrows a page from Airbus’ European operations and means that larger ocean going vessels are now being used for the international transport of four complete aeroplane “ship sets” per month.

Working with local contractors, DB Schenker also refurbished a pier (at the production plant) and constructed a new aeroplane hangar, both of which are enabling just-in-time delivery and use of the parts.

Profit-making idea: Capitalising on blockchain technology in Africa

Profit-making idea is a series of short posts, each with a piece of information that we think you might find useful: for investment, for growing your company or to start a new business. Read our previous posts here.

How We Made It In Africa asked Felix Mbugua, founder and CEO of Legibra, a Kenya-based technology firm, to identify one untapped business opportunity in Africa. Here was his response:

“Blockchain-based systems. This technology presents a jet-packed solution poised to improve virtually everything as we know it on the African continent. This heavily touches on, and is not limited to, the financial sector, trade, education, and property sectors, as well as government operations/structures, the economy, agritech and currencies.

“Mastering the use and implementation of this technology presents lucrative offerings to the professionals who will come out on top in proficiency. The technology is new; therefore, early adopters will be sought-after pioneers. Before many can join the bandwagon the few who have mastered blockchain will be a rare commodity that will not be cheap to procure.

“Applications include creating Ethereum-based systems in sectors like education, blockchain-based systems for bookkeeping in banking/finance, blockchain-based systems in property, smart contracting, smart grids for energy distribution, identity management, supply chain, international trade, and more.

“I believe blockchain can provide all-inclusive and holistic access to services in the African context because it leapfrogs the continent past the cost and time taken by developed continents to achieve the infrastructure and level of technology that set them way ahead, and apart, from Africa.”

Kuehne + Nagel strengthens pharma logistics offering in Chile with new Logistics Hub

  • Expanding KN PharmaChain network with strong local footprint
  • Fully integrated laboratory and distribution centre
  • Eco-friendly through use of geothermal energy

Santiago / CL – As of August 2018, a new Logistics Hub in Santiago de Chile will benefit the growing pharma & healthcare industry in South America with a dedicated warehousing solution. This provides Kuehne + Nagel’s global KN PharmaChain network, the multi-modal logistics solution for temperature-controlled door-to-door transportation, with an enhanced regional footprint. The new facility further underlines Kuehne + Nagel’s continuous commitment to expand its GXP compliant warehousing and forwarding services worldwide.

While eco-friendly built and equipped, the Logistics Hub complies with the highest security standards and state-of-the-art technology to increase current operational capacities. The facility will provide an area of 17,600 sqm for storage and distribution of temperature-sensitive products, which can be extended to 23,300 sqm, including a cold chamber to handle temperature requirements of 15 to 25°C and 2 to 8°C. A renewed laboratory for quality control allows customers to comply with the regulatory requirement to carry out local analysis of imported pharmaceutical products. Additionally, GMP compliant repackaging and relabelling areas following Chilean and international specifications will be available as value added services.

The Logistics Hub will use clean energy via a geothermal system to keep the temperature of its general area between 15 to 25°C. By occupying the air that circulates through the subfloor a significant reduction of energy consumption will be achieved.

“With more than 40 years demonstrating commitment to the Chilean market, this cutting-edge facility will leverage the knowledge and experience of our specialised teams and enable Kuehne + Nagel to offer its unique pharma solutions to an extended customer base. This investment is in line with our strategic ongoing commitment to the pharma & healthcare industry globally strengthening our position as a leading player in pharma logistics”, said Ingo Goldhammer, President of Kuehne + Nagel South & Central America.

Packaging Corner: Capture length, width and height without a tape measure – Supply Chain 24/7

With commercial freight carriers charging by volume, the ability to quickly and accurately capture the dimensions of a box has become a key area of focus among companies seeking to minimize their shipping costs. But many operations—both at the inbound and outbound ends—still use tape measures to capture length, width and height.

That process is cumbersome and outdated, says Ronen Luzon, CEO and founder of My Size. “Most of the time, operators don’t bother to use a ruler or tape measure; they just guess,” he says. “That leads to discrepancies and often results in additional cost.”

For that reason, My Size recently unveiled the BoxSizeID app for use on any Android or iOS mobile phone or handheld scanning device. “The software utilizes the device’s internal sensors, combined with a proprietary and patent-pending algorithm, to quickly capture accurate measurements in just seconds,” explains Luzon. “When combined with a scan of the box’s bar code, the data is married together in real time for full accuracy.”

Not only is that functionality a considerable time-saver when compared to manual measurements that can take several minutes, the captured data about each parcel is automatically transmitted to an operation’s back end shipping management software. Actual dimensions are then used to calculate shipping costs, or to automatically compare and verify dimensions provided on a manifest.

“For companies building loads for air freight, for example, the data captured from each parcel is instantly analyzed and compared to the available space in multiple air crates,” he adds. “The user can then place the box in a specific crate based on its remaining capacity. That ensures the minimum amount of space is wasted.”

Similarly, the app can be used for building truckloads, or to help individual couriers driving their own vehicles determine if they can handle a parcel based on accurate dimensions before accepting a run.
The app seamlessly integrates with back-end software in less than a day and is highly intuitive, allowing users to be up and running in minutes, adds Luzon. “It can also be white labeled for companies that wish to customize and integrate it specifically to meet their needs,” he concludes.

Carbon Neutral International Haulier continues on the road to energy efficiency with new lighting system

Hardings Transport Ltd is a Leicesterbased haulage company, with a 55,000sq.ft. warehouse delivering thousands of items internationally. They needed a lighting system that illuminated their space efficiently to help them keep up with demand.

The Bardon Hill warehouse has recently seen a large-scale redesign, with the open plan space becoming full of high racking aisles. As a result, the previous fluorescent lighting system was insufficient for the employees working area.

Employees use heavy machinery and often work during darker hours of the day, so the skylights and fluorescent fittings previously installed did not provide an adequately lit environment in which to operate. Under advice from James Coss at CEF, Tamlite Lighting was introduced to Hardings Transport to provide a solution to upgrade their lighting system. Read more.

The Switch to LED

EXPO high-bay luminaires were supplied to give a more complete lighting system for the warehouse. The powerful LED solutions ensured that the ground was illuminated enough for workers to manoeuvre.

The switch to LED provided a range of benefits as well as an improved light output. The initial outlay of the LED products was similar to fluorescent options, but the assurance of long-lasting light fittings, low to zero maintenance and a 5-year guarantee gave Joe Harding, Purchasing Manager at Hardings Transport, the confidence to invest in the LED solution from Tamlite Lighting.

The use of EXPO LED products was calculated to save Hardings Transport 62% on their energy bills, which was ideal for the company. Joe Harding commented, “We are very pleased with the energy savings from the Tamlite products. We are an energy conscious company, and through the use of solar panels and careful management, we are a carbon neutral site. So, it made sense to use LED lights in our refit.”

The warehouse lighting was the primary change, but MODLED LG PRO solutions were also provided for the offices. These low-glare fixtures provide the offices with comfortable lighting, and their lightweight structure made them quick and easy to install.

NIMROD bulkheads were also supplied, as lower mounting luminaires for the warehouse and canopy spaces.

Easy Maintenance

The previous lighting system was difficult to manage at Hardings. Joe Harding commented, “We used to have to maintain our old fittings about once a year, which cost time and money. These new lights, with a 5-year guarantee, will stop that problem.”

The new LED fittings supplied throughout the site will provide a total payback on costs with energy savings. Hardings Transport should expect to see this payback within 3.5 years!

“On the whole we are happy with the installation, and there are certainly no complaints from those on the warehouse floor,” said Joe.


Evergreen renews investment refrigerated containers – Canadian Shipper

Singapore —Evergreen Line announced it is enhancing its operations with 3,000 containers refrigerated by Carrier Transicold PrimeLINE units.

“With its digital scroll compressor, the PrimeLINE unit has a reputation for energy efficiency and a value proposition that includes rapid pull-down, tight temperature control, high air-flow performance and excellent cost of ownership,” said Andrew See, general manager, Global Container Refrigeration, Greater China, Carrier Transicold. “Evergreen’s PrimeLINE units feature our LED control-display option, which the shipping line considers advantageous for ship crew members visually monitoring stacked containers onboard a vessel.”

The majority of Evergreen Line’s PrimeLINE units are being installed on 40-foot high-cube containers with the balance mounted on 20-foot containers, all acquired for replacement.

A Carrier Transicold customer since 2002, Evergreen Line values Carrier Transicold’s customer support, particularly in terms of service training. For example, Carrier Transicold instructors periodically provide refrigeration unit operation and repair programs in connection with other specialized training. This is provided for terminal technicians and ship crews at the Evergreen Seafarer Training Center in Taiwan near Taipei.

Founded in 1968, Evergreen celebrates its 50th anniversary this year, just as Carrier Transicold commemorates the 50th anniversary of its invention of the front-wall refrigeration unit design.

“These are great milestones for both companies, and we’re delighted that Evergreen Line places its trust and confidence in Carrier Transicold and our popular PrimeLINE unit, a highly advanced model of our original front-wall unit and one that has led the industry in sales for the last 10 years,” See said.

Bolloré Group signs partnership deal e-commerce giant Alibaba

Conglomerate Bolloré Group has signed an agreement with e-commerce firm Alibaba Group covering logistics and several other areas.

The companies signed an extensive Memorandum of Understanding outlining the areas in which their respective business units and subsidiaries, including Alibaba Cloud, Cainiao Smart Logistic Network, Bolloré Logistics and Blue Solutions, have agreed to cooperate and develop a number of relevant joint projects.

In addition, the groups decided to share their expertise and market knowledge to explore new business opportunities, notably in China, Europe and Africa.

On supply chains, Bolloré Logistics and Alibaba’s Cainiao Smart Logistics Network agreed to work together on identifying cooperation opportunities with their respective logistics capabilities, hubs and networks, in Asia, the Middle East, Africa and Europe.

The two companies will also share best practices and will look into the development of some joint software and data management solutions.

Cyrille Bolloré, vice chairman and managing director of Bolloré Group, said:”The many areas of cooperation and several joint projects already identified by our respective teams are particularly promising. We are also very pleased by our common willingness to share best practice and expertise that will be of strong benefit to all our companies.”

Terry von Bibra, general manager Europe, Alibaba Group, said: “As a global technology company, digital transformation and innovation in all fields are fundamental drivers of Alibaba’s mission of making it easy to do business anywhere, with the ultimate goal of better serving our consumers and stakeholders worldwide, today and tomorrow.

“Hence, we are confident that the expertise and skills brought by both partner groups will generate incredible value and opportunities as the partnership unfolds.”

Other areas the two companies will work on are: Solutions for Internet electric cars and buses, bringing the Internet experience (voice control, multimedia, navigation and autonomous driving) to the driving experience.

Explore co-operation opportunities in the development of car-sharing solutions in China. In an era when sustainability and electricity storage have become major concerns for citizens, cities and governments, the Bolloré Group draws on batteries and electricity storage technologies to deliver solutions for the production, storage and smart consumption of electricity.

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