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Breaking up DSV and Kuehne is hard to do. However...

I have talked to quite a few investors and trade sources in recent weeks, looking for consensus about DSV's existential crisis as well as Kuehne + Nagel's temporary rebound on the stock market and leadership, or lack thereof in the post-KMK world. Reality With that in mind. "Am I going to pay 25x forward earnings for Kuehne + Nagel [K+N] rather than less than 20x for DSV!?!!", one investor, call him Mr C*, chuckled in a recent video call. When his body language ...

Military aid prompts Thai Airways u-turn on cargo booking embargo

Thai Airways has landed something of a reprieve from an embargo on cargo services, after concerns over the country's export sector prompted last-minute government intervention to tackle major labour and equipment shortages provoked by widespread flooding late last week. Having, on Tuesday, announced a six-day suspension on all cargo bookings from today, which it put down to equipment and personnel shortages, the flag-carrier last night issued a retraction. "In order to alleviate the inconvenience and operational impact on all stakeholders involved in air cargo transportation, Thai Cargo Terminal Operations has considered it appropriate to cancel the embargo on inbound, outbound, and transhipment cargo," the carrier said. The rapid volte-face was helped in no small part by the government making available some 130 members of the military, with another 100 planned, to support ground handling services, amid mounting concerns for the country's export sector, with 33% of exports moving by air. Those concerns led transport minister Phiphat Ratchakitprakarn to tell Thai Airways to keep cargo services operating, adding: "We will not leave the burden with any one party. We will work together and share responsibility." Indeed, support has also been forthcoming from Airports of Thailand, which, with government support, made extra covered space available to Thai Airways to enable it to clear the backlog created by the cancellation of multiple services. Despite a month's worth of rain falling on Bangkok and Central Thailand in just a few days, flights and airports were not directly affected, one MNC told The Loadstar this morning services had continued "running normally". The Civil Aviation Authority of Thailand noted that flooding had left many ground service staff unable to travel to work, affecting loading and unloading of aircraft, with Thai Airways particularly affected. The impact is noticeable in data supplied by Rotate, which indicated week-on-week exports to North America fell 65%, with Europe-destined volumes falling by 200 tonnes over the same period, down 5% week on week. Commerce minister Suphajee Suthumpun expressed concern that the immediate hit in export values was secondary, claiming "more worrying" was the potential "impact on the confidence of trading partners and businesses".

Air cargo gains ground with shippers, but concerns remain on waybill changes

Airfreight is becoming an increasingly important contingency option for shippers, but new rules on direct air waybills could cause complexity, according to Global Shippers Forum director James Hookham. At Aviation Connect in Athens this week, Mr Hookham said air had traditionally been regarded as "Plan B", but since Covid had become increasingly embedded in supply chain planning. And with post-peak season holidays approaching, he added, shippers were more likely to turn to air transport as deadlines for Black Friday, Thanksgiving, and Christmas approached. "At a time when goods must be in for onward distribution, to meet sales windows and contractual deadlines, the customer may reach for the air cargo solution." But he said airfreight was especially "part and parcel of the planning for many shippers" now, because ocean transport had become less predictable, creating opportunities for the air cargo sector. Mr Hookham stressed to air cargo stakeholders that shippers should not be treated as a single, homogeneous customer group, their requirements varied, according to cargo type, destination, delivery speed, and handling requirements. For airports, however, one of the most important considerations was simply "how little time my cargo spends in a particular airport"; and he underscored that efficient interaction between commercial and statutory processes was crucial to minimising that dwell time. But he also highlighted the potential implications of recent changes on liability in direct air waybills - an issue he said could become increasingly important for shippers, forwarders, and insurers, as the changes by IATA altered where liability could fall in the event of a dispute or disruption involving a DAB. "Instead of dealing with the original shipper, the decision has been taken for the forwarder [to be the liable party], even though they are acting as an agent in the booking rather than as a contracted party. "I was surprised by the number of shippers that are affected by this," he added. However, he said, it was still too early to determine the operational impact, partly because awareness of the change had been slow to reach the market. "When I was in Australia and New Zealand last month, I have to say it hadn't really registered as an operational issue." And Mr Hookham warned: "It creates uncertainty, possibly risk; certainly for the forwarder community, with some unwelcome new liabilities which they either seek to avoid, which causes some changes in arrangements, or possibly leads to insurance, which again causes costs, which nobody wants to want to pass on." He said the lack of clarity meant the issue could ultimately become a matter for the courts. "Unfortunately, I think this is going to end up with the lawyers," he said. "Watch this space because I think it will be a continuing issue."