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Lufthansa Cargo completes acquistion of handler LUG

Lufthansa Cargo has completed its acquisition of Germany-based handler LUG aircargo handling to strengthen its infrastructure for future growth. The cargo business said the acquisition, which was announced in September but still needs to gain antitrust approval, will add capacity and flexibility for cargo handling in its home market. The handler was purchased from the Dettmer Group for an undisclosed sum. It will continue to operate in the market as a separate company under its own brand within Lufthansa Cargo. Existing customer contracts and relationships will remain in place and "business with other airlines will continue and remain an integral part of LUG's business model", Lufthansa said. "At the same time, becoming part of Lufthansa Cargo opens up additional growth opportunities for LUG," explained Lufthansa Cargo. "Building on its existing business, the company can further develop its strengths as an experienced handling partner and pursue new business opportunities." Frank Bauer, chief operations officer of Lufthansa Cargo, said: "Completing this acquisition lays an important foundation for further growth and greater flexibility in our home market. "This is about much more than additional space and capacity: LUG's employees bring extensive expertise and many years of experience in air cargo handling. "Their knowledge is highly valued by customers and essential to continued development. We warmly welcome our new colleagues and look forward to working together to seize the opportunities ahead for both companies. LUG will remain an independent partner for its existing and future customers." The acquisition will give Lufthansa Cargo access to approximately 50,000 sq m of covered warehouse space in Germany, as well as an additional 18,000 sq m of office and infrastructure space. LUG has a presence at Frankfurt, Munich and Hamburg airports. Lufthansa said the additional handling capacity will complement its existing infrastructure, including the LCCevo modernisation programme in Frankfurt, in which the company is investing around €600m.

Carriers' November rate hikes 'doomed' say analysts, as demand goes flat

Container spot freight rates on the transpacific eastbound trade, as recorded by Drewry, saw its steepest one-week fall since June 2025 after this year's protracted peak season came to an end. Drewry's World Container Index (WCI) saw the spot rate on its Shanghai-Los Angeles decline 6% week on week, to end at $7,514 per 40ft, while the Shanghai-New York route was down 5%, to $9,631 per 40ft. "Strong US import demand is easing," Drewry noted. "According to the US National Retail Federation, US ocean import volumes are forecast to decrease 11% month on month in November, which could put further downward pressure on freight rates," it added. However, in a sign that the market is in a state of flux, US forwarders reported a "stable" week, rather than one characterised by falling prices. "Pricing carried over from last week, while space availability improved and vessel schedules became more consistent," explained US west coast forwarder Freight Right. "As the traditional pre-holiday ocean shipping peak fully closes out, pricing has settled into a steady holding pattern across both coasts." However, it added that, with demand weakening and the remaining urgent pre-holiday shipments now transferring to air freight, the chances of the new general rate increase (GRI), scheduled for Sunday (1 November) - ranging from $2,000 to $3,000 per 40ft depending on carrier - sticking, were diminishing. "China-to-US ocean rates are expected to remain broadly stable through the first half of November, with the possibility of modest declines. Improving space availability and more consistent schedules suggest limited near-term upward pressure on pricing," said Freight Right. The WCI on the Asia-Europe was essentially flat this week, as the surprising spot rate strength in October continued. The WCI's Shanghai-Rotterdam leg was up 1%, to $3,686 per 40ft, while Shanghai-Genoa route was held steady, at $4,151 per 40ft, although this masked some discounting by carriers keen to fill ships amid weak demand, and despite new FAK (freight all kinds) levels due to be implemented on Sunday. These will see MSC target a spot rate of $4,500 per 40ft on Asia-North Europe, $5,000 on Asia-west Mediterranean and $5,100 on Asia-east Mediterranean, while CMA CGM is aiming for $4,900 on Asia-west Mediterranean and $5,200 on Asia-east Mediterranean ports. However, Linerlytica this week noted: "Asia-North Europe rates remain under pressure, with carriers undermining their 1 November rate hike efforts with persistent discounts. "Gemini carriers are offering the lowest rates in the spot market for early November shipments, with Hapag-Lloyd at $3,000-$3,200 per 40ft and Maersk at $3,200-$3,400 per 40ft. "Their rivals at MSC, the Ocean Alliance, and Premier Alliance have reacted by lowering their rate offers to $3,400 to $3,500 per 40ft. The 1 November rate hike is effectively doomed," it added. Meanwhile, with the Asia-Europe contract tendering season now in full swing, carriers are trying to push up spot rates that act as a guide for annual rate negotiations, and yesterday announced another set of FAK increases for 15 November, with MSC upping its Asia-North Europe spot rate to $4,600, and to $5,300 per 40ft on West Mediterranean destinations, and CMA CGM aiming for $5,500 per 40ft on Asia-west Med shipments. According to Drewry's Container Capacity Insight, four blanked sailings have been announced for next week, down from eight this week, as the analysts also doubted success for the new FAK levels. "Given available capacity and weak demand, it remains uncertain whether these increases will hold. Hence, Drewry expects rates to remain stable next week," it said.

Expeditors sees air cargo volumes and revenues rise in Q3

Expeditors International has reported a continued surge in air cargo volumes and revenues as a result of hyperscaler demand and rising freight rates. The US forwarder said that air cargo volumes were up 13% year on year in the third quarter of the year, with an 8% improvement in July, a 13% increase in August and 19% increase in September. Meanwhile, air revenues were also on the rise, increasing by 51.4% year on year during the quarter to $1.5bn. Revenues were boosted by higher volumes and also higher airfreight rates, the company said. Expeditors said that airfreight demand remained strong during the quarter, driven primarily by continued growth in South Asia, where export tonnage increased most notably. "Hyperscaler demand, which also includes shipments from Tier 1 and Tier 2 suppliers supporting AI infrastructure, was a significant driver of volume growth, while air capacity remains constrained by limited fleet expansion and ongoing new aircraft delivery delays," the company added. "Capacity was also impacted by aircraft redeployments that affected Asia-Europe e-commerce, stemming from European Union regulations meant to curb the flow of de minimis imports. "At the same time, China-US e-commerce tonnage has nearly recovered to what it was prior to the US termination of de minimis shipments in May 2025. Adding geopolitical events to this mix, airfreight rates remained elevated during the quarter, with demand outpacing available capacity." While airfreight revenues and volumes were up, the company also noted an increase in air operating costs, which grew by 52% to $1.2bn. Air Cargo News calculations show that the company's airfreight operating margin has actually declined marginally from 24.8% in the third quarter of last year to 24.3% this year. Airfreight service operating profits (airfreight service revenues minus operating expenses) reached $375m against $253m last year. The higher operating costs likely stem from higher carrier rates as demand growth has outstripped capacity additions and fuel prices have grown significantly as a result of the conflict in the Middle East. The latest IATA/Platts fuel price monitor figures show that jet fuel costs are up by more than 112% compared with last year.