LHR BA landing

Heathrow; officially number one…and number two

COVID had a profound impact on air travel and the airports that support it, with the bulk of the world’s airline fleet grounded, global passenger volumes down 75% and Heathrow slipping to Europe’s 10th busiest airport during the pandemic.

Aviation especially saw a decline within passenger traffic during the pandemic, with passenger volumes dropping 75%, while air cargo only saw a 21% reduction.

Heathrow regained its status as Europe’s busiest hub airport during the summer beating its rivals in Paris, Amsterdam, Frankfurt and Madrid.

And, in a remarkable turnaround, Heathrow was the second busiest airport for international flights in November, behind Dubai, which are the same positions the pair held in 2019, before the pandemic.

Heathrow remained the UK’s lifeline by maintaining strong cargo throughput, transporting 1.4m tonnes, including vital supplies such as PPE, medical equipment and pharmaceuticals including vaccinations.

With airlines reconfiguring their fleets for cargo, the revenue contribution from this sector increased from 12% in 2019 to 40.3% in 2021 and the expectations are for cargo to account for 27.7% of airlines’ total revenue in 2022.

Although airfreight only accounted for 1% of goods by volume, pre-pandemic, airfreight represented 40% of goods by value.

In 2021, Heathrow was the UK’s most valuable port, seeing £153bn in non-EU imports and exports passing through the hub, handling 75% of all UK air cargo and more cargo by value than all other UK airports combined and serving 354 destinations in the process.

This significant figure shows the unique position of Heathrow and the vital role airfreight plays as an enabler of import and export trade.

The role airfreight plays in keeping Britain trading cannot be understated.

Heathrow’s cargo tonnage has risen to 87% of pre-pandemic levels and while Paris, Frankfurt and Amsterdam’s cargo volumes have recovered faster, they process less belly-hold cargo, which is growing at Heathrow, as more passenger flights return.

Despite the slip in cargo recovery, Heathrow remains confident for the future with plans to invest in infrastructure over the next fIve years to grow capacity and the sustainability and efficiency of its operation.

It will grow the airport’s airfreight proposition, in cooperation with the Heathrow Cargo Community.

In July 2015, the independent Airports Commission reported the conclusions of its three-year study examining the need for additional capacity to maintain the UK’s position as Europe’s most important aviation hub.

With overall UK airfreight volumes 8% lower in 2021 than in 2019, the expansion of Heathrow with a third runway has the potential to significantly grow airfreight capacity.

Heathrow Airport is the only hub airport within the UK and the only airport which accepts both European and international cargo freight, serving 350 destinations in 80 countries.

The expansion of Heathrow does come with its own challenges and approval of a third runway - with the potential for an additional 260,000 flights annually - has been controversial. The airport is currently seeking a development consent order (DCO), a type of planning permission for nationally significant infrastructure.

While our Heathrow team continue to handle increasing cargo volumes, we monitor market capacity and identify opportunities to use regional airports - and particularly our Birmingham hub - when it will benefit our customers, ensuring that expectations and timelines are met.

We find solutions for every critical shipment. Please call Elliot Carlile to discuss your situation, requirements and potential resolutions for your products that need to be in the right place at the right time. At the right price. We have the answer.

ground handlers

Heathrow air freight ground handlers strike

(STRIKE OFF - SEE UPDATE BELOW) Heathrow ground handlers have rejected below-inflation pay offers, with members of the Unite union taking part in three days of strike action, commencing tomorrow, which could impact cargo flying with major carriers.

18TH NOVEMBER - The strike by ground handlers at at dnata has been called off after members accepted an improved offer. Today's strike action by Menzies has gone ahead, but it is believed that it has now been suspended, so that union members can be balloted on a new pay offer

The strike involves 700 workers employed by dnata and Menzies, that are responsible for aircraft while they are on the ground, assisting with the prompt arrival, turnaround and departure of jets, with efficient baggage and cargo handling.

Unite is warning that the action starting in the early hours of the 18th November and running to the 21st November will cause “disruption, cancellation and delays” to flights operating from terminals 2, 3 and 4.

The strike action will particularly affect Qatar Airways, which has scheduled an additional 10 flights a week during the football World Cup, the union said and other airlines that will be “hit heavily” by the strike action include Virgin, Singapore Airlines, Cathay Pacific and Emirates. 

Heathrow Airport management have held discussions with airlines on their contingency plans to support ground handling and avoid disruption should the strike go ahead.

Menzies and dnata have announced the formation of contingency plans, but details have yet to be made public.

Long-standing cargo disruption at the airport, which has only recently cleared, would make an unwelcome return if the strike creates too much congestion and bottlenecks, from flight cancellations and delays.

The union said that a pay rise on offer from the two firms does not cover inflation. “Dnata has offered its workers a 5% increase, while the offers for Menzies workers vary between 2% and 6%.”

The employers said that it is disappointing that Unite plans to progress with this costly industrial action, and that strike action will only delay the process at a time when employees need the increase now.

Unite general secretary Sharon Graham said: “Our members at Dnata and Menzies undertake highly challenging roles and are simply seeking a decent pay rise. Both companies are highly profitable and can fully afford to make a fair pay increase".

We will keep you updated with the situation and hopeful progress in relation to any impact on cargo movements through the Heathrow gateway.

Our Heathrow office is monitoring the ground handling situation closely and, if necessary, will take action to avoid disruption from the dispute. We regularly flex cargo volumes between our Heathrow and Birmingham airport hubs, as well as other gateway and regional hubs throughout the UK and Europe.

With more direct flights, including daily Emirates 777s and multiple long haul and regional connecting carriers into Birmingham Airport hub, we are even better positioned to protect our customers from any adverse impact during the potential Heathrow dispute, or any other congestion that occurs at the UK’s largest cargo airport. We react as needed ensuring alternatives are available and reliability and integrity to time critical movements is always maintained, regardless of the situation.

For further information on our air freight services and solutions please contact Elliot Carlile for immediate assistance. We have it covered and have the solution to ensure delays are minimised, and where possible, avoided.

KLM

Metro support drive for Sustainable Aviation Fuel

Despite the continuing challenges of the COVID pandemic and the war in Ukraine the aviation industry is committed to decarbonising by 2050, but alternative energies such as electric and hydrogen will not solve the challenge, which is why Metro is joining industry ‘innovators’ to support and invest in sustainable aviation fuel.

IATA member airlines and the wider aviation freight industry are collectively committed to making flying net zero by 2050 and Sustainable Aviation Fuel (SAF), which was first flown on a commercial flight by KLM in 2011, has been identified as one of the key elements in helping achieve this goal.

Aviation biofuels are produced from plant sources, waste oils, solid biomass, or from synthetic biology and can lower CO2 emissions by up to 98% compared to conventional jet fuel.

‘Sustainable’ biofuels do not compete with food crops, prime agricultural land, natural forest or fresh water. Sustainable aviation fuel is produced worldwide, and each source is certified as being sustainable by a third-party organisation, to guarantee its integrity.

However, there is a “huge amount of work” needed to drive widespread adoption of SAF across the aviation sector, including more research and development, and technological development on feedstock. 

With challenging sustainability objectives of their own (in line with the 2015 Paris Agreement) key carrier partners Air France, KLM and Martinair Cargo created a joint SAF initiative in 2020, to drive carrier adoption and to generate wider support across the air cargo  community.

Metro has already made its operations carbon-neutral and is committed to extending this zero-emission strategy as far down customers’ supply chains as possible, which is why the board has elected to join the AFKLMP Cargo SAF programme and invest in sustainable aviation fuel.

With unaddressed air carriage CO2 emissions forecast to reach 22% of global emissions by 2050, we believe that SAF could reduce the industry’s emissions by almost 50% and is the most effective solution to reduce the aviation industry’s carbon footprint. 

SAF impact on total CO2 emissions

Although Air France and KLM have been pioneering SAF since 2009, it is a young technology, which is still in relatively short supply and Metro’s participation in the AFKLMP programme will help fund the technology, research and development, and work on feedstock, which can increase production and make SAF available in greater quantities and in more locations.

The challenge is creating the global infrastructure, to benefit from the efficiencies of getting SAF availability and cost scaled, because if it was available, every airline would use it.

Metro is committed to Sustainability Disclosure Requirements and has achieved CO2 neutrality by measuring, reporting and offsetting our CO2 emissions.

The ‘free of charge’ Eco module, that sits in our MVT supply chain platform, monitors the energy emissions, emission costs and CO2 equivalent emissions, of our customer’s consignments, by every mode. Which means that Metro customers can monitor the environmental impact of their supply chains and participate in offset projects that will eradicate their supply chain CO2 footprint.

To request a demo or discuss your requirements, please contact Simon George, who can outline our proven carbon reduction strategies and the availability of offset projects. Its our mission and in our DNA to improve supply chains and reduce greenhouse gas emissions in your/our supply chains. Now and forever.

Heathrow delivery inefficiencies

Heathrow is Europe’s busiest airport again

One year after COVID travel restrictions demoted London’s Heathrow airport to Europe's 10th busiest airport, the west London hub has grown more in the past 12 months than any airport in Europe and regained its crown as Europe's busiest airport.

Heathrow welcomed 5.8 million passengers between July and September, with airlines and their ground handlers seeing 18 million passengers successfully away over summer, more than Paris, Frankfurt and Amsterdam, but despite the rebound, passengers numbers were still 15% below pre-pandemic levels. Some of this down to the restrictions in passengers being allowed to transit the airport by authorities – but this will change in the near future it is anticipated.

In 2021, Heathrow was the UK’s most valuable port, seeing £153bn in non-EU imports and exports passing through the hub, handling 75% of all UK air cargo and more cargo by value than all other UK airports combined and serving 354 destinations in the process. 

However, Paris, Frankfurt and Amsterdam cargo volumes have recovered from the pandemic quicker than Heathrow, due to less reliance on the belly-hold cargo capacity that is dependent on passenger flights.

Cargo tonnage recovery to pre-pandemic levels:

  • Amsterdam - 108%
  • Frankfurt - 107%
  • Paris - 100%
  • Heathrow - 87%

Despite the dip in cargo recovery, the airport remains confident for the future with plans to invest in infrastructure over the next fIve years to grow capacity and the sustainability and efficiency of operations. With passenger aircraft (PAX) comes belly hold capacity and therefore the ability to move products. They are interlinked.

Over the same period Heathrow’s Cargo strategy will grow the airport’s cargo proposition, working closely with the Heathrow Cargo Community to develop the strategy in four key areas:

  • Policy Change: Working with Government and industry to grow efficiency
  • Transformation of the Cargo Estate: Developing world class, sustainable facilities
  • Community Engagement: Leading a collaborative approach for all stakeholders
  • Digitalisation: Supporting the adoption of technology to reduce cargo throughput times

Heathrow’s proposition is compelling and underlines its strategic importance in our global air freight operations planning:

  • Over 350 destinations
  • Multiple daily frequencies
  • Easy access to key manufacturers
  • Unrivalled connections opportunities
  • Ideally located for key business clusters
  • High value and pharmaceutical handling capability
  • Strong relationships with key UK Government departments

While our global air freight network and teams continue to handle increasing cargo volumes, we monitor market capacity and identify opportunities to use regional airports, when it will benefit our customers, ensuring that expectations and timelines are met.

We find solutions for every critical shipment. Please EMAIL Elliot Carlile to discuss your situation, requirements and potential resolutions.