Industrial giant Honeywell will implement its technology at a Texas plant that plans to convert wood waste into sustainable aviation fuel (SAF) for Southwest Airlines Co., the company said today.
Located in Bon Wier, Texas—located near the city of Beaumont on the Texas-Louisiana line—the planned $2.8 billion greenfield facility aims to address airlines’ growing demand for SAF by converting sustainably sourced forest thinnings into SAF. In advance of the facility’s opening, USA BioEnergy recently signed a 20-year offtake agreement with Southwest Airlines Co. under which Southwest may purchase up to 680 million gallons of neat – or unblended – SAF. Once blended with conventional jet fuel, the SAF could produce the equivalent of 2.59 billion gallons of net-zero fuel and avoid 30 million metric tons of CO2 over the offtake agreement term.
In support of that plan, Honeywell said its Experion PKS will support the plant’s central control and safety operations by enabling real-time data acquisition, monitoring, and control capabilities. That approach will enhance operational efficiency and help USA BioEnergy achieve its production targets with minimal downtime, ultimately leading to reduced airline emissions and more sustainable commercial flight.
In addition, Honeywell will also implement its Experion Industrial Security system to bolster the facility’s integrated telecommunications infrastructure, safeguarding the plant’s critical assets and ensuring secure and reliable communications across the entire facility, mitigating potential cyber threats and enhancing overall operational resilience.
Worldwide air cargo rates rose to a 2024 high in November of $2.76 per kilo, despite a slight (-2%) drop in flown tonnages compared with October, according to analysis by WorldACD Market data.
The healthy rate comes as demand and pricing both remain significantly above their already elevated levels last November, the Dutch firm said.
The new figures reflect worldwide air cargo markets that remain relatively strong, including shipments originating in the Asia Pacific, but where good advance planning by air cargo stakeholders looks set to avert a major peak season capacity crunch and very steep rate rises in the final weeks of the year, WorldACD said.
Despite that effective planning, average worldwide rates in November rose by 6% month on month (MoM), based on a full-market average of spot rates and contract rates, taking them to their highest level since January 2023 and 11% higher, year on year (YoY). The biggest MoM increases came from Europe (+10%) and Central & South America (+9%) origins, based on the more than 450,000 weekly transactions covered by WorldACD’s data.
But overall global tonnages in November were down -2%, MoM, with the biggest percentage decline coming from Middle East & South Asia (-11%) origins, which have been highly elevated for most of this year. But the -4%, MoM, decrease from Europe origins was responsible for a similar drop in tonnage terms – reflecting reduced passenger belly capacity since the start of aviation’s winter season from 27 October, including cuts in passenger services by European carriers to and from China.
Asia Pacific origin markets are continuing to contribute an outsize share of worldwide air cargo growth this year, generating more than half (56%) of the global +12% year-on-year (YoY) increase in tonnages in the first 10 months of 2024, according to an analysis by WorldACD Market Data.
The region’s strong contribution this year means Asia Pacific’s share of worldwide outbound tonnages overall has risen two percentage points to 41% from 39% last year, well ahead of Europe on 24%, Central & South America on 14%, Middle East & South Asia (MESA) with 9% of global volumes, North America’s 8%, and Africa’s 4%.
Not only does the Asia Pacific region have the largest market share, but it also has the fastest growth, Netherlands-based WorldACD said. After origin Asia Pacific with its 56% share of global tonnage growth this year, Europe came in as the second origin region accounting for a much lower 17% of global tonnage growth. That was followed closely by the MESA region, which contributed 14% of outbound tonnage growth this year despite its small size, bolstered by traffic shifting to air this year due to continuing disruptions to the region’s ocean freight markets caused by violence in the vital Red Sea corridor to the Suez Canal.
The types of freight that are driving Asia Pacific dominance in air freight exports begin with “general cargo” contributing almost two thirds (64%) of this year’s growth, boosted by large volumes of e-commerce traffic flying consolidated as general cargo. After that, “special cargo” generated 36%, with 80% of that portion consisting of the vulnerables/high-tech product category.
Among the top 5 individual airport or city origin growth markets, the world’s busiest air cargo gateway Hong Kong also remained the biggest single generator of YoY outbound growth in October, as it has for much of this year. Hong Kong’s +15% YoY tonnage increase generated around twice the growth in absolute chargeable weight of second-placed Miami, even though the latter had recorded +31% YoY growth compared with its tonnages in October last year. Dubai was the third-biggest outbound growth market, thanks to its +45% YoY increase in October, closely followed by Shanghai and Tokyo.
And on the inverse side of the that trendline, the top 5 YoY decreases in inbound tonnages were recorded in Teheran, Beirut, Beijing, Dhaka, and Zaragoza. Notably, Teheran’s and Beirut’s inbound tonnages almost completely wiped out as most commercial flights to and from Iran and Lebanon were suspended last month amid Middle East violence; tonnages at both airports were down by -96%, YoY, in October. Other location that saw steep declines included Dhaka, Beirut and Zaragoza – affected by political unrest, conflict, and flooding, respectively –followed by China’s Qingdao and Mexico’s Guadalajara.
A government watchdog group is calling for the Federal Aviation Administration (FAA) to take “long-overdue” action to modernize the nation’s aging, unreliable air traffic control systems, according to the Center for Transportation Policy (CTP).
The GAO report also said that over half of those unsustainable systems are especially concerning, but the FAA has been slow to modernize. Some system modernization projects won't be complete for another 10 to 13 years. But the FAA also doesn't have plans to modernize other systems in need—3 of which are at least 30 years old, the GAO report found.
“News out of the Government Accountability Office highlighting the vulnerabilities of our air traffic control systems is disturbing,” said Jackson Sheldelbower, executive director of the Center for Transportation Policy (CTP). “Pete Buttigieg and the Department of Transportation need to get their priorities straight. We’re urging federal officials to fast-track the repairs and modernization projects necessary to bring air travel into the twenty-first century.”
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The three additional 747-8Fs, secured through long-term finance lease agreements with BOC Aviation, are expected to enter service late in the third quarter of 2024.
“Atlas is the world’s largest operator of 747 freighters, and we are thrilled to expand our widebody fleet with these three 747-8Fs, following the four 747-400Fs we acquired and placed with customers under long-term agreements earlier this year,” Michael Steen, Atlas’ CEO, said in a release. “Our growth in this aircraft type underscores Atlas’ commitment to the 747-freighter platform and the value it provides our customers, including significant payload capacity and unique nose-loading capability.”
According to New York-based Atlas, the 747-8F provides the largest load capacity in the market, with a 20% increase in payload capacity over the 747-400F, despite consuming 16% less fuel than the 747-400F.
Atlas provides outsourced aircraft and aviation operating services through its divisions Atlas Air Inc., Titan Aviation Holdings Inc., and Polar Air Cargo Worldwide Inc.