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.”
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.
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.
Resurgent air cargo demand provided a quick recovery from July’s global IT outage, with rates rising for a sixth consecutive month and no significant ongoing disruption produced, according to a market analysis by Xeneta.
The software outage, which was caused by a buggy update from the Texas cybersecurity vendor Crowdstrike, shuttered Microsoft Windows-based systems around the globe and hit the air cargo sector particularly hard.
Initially, the July 19 IT outage brought widespread disruption, with flight delays and cancellations that lasted more than a week. The resulting cargo backlogs saw cargo load factors on some impacted airlines increase up to 4 percentage points compared to the previous week. Load factors had mostly recovered to pre-outage levels by 28 July.
But as is often the case, short-term panic among shippers and forwarders pushed up the price of capacity, which rose to its highest level of the year in the last week of July to a global average air cargo spot rate of $2.70 per kg, Norway-based Xeneta said.
For the month of July, global average air cargo spot rates reached $2.66 per kg, an increase of +20% higher year-on-year. That was driven by strong global cargo demand growth, as July volumes rose +13% year-on-year, thanks to buoyant e-commerce demand from Asia as well as the comparatively low demand base in the corresponding month in 2023.
In Xeneta’s forecast for the second half of the year, disruptions in the Red Sea will likely continue to pose risks to supply chains due to container vessels’ longer sailing times and reduced schedule reliability. Despite the container market’s early peak season, the current situation may last until China’s Golden Week in October. On top of this, potential sea port strikes in Hamburg and the US East and Gulf Coasts could coincide with the much-anticipated peak season for airfreight and apply further upward pressure on air cargo rates, as Xeneta highlighted last month.
“For the air cargo market, it’s now all eyes on late August for the first signs of a proper peak season, which would be the cherry on top of the cake for airlines after such unexpected volumes and demand growth in the first seven months of the year,” Niall van de Wouw, Chief Airfreight Officer at Xeneta, said in a release. “In July, had the IT outage taken longer to fix, we might have seen a slightly different outcome. However, once again, air cargo showed resilience, after seeming to have dodged another major disruption. Going into the peak time of the year, airlines might just be starting to think their tailwinds will hold out.”
Global air cargo tonnages returned to growth in the third week of April, thanks in part to a surge in traffic from Central & South America (CSA), as flower shipments ahead of upcoming Mother’s Day events in large parts of the world made up for stalling demand from Middle East & South Asia (MESA) linked to the Muslim holiday of Eid, which marks the end of Ramadan.
According to an air cargo report from Dutch firm WorldACD Market Data, total worldwide tonnages rose by 3% in week 16 (15-21 April), after recording week-on-week (WoW) declines of -2%, -4% and -6% in the previous three weeks due to a combination of the effects of various holiday periods such as Easter and Eid resulting in subdued cargo booking levels. Average worldwide rates held firm at $2.50 per kilo in week 16, the same level as the previous week and the equivalent week last year. But that rate remains significantly above pre-Covid levels: +39% compared to April 2019.
Both Central and South America (CSA) (+16%) and Africa (+15%) recorded strong WoW increases in tonnages in week 16, WorldACD found. Most (84%) of the tonnage growth ex-CSA can be attributed to higher flower exports to North America, ahead of Mother’s Day in the USA and Canada on 12 May, with flower export tonnages ex-CSA up by around 40%, WoW – representing more than one third (1 percentage point) of the (+3%, WoW) worldwide growth in tonnages in week 16. But the tonnage growth ex-Africa was led by fruits & vegetables (31% of Africa’s WoW growth) and general cargo (29% of Africa’s WoW growth), whereas flower exports represented only 10% of the WoW growth for origin Africa.
Although around 90 countries or territories around the world celebrate Mother’s Day on the second Sunday in May, analysis by WorldACD reveals that North America is by far the most important destination market for flowers shipped by air, consuming 63% of all the flowers flown from CSA and Africa in week 16 (and 92% of the WoW growth in flower exports from CSA and Africa combined).