News / Interest in sea-air services on the rise, with new tech on the way to help

© Jirapatch Iamkate

While Maersk may have succeeded, integrated sea-air services from shipping behemoths MSC and CMA CGM appear not to have come to fruition, although sea-air has seen a recent uptick – and technology is developing to enable easier modal switch.

While some shipping-air-lines may not be interested, others are: Challenge Group has been interested in a relationship with Israeli compatriot Zim for some time.

“Via the hub in Liege and sub-hub in Tel Aviv, which we’ve started to develop, we want to combine sea-air wherever we can with them,” said Yossi Shoukroun, CEO.

“We are speaking to Zim, if not at the expected level of collaboration, but we have some collaboration. However, it would be nice to expand, let’s say, in much wider fields.”

In fact, the two CEOs had a meeting to discuss further collaboration two months ago – just before the 7 October attack on Israel.

“There had been an action plan to take our relationship further, but it was [overshadowed] unfortunately because of the situation in Israel.”

However, he said, Challenge was developing a relationship with MSC – but via its air cargo arm.

“We have a good relationship with MSC in Liege. They appointed Liege as one of their European hubs, on top of Malpensa. So, there is a good and strong collaboration with MSC. So we are collaborating with sea operators.”

MSC itself does not appear to have launched sea-air services, and did not respond to a request for information. Sea-air specialist and forwarder Nick Coverdale told The Loadstar he had not “come across MSC or CMA offering sea-air directly in the market – although maybe they do through the forwarders they own, which would be standard”.

He added: “Sea-air from last week has seen a slight uptick – but it’s temporary. Next year, I believe, unless a ‘logistical force majeure’ comes along, we’re in for a rougher ride than this year, and sea-air will be worse.”

But another forwarding source said he expected to see more sea-air services: “It definitely makes sense out of landlocked countries, and to the US via Los Angeles and Miami to Latin America.”

But he acknowledged, “it depends on the market”.

“It might work for three, or five, or six months, but then rates will change and it stops, and you start all over again. The smart companies watch and may use that product for three months, make the best out of it, and go.”

Maersk, which sells integrated services, in September launched a sea-air product via Oman, in partnership with the port of Salalah and Oman Airports, for cargo moving from Colombo to Cairo.

Christopher Cook, MD Maersk UAE, Oman and Qatar, explained: “The pilot cargo movement on the sea-air solution is a shipment of retail and lifestyle cargo from Colombo in Sri Lanka to Cairo in Egypt. The first leg was carried out on a Maersk vessel from Colombo to Salalah. From the port, the cargo was discharged and transported to Salalah Airport under a customs-bonded corridor. On arrival at the cargo terminal at Salalah Airport, the shipment underwent security clearance and was airfreighted on priority to Cairo, Egypt.”

Maersk added that the service had “several benefits”. It explained: “It can help reduce transit times on traditional east-to-west trade routes by 20-40%, compared to pure ocean transportation, and generate a cost saving of 10-20%, compared to pure air freight solution.

“Maersk’s strong collaboration with all involved stakeholders means customers will get prioritised bookings, loading and stowage, clearances and airlifting the cargo. Besides the obvious time and cost savings, the strategic location of Salalah Port and Salalah Airport allows Maersk to offer multiple service products, including a hub solution to connect new and emerging markets, making Oman a perfect gateway to the rest of the world.”

Meanwhile others are developing technology to help customers switch between modes. In October, Cathay Cargo and Airport Authority Hong Kong used ONE Record to accept shipments at Dongguan Logistics Park, in the Greater Bay Area in China, for cargo moved by ship to the airport.

The pilot scheme saw air-cargo shipments bound for Bangkok, Manila and Tokyo from forwarder Yusen Logistics accepted at the Cathay Cargo Terminal Dongguan and pass through AAHK security.

MSC Air Cargo, meanwhile, this week received its third freighter, via Atlas Air, with the fourth expected to be delivered this month. The new 777F will “complement the weekly service” and add new stops connecting Hong-Kong to Dallas, Liege to Atlanta and Singapore to Xiamen.