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KLM reshapes cargo handling as AI demand fuels growth

KLM plans to consolidate cargo handling at Schiphol to accommodate additional freight without hiring more staff, as AI supply chains and disruption to ocean shipping strengthen parent Air France-KLM's cargo business. The changes form part of a wider restructuring, announced today, aimed at improving KLM's finances and its ability to fund investment. Freight carried on passenger aircraft and freighters will be handled in KLM's own warehouse at Schiphol, said the airline, adding that the consolidation would help attract more transfer freight and prepare for a new cargo terminal, scheduled for completion in 2035. "The increased cargo volumes will ultimately be handled without hiring additional employees," KLM said. It plans to achieve this through "simpler processes, greater automation and deploying employees across different activities". It also intends to expand services for customers requiring additional support, although it gave no further detail. The announcement follows conversations at last week's TIACA Air Cargo Forum in Miami, where The Loadstar heard that AI infrastructure shipments were contributing to transit cargo flows through Amsterdam. Air France-KLM's third-quarter results provided evidence of the wider demand trend. Group cargo revenue increased 25.2% year on year, to €677m ($760m), while cargo traffic revenue rose 24.9%, to €566m. The group attributed the growth to sea-to-air modal shift amid disruption around the Suez Canal and Strait of Hormuz, alongside AI-related demand. "The surge in air freight demand driven by AI-related supply chains tightened global market conditions," it said. This helped the group win additional volumes and full-freighter charter business, supporting yields. KLM's cargo traffic, measured in revenue tonne-km, rose 15.7% against capacity growth of 4.5%. Its cargo load factor increased 5.2 percentage points, to 53.9%. Across Air France-KLM, tonnage rose 5%, to 236,000 tonnes. Revenue per available tonne-km increased 21.9% at constant currency, with demand outpacing capacity growth. Scheduled and unscheduled maintenance constrained freighter availability. Schiphol's latest monthly figures show September cargo volumes of 127,750 tonnes, up 8% year on year, with growth of 10% over the first nine months. Freighters accounted for 54% of September tonnage, and belly cargo 46%. Despite cargo's performance, KLM said its overall profitability remained insufficient to support investment. Third-quarter adjusted operating profit rose to €458m, from a restated €352m a year earlier. "Fuel prices continue to put pressure on our results, our cost base remains too high," said KLM CEO Marjan Rintel. The Dutch carrier is seeking a further €1bn improvement in annual earnings, taking its total target to €1.4bn, and at least an 8% structural productivity increase by 2028. The wider programme involves around 5,000 positions whose work has been, or will be, reorganised, including transfers to external providers and the parent group. Productivity improvements are expected to result in approximately 1,000 fewer positions at KLM. The airline expects to limit the impact through natural attrition, voluntary arrangements, and internal transfers.

Wave of feeder newbuilds could bring a chill to charter rates in 2027

Feeder containership charter rates could face downward pressure in 2027 as a wave of newbuild deliveries adds capacity to a market that has enjoyed strong earnings in 2026. Ship brokerage Intermodal research analyst Vasilis Fousekis noted that the time-charter rate for a 1,700 teu geared feeder had climbed to about $33,750 a day for six to 12 months, up 19% year on year and more than double its 2023 level. A 1,000 teu vessel now earns approximately $18,750 a day, up 10% annually. Charterers are fixing sub-3,000 teu tonnage for delivery as far ahead as Q3 27, with average fixture periods extending to around two years. Linerlytica's report yesterday disclosed that Namsung Shipping had fixed the newly built 3,318 teu Sheng Shun 62 from Chinese owner Xiamen Hongtai Shipping for $37,000 a day for 23 to 25 months. Gemini Cooperation partners Maersk and Hapag-Lloyd, in need of tonnage to support their hub-and-spoke model, were also busy. Maersk fixed the 2000-built 2,442 teu Meratus Jayagiri from Indonesian feeder operator Meratus Line for $26,500 a day for two years, while Hapag-Lloyd chartered Germany's Hanse Bereederung's 2023-built 1,930 teu Cape Bruno for $21,250 a day for three years. Market strength has been driven by expanding intra-Asia trade, Middle East disruption, and persistent port congestion. Mr Fousekis said: "Behind this strength lies a restructuring of Asian trade flows. Product components are now assembled in Vietnam, Malaysia, and Indonesia before onward shipment, adding port calls that favour smaller tonnage." However, supply growth presents a more immediate challenge. The feeder orderbook stands at around 1.05m teu, across 635 vessels, equivalent to almost 20% of the existing fleet. Around 42% of the orderbook capacity is scheduled for delivery in 2027, with another 34% set for 2028, mainly in the 1,000-1,999 teu segment. With demolition remaining negligible, despite 30% of feeder capacity being at least 20 years old, fleet growth could reach around 6% next year. The outlook is also becoming less favourable with mainline operators set to make a full resumption of Asia-Europe services through the Suez Canal. Mr Fousekis explained: "The restoration of direct mainline calls at ports such as Jeddah could render some relay services, established during the Cape diversion, redundant as released mid-sized tonnage cascades into regional trades."

Rhenus sees Asia-Europe airfreight volumes grow despite challenges

Freight forwarder Rhenus has reported a double-digit percentage increase in its China-Europe airfreight volumes this year despite the impact of new European Union (EU) charges for the import of e-commerce packages. The Germany-headquartered firm said that between January and October its volumes from China to Europe had increased by 11% compared with a year ago. Rhenus attributed its strong result to "new customer wins" and added that high-tech is one of its fastest-growing air verticals on the lane. A company spokesperson added that its volume growth from China to Germany was even stronger - increasing by more than 20%. Eastbound, the company has also made progress, with airfreight volumes growing 20% year on year despite figures from data provider and consultant Rotate showing a 5% decline in overall market demand. This increase comes despite a "softer market", the company said, as a result of the European Union's introduction of a €3 charge for packages with a value of less than €150 as it tries to tackle the wave of e-commerce imports. Rhenus pointed to Rotate figures that show e-commerce volumes were down by 28% in July and August compared with June levels. Chris Bode, vice president airfreight at Rhenus, said: "Our strategy is to grow in sectors where specialist expertise makes a difference to customers' businesses. High-tech is a clear priority on the China-Europe corridor. "By combining sector knowledge with flexible access to airline capacity, we aim to turn this opportunity into sustained growth." Rhenus offers airfreight gateways in Shanghai and Hong Kong that provide consolidation and cargo handling, complemented by customs brokerage, warehousing and inland transport. Earlier this year, Rhenus told Air Cargo News it has the ambition to become a top 10 global logistics player through organic growth, selective acquisitions, strong regional expertise and a globally integrated network.