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AIT acquires Connor Anderson

US-headquartered AIT Worldwide Logistics has finalised an agreement to acquire Australia-based freight forwarder Connor Anderson International. CAI delivers logistics support, including sea, air and road transport, customs brokerage, warehousing, and project cargo management for customers across a wide range of industries. In addition to its facility in Sydney, CAI also has a second office and warehouse in Melbourne. AIT said the acquisition is expected to strengthen AIT's specialised services for shippers in the technology industry who require logistics support to securely deliver cloud computing components and other high-value, high-touch equipment that enable artificial intelligence functions. "Notably, CAI's long-tenured team manages a wide variety of specialised cargo while increasingly emphasising distinctive services for technology companies serving the Australia and broader Oceania markets," stated AIT. "Global transportation logistics is increasingly complex, and AIT remains focused on developing reliable, customised supply chain solutions with the scope, flexibility and scalability to serve our customers' critical growth initiatives," said AIT's chief development officer, Ray Fennelly. "This acquisition, and the rapid integration that will follow, demonstrates our strategic response to customers in the region and serves as the foundation for AIT's long-term expansion to serve Oceania more broadly." He added: "CAI also features an experienced customs brokerage team, an uncommon, value-added aspect that guarantees full service, in-house support for clients with inbound shipments to Australia. "CAI and AIT have a longstanding collaborative relationship dating back to 2011. Ultimately, CAI's addition will help our customers scale faster in Oceania and execute complex projects with confidence in key industries like aerospace, automotive and technology." Terms of the acquisition have not been disclosed.

JB Hunt faces data breach lawsuits as hackers claim haul of carrier records

Companies that have faced a cyber attack are now increasingly likely to face lawsuits too, from customers or staff over any breach of data security. JB Hunt is the latest: it is facing four proposed class actions, after a cybercrime group claimed to have taken employee information and millions of business records from the US transport and logistics company. The suits, filed in the Western District of Arkansas on 27 and 28 October, allege JB Hunt failed to protect employees' personal information. Named plaintiffs include current and former workers. The claims have not been tested in court, and no class has yet been certified. Cyber attacks often leave logistics companies facing litigation beyond the immediate cost of restoring systems. Motor carriers sued freight broker TQL after a breach exposed business information, while employees and applicants brought claims against cold-chain operator Americold over compromised personal data. Expeditors has also faced claims from customers alleging losses after a 2022 attack disrupted services. The JB Hunt attacker, calling itself WhiteArmor, posted its claim on or about 23 October, although it is not clear exactly when the hack took place. The complainants repeat its claim to hold 140,838 employee records for a $5m ransom. One complaint also lists what WhiteArmor claims to hold: 1.7m carrier contacts, 38.2m invoices, 973 Microsoft 365 mailboxes, and records concerning 374,000 organisations. JB Hunt has not confirmed what information was accessed or how many people were affected. JB Hunt has acknowledged an incident took place, while stressing that freight operations have continued. A spokesperson reportedly told local media it was investigating "unauthorised access to certain information within an isolated portion" of its technology system. "Our systems remain operational, and there has been no disruption to our ability to serve customers," the spokesperson said. JB Hunt added it had brought in a cybersecurity firm, notified law enforcement, and revoked the unauthorised access. The lawsuits allege inadequate data security and seek damages and changes to the company's security practices. Aaron Hunter, a former employee, said in his complaint that he had received no individual breach notice as of 27 October, when he filed his complaint. For shippers and carriers, the unanswered question is whether any commercially sensitive information was accessed. The business data figures cited in the lawsuits are the hackers' assertions, while the legal claims filed so far focus on employees' personal information. Following a 2022 cyber attack that shut down most of Expeditors' operating systems, customers including iRobot and POC USA sued the forwarder over alleged losses from interrupted warehousing and deliveries. JB Hunt says its ability to serve customers has not been disrupted and the lawsuits do not allege any losses from halted freight movements.

Freighter conversions plug capacity gap but have limitations

Converted freighters play an important role in the air cargo industry's efforts to add more cargo capacity to the market, but they come with limitations, delegates were told at the TIACA Air Cargo Forum. During the "Freighter at the Forefront" panel session on Wednesday, Atlas Air's chief strategy and transformation officer Martin Drew asked how much of a role freighter conversions play in fleet replacement and bridging the capacity gap until the new generation Boeing 777-8F and Airbus A350F come to market. Bernard De L'Estoile, senior director of freighter marketing at Airbus, said that while converted freighters help fill a gap in the market, "they will not be ideal for everything and (for every operator) because they come with challenges, (they) come with limitations as well for operations". "It will only bring part of the solution," said De L'Estoile. "A converted freighter to me works well if the utilisation is low, because as soon as the utilisation is high then fuel burn kicks in, especially on long ranges. "Clearly a line built with its fuel economy will make the business case flip in towards a line-built aircraft. So for me the conversion isn't a sort of fit-all solution." Responding to the same question, John Perdoch, Boeing's director, product marketing - freighters pointed out the technology, fuel efficiency and cost advantages that a newbuild freighter has over a converted freighter. However, he conceded that given the current demand for widebodies, conversions are an obvious, practical solution. "We are in a supply shortage in this industry, especially in the large widebody space, and so it's natural for the industry to look for a way to bridge their fleets today into their future fleets, and naturally, we're going to think about how conversions play into that space." There are three widebody passenger-to-freighter (P2F) 777 conversion programmes in the market currently. Israel Aerospace Industries' (IAI) Boeing 777-300ERSF passenger-to-freighter (P2F) conversion programme was first to market. The first converted aircraft entered commercial service in September last year and more recently, IAI, Ascent Aviation Services and World Star Aviation announced the commencement of Boeing 777-300ERSF passenger-to-freighter (P2F) conversions in North America. Meanwhile, in April, Mammoth Freighters received Supplemental Type Certification (STC) from the Federal Aviation Administration (FAA) for its 777-200LRMF (Long Range Mammoth Freighter) freighter conversion. The company continues to make progress on its 777-300ERMF programme and expects FAA certification of that variant this year. Kansas Modification Center (KMC) announced in January it had reached a cargo door milestone and expected to begin flight testing and the supplemental type certificate (STC) process for its 777-300ERCF freighter conversion programme in the third quarter. Speaking about the current 777 conversions, Perdoch said that they are a natural stepping stone to the 777-8F, given their operational similarities, which will also be helpful for crew and ground handlers. "I actually think it's a super smooth transition from today's fleet, which adds much-needed capacity in the state of the market. Maybe not quite as much payload, not quite as low a fuel burn as a newbuild. But they're 100-ton freighters. That's a pretty good capacity to add to the market, and we think there's absolutely a place for it in (the industry)." Aside from 777s, aviation advisory firm IBA noted earlier this year that Boeing 767, Airbus A330-200 and A330-300 conversions are also in demand.