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FedEx Dubai facility gains IATA CEIV Pharma certification

FedEx's Middle East, Indian Subcontinent and Africa hub at Dubai World Central (DWC) in the UAE has been granted IATA Center of Excellence for Independent Validators (CEIV) Pharma certification. FedEx now holds a total of 30 CEIV Pharma certifications across its air hubs and cargo handling facilities around the world. CEIV Pharma certification validated the hub's capabilities across operational processes, storage facilities, equipment, quality management systems and regulatory compliance, FedEx noted. The FedEx hub at DWC is purpose-built to support high healthcare standards, it said. With a total footprint of 57,000 sq m, the facility incorporates a 170 sq m temperature-controlled storage area designed to support sensitive healthcare shipments. Taarek Hinedi, vice president of operations and planning & engineering at FedEx Middle East, Indian Subcontinent and Africa, stated: "Achieving the CEIV Pharma certification reflects our continued commitment to delivering healthcare logistics services that meet the highest international standards. "As supply chains become increasingly complex, healthcare customers need logistics providers that can safeguard product integrity while ensuring speed, compliance, and reliability. "Our hub at DWC is a critical gateway connecting businesses across the region to our global network, combining specialised cold-chain expertise, advanced technology, and visibility to help move critical shipments with precision and care." To maximise healthcare shipment visibility across that network, the express services giant combines its AI-powered FedEx Surround monitoring and intervention solution with FedEx SenseAwareSM sensor technology to provide near real-time insights into package location, temperature, and environmental conditions, enabling proactive intervention when required. FedEx developments It's been a busy couple of months for FedEx. Earlier this month (October), the Marseille, France-headquartered CMA CGM Group announced the successful closing of its acquisition of FedEx Supply Chain at an enterprise value of $1.4bn. With the completion of the acquisition, first announced in July, the CMA CGM Group and FedEx entered into multi-year commercial agreements related to air and ocean freight with the goal of unlocking broader global collaboration. The two companies plan to "collaborate on an air cargo capacity agreement on key strategic routes, including Asia-Europe", the CMA CGM Group confirmed. In August, FedEx announced plans to develop a fully automated air cargo hub at GMR Cargo City at Delhi's Indira Gandhi International Airport. Meanwhile, it appears that FedEx is now operating the vast majority of its fleet of MD-11F aircraft, following the model's temporary grounding last year.

Shippers stressing over risks from Suez Canal and Red Sea transits

The return of Asia-Europe container shipping services to routing via the Red Sea and Suez Canal continues, despite the deteriorating security situation due to the escalating Houthi-Saudi conflict. While commercial shipping's close proximity to an active war zone may raise eyebrows, the signs are that most carriers will take the opportunity to traverse Suez while they can. Even an attack on CU Lines' 2,400 teu CUL Klang last week was not enough to deter other carriers. The vessel was reported to have come under small arms fire in the southern area of the Red Sea. "Drewry is not privy to carriers' internal risk assessments, but irrespective of our own reservations about the ongoing security risk, we cannot deny the evidence that lines are returning to Suez ahead of our projected timeline," writes Drewry's head of container research Simon Heaney in a new analysis. "As such, we have adjusted our base case assumptions to a phase-back of Suez transits starting July/August, reaching 80% of pre-diversion level by February 2027. "We believe it will stay at that level through the forecast horizon, as carriers will want to retain optionality for network resilience purposes," he adds. However, he also notes that the cost implications for routing a vessel via Suez, compared with diverting round the Cape of Good Hope, may not be as wide as many think, despite the shorter two-week transit time and reduced fuel spend. "Drewry's slot cost comparison shows only a marginal economic benefit to using Suez, with a saving of approximately $1m per round-voyage, or $43 per slot, when comparing two services deploying ships of 24,000 teu that use either Suez or the Cape in both directions. "However, our calculations do not factor-in war-risk premiums, as this information is not readily available, nor the fact that the Suez Canal is known to commonly offer discounts to carriers to tempt them back. "Both line items are highly dynamic; war-risk insurance is often negotiated voyage by voyage, while any canal discounts are discretionary," he adds. This can cause particular problems for shippers, however, according to Antonis Rigalos, managing partner at ShiftX, a network of shippers that jointly negotiate with carriers on long-term contracts. He claimed that some routing decisions were taken on an ad hoc basis that could leave shippers exposed in terms of insurance cover "A couple of these carriers are doing ad hoc routings via Suez, and that creates a little bit of stress for shippers because some of the insurers don't have Suez coverage, and they have to apply for that," he told last week's Asia-Europe webinar produced by the Journal of Commerce. "So if the routing is set for Cape of Good Hope and suddenly the carrier decides to go via Suez, that insurance needs to be obtained on a short notice, and that creates stress for BCOs. "It needs to be plannable; it needs to be safe and consistent," he added. He noted that some services, such as CMA CGM's Japan-North Europe OCR string, was "clearly advertised" as a transSuez service. "It is clearly advertised with a fast transit time to Europe - 30 days transit time that can be chosen by shippers." According to Mr Heaney, if the war-risk premium charged by insurers to a carrier was 0.3% of the hull value of a 24,00 teu boxship with a newbuild price of $225m, that would lead to an extra 1.35m in insurance premiums for a round-trip voyage. "That on its own would tip the economic advantage over to the Cape routing, just," he adds. Of course, carriers have also begun to introduce Suez Canal and Red Sea surcharges to cover that cost - at the end of September, MSC announced it was extending its Piracy Risk and Suez Canal surcharges through October, which amount to $91 per teu ($55 per teu piracy risk and $36 per teu Suez Canal), meaning a full loaded 24,000 teu ship could, theoretically, pay $2.18m in surcharges. "It should be noted that insurers are known to offer rebates of around 50% for voyages that are safely completed with no incident, further muddying the calculations," Mr Heaney adds. However, Mr Rigalos also said that reports from ShiftX's BCO members were that current extra insurance costs for transSuez shipments for shippers had yet to become overly onerous. "I think it's manageable. What I understood from the BCOs is that it's not a big impact so far. "They only need to have that insurance in case something happens due to the Houthis and so on - it is important that cargo is insured, but the costs are manageable," he said.

Amazon adds two new China airfreight service offerings

Amazon Global Logistics has added two new service offerings for its airfreight operation between China and the US. Amazon said that the two new options - Air SMP and Economy Air - are aimed at providing customers with faster replenishment, more placement control, and lower costs. The firm's Air SMP option allows customers to split inventory at origin and ship by air directly to a locked fulfilment centre within each of its five US regions. Shipments arrive in an estimated seven to 10 calendar days from origin pickup, with daily flights from Shanghai and Hong Kong. There are no Fulfilment by Amazon (FBA) inbound placement service fees and no additional surcharges on apparel, electronics, or lithium battery products. Meanwhile, Economy Air provides a lower-cost air freight option with an estimated 11-15 day transit from Shanghai or Shenzhen to Los Angeles. "You still get air-speed replenishment that outpaces ocean freight by weeks, at rates lower than standard Amazon Global Logistics Air," the company said. "Both services are ideal for peak season preparation, stockout recovery, or time-sensitive product launches when ocean transit is too slow." The new service options come after the company realigned its supply chain operation this year. In the summer, the company reunited its Amazon Air operation with its ground transportation and sort centre teams under the leadership of Raoul Sreenivasan. The company said that bringing these operations together as one team means faster decisions, sharper planning, and a more seamless journey for every package it moves. Meanwhile, in May, the company expanded its third-party logistics offering with the launch of Amazon Supply Chain Services (ASCS). Services offered through ASCS include freight, distribution, fulfilment, and parcel shipping solutions.