Transportation

Eastern Air Holdings and Flexport Announce Cargo Partnership Providing Net-New Capacity to Global Airfreight Market

Eastern_Air_Holdings
Eastern Air Holdings and Flexport, the platform for global logistics, today announced a multi-year contract for cargo services that will bring much needed net-new capacity to the global airfreight market. Eastern is expected to begin flying its B777 Express Freighters, once approved by the Federal Aviation Administration, twice weekly between Chicago International Airport (ORD) and Hong Kong International Airport (HKG) as well as Chicago International Airport (ORD) and Saigon's Ho Chi Minh City Airport (SGN) on behalf of Flexport.

The Eastern B777 Express Freighter is the first of its kind to market, designed specifically for eCommerce goods, and provides much needed cargo capacity to the global supply chain with its low-cost, reliable solution. The innovative design converts the main deck cabin of the widebody B777, traditionally a passenger aircraft, into a true cargo aircraft that will enable Flexport clients – some of today's most valuable global brands and fast-growing eCommerce companies – to fulfill consumer demand and keep goods moving

The soon-to-be launched service will join Flexport's extensive tech-enabled global airfreight, container freight station (CFS) and trucking network. As all shipments are managed via the Flexport Platform, clients utilizing the Eastern B777 Express Freighter service will benefit from end-to-end control of their shipments and continuous milestone visibility. Part of a comprehensive supply chain strategy, Flexport clients shipping from Asia hubs into the United States Midwest can use Flexport Platform data to determine high value SKUs and prioritize shipments to control costs and maximize the value of Eastern's innovative solution.

There is an urgent demand to develop new solutions that alleviate the constricted global cargo market, Our partnership with Flexport, combining the large volume of our B777 Express Freighter with Flexport's leading edge eCommerce technology and logistics platform, will fill that unmet need and add new capacity to the global cargo market."

Steve Harfst, Eastern Air Holdings President & CEO.
 

Eastern has developed new, creative solutions to help solve the global airfreight capacity crisis, and we're honored to partner with them, Flexport client demand for airfreight has roughly doubled while global capacity has remained approximately 10% below pre-pandemic levels. Our strategic agreement with Eastern will provide critical net-new capacity to the market and bring our two innovative companies together to help meet demand and fuel growth."

Neel Jones Shah, Executive Vice President and Global Head of Airfreight at Flexport.

As passenger travel remains depleted, the cargo constraints impacting the global supply chain continue to persist. Eastern has purchased five Boeing 777s for cargo conversion, with an option to acquire 30 additional Boeing 777s. As eCommerce-driven demand continues to grow, this new capacity provided by Eastern, and partners like Flexport, will deliver an innovative solution to ease the pain.

Eastern Air Cargo offers general cargo sales, cargo charters, ACMI/wet-leasing and dry leasing in customizable routes.

ABOUT EASTERN:
Eastern Air Holdings Inc. is the privately held parent company of three operating subsidiaries:  (1) Eastern Airlines LLC, a U.S. Part 121 Air Carrier operating scheduled and non-scheduled, international and domestic air transportation with a fleet of B767 and B777 aircraft; (2) Alta Aero Technic LLC (formerly known as Florida Modification Specialists), a Part 145 repair station providing aircraft maintenance services to a variety of Boeing and Airbus widebody and narrowbody aircraft types including B767 and B777 aircraft based in Kansas City, MO; and (3) Foxtrot Aero LLC providing P2F STC development and engineering services.

ABOUT FLEXPORT:
We believe trade can move the human race forward. That's why it's our mission to make global trade easy for everyone. Flexport is the platform for global logistics—empowering buyers, sellers and their logistics partners with the technology and services to grow and innovate. Companies of all sizes—from emerging brands to Fortune 500s—used Flexport technology to move nearly $19B of merchandise across 112 countries in 2021.

Spotlight

Spotlight

Related News

Supply Chain

J.B. Hunt to Acquire Brokerage Assets of BNSF Logistics for Expansion

J.B. Hunt | September 22, 2023

J.B. Hunt to acquire BNSF Logistics' brokerage operations, expanding its logistics capabilities. The acquisition builds on a 30-year partnership between J.B. Hunt and BNSF Railway. Brad Hicks, EVP of J.B. Hunt, highlights the value proposition for customers and growth opportunities. J.B. Hunt Transport Services, North America's supply chain solutions provider, has significantly expanded its capabilities. In collaboration with Burlington Northern Santa Fe, LLC, the company is making waves in the industry with the announcement of a definitive agreement. This agreement paves the way for the subsidiary, J.B. Hunt Transport, Inc., to acquire the brokerage operations of BNSF Logistics, LLC, a notable affiliate of BNSF Railway Company renowned for its comprehensive third-party logistics services, covering a wide spectrum, from full truckload and flatbed to temperature-controlled, drayage, expedited, and less-than-truckload services. Katie Farmer, CEO and President of BNSF Railway, mentioned, This agreement with J.B. Hunt reflects companies’ shared commitment to provide industry-leading intermodal service to the customers. This continues more than 30 years of partnership between BNSF and J.B. Hunt and builds on our announcement to further integrate our joint services. [Source – Business Wire] Additionally, BNSF Logistics also offers additional services such as warehousing, retail specialty, heavy-haul, and project services; however, these services are not part of the current transaction. This strategic move underscores J.B. Hunt's commitment to strengthening its logistics and supply chain position, enhancing its service offerings, and ultimately delivering greater value to its customers. Executive Vice President of People and President of Highway Services at J.B. Hunt, Brad Hicks, expressed that BNSF Logistics has demonstrated impressive customer service across various customer sizes. He highlighted that this acquisition, combined with their outstanding intermodal and J.B. Hunt 360box power-only service offering, will create a compelling value proposition for customers, foster growth opportunities for J.B. Hunt, and enhance service capabilities for BNSF Logistics' employee and agent model. In 1989, J.B. Hunt and BNSF Railway reshaped transportation with an innovative double-stack shipping solution, a pioneering concept that seamlessly combined rail and trucking services. In March 2022, these industry leaders initiated a collaborative effort to increase the intermodal sector's capacity significantly. This ongoing partnership builds upon a longstanding business relationship and shared strategic vision focused on delivering efficient, value-driven solutions to customers within the North American supply chain. As the transaction concludes, the brokerage operations of BNSF Logistics will become integrated into J.B. Hunt's integrated capacity solutions for segment reporting purposes. The acquisition will be financed using J.B. Hunt's existing cash balance and is on track to be finalized by the end of the year. It's important to note that BNSF Logistics currently offers value-added 3PL services for BNSF Railway. Upon the transaction's completion, a long-term service agreement will be established between BNSF Railway and J.B. Hunt, ensuring the continued provision of these vital services by J.B. Hunt for BNSF Railway. This strategic alignment is set to bolster operational efficiency, elevate service quality, and further solidify the commitment of both entities to the North American supply chain.

Read More

Supply Chain

Supply Chains Turn to Technology to Navigate Economic Volatility and Battle for Talent

Penske Logistics | October 06, 2023

The 28th Annual Third-Party Logistics Study, created by supply chain professor and researcher Dr. C. John Langley of Penn State University, along with NTT DATA and Penske Logistics, examined how supply chains are navigating today's challenges through the adoption of data-driven approaches and emerging technologies. The 2024 publication was presented at this year's Council of Supply Chain Management Professionals (CSCMP) EDGE conference in Kissimmee, Florida. The study surveyed third-party logistics (3PL) providers and users of 3PL services to understand the current state of 3PLs, how 3PL relationships are evolving, the increasing flow of data and the growing importance of automation. This year's report offers updated insights on navigating the talent crisis and economic volatility, the untapped potential of reverse logistics, the continued growth of the cold chain, the slowdown of online shopping and consumers' shifting expectations. The key findings are: 3PL-Shipper Relationships Continue to Strengthen: Shippers are more satisfied with their 3PLs in the most recent study. Shippers conveyed their positivity at a 95% response rate, up 12% from last year. However, there was an increase in the number of shippers that noted that they were either reducing or consolidating their 3PLs (78% this year vs. 71% last year). Battle for Talent is Increasing: 78% of shippers and 40% of 3PLs said labor challenges have impacted their service level agreements. The hardest positions to fill are for hourly workers, such as pickers and packers, and licensed hourly workers, such as truck drivers and equipment operators. 3PLs and shippers said they are adopting technology and automation to increase efficiency, make work safer and attract employees. Data, Analytics and Intelligence is Driving Supply Chain Optimization: The amount of data flowing between shippers and 3PLs continues to grow. Almost half of shippers and 3PLs identified the need and have plans toward automating supply chain planning decisions, and 25% of shippers and 27% of 3PLs said they have already started to automate low-risk decisions. Shippers see the greatest value in supply planning (65%), demand forecasting (61%) and inventory management (61%). 3PLs noted that they valued route optimization the most (61%), followed by inventory management (55%) and freight invoicing and billing (54%). Emerging Technology is Vital to Future Growth: It is agreed that emerging technology adoption is vital to the future growth of supply chains (87% of shippers and 94% of 3PLs). The top areas of interest are advanced predictive analytics, wearables and mobile technology, consolidated e-commerce platforms and warehouse automation and robotics. Improving Supply Chain Resiliency is a Priority for Shippers and 3PLs: Shippers and 3PLs are actively working to balance the need for resiliency with inventory levels, sourcing and cost. Information is aiding supply chains via data-driven decisions that allow for contingency planning and network optimization. Direct-to-consumer online sales have started to slow down, with shippers and logistics providers working to meet the ever-evolving needs of the consumer. Dr. Langley's research continues to capture and measure this evolving industry and document the transformation of the third-party logistics sector as new challenges and opportunities emerge. The 2024 study and past versions are available for download at www.3PLStudy.com. "The 3PL sector continues to face a number of externalities, and providers of logistics services are focused on improving logistics effectiveness and reducing overall supply chain costs," Dr. Langley said. "3PLs and their customers are leveraging their relationships along with technology, data, analytics and supply chain talent to increase agility and enhance success." "The 2024 3PL Study does an excellent job of untangling the complexities of today's supply chain and providing nuanced understandings of its underpinnings," shared Andy Moses, senior vice president, sales and solutions, Penske Logistics. "There are many needs that shippers have in the current environment and third-party logistics providers are in prime position to stabilize and adapt as needed." "Now in its 28th year, the 3PL Study continues to be a great benchmark of the supply chain trends as well as changes and emerging trends in the shipper & 3PL/4PL relationship," added Irv Grossman, senior vice president, NTT DATA Supply Chain Consulting (formerly Chainalytics). "The insights shared throughout will help both providers and shippers be more effective in today's supply chain environment." Penske Logistics is a Penske Transportation Solutions company headquartered in Reading, Pennsylvania. The company is a leading provider of innovative supply chain and logistics solutions. Penske offers solutions including dedicated transportation, distribution center management, lead logistics, freight management, transportation management, freight brokerage, and a comprehensive array of technologies to keep the world moving forward.

Read More

Logistics

GXO Brings Automation Expertise to Eddie Bauer

GlobeNewswire | October 23, 2023

GXO Logistics, Inc. the world’s largest pure-play contract logistics provider, announced today an agreement with Eddie Bauer, a SPARC group company, to optimize warehouse operations for the iconic American outdoor brand, including building a fully automated 385,000-square-foot warehouse. The Company will manage Eddie Bauer’s retail, ecommerce and reverse logistics, transitioning to the new automated distribution center upon its completion in the first half of 2024. We are delighted to put our industry-leading technology and expertise to work for the iconic brand Eddie Bauer, said Eduardo Pelleissone, President, Americas and Asia Pacific, GXO. The company is outsourcing its ecommerce, retail and reverse logistics and we’re looking forward to driving operational efficiencies for Eddie Bauer while supporting its growth strategy. The new, fully automated site will deploy a totes-to-person picking solution featuring GreyOrange technology as well as autobagger packing machines. GXO has successfully deployed similar totes-to-person solutions at other sites to optimize vertical space and tote-handling applications to deliver agility, accuracy and optimal workflows in support of efulfillment operations. Mark Dorwart, Chief Logistics Officer, SPARC Group, said “We chose to enter a strategic partnership based on GXO’s proven expertise in automation and its commitment to continuous improvement. With GXO’s new automated warehouse, we expect to achieve higher efficiency and increased productivity as well as enhance service to our customers.”

Read More