Listen: E-commerce in Latin America, new additions in Asia and 757s

In this week’s episode of the “Cargo Facts Connect” podcast, Cargo Facts Editor Jeff Lee and Associate Editors Andrew Crider and Robert Luke discuss a new partnership between Brazilian carrier Azul and e-commerce giant Amazon to provide cargo operations in northern Brazil. Azul also operates some of its aircraft on behalf of Latin American e-commerce company Mercado Libre. Meanwhile, a series of Boeing additions drove freighter transactions in Asia and the 757 platform continues to generate interest. Tune in for a discussion on these topics and more for the week ended Nov. 18, 2022. A transcript is available below. This transcript has been generated by software and is being presented as is. Some transcription errors may remain. Andrew Crider Hello, and welcome to this week's episode of cargo facts connect the podcast of cargo facts, the newsletter record for the freighter and aircraft industries for over 40 years. I'm your host, Andrew Crider, associate editor of cargo facts. Robert Luke And I'm your co-host, Robert Luke, associate editor at cargo facts. Jeff Lee And I'm Jeff Lee, editor of cargo facts. Andrew Crider I want to begin with breaking news that appears to have just crossed the wire. Global X has received US Department of Transportation authorization, increasing its fleet to 11 aircraft and paving the way to add two a321 freighters. This is all per a social media post posted by global crossing just an hour ago. We might have more news on this later. But I want to turn now to Jeff Lee who you bring some news a little bit down in the southern parts of our fine content in South America, Jeff Lee I was gonna say be careful what you refer to it can be down under but in Brazil. Amazon said that it is partnering with Brazilian carrier azul to basically increase capacity for the northern part of Brazil. And Azul will be carrying Amazon packages to happy, hopefully happy customers. We did try to reach out to Amazon and Azul because what we don't know is whether Azul is going to be using its two freighters or its modified Embraer e190 fives or just passenger bellies or a combination of all those. But it is interesting and I on the topic of azul, they do have 2 737 4 Hundreds. But we do know that they have a plan to remove these two Boeings in the next one or two or three years. And as we reported earlier this year or last year, they do plan to basically harmonize the entire fleet around airbuses, because on the passenger side, they have mostly an Airbus fleet And so they do intend to get a321 freighters. Those are the oddball you know the the only Boeings in their fleet. So it makes sense that in the long run, they do want to migrate towards airbuses and ATRs and Embraers but you know when it comes to the larger jets, these two are the only Boeing aircraft in the fleet. And we know they've had not issues but just it's challenging when you only have two of one type. Robert Luke It's interesting you brought that up because you know to me joining the wonderful cargo facts team I'm a part of I was doing some research and and when I saw azul actually doing the Embraer program all on their own initiative and dollar. The first thing that came to mind was you know them being able to play a significant role for Amazon not because of them doing the Embraer program but because their presence is you know, already regionally recognized throughout the continent and they already have accessible route structures in place to accommodate such a large logistics suppliers Amazon so it's very interesting that this is now coming full circle. In addition to that they also you know, work with Mercado libre and deliver ecommerce for them with their passenger aircraft and to Brazil as well. So now they're getting two logistical supplying e commerce giants that there'll be contracting for the region. So this is definitely groundbreaking news right here. Jeff Lee Right, I think they already have been playing for Mercado Libre. And I think when I asked them last time, they said that they were using the I think they were using those modified Embraers instead of the actual 737 freighters. So yeah, which is why I was interested to see whether whether they were using the the seven three sevens for Amazon but we haven't heard back yet. But then this this does bring us to the broader topic of E commerce and Freighters in South America doesn't it? Robert Luke it definitely does. And if you're looking at all of the action has taken place, you know, we recently reported Mercado Libre also teamed up with Gol and they took some 7378 hundreds on the contract with them to deliver ecommerce and you're really seeing a tremendous surge in the region for this type of express shipping and ecommerce delivery. And I think it is definitely going to aid the growth of the air cargo capacity down there because if you look in there In COVID, you know, when there was a capacity shortage, there was really really hardly any type of services being provided down here. It was just as if it was bare empty and a lot of produce it and shipments were being left on the docks because there wasn't any any lift capacity to move it. So kudos to all the South American operators and carriers and logistical freight forwarders and companies are coming together to ensure that this never happens again. So I'm looking forward to seeing the continued activity and how it all will develop overall in the future. Andrew Crider Moving on regionally, I wanted to touch on developments more for Southeast Asia, specifically Australia, Australia based cargo logistics company wise way group has decided to enter the freighter airline industry starting Wise way cargo airlines. They're doing this by buying a 51% stake share in the Philippines based Southeast Asian airlines or SEAIR are going to start operations with the 737 800 freighter, which will be what we believe might be the first to be operated in Australia, which will be home to two other 737 Classics operated by a couple of airlines there. That story is posted up on cargo facts.com. But that's back to you Rob because that wasn't the only Boeing freighter updates from Asia this week, wasn't it? Robert Luke You're absolutely right, Andrew, I mean, Boeing has been really, really hot down in the south Asia Southeast Asian region right now. And especially with them getting another two more 737 800 BCFs with Asia cargo network for its Indonesian subsidiary, Asia cargo airlines. But heading a little bit further up north. In China, Boeing actually struck a memorandum of understanding with an unknown Chinese lessor at the time, that they're also going to acquire some 737-800 BCFs So, you know, despite all of the reporting of slowdowns, and, you know, inflation and causing demand to kind of come to a halt, we're really seeing a lot of continued demands, particularly with the Boeing equipment. As we transition back to the United States where aersale also announced that it will exercise options on 4757 200 PCFs with precision aircraft solutions that they placed in January Plus, they're getting an additional two more to go with that. So if my numbers are correct, Jeff, and I know you will let me know if they're if they are or aren't. This will bring them to a total of 18 conversion orders that they now have for the 757 which I am really, really a fan of because I love that airplane. I remember when I flew on it as a kid until this day, I am convinced that there this aircraft is second to none. And I'm glad that there's still a strong demand for its presence in the freighter market so that it can extend its useful life here and operations. But that's pretty much what we've got going on from the boeing side of things that I that I'm aware of for the week. Jeff, what are your thoughts? Jeff Lee I was gonna say Andrew recently flew on a 757 and he enjoyed it too didn't you? Robert Luke It's powerful man. Andrew Crider I got a lot of love for the needle. I want to thank delta for giving me the opportunity to fly on their seven five seven by giving me an opportunity just operating the seven five on the route from Richmond to Atlanta for our connection to San Diego to go to CFS. But I I mean unknown Chinese lesson that's a big story and my band name will be playing at the camel tonight at 7pm Tickets go on sale at the door. I want to end this week. With a quick update on developments in the drone industry XWing was shared news that they're on track to receive certification in January and 2023 in outrigging their fleet of 35 Cessna 208 caravans with two sensors that these sensors will are going to be going under the the wings near the wing struts. And we'll have a LIDAR data and visual and optical sensors on these pods to give these aircraft the ability to to see and operate autonomously. The integration of these sensors are planned as I said for mid 2023. And we just this morning have gone over on to potentially a new aircraft type or drone type. Where are we saw a Cessna 206 Delivering turkeys to rural town in Mississippi just this morning. We're putting out some feelers now we hope to have more coverage on this website later? But unless anything, anyone else has anything else? Jeff Lee Speaking of Turkeys, I mean, we won't have our podcast next Friday. So we should wish everybody Robert Luke Happy turkey day, gobble gobble Andrew Crider Happy Thanksgiving to all of those who celebrate. That's all the time we have for today. For those of you listening thank you for tuning in to this episode of cargo facts Connect. For more multimedia content coverage like this search cargo facts connect on iTunes and Spotify and search cargofacts.com. Thank you very much for joining us. Subscribe to Cargo Facts Connect on iTunes or Spotify , or download the episode on Transistor .

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