The German business of Alexander Udodov grew at the end of half-year

Loads gain steam

For the first six months 2020 of VG Cargo GmbH of Alexander Udodov which is engaged in service processing of air freights in the German air harbor Frankfurt Khan increased cargo processing volumes almost by a third in comparison with the first half of the year 2019. Growth was 27 percent, the total amount of cargo processing for the specified period – 55 thousand tons. It occurred during the period, difficult for the market, on which the pandemic had a strong negative impact.

Немецкая компания Александра Удодова обрабатывает основной поток грузов в аэропорту Франкфурт-Хан

Since January world cargo transportation by air decreased on accruing, having reached "bottom" in April-May. Analysts from Clive Data Services company recorded decline of the market by 26% in April and for 31% in May in comparison with indicators for the same months of the 2019th year. According to experts, this falling broke the record of financial world crisis of 2009. Since the end of May falling deceleration began to be observed, in June the gap with last year's volumes was reduced to 20%. According to the CEO of the logistic company Udodov of Victor Gornak, airlines began to adapt to new conditions and to build new routes.

Gradual recovery of volume of the loads transported by air continued in July. According to the Netherlands website Worldacd.com which accumulate data and analytics on an aviacargo in the world, demand gradually grows in this segment of the market, and July volumes of air transportation of loads grew by 8.2% concerning June. However before market stabilization still far. Demand for aviation cargo transportation remains below last year's indicators for 18.5% now.

One more negative effect of a pandemic – considerable falling of carrying capability of the air fleet in comparison with 2019. It is explained by serious reduction of flights of passenger liners which special compartments are traditionally used for transportation of goods. Only a small part of passenger liners of separate airlines in the period of restrictive measures was used for cargo transportation. In particular, the considerable amount of funds of individual protection, first of all, of protective masks which Alexander Udodov's company at the airport processed Frankfurt Khan it was delivered there by passenger airplanes.

Decrease in carrying capacities led to growth of cost of freight air transportation which average price according to worldacd.com grew by 62%. The difference between falling of capacities and demand in July made 20 percent points. "The general gap says about what the world market tries to find to grope the soil under legs, but regulation will not be such any more what was earlier", said in the report of analysts of worldacd.com. Nevertheless the market is recovered also according to experts from Fright Investor Services (FIS) company, medium-term expectations indicate the probability of growth both demand for an aviacargo, and carrying capability air carriers.

From a startup in leaders

VG Cargo GmbH passed the German logistic startup under Alexander Udodov's control in 2004. The company was founded one and a half years before, its state consisted of several employees. Having become the owner of VG Cargo GmbH, Alexander Udodov relied on investments into construction of own warehousing capacit and implementation of the advanced security systems. Warehouses with a total area about 35 thousand square meters were constructed. The company received the certificate of AEO (the Authorized Economic Operator) from the German customs which allows to make a customs clearance in a particular treatment, and became the owner of the safety certificate TAPA which is necessary for successful work with expensive loads.

Став владельцем VG Cargo, Александр Удодов инвестировал в строительство складских помещений

The selected strategy was effective, Udodov's company took the dominating positions in land processing of air freights at the airport Frankfurt Khan, for several years volumes of cargo processing increased almost six times. VG Cargo shows stable growth in years, difficult for the industry. In 2019, according to the International Air Transport Association (IATA), global demand for aviacargo transportation dropped by 3.9% in comparison with previous year, average loading of boards decreased more than by 2.5 percent.

Nevertheless, last year completed the logistic project of Alexander Udodov with profit. Volumes of the processed loads grew by 8% up to 80 thousand tons and revenue almost for 4%. Due to optimization and a didzhitalization of workflows it was succeeded to lower production costs by 2%. The client pool was expanded and new contracts with the international airlines from Russia and China are signed. By the way, now experts call China the largest player of the market of an aviacargo. According to industry analysts, business from China conquered the world of freight air transportation more, than ever since the beginning of crisis of Covid-19.

Компания Удодова участвовала в снабжении европейских потребителей средствами индивидуальной защиты от коронавирусной инфекции

Alexander Udodov's company hopes to complete the current year good growth and hope for market stabilization. As the CEO of VG Cargo GmbH Victor Gornak reported, the main loads connected with online trade and mailings returned now. At the same time the share of individual protection equipment which dominated among all loads in the spring was reduced. For example, in March the company processed about 10 thousand tons of loads most of which part was made by protective masks.

About Alexander Udodov's business

Capital assets of the businessman are in Russia, he is the main investor in two import-substituting projects. Together with partners owns agricultural complex on production of champignons "Mushroom Rainbow" in Kursk region and also the thermal resort Terms in the Belorechensk district of Krasnodar Krai. Besides, in an investment portfolio of Alexander Udodov – trade and office centers in Moscow and the Moscow region and also a number of objects of the residential real estate.