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Global E-Tailing 2025: eCommerce and logistics set for growth in Sub Saharan Africa

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CAPE-TOWN – Over the next 10 years, online retail will continue to gain popularity in both developed and emerging markets and as a result, logistics companies are set to play a key role in providing vital supply chain management solutions that are able to evolve with consumers’ changing shopping habits.

This is one of the key findings in the DHL Global E-Tailing 2025 study, which analyses the role which eCommerce will play in consumer’s live in the year 2025, and how it will influence consumerism, retailing and logistics.

The study explores future scenarios with alternative views of what eCommerce globally could look like for consumers and businesses in the near future, depending of various economic factors. The different future projections are based on a detailed analysis of the most influential factors effecting economies – from energy and raw material prices to technological, political and social factors, to retail and consumption patterns.

According to Sumesh Rahavendra, Head of Marketing for DHL Express Sub Saharan Africa , e-tailing the sale of goods and services through the Internet has exploded globally, especially in emerging countries and despite the various possible future scenarios , it is clear e-tailing will continue to boom.

“Currently, eCommerce already makes up 8% of the overall trading volume in Europe. Depending on the scenario, this share could rise up to 40% in developed countries and up to 30% in today’s emerging markets,” says Rahavendra.

“The factor which all scenarios have in common is that the competition in electronic retail, whether on global, national or regional level, will become more intense. We don’t know for certain what the world will look like in 2025, but the study’s various scenarios show how rapid the global retail sector, both online and offline, is changing and that logistics will be a focal point of these change processes.

“While e-tailing can facilitate the transaction of the changing consumer trends, the delivery of the product needs to be considered. Many retailers put significant focus to attract customers, but more effort needs to be paid to facilitating flawless delivery to customers. Even more so when deliveries begin being measured in minutes, as opposed to hours and days. This will require logistics to adapt, as well as deliver competitive advantages, such as offering same day delivery and flexible returns.”

“In the future, logistics will take over the role as an enabler for online retailers even more so than today. As a logistics company, we have a good overview on companies in various industries in almost all countries of the world. In Africa, we are continually noticing the rise of e-tailing on the continent and we are increasingly becoming an advisor to these businesses and partner for success, as opposed to a just a traditional service provider,” concludes Rahavendra.

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Aviation

Aircraft Averts Crash, After Losing Door Mid-Air in Abuja

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The Nigeria aviation community heaved a sigh of relief on Thursday, after CL60 aircraft operated by Triton Aviation lost a door mid-air, yet managed to land safely.

The incident had forced the crew to declare an emergency shortly after take-off from the Nnamdi Azikiwe International Airport, Abuja, which panicked the aviation industry.

It was gathered that the aircraft, with registration number T7-SEI and flight identification DWC052, was en route to the Murtala Muhammed Airport, Lagos, when the incident occurred at about 4:20 pm.

According to the incident report, the crew informed the air traffic control tower that a door had opened in flight, prompting the approach radar controller to direct the aircraft back to Abuja for an emergency landing.

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The report further showed that the aircraft took off from Runway 22 at 4:17 pm UTC. It was “about three nautical miles from the airport, climbing through 3,000 feet, when the crew transmitted a distress call: ‘Mayday, Mayday, Mayday.’”

Following the distress call, airport fire and emergency personnel, as well as the medical team, were immediately alerted and placed on standby. Fire and rescue teams were also directed to designated positions to prepare for the aircraft’s return.

The incident report stated that at about 4:29 pm UTC, while in contact with the Abuja control tower, the crew asked whether the controllers could confirm if the door was open.

“The duty air traffic controller attempted to observe the aircraft using binoculars, but could not establish the door’s condition because of the aircraft’s position. The crew was subsequently informed that the controller could not confirm the situation visually,” the report said.

The aircraft eventually landed safely on Runway 22 at approximately 4:34 pm UTC, about 14 minutes after the Mayday call.

Following the landing, the duty controller observed that the aircraft’s door was missing from the fuselage, confirming the seriousness of the incident.

The jet was subsequently taxied to the international apron extension and parked with the assistance of a marshaller.

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Aviation

Shell Endorses Regional Action Plan for Safe Helicopter Services

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Shell Nigeria Exploration and Production Company Limited (SNEPCo) has welcomed efforts to promote safe helicopter services across Africa in a proposed Regional Action Plan (RAP).

The plan, according to a company statement, is the highlight of a workshop organised in Lagos within the week by the Aviation subcommittee of the International Association of Oil and Gas Producers (IOGP) in partnership with London-based safety advocacy group, HeliOffshore.

Biztellers reports that the two-day Offshore Helicopter Industry Safety Workshop (OHISW) with the theme “Developing a Regional Action Plan,” followed on from a similar session last year which SNEPCo sponsored.

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It also provided administrative and logistical support for this year’s conference which was sponsored by ExxonMobil. SNEPCo, which pioneered Nigeria’s deepwater production at Bonga in 2005, relies on helicopter shuttles for operations and supports the workshop as part of its contributions towards safe services in Nigeria.

In an address at the opening session delivered by General Manager Contracting and Supply Chain, Charles Oranyeli, Managing Director SNEPCo, Ronald Adams said: “By developing a regional action plan, we can move beyond dialogue to alignment, ensuring that the safety leadership, industry standards, and collaborative approaches championed last year are embedded in a common roadmap for collective improvement. The most effective solutions will come not from isolated efforts, but from partnership, standardization, and coordinated action across the region.”

The workshop was attended by more than 80 representatives from oil and gas companies, the Nigerian Content Development and Monitoring Board (NCDMB), the Nigeria Civil Aviation Authority (NCAA), the Nigerian Safety Investigation Bureau (NSIB), helicopter operators and original equipment manufacturers.

The event concluded with participants deciding action items for the proposed Regional Action Plan including Search and Rescue (SAR) initiatives, implementation of IOGP Report 690 standards and establishment of formal industry leadership forums.

The IOGP has been active for over 50 years, supporting its more than 90 members around the world to promote “excellence in safe, efficient and sustainable energy.”

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Airfares Likely to Rise as Aviation Fuel Price Spikes by 80%

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The Airline Operators of Nigeria (AON) has declared that airlines operating in Nigeria have come under financial pressure following a sharp increase in the price of Jet-A1, also known as aviation fuel.

According to the group, the price of aviation fuel, has surged to about N1,800 per litre in many parts of the country, from about N1,000 per litre two weeks ago. This amounts to almost an 80 per cent increase within a short period.

Aviation fuel remains the largest cost component in airline operations, accounting for about 30 to 35 per cent of total operating expenses.

Industry stakeholders have linked the latest spike to the ongoing conflict in the Middle East, which has pushed up global energy prices.

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Speaking on Channels Television on Friday, the spokesperson for the Airline Operators of Nigeria, Prof Obiora Okonkwo, said the surge had placed airlines under severe financial strain.

According to him, most carriers have so far refrained from immediately transferring the additional cost burden to passengers, despite the pressure on their operations.

“Two weeks ago, we were getting Jet-A1 at about N1,000 per litre, which today is about N1,800, and even more in some stations. We have experienced an increase of about 80 per cent. That’s quite a spike,” Okonkwo said.
He explained that airlines were currently absorbing the losses in order to avoid worsening the economic burden on the travellers.

“We are not in a business where you can easily adjust your ticket price. Right now what we are doing is that we are bleeding. We are taking the blow. We are selling tickets at very non-profitable prices. We are losing a lot of money,” he said.

Okonkwo warned that the situation might not be sustainable if fuel prices continue to rise without government intervention.

“Obviously, adjustments will be expected anytime soon. But again, we are very sensitive to the economic situation of Nigerians and our travellers,” he added.

He noted that developments in the global oil market, particularly the recent release of reserve crude oil, could influence fuel prices in the coming weeks.

Okonkwo also urged the Federal Government to explore engagement with the Dangote Refinery as part of efforts to stabilise aviation fuel supply locally.

“We were more hopeless in a situation where there was no refinery in Nigeria in the last two years. Now that we have a refinery, we are hopeful that we can find a solution around it,” he said.

According to him, if the spike persists, some airlines may struggle to continue absorbing the losses associated with the rising cost of aviation fuel.

Meanwhile, the AON spokesperson also reacted to the decision by the Federal Competition and Consumer Protection Commission to sanction about five airlines over alleged price fixing.

Okonkwo said while the commission has regulatory powers, the aviation sector remains deregulated, making coordinated price fixing unlikely.

“There is no meeting of airlines where they agree to fix prices. Fixing prices would mean operating as a cartel, and that is not the case,” he said.

He explained that airline ticket pricing varies widely because different aircraft types attract different operating costs.

“Each airline determines its fares based on its own operational costs,” he said.

Okonkwo added that airlines must also demonstrate financial viability to regulators as part of the conditions for maintaining their operating licences.

“At every point in time, you must prove to the regulators that you are financially viable and capable of sustaining operations,” he said.

He urged regulators to take into account the fragile nature of the aviation industry when making policy decisions affecting airlines.

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